Vote Smart's Synopsis:

Vote to pass a bill that amends state employee pension plans.

Highlights:

• Establishes an optional cash balance plan which Tier 1 state employees and retirees can opt into that will contribute to their pension plans in the following ways (Sec. 30):
• Authorize annual increases in monthly retirement annuities after reaching the age of 67 or on the fifth anniversary of the annuity start date, whichever occurs earlier;
• Authorize future increases in income to be included as compensation or salary; and
• Continue benefit disbursements under the State health insurance program.

• Requires Tier 1 state employees and retirees in an optional cash balance plan to (Sec. 30):
• Contribute 2 percent of their compensation to the State Retirement System; and
• Calculate automatic annual retirement increases at a rate of 3 percent or at a rate equal to one-half of the annual adjusted percentage increase of the Consumer Price Index for the previous year, whichever is less.

• Prohibits employees who return to State service from accruing interest through the optional cash balance plan (Sec. 30).

• Prohibits Tier 1 employees or retirees who opt not to participate in the optional cash balance plan from participating in the program of health benefits as an annuitant or retired employee receiving a retirement annuity (Sec. 30).

• Prohibits employees or retirees who opt not to participate in the optional cash balance plan from being required to make contributions toward the program of health benefits while he or she is an employee or active contributor (Sec. 30).

• Requires employees hired before January 1, 2013, to be excluded from participating in the optional cash balance plan if they have not opted in by May 31, 2013 (Sec. 30).

• Prohibits departments from offering and employees from accepting any future increases in income in a form that would constitute either compensation or salary if the employee did not opt into the optional cash balance plan (Sec. 30).

• Prohibits employees or retirees not participating in the optional cash balance plan from opting into the program after their original choice was made (Sec. 30).

• Authorizes the Illinois Supreme Court to compel the State to satisfy vouchers for contributions not paid to the retirement system from the General Revenue Fund (Sec. 30).

Full Bill Text