Weekly Legislative Report

Transcription

1 Weekly Legislative Report ILLINOIS STATE EMPLOYEES ASSOCIATION RETIREES By: Jessica Nardulli & Tom Ryder Legislative Update and Report prepared for Illinois State Employees Association Retirees for the week beginning May 17, The House and Senate return today for four days of debate and votes. The four legislative leaders will sit down today with the Governor to discuss the budget and, possibly, some of the items on Governor Rauner s Turnaround Agenda. Last week, rank and file legislators cobbled a compromise budget together and forwarded it to the leaders for their consideration. Just about no one is getting their hopes up that a budget that proposes raising the income tax, taxing certain services and closing corporate tax loopholes will go anywhere without any concessions to Governor Rauner on his Turnaround Agenda. Last week, a change in the K-12 school funding formula passed the Senate with very little hope of passing the House. Also, a $700 million Human Services appropriation bill intended to provide emergency relief to social service providers was sent to the Governor with bipartisan support.

2 1 ILLINOIS STATE EMPLOYEES ASSOCIATION RETIREES KEY LEGISLATION HB 4532 PEN CD-SURS-SELF MANAGED PLAN House Sponsors Rep. Carol Sente-Elaine Nekritz-Jeanne M Ives-Michael J. Zalewski-Stephanie A. Kifowit, Jerry Costello, II and Sheri Jesiel Senate Sponsors (Sen. Daniel Biss) Amends the State Universities Article of the Illinois Pension Code. Requires the System to provide advance notice to a participant in the selfmanaged plan of the participant's obligation to direct the investment of employee and employer contributions into one or more investment funds selected by the System at the time he or she makes his or her initial retirement plan selection. Provides that if a participant in the self-managed plan fails to direct the investment of employee and employer contributions into the various investment options offered to the participant when making his or her initial retirement election choice, the System shall invest the employee and employer contributions in a default investment fund on behalf of the participant, and the investment shall be deemed to have been made at the participant's investment direction. Provides that the participant has the right to transfer account balances out of the default investment fund during time periods designated by the System. Effective immediately. 4/20/2016 Senate Referred to Assignments HB 6021 PEN CD-SURVIVOR CONTRIB REFUND House Sponsors Rep. Sam Yingling-Ed Sullivan-Carol Ammons-Kathleen Willis-Elaine Nekritz Senate Sponsors (Sen. Daniel Biss) Amends the Illinois Municipal Retirement Fund (IMRF), State Universities, and Downstate Teacher Articles of the Illinois Pension Code. Provides that certain annuitants who received a refund of contributions for survivor benefits may elect to repay the refund, with interest, and have their survivor benefit rights reinstated. Specifies the required time and manner of repayment. In the IMRF and State Universities Articles, requires that the annuitant (1) retired prior to June 1, 2011, and (2) is a party to a civil union, marriage, or other legal relationship that is recognized as a civil union or marriage under the Illinois Religious Freedom Protection and Civil Union Act or the Illinois Marriage and Dissolution of Marriage Act on or after certain specified dates. Also, in the IMRF Article, extends application of a provision added by Public Act to spouses of annuitants who die on or after the effective date of

3 2 this amendatory Act. Effective immediately. Land Conveyance Appraisal Note (Dept. of Transportation) No land conveyances are included in HB 6021; therefore, there are no appraisals to be filed. Housing Affordability Impact Note (Housing Development Authority) This bill has no fiscal effect on constructing, purchasing, owning, or selling a single-family residence. State Debt Impact Note (Government Forecasting & Accountability) HB 6021 would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness. Judicial Note (Admin Office of the Illinois Courts) This bill would neither increase nor decrease the number of judges needed in the State. House Committee Amendment No. 1 Deletes everything after the enacting clause and reinserts similar provisions. Changes the period during which the election may be made, from calendar year 2016 to a period of one year beginning 5 months after the effective date of the amendatory Act. In the State Universities Article of the Illinois Pension Code, adds an additional reference to repayment of the survivors insurance contribution refund or additional annuity payments. Effective immediately. Fiscal Note (Teachers' Retirement System) Administrative cost impact - Administering the provisions of this bill would not increase the administrative costs of TRS. Actuarial cost impact - No increase in State funding requirements is expected if this bill becomes law. The costs of the survivor benefit program are covered by the member's 1 percent survivor benefit contribution. Judicial Note, House Committee Amendment No. 1 (Admin Office of the Illinois Courts) This bill would neither increase nor decrease the number of judges needed in the State. Land Conveyance Appraisal Note (Dept. of Transportation) No land conveyances are included in this legislation, therefore, there are no appraisals to be filed. Balanced Budget Note, House Committee Amendment No. 1 (Office of Management and Budget) The net cost of House Bill 6021 (H-AM 1) to TRS or SURS cannot be determined at this time. IMRF could experience additional cost, but since IMRF receives no state funding, this portion of the bill has no impact on the state budget. Pension Note, House Committee Amendment No. 1 (Government Forecasting & Accountability) The fiscal impact of HB 6021 (H-AM 1) cannot be determined as the precise number of members who would be impacted by this proposal is difficult to discern because it is not known how many qualified members would make this election. The Teachers' Retirement System stated that the survivor contribution should cover the cost of the benefit program, and should not result in an increased cost. However, the Illinois Municipal Retirement Fund foresees a minimal fiscal impact, and the State Universities Retirement System stated that it is not possible to measure the extent of a fiscal impact from this bill. State Debt Impact Note, House Committee Amendment No. 1 (Government Forecasting & Accountability)

4 3 HB 6021 would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness. 5/12/2016 Senate Placed on Calendar Order of 2nd Reading May 17, 2016 HB 6292 PEN CD-COOK CO-DISABILITY House Sponsors Rep. Laura Fine Senate Sponsors (Sen. Daniel Biss) Amends the Cook County Article of the Illinois Pension Code. Allows the board of the Fund to waive the required physician's proof of disability if (1) the employee has been compensated by the county for the disability or specific loss under the Workers' Compensation Act or Workers' Occupational Diseases Act or (2) the employee claims ordinary disability of up to 8 weeks for maternity. Provides that an employee who enters service after December 31, 2016 and who, while in receipt of an ordinary or duty disability benefit, assumes any employment for compensation, shall not be entitled to receive any amount of such disability benefit which, when added to his compensation for such employment during disability, plus any amount payable under the provisions of the Workers' Compensation Act or Workers' Occupational Diseases Act, would exceed the rate of salary on which his disability benefit is based. Effective immediately. House Floor Amendment No. 2 Removes provisions that limit the amount of disability benefit that an employee who enters service after December 31, 2016 may receive if he or she assumes any employment for compensation. Removes the effective date. Senate Committee Amendment No. 1 Replaces everything after the enacting clause. Amends the General Provisions Article of the Illinois Pension Code in relation to investment transparency. Defines terms. Provides that within 90 days after entering into an agreement to invest in an alternative investment fund, a public retirement system must disclose certain specified provisions of the agreement. Also provides that a public retirement system shall require its alternative investment fund external managers and general partners to make certain annual disclosures concerning certain fees and expenses, in regard to each alternative investment fund. Declares the disclosures to be public records and requires their publication on the system's website. Effective immediately. 5/12/2016 Senate Placed on Calendar Order of 2nd Reading May 17, 2016 SB 777 PEN CD-SURS-ADMINISTRATIVE Senate Sponsors Sen. John J. Cullerton-Iris Y. Martinez, Donne E. Trotter and Martin A. Sandoval House Sponsors (Rep. Barbara Flynn Currie and Edward J. Acevedo)

5 4 Amends the State Universities Article of the Illinois Pension Code. Adds a cross-reference to a provision relating to earnings for service before becoming a participant. Defines "plan year". In a provision concerning repayment of certain refunds, requires interest from the date the refund was issued rather than the date it was received. Clarifies a provision relating to the purchase of service credit by inactive participants. House Floor Amendment No. 4 Replaces everything after the enacting clause. Amends the Chicago Police and Chicago Firefighter Articles of the Illinois Pension Code. For payment years 2016 through 2020, specifies the amount for the City of Chicago's required annual contribution to each fund. Provides that beginning in payment year 2021, the City's total required contribution to each fund shall be an amount that is equal to the normal cost of the fund, plus an amount sufficient to bring the total assets of the fund up to 90% of the total actuarial liabilities of the fund by payment year 2055 (instead of 2040); changes the actuarial cost method to entry age normal. Includes provisions for funding from any proceeds received by the city in relation to the operation of a casino within the city. Provides a mechanism to enforce funding through mandamus. Creates a new minimum retirement annuity provision based on the federal poverty level for certain persons. Effective immediately. 3/31/2016 Senate Sent to the Governor SB 1059 STATE EMPLOYEE GROUP INSURANCE Senate Sponsors Sen. Chapin Rose House Sponsors (Rep. Bill Mitchell) Senate Floor Amendment No. 1 Replaces everything after the enacting clause. Amends the State Employees Group Insurance Act of Provides that the definition of "employee" includes persons who otherwise meet that definition but are ineligible to participate in the State Universities Retirement System because they received a distribution of vested amounts under the self-managed plan established in the State Universities Article of the Illinois Pension Code while eligible to retire under that System. Effective immediately. 5/17/2016 House Assigned to Executive Committee SB 2314 SEGIA-TEMP EMPLOYEES Senate Sponsors Sen. Sue Rezin House Sponsors (Rep. Margo McDermed) Amends the State Employees Group Insurance Act of Provides that State benefit recipients are eligible for the basic program of health benefits, but are not eligible for group life insurance benefits or other optional coverages or benefits available to employees. Provides that the term "State benefit recipient" means a person in the service of a department who: (1) is not a member; (2) receives salary or wages for personal service rendered to the department; and (3) is employed in a position normally requiring actual performance of duty during not less than 30 hours per week. Provides that the term "State benefit recipient" does not include any person deemed to

6 5 be an independent contractor or any person who is employed by any State-contracted vendor and is performing services pursuant to the contract between the vendor and the State. 4/22/2016 House Referred to Rules Committee SB 2338 FINANCE Senate Sponsors Sen. Dale A. Righter Creates the Unbalanced Budget Response Act. Provides authority and procedures for the Governor to transfer previously appropriated funds between programs, purposes, accounts, agencies, or appropriation line items, and to transfer balances between special funds in the State treasury and the General Revenue Fund. Describes the agencies and programs subject to this authority. Provides that designated agencies may adopt emergency rules to carry out the purposes of the Act. Defines terms. Provides that the Act is repealed on July 1, Amends the Illinois Administrative Procedure Act to make conforming changes. Amends the Illinois Public Aid Code. Adds actions taken under the Unbalanced Budget Response Act to a Section relating to applicability. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately. 2/16/2016 Senate Assigned to Appropriations I SB 2362 PEN CD-SURS-SELF MANAGED PLAN Senate Sponsors Sen. Daniel Biss House Sponsors (Rep. Elaine Nekritz) Amends the State Universities Article of the Illinois Pension Code. Requires the System to provide advance notice to a participant in the self-managed plan of the participant's obligation to direct the investment of employee and employer contributions into one or more investment funds selected by the System at the time he or she makes his or her initial retirement plan selection. Provides that if a participant in the self-managed plan fails to direct the investment of employee and employer contributions into the various investment options offered to the participant when making his or her initial retirement election choice, the System shall invest the employee and employer contributions in a default investment fund on behalf of the participant, and the investment shall be deemed to have been made at the participant's investment direction. Provides that the participant has the right to transfer account balances out of the default investment fund during time periods designated by the System. Effective immediately. Senate Committee Amendment No. 2 Replaces everything after the enacting clause with the bill as introduced, plus the following additional provisions: Further amends the Illinois Pension Code. In the Illinois Municipal Retirement Fund (IMRF) Article, with respect to establishing certain types of service credit in the Fund, provides that application and payment must be received by the Board while the applicant is an active participant, except that one payment will be permitted after termination of participation. In the State Employees Article: (1) allows licensed healthcare practitioners (rather than just physicians) to make certain disability determinations; (2) authorizes the Board to waive certain

7 6 disability application deadline requirements; (3) provides that certain disability benefits shall be payable retroactive to the date of eligibility; and (4) also makes changes relating to Social Security full retirement age and to hearings under certain provisions of the Workers' Compensation Act and the Workers' Occupational Diseases Act. In the Judges Article, makes changes concerning the application of certain provisions to Tier 2 judges. Effective immediately. 4/20/2016 House Referred to Rules Committee SB 2596 INS CD-MULTIPLE SCLEROSIS Senate Sponsors Sen. Terry Link-Linda Holmes, Bill Cunningham-Antonio Muñoz, John G. Mulroe-Jacqueline Y. Collins, Mattie Hunter, Emil Jones, III, Michael E. Hastings, Thomas Cullerton-Don Harmon, Iris Y. Martinez, Napoleon Harris, III, Daniel Biss, Melinda Bush, Patricia Van Pelt, Andy Manar and Tim Bivins House Sponsors (Rep. Fred Crespo) Amends the Illinois Insurance Code. Provides that a group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of the amendatory Act must provide coverage for medically necessary preventative physical or rehabilitative therapy for insureds diagnosed with multiple sclerosis without any treatment limitation or calendar year maximum as determined by the patient's treating physician. Makes changes to the provision's definition of "preventative physical therapy" to include physical and other rehabilitative therapy. Removes requirements that coverage under this provision be subject to the same coinsurance, waiting period, cost sharing limitation, treatment limitation, calendar year maximum, or other limitation as provided for other physical or rehabilitative therapy benefits. Senate Floor Amendment No. 1 Replaces everything after the enacting clause. Amends the State Employees Group Insurance Act of Provides that physical therapy benefits provided for persons affected by multiple sclerosis shall be governed by the Illinois Essential Health Benefits plan. 5/17/2016 House Assigned to Executive Committee SB 2717 PUBLIC EMPLOYEE BENEFITS-TECH Senate Sponsors Sen. Christine Radogno Amends the Illinois Pension Code. Makes a technical change in a Section concerning definitions. 4/6/2016 Senate Placed on Calendar Order of 3rd Reading April 7, 2016

8 7 SB 2894 PEN CD-IMRF-RETRO SURVIVOR BEN Senate Sponsors Sen. James F. Clayborne, Jr.-Iris Y. Martinez House Sponsors (Rep. Robert Martwick) Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Deletes the oneyear limit on backdating a survivor benefit. Effective immediately. Senate Committee Amendment No. 1 Replaces everything after the enacting clause. Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Deletes the one-year limit on backdating a survivor benefit. Provides that annuity payments for periods before the application date shall be paid without interest based on late payment. Authorizes annuitants previously limited by the one-year limit to reapply for benefits for the period denied. Applies without regard to whether the deceased spouse was in service on or after the effective date of the amendatory Act. Effective immediately. 5/12/2016 House Placed on Calendar 2nd Reading - Short Debate SR 317 PENSION TIER 2 - IMPACT Senate Sponsors Sen. Daniel Biss-Kwame Raoul, John M. Sullivan, John G. Mulroe, Scott M. Bennett, Bill Cunningham, Toi W. Hutchinson and Donne E. Trotter Urges the Teachers' Retirement System and the State Universities Retirement System to pursue an Internal Revenue Service ruling on the compliance of Tier 2 with safe harbor provisions under Section 3121(b)(7)(F) of the Internal Revenue Code of Senate Committee Amendment No. 1 Makes a technical correction. 5/31/2015 Senate Resolution Adopted as Amended