July 9
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July 9 Document Transcript

  • 1. 1 | O p e n P e n s i o n s . O r g July 9, 2013: State of Illinois Pension Reform Current Status  Currently, three bills are now in consideration o Senate Bill 2404: “Cullerton Plan” o Senate Bill 2404 Amendment #1: “Madigan Plan” o State Universities Retirement System (SURS) package  At this moment, no bill has the necessary support of both the Illinois Senate and Illinois House. Illinois General Assembly Legislative Conference Committee  Due to two pension reform proposals which cannot garner the support of the full General Assembly, a legislative conference committee has been established to find a compromise between the two bills.  The Committee conducted following public meetings: o June 30, 2013 in Chicago, IL. o July 3, 2013 in Chicago, IL. o July 8, 2013 in Springfield, IL.  Testimony at public meetings included representatives from the We Are One Public Unions Coalition, other public unions, civic organizations, governmental offices and public pension funds.  At the July 8th 2013 public meeting, the Conference Committee requested for actuarial analysis of the SURS reform proposal. o Committee members have expressed potential for the SURS plan to be a template for comprehensive reform. The six steps of the SURS Plan include: 1. Change the annual cost of living adjustment (COLA) 2. Change the value of the effective rate of interest 3. Shift contributions to colleges and universities 4. Increase employee contributions by an additional 2 percent 5. Request the state to amortize the current SURS unfunded liability 6. Provide a new “hybrid” defined benefit/defined contribution plan for new employees.
  • 2. 2 | O p e n P e n s i o n s . O r g Legislative Conference Committee (continued)  The Committee requested actuarial analysis – specifically on the SURS plan and comparable options – scheduled to be available by July 12 according to State Senator Kwame Raoul, Committee Chair.  Governor Quinn set a July 9, 2013 deadline for the conference committee to propose comprehensive pension reform bill. o Conference committee members have explained that they will not meet the July 9 deadline due to not having enough time to receive actuarial analysis. Time Table  After the July 9, 2013 deadline, it is expected Governor Quinn will set a new deadline for a comprehensive reform proposal. Options  Governor Quinn Declared “Consequences” o Governor declared the General Assembly would faces “consequences” if no proposal was announced by July 9. o Committee members at the July 8 meeting asked for specifics details; Governor’s Budget Director failed to articulate.  Conference Committee Announces Proposal o According to their own calendar, outside any deadlines set by the Governor.  Conference Committee Fails To Reach An Agreement o Then a new conference committee will be formed according to state law.