Legislation 99th General Assembly (2015-2016)

Senate

SB 1334
- Aspirational Diversity Goals for State Contracts
Sponsor(s): Senator James F. Clayborne Jr. and Representative Arthur Turner

   Became Public Act 99-0462 on 8/25/2015

SB 1334 establishes that, beginning January 1, 2016, it is the aspirational goal for a retirement system, pension fund, or investment board under the Illinois Pension Code to use emerging investment managers for not less than 20% of total funds under management.  

SB 1334 establishes that it is the aspirational goal that not less than 20% of investment advisors be minorities, females, and persons with disabilities.  

SB 1334 establishes that it is the aspirational goal to utilize businesses owned by minorities, females, and persons with disabilities for not less than 20% of contracts awarded for internet technology services, accounting services, insurance brokers, architectural and engineering services, and legal services.  

SB 1334 also makes changes to the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

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SB 1761
- No Investments in Companies that Boycott Israel
Sponsor(s): Senator Ira I. Silverstein and Representative Sara Feigenholtz

   Became Public Act 99-0128 on 7/23/2015

SB 1761 prohibits investments in companies that boycott Israel and streamlines the current divestiture policies for Iran and Sudan. 

SB 1761 defines boycotting Israel as "engaging in actions that are politically motivated and are intended to penalize, inflict economic harm on, or otherwise limit commercial relations with the State of Israel or companies based in the State of Israel or in territories controlled by the State of Israel." 

Additionally, SB 1761 creates the Illinois Investment Policy Board, consisting of 4 members appointed by the Governor and 3 members appointed by each of the Boards of the State Universities Retirement System, Teachers Retirement System, and Illinois State Board of Investments, respectively.   The Illinois Investment Policy Board will identify all Iran-restricted companies, Sudan-restricted companies, and companies that boycott Israel and develop a list of restricted companies for the retirement systems. 

The Illinois Investment Policy Board will also send a written notice to a company informing it of its status on the list of restricted companies and that it may become subject to divestiture by the retirement systems and will collect information from each retirement system regarding investments sold, redeemed, divested, or withdrawn from the list of restricted companies in accordance with the Act. 

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SB 1810
- FY 2017 Stopgap Budget Implementation Act
Sponsor(s): Senator Donne E. Trotter

   Became Public Act 99-0523 pm 6/30/2015

SB 1810 creates the FY2017 Stopgap Budget Implementation Act.  SB 1810 contains budget implementation language authorizing use of money in the State Pensions Fund as part of the annual required State contribution to SURS for Fiscal Year 2017.  SB 1810 also makes other changes.

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SB 2047
- FY 2016 and FY 2017 Stopgap Budget
Sponsor(s): Senator Donne E. Trotter and Representative Barbara Flynn Currie

   Became Public Act 99-0524 on 6/30/2015

As it relates to SURS, SB 2047 appropriates $190 million from the State Pensions Fund as part of the annual required State contribution to SURS for FY 2016 and appropriates $190 million from the State Pensions Fund as part of the annual required State contribution to SURS for FY 2017.  SB 2047 also makes other appropriations.

In Fiscal Year 2016, SURS received $190 million from the State Pensions Fund and submitted vouchers for payment of the remaining $1,411,480,000 of the annual required State contribution from the General Revenue Fund under the State Pension Funds Continuing Appropriation Act.  Additionally, $4,624,625 was transferred from the General Revenue Fund to the Community College Health Insurance Security Fund under the State Pension Funds Continuing Appropriation Act for the State contribution to the College Insurance Program (“CIP”) for FY 2016.  

Under current law, the State Pension Funds Continuing Appropriation Act gives SURS the ability to submit vouchers for an amount up to the full certified State contribution to the System ($1,671,426,000 for FY 2017) for payment from the General Revenue Fund.  SB 2047 appropriates $190 million of the annual required State contribution for FY 2017 from the State Pensions Fund instead of the General Revenue Fund.  This means that SURS will receive the remaining $1,481,426,000 from the General Revenue Fund for FY 2017 under the State Pension Funds Continuing Appropriation Act.

The State Pension Funds Continuing Appropriation Act also annually appropriates an amount equal to the full certified State contribution for CIP ($4,309,111 for FY 2017) from the General Revenue Fund to the Community College Health Insurance Security Fund.

Status: Governor Rauner Signed into Law on 6/30/2016 as Public Act 99-0524 (Senate Vote: 54-0-0; House Vote: 105-4-1).

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SB 2156
- SURS Participation, Basic Compensation, and Earnings Limitations
Sponsor(s): Senator Bill Cunningham and Representative Kelly M. Burke

   Became Public Act 99-0897 on 8/26/2016

SB 2156 makes the following changes for employees:

  • It excludes individuals who begin employment with the following employers on or after the effective date from participation under SURS: certain associations of community college boards, the Association of Illinois Middle-Grade Schools, the Illinois Association of School Administrators, the Illinois Association for Supervision and Curriculum Development, the Illinois Principals Association, the Illinois Association of School Business Officials, and the Illinois Special Olympics, and any entity not defined as any employer.  It also requires the SURS Board of Trustees to promulgate rules to determine whether a person is an employee covered under SURS and gives the Board final determination as to whether a person is an employee covered under SURS. 

  • It excludes amounts for bonuses, housing allowances, vehicle allowances, social club dues, and athletic club dues from the calculation of pensions for employees who first become participants of SURS on and after the effective date of the legislation.

  • It provides that if a participant, beneficiary, or annuitant fails to provide any information necessary for the calculation, payment, or finalization of a retirement, survivors, disability, or death benefit within 90 days of the System’s request for such information, then the System may cease processing the benefit and may not pay any additional benefit payment until the requested information is provided.

SB 2156 makes the following changes for employers:

  • It requires an employer to respond to a request from SURS for any information necessary for the proper administration of the System (including employment contracts) within 90 calendar days and to respond to a request pursuant to an employer audit conducted by the System within 60 calendar days.  

Beginning on the 91st calendar day after the System’s request for information necessary for the proper administration of the System, or the 61st calendar day if the request is pursuant to an employer audit, it allows the System to assess a penalty of $250 per calendar day until the System receives the information, with a maximum penalty of $25,000.   Should the employer fail to make the required payment within the earlier of one calendar year after receipt of the information by the System or one calendar year of the employer reaching the maximum penalty of $25,000, the legislation allows the System to seek payment from the Comptroller through State funds payable to the employer.

  • It requires employers under SURS to certify with each payroll submission that the information is correct and complies with all applicable State and federal laws.

SB 2156 also makes the following changes related to furloughs and voluntary pay reductions experienced by public higher education employees:

  • It allows a SURS participant to establish service and earnings credit for periods of furlough, beginning on or after July 1, 2015 and ending on or before June 30, 2017.  The participant must pay the required employee and employer contributions, in addition to compounded interest at the actuarially assumed rate of return, to establish the service and earnings credit.  The compounded interest applies from the date of furlough until the date of payment. Application to the System must be made before December 31, 2018.

  • It allows a SURS participant to establish earnings credit for periods of a voluntary pay reduction taken in lieu of furlough, beginning on or after July 1, 2015 and ending on or before June 30, 2017.  The participant must pay the required employee and employer contributions, in addition to compounded interest at the actuarially assumed rate of return, to establish the earnings.  The compounded interest applies from the date of the voluntary pay reduction until the date of payment. Application to the System must be made before December 31, 2018.

  • It requires SURS to include earnings that would have been paid to a participant had he or she not taken a period of furlough or a voluntary pay reduction in lieu of furlough beginning on or after July 1, 2015 and ending on or before June 30, 2017 for the purposes of determining whether the employer must pay the present value of earnings increases above 6% during the final rate of earnings period to SURS.

Finally, SB 2156 codifies the default investment fund under the Self-Managed Plan.

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SR 0317
- Tier 2 Pension Impact Study
Sponsor(s): Senator Daniel Biss

SR 317 urges the Teachers Retirement System (“TRS”) and State Universities Retirement System (“SURS”) to pursue an Internal Revenue Service ruling on the compliance of Tier II with safe harbor provisions under the Internal Revenue Code.

SR 317 resolves that TRS and SURS provide a detailed analysis of the financial impact that the Governor’s proposal would have on people currently in Tier I and that the report be completed prior to consideration of the Governor’s proposal to move Tier I participants into Tier II.

SR 317, as amended, is identical to HR 358 of the 99th General Assembly, as introduced.

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