HB0096 Summary

• Closes state-funded pension systems (Articles 2, 14, 15, 16, 18 of Illinois Pension Code) to new members effective upon enactment; existing members must elect within 5 years to maintain current benefits or opt out.

• Requires all Article 15 and 16 employers to offer tax-sheltered annuity (403(b)) plans to new employees hired after the effective date as alternative retirement savings.

• Shifts higher education health insurance costs from the State to employers for new employees of universities and community colleges; creates State Universities Health Insurance Security Fund for retirees and dependents.

• Modifies State pension contribution formulas: Sets minimum contributions at 10.2% of payroll for fiscal year 2014 forward; shifts responsibility for SURS and TRS employer contributions to educational institutions starting fiscal year 2014-2015.

• Terminates State General Revenue Fund transfers to Teacher and Community College Health Insurance Security Funds after fiscal year 2013; exempts bill from State Mandates Act reimbursement requirements.