HB 3066 Summary

• Transfers $4.1 billion to the Pension Stabilization Fund in Fiscal Year 2014, increasing 2.25% annually, with additional transfers of $693.5 million starting FY2016, $900 million starting FY2020, and $1.1 billion starting FY2034, continuing until FY2045 or when designated retirement systems reach 100% funding ratio, whichever occurs first.

• Consolidates three separate teacher retirement systems (State Universities Retirement System, Teachers' Retirement System of the State of Illinois, and Public School Teachers' Pension and Retirement Fund) into a single Illinois Teachers' Retirement Fund effective July 1, 2013.

• Establishes earnings caps for traditional benefit package participants and requires those earning above the cap to participate in a self-managed defined contribution plan with 6% employee contributions and 3-7.1% employer contributions depending on election status.

• Imposes mandatory employer and State contributions to amortize unfunded liabilities by FY2045, with State contributions enforceable through mandamus action, and establishes a new 8-member Board of Trustees for the Illinois Teachers' Retirement Fund.

• Creates enforcement mechanisms allowing the Pension Stabilization Fund to seek deductions from State funds or pursue court action against employers failing to remit pension contributions within 90 days.