SB2368 Summary

• Changes funding goal for 5 State pension systems from 90% to 100% funded by fiscal year 2045, requiring significantly higher State contributions over time.

• Increases employee contributions by adding 1% of salary starting July 1, 2013 and rising to 2% starting July 1, 2014 across multiple State pension systems.

• Reduces automatic annual pension increases (COLA) from 3% to the lesser of 3% or one-half the annual Consumer Price Index increase, capped at the first $25,000 of annual annuity.

• Shifts Teachers' Retirement System costs to school districts incrementally from 2014-2023, contingent on State providing full funding for school mandates; State contribution responsibility decreases as employers take on more.

• Adds contractual obligations and enforcement mechanisms allowing pension systems and members to bring mandamus actions in Champaign County Circuit Court to compel State pension payments.