SB0068 Summary

• Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code to create separate Comptroller intercept schedules for pension funds with assets exceeding 5 years of current liabilities.

• For well-funded pension funds, beginning in fiscal year 2021, the State Comptroller deducts delinquent municipal contributions from State payments using a graduated schedule: 10% in FY2021, 20% in FY2022, 30% in FY2023, 40% in FY2024, and 50% in FY2025 and thereafter.

• Applies only to municipalities that fail to transmit required pension contributions for more than 90 days after the due date and whose pension funds have assets in trust exceeding 5 years of current liabilities.

• Maintains existing intercept procedures for underfunded pension funds (those with less than 5 years of assets in trust), which use full State payment intercepts beginning in fiscal year 2018.

• Takes effect immediately upon becoming law.