HB0350 Summary

• Amends Illinois Pension Code Sections 15-155 and 16-158 to modify employer contribution requirements for the Teachers' Retirement System (TRS) and Schools' Retirement System (SRS).

• Eliminates separate rapid-earnings-increase provisions (subsections g-1 and f-1) that previously imposed additional employer contributions when salary increases exceeded 3% for new contracts effective after July 1, 2018.

• Establishes new employer contribution formula for fiscal years 2018 onward based on defined benefit normal costs plus amortization of unfunded liabilities over 30-year rolling period, with additional 2% contribution requirement beginning in fiscal year 2021.

• Maintains 90% funding target for both pension systems by state fiscal year 2045, with provisions for phased implementation of actuarial assumption changes over 5-year periods beginning in fiscal year 2018.

• Adds salary cap provisions requiring additional employer contributions on compensation exceeding the Governor's salary for state fiscal years 2017 and beyond.