Sitting in the Senate or House Gallery always provides a
view of lawmaking that most of you cannot imagine. During these final days of
session, passing legislation is sometimes done a bit differently than nearly
everyone realizes. This Mini Briefing provides information as to where legislation
is at this moment - in real time. However, the latest action of the following
bills might have changed before this email is even read by you.
SB 1 - House
Speaker Madigan's pension reform sits in the Senate on order of Concurrence.
SB 1515 - passed
both Houses; Specifies that the procurement of the program of group health benefits
for Medicare-primary members and their Medicare-primary dependents by the Department
of Central Management Services is subject to the approval of the applicable
Chief Procurement Officer.
This basically allows the CMS Chief Procurement Officer to
by-pass the Commission of Government Forecasting and Accountability when
securing bids for the State sponsored proposed Medicare health insurance.
SB 1687 - Cost
shifting is still waiting on the final language, but is on Second Reading in
the House as a Floor Amendment. Previously it was SURS return to work bill;
however, it was shelled this past Sunday night.
SB 2404 - Senate
President Cullerton's pension reform bill sits in the House Rules Committee.
Now possibly making their way through the Senate are the
three Madigan bills. These bills along with Cost Shifting could be the pension
deal for now:
HB 1154 - provides
that pensionable earnings shall not exceed the Social Security Wage Base (wage
base is $113,100 for FY 13). Tier 1 participants that are receiving earnings
exceeding the social security wage base as of the effective date are
grandfathered and will be limited to their annual earnings rate on the
effective date. Participants subject to a collective bargaining agreement or
employment contract shall be exempt from this limitation until the expiration
of the existing agreement or contract. No calculation of benefit shall include
earnings in excess of this limitation.
HB 1165 - reforms
automatic annual increases provided to Tier 1 participants and Tier 1 retirees.
Members receiving an annuity of less than $25,000 a year shall continue to
receive a 3% compounded automatic annual increase, members receiving an annuity
of $25,000 or more shall receive an automatic annual increase of $750. Members
shall not be eligible for an automatic annual increase until the January 1st
following attainment of age 67 or the January 1st following the 5th anniversary
of the annuity start date. Automatic annual increase received prior to the
effective date are protected and not diminished.
HB 1166 - reforms
Tier 1 participants’ normal retirement age. The following adjustments apply to
Tier 1 participants retiring after July 1, 2013:
·
Members age 45 or older on the effective date
shall not be subject to any delay in retirement eligibility;
·
Members age 40-45 on the effective date shall be
subject to a 1 year delay in retirement eligibility;
·
Members age 35-40 on the effective date shall be
subject to a 3 year delay in retirement eligibility; and
·
Members younger than age 35 on the effective
date shall be subject to a 5 year delay in retirement eligibility.
Appropriations are moving smoothly except for the
Republicans acknowledging that they have been mostly left out of discussions
especially in those that refer to Higher Education. $35 M from the Higher
Education budget was given to Elementary and Secondary Education. Accordingly it
was because the State supported universities have the opportunity to raise
tuition and fees. The reduction seems to leave all those participating in the
decision satisfied and the higher education appropriation flat-lined (same as
last year). Detailed information is in HB 208 Amendment 1.
For those of you who are wanting more
information check out FY 2014 Group
Health Insurance Report (click on title).
May 31st is the deadline to make health insurance changes to
CMS.
Title: SUAA Mini Briefing
Source: State University Annuities Association
Date: May 29, 2013
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