Legislative Actions
The following actions occurred in August 2009.
Investments
On August 25, 2009, HB2557 was enacted into law as Public Act 96-0753. The law requires certain pension funds, and any state agency investing funds on behalf of those pension funds, to make reasonable efforts to invest in economic opportunity investments.
TRIP Rates
On August 17, Governor Quinn amendatorily vetoed HB 1098 due to the strained State of Illinois budget. He proposed that the bill become effective in fiscal year 2011 instead of the current fiscal year 2010. The bill reduces the TRIP rates in fiscal year 2010 for Illinois participants age 65 and not eligible for Medicare who choose major medical. An earlier provision that would have raised TRIP rates for out-of-state residents was taken out of the bill.
Private School
On August 17, HB 1148 became Public Act 96-0546. The law allows up to two years of optional service credit for private school teaching for members who apply for it between August 1, 2009-2012. A TRS member pays the full cost. Here is a link to an optional service page with further details about purchasing the credit.
Reporting
On August 11, HB 2235 became Public Act 96-0266. The law requires school districts to report teachers and administrative base salaries and benefits to the Illinois State Board of Education by July 1 of each year.
TRS Budget
On July 15, Senate Bill 1292 became Public Act 96-0043. This legislation provides funding of all state-funded pension systems, including TRS, through the state issuance of pension obligation bonds. The legislation ensures that TRS will receive full funding for fiscal year 2010. TRS is under no obligation for the bonds; the state must repay them over the next five years. The underlying bill which would have instituted a two-tier pension benefit was eliminated by the final amendment which became the funding law.
The following law became effective April 3, 2009:
Ethics Reform Act
Public Act 96-0006 eliminates the terms of the Board of Trustees members who were appointed by former Gov. Blagojevich. Governor Pat Quinn has 60 days to appoint or reappoint to the TRS Board. The Governor’s appointees on the TRS Board of Trustees were also increased by two positions, equivalent to TRS elected Board of Trustee positions. The law terminates the current TRS executive director from his position on July 1, 2009.
Divestment Laws
The Teachers’ Retirement System is prohibited by state law from investing in companies that do business in Sudan and Iran. Follow the hyperlink below for the full divestment story.
TRS Complies with Divestment Laws
The Illinois General Assembly is currently in the 96th General Assembly. Click here to see the schedule. Follow the hyperlinked text 'schedule' under the House or Senate column to view the respective chamber's calendars.
Click here for information about Defined Benefit Plans and Defined Contribution Plans
Back to top |
