A bill sponsored by State Representative Tom Morrison (R-Palatine) that will increase the frequency of actuarial reviews of the State’s five public pension systems was signed into law today by Governor Bruce Rauner.
HB422, now known as Public Act 99-0232, amends the Teachers’ Retirement System, State Universities’ Retirement System, State Employees’ Retirement System, Judges’ Retirement System and the General Assembly Retirement System by requiring that the actuary of each system conduct an investigation of the system every three years rather than five years as was previously written in the statutes. Each review will examine the mortality, retirement, disability, separation, interest, and salary rate assumptions used by the system for accuracy. The bill was approved unanimously in the House in March and unanimously in the Senate in May.
“A more frequent actuarial study ensures we are making the right payments to stay on track with our obligations, especially since we now have new Tier II employees in our pension systems,” said Morrison. “I was pleased to see that my bill was approved by every lawmaker in the House and Senate, and am also glad to know that Governor Rauner shares my feelings that we need to work with the most accurate financial data possible when it comes to our pension payments.”
The new law takes effect immediately. To hear more from Rep. Morrison about this new law, click here.