INCOME TAX-PENSION REFORM

Amends the State Employees Group Insurance Act of 1971. Provides that, beginning in State fiscal year 2014, a member who is eligible for medicare shall pay the full premium amount for his or her healthcare coverage under the Act. Amends the Illinois Pension Code. For the 5 State-funded retirement systems, incrementally increases employee contributions by a total of 3% of salary, imposes a minimum retirement age of 67 (or 62 with a discounted annuity), changes the funding goal from 90% to 80%, and changes the funding formula (beginning in FY2014, applies a 50-year amortization formula to reach an 80% funding ratio). In the State Universities and Downstate Teacher Articles, shifts costs to local employers. Amends the Illinois Income Tax Act. Makes the current tax rates permanent. In any fiscal year in which the total State contribution to the State-funded retirement systems is less than the proceeds from the income tax increase and the debt service savings from the retirement of the 2010 and 2011 Pension Obligation Notes, grants a refundable income tax credit equal to the difference. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Requires the Department of Revenue and the State Comptroller to make certain determinations and certifications. Contains an inseverability provision. Effective immediately.