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Bill > HB5909

IL HB5909

IL HB5909
PEN CD-TIER 2 BENEFITS

summary

Introduced
11/12/2024
In Committee
11/12/2024
Crossed Over
Passed
Dead
01/08/2025

Introduced Session

103rd General Assembly

Bill Summary

Amends the Illinois Pension Code. Makes changes to Tier 2 benefits, including changing the amount of the automatic annual increase to 3% of the originally granted retirement annuity or 3% of the retirement annuity then being paid for the General Assembly and Judges Articles, changing the limit on the amount of salary for annuity purposes to the Social Security wage base, changing the calculation of final average salary to the Tier 1 calculation for persons who are active members on or after January 1, 2025, and changing the retirement age. Establishes an accelerated pension benefit payment option for the General Assembly, Chicago Teachers, and Judges Articles of the Code. Provides that, with regard to persons subject to the Tier 2 provisions, a security employee of the Department of Human Services, a security employee of the Department of Corrections or the Department of Juvenile Justice, an investigator for the Department of the Lottery, or a State highway worker is entitled to an annuity calculated under the alternative retirement annuity provisions of the State Employee Article of the Code. Authorizes the conversion of service to eligible creditable service. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. Authorizes SLEP status under the Illinois Municipal Retirement Fund for a person who is a county correctional officer or probation officer and for a person who participates in IMRF and qualifies as a firefighter under the Public Safety Employee Benefits Act. In the Downstate Firefighter Article, includes a de facto firefighter in the definition of "firefighter". Defines "de facto firefighter". Provides that the monthly pension of a firefighter who is receiving a disability pension shall be increased at the rate of 3% of the original monthly pension. Makes changes to the minimum retirement annuity payable to a firefighter with 20 or more years of creditable service, the minimum disability pension, and the minimum surviving spouse's pension. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.

AI Summary

Here's a summary of the key provisions of the bill: This bill amends the Illinois Pension Code to modify Tier 2 benefits for various public employee pension systems. The primary changes include establishing an accelerated pension benefit payment option and modifying several key aspects of pension calculations and eligibility. Specifically, the bill introduces options for members to receive lump-sum payments in exchange for reduced future pension increases. Beginning January 1, 2025, the bill changes how final average salary is calculated for Tier 2 members, using the Tier 1 calculation method for members who are active on or after that date. The bill also adjusts the salary cap for pension calculations to track the Social Security wage base, limiting annual earnings used in pension calculations to the Social Security contribution and benefit base. For certain safety and security employees, the bill modifies the alternative retirement annuity eligibility, allowing some workers to qualify with 25 years of service at age 50 or 20 years of service at age 55. The bill provides additional flexibility for converting certain types of service credit and expands eligible creditable service for various employee categories. The changes aim to provide more options for pension members while standardizing certain calculation methods across different pension systems.

Sponsors (19)

Last Action

Session Sine Die (on 01/07/2025)

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