Bill > HB3113

This bill amends the Illinois Pension Code to provide additional financial protection for certain public employees who are not covered by Social Security. Specifically, the bill defines "eligible Tier 2 members" as those who became members of a retirement system on or after January 1, 2011, and whose service is not eligible for Social Security coverage. The bill introduces a "hypothetical Social Security benefit" calculation, which represents the Social Security benefit these members would have received if their service had been Social Security-eligible. If an eligible Tier 2 member's actual pension benefit is less than their hypothetical Social Security benefit, their pension will be automatically increased to match the hypothetical Social Security benefit plus $1. This determination and adjustment will be made annually. The bill also modifies existing provisions in the State Employees, State Universities, and Downstate Teachers pension articles to exclude this benefit increase from the definition of a "new benefit increase," which typically has stricter funding and expiration requirements. By mandating this minimum benefit protection, the bill aims to ensure that non-Social Security covered public employees receive a baseline level of retirement income comparable to what they might have received under Social Security.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3113&GAID=18&DocTypeID=HB&SessionID=114&GA=104