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Bill > HB3657

IL HB3657

IL HB3657
PEN CD-MWRD-VARIOUS

summary

Introduced
02/07/2025
In Committee
05/15/2025
Crossed Over
04/11/2025
Passed
08/01/2025
Dead
Signed/Enacted/Adopted
08/01/2025

Introduced Session

104th General Assembly

Bill Summary

Amends the Chicago Police and Chicago Firefighter Articles of the Illinois Pension Code. Provides that, for Tier 2 policemen, "final average salary" is the greater of: (i) the average monthly salary obtained by dividing the total salary of the policeman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest; or (ii) the average monthly salary obtained by dividing the total salary of the policeman during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest. Provides that the limit on salary for all purposes under the Code for Tier 2 policemen and Tier 2 firemen shall annually be increased by the lesser of 3% or the annual (instead of one-half of the annual) unadjusted percentage increase in the consumer price index-u, including all previous adjustments. Provides that the surviving spouse's annuity for certain Tier 2 policemen and Tier 2 firemen shall be 54% of the policeman's or fireman's monthly salary at the time of the policeman's or fireman's death. Provides that, if the deceased policeman or fireman was a parent of a child or children and there is a surviving spouse, 12% of the policeman's or fireman's monthly salary at the date of death, or 12% of the policeman's or fireman's earned pension, shall be granted to the guardian of any such minor child or children. Provides that, upon the death of the surviving spouse leaving one or more children under the age of 18, or upon the death of a policeman or fireman leaving one or more children but no surviving spouse, a monthly pension of 20% of the policeman's or fireman's monthly salary at the date of death or 20% of the policeman's or fireman's earned pension at the date of death shall be granted to the guardian of each such child until the child reaches age 18. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

AI Summary

This bill amends the Illinois Pension Code to modify the pension provisions for Tier 2 police officers and firefighters hired on or after January 1, 2011. The key changes include updating how "final average salary" is calculated by allowing it to be the higher of either the average salary over 96 consecutive months or 48 consecutive months within the last 120 or 60 months of service, respectively. The annual salary cap for Tier 2 employees will increase to $141,407.74 beginning July 1, 2025, with annual increases tied to the lesser of 3% or the consumer price index. The bill also modifies survivor benefits, increasing the surviving spouse's annuity to 54% of the monthly salary at the time of death and adding provisions for child benefits, such as granting 12% of the monthly salary to guardians of minor children and 20% to guardians if there is no surviving spouse. The changes are designed to provide more flexibility in calculating pension benefits while maintaining the overall structure of the Tier 2 pension system for police officers and firefighters. The bill applies retroactively and is intended to clarify and improve the existing pension provisions without diminishing survivor benefits.

Committee Categories

Government Affairs, Labor and Employment

Sponsors (13)

Last Action

Public Act . . . . . . . . . 104-0065 (on 08/01/2025)

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