summary
Introduced
01/29/2026
01/29/2026
In Committee
02/03/2026
02/03/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Pension Code. Makes changes to Tier 2 benefits, including changing the amount of the automatic annual increases for the General Assembly and Judges Articles, changing the limit on the amount of salary for annuity purposes to the Social Security wage base, and changing the calculation of final average salary and the retirement age for certain persons. Makes changes concerning eligibility for the alternative retirement annuity under the State Employees Article. Adopts the Retirement Systems Reciprocal Act (Article 20 of the Code) for the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. Authorizes SLEP status under IMRF for certain persons. Makes changes to the funding formula for the 5 State-funded retirement systems and the downstate police and downstate firefighter pension funds. Makes changes to the retirement age under the Downstate Firefighter Article. Establishes a deferred retirement option plan under the Chicago Police Article and the Downstate Police Article. Makes other changes. Amends the Budget Stabilization Act to make transfers to the Pension Stabilization Fund for fiscal years 2030 through 2049. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the State Treasurer and the State Comptroller shall transfer $250,000,000 to the Pension Unfunded Liability Reduction Fund, which shall be used for making additional contributions to the 5 State-funded retirement systems and the Chicago Teachers' Pension Fund, and $250,000,000 to the Local Government Distributive Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
AI Summary
This bill makes several changes to Illinois' pension laws, primarily focusing on increasing the funding levels for the state's five pension systems and the downstate police and firefighter pension funds. Key provisions include adjusting the funding formula to aim for 100% solvency by 2049 or 2050 for most systems, with specific timelines for achieving this goal. It also introduces a Deferred Retirement Option Plan (DROP) for Chicago and downstate police, allowing eligible members to defer retirement while continuing to accrue benefits. The bill modifies Tier 2 pension benefits, including automatic annual increases for General Assembly and Judges, and caps salary for annuity purposes at the Social Security wage base. Additionally, it clarifies eligibility for alternative retirement annuities, adopts the Retirement Systems Reciprocal Act for certain police and firefighter articles, and authorizes SLEP (Special Law Enforcement Program) status under IMRF for specific individuals. The bill also amends the Budget Stabilization Act to direct transfers to the Pension Stabilization Fund from 2030 to 2049 and mandates that after certain bonds are retired, $250 million annually will be transferred to the Pension Unfunded Liability Reduction Fund for additional pension contributions and $250 million to the Local Government Distributive Fund. Finally, it exempts these changes from reimbursement under the State Mandates Act.
Sponsors (2)
Last Action
Added Co-Sponsor Rep. Lisa Davis (on 02/09/2026)
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