HB 5909

Abstract

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. State Debt Impact Note (Government Forecasting & Accountability) HB 5909 would not change the amount of authorization for any type of Stateissued bond, and, therefore, would not affect the level of State indebtedness. Pension Note (Government Forecasting & Accountability) HB 5909 makes significant changes to the Illinois Pension Code, focusing on Tier 2 members—those who began service on or after January 1, 2011. The bill aligns Tier 2 age-and-service provisions with Tier 1 standards across all affected systems and reduces the final average salary calculation period for Tier 2 members to the Tier 1 standard. The bill also introduces a non-compounded 3% COLA for Tier 2 members and adjusts the Tier 2 pensionable salary cap to the Social Security Wage Base. A comprehensive actuarial study will evaluate the bill’s major provisions, with an updated impact note to follow upon completion of the study.