Summary as Introduced
Amends the Illinois Pension Code. Makes changes to Tier 2 benefits for members or participants under the 5 State-funded retirement systems and the Chicago Teachers Pension Fund, including changes to automatic annual increases, age and service requirements for retirement, and limits on the amount of salary for annuity purposes. Establishes an accelerated pension benefit payment option for the General Assembly, Downstate Police, Downstate Firefighter, Chicago Teachers, and Judges Articles of the Code. Establishes a deferred retirement option plan for certain members who are otherwise eligible to retire under the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, Downstate Teachers, or Chicago Teachers Article of the Code under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Requires the State Treasurer to administer the deferred retirement option plan for the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles. 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 Comptroller shall order and the State Treasurer shall transfer $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used for making additional contributions to the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who become participants before January 13, 2027. Provides for participation in the State Employees Retirement System by judges and members of the General Assembly. Authorizes the transfer of service credit from those Systems to the State Employees Retirement System. Authorizes investigators for the Department of the Lottery and Tier 2 security employees of the Department of Corrections and security employees of the Department of Human Services to establish eligible creditable service under the alternative annuity provisions of the State Employees Article. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police and Downstate Firefighter Articles. Makes other changes. Effective July 1, 2025.