# Illinois HB2540: PEN CD-VARIOUS

Illinois HB2540, PEN CD-VARIOUS, is a 104th General Assembly (2025–2026) House bill sponsored by Stephanie A. Kifowit (Democratic); status in committee, last action 2025-03-21 (Rule 19(a) / Re-referred to Rules Committee) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IL-HB2540-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Illinois HB2540
- State: Illinois
- Session: 104th General Assembly (2025–2026)
- Title: PEN CD-VARIOUS
- Status: in committee
- Chamber: House
- Introduced: 2025-02-04
- Last action: 2025-03-21, Rule 19(a) / Re-referred to Rules Committee
- Sponsor: Stephanie A. Kifowit (Democratic)
- Cosponsors: 0
- Subjects: appropriations-pensions & personnel
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Amends the Budget Stabilization Act. Provides a transfer of specified amounts from the General Revenue Fund to the Pension Stabilization Fund for fiscal years 2031 through 2041. Amends the Illinois Pension Code. With regard to each of the 5 State-funded retirement systems, provides that for State fiscal years 2027 through 2035, the minimum contribution to the System to be made by the State for each State fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 100% of the total actuarial liabilities of the System by the end of State fiscal year 2049. Makes conforming and other changes to the funding formulas. Provides that any person who earned service as a Tier 1 member or participant in any retirement system or pension fund established under this Code shall continue to earn service as a Tier 1 member and shall remain a Tier 1 member in any other retirement system or pension fund. Makes changes to the Tier 2 calculation of final average salary; the Tier 2 retirement age; and the amount of the automatic annual increases to Tier 2 annuities. Provides that, for a person who has reached the maximum percentage of salary allowed under the applicable system and who is within 5 years of the normal retirement age applicable for that member or participant, the reduction under provisions that reduce the retirement annuity due to age shall be 0%. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Provides that the Act takes effect January 1, 2028, except that certain provisions take effect upon becoming law.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Stephanie A. Kifowit (Democratic), House

## Actions (5)

- 2025-03-21: Rule 19(a) / Re-referred to Rules Committee (House)
- 2025-03-04: Assigned to Appropriations-Pensions & Personnel (House)
- 2025-02-04: Referred to Rules Committee (House)
- 2025-02-04: First Reading (House)
- 2025-02-04: Filed with the Clerk by Rep. Stephanie A. Kifowit (House)

## Bill text

- Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB2540.pdf)

## Related bills

- HB5198: AFFORDABLE HOUSING-CILAS (passed house)
- SB1937: PENSION CODE-VARIOUS (passed senate)
- HB2563: CONDO-RESERVE STUDY (in committee)
- HB4701: LIMITATIONS FACILITY FEES ACT (in committee)
- SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate)
- SB3484: VEH CD-PLATES-REGISTRATION (signed)

## Sources
- [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB2540.pdf)

## Related
- [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026)
- [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026)
- [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026)
- [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026)
- [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026)
- [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026)
- [Illinois bills](https://policyrisk.com/states/illinois/bills)
- [Illinois state hub](https://policyrisk.com/states/illinois)
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Source: PRIA, https://policyrisk.com/state-bill/IL-HB2540-2025-2026 (as of 2026-11-01).