IllinoisHB3193104th General Assembly (2025–2026)HouseWALLET

PEN CD-SURS-EARNINGS

Sponsored By: Sponsor information unavailable

Signed by Governor

Summary

Amends the State Universities Article of the Illinois Pension Code. In provisions concerning the determination of the final rate of earnings for Tier 2 members, provides that, for an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings is obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination or the average annual earnings during the 8 consecutive academic years of service within the 10 years of service prior to termination in which the employee's earnings were the highest, whichever is greater (instead of only the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination). Provides that the changes made by the amendatory Act are corrections and clarifications of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-1490). Effective immediately.

personnel & pensionsassignmentsexecutive

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Bill Overview

Analyzed Economic Effects

25 provisions identified: 10 benefits, 4 costs, 11 mixed.

Firefighters gain breast cancer disability coverage

Service-related breast cancer now qualifies for firefighter occupational disease disability benefits. An active firefighter needs at least 7 years of service, and the cancer must prevent them from performing duties. Benefits cover periods when the firefighter has no right to salary.

Security employees gain earlier pension access

Specified security employees at Corrections, Juvenile Justice, and Human Services gain access to an alternative retirement annuity. This provision excludes mental health police officers. The age-and-service schedule ultimately allows retirement at age 50 with 20 years of eligible service. Innovation and Technology security employees qualify only after transferring from Corrections or Juvenile Justice under Executive Order 2016-01 and continuing similar work.

Police and firefighters gain paid transfer options

Active police and firefighter pension members can transfer up to 8 years of service from the other system. They must apply within 6 months after the law's effective date. They must not have faced disciplinary action when the former job ended. The former fund transfers accumulated amounts, matching employer contributions, and interest paid to restore service; members pay any required contribution difference plus actuarial interest compounded annually from service to payment. Pension participation for that service ends in the former fund when the transfer takes effect.

Elected officials can preserve pension credit

Covered members can receive pension credit for elected-office work even without electing pension participation for that office. They must have participated through a non-elected job with the same employer. The employer must have continued making member contributions, with no gap in service credit between jobs.

Port district workers gain pension pathway

The Joliet Regional Port District can apply to join the Illinois Municipal Retirement Fund, giving covered employees access if approved. Its governing body needs a two-thirds vote and must apply at least 90 days before the proposed start. The Board must find financial capacity, no expected harm to fund soundness, and an expected district life of at least 10 years. The district must meet Section 7-108 and application requirements. Its service area cannot lie entirely within a municipality with more than 1 million people.

Retired teachers receive recalculated pension refunds

The pension system recalculates overpayments for service-retirement pensions canceled because of teacher reemployment under the covered rule. This covers cancellations from July 1, 2020 through the law's effective date. It uses pro-rata withholding and refunds the difference from the original overpayment amount, with interest.

State workers keep covered pension increases

Covered State Employees' Retirement System benefit increases no longer face the specified additional-funding condition or five-year expiration rule. This exemption covers increases resulting from Public Act 102-856 and this law.

University workers get higher earnings comparison

Covered Tier 2 State Universities Retirement System members use the higher of two final earnings averages. One uses the highest 96 consecutive months within the last 120 months before leaving employment. The other uses the highest 8 consecutive academic years within the last 10 years before leaving. This covers hourly members and members paid in installments over all 12 months of each academic year; shorter service uses the full service period, as applicable. These corrections apply retroactively to January 1, 2011.

Workers get better service credit comparison

For validated service, covered contributors receive the greater of two service-credit totals. One counts each day paid for full-day or partial-day work. The other gives 10 days for each 10-day employment period with at least 50% of regularly scheduled hours worked. Existing caps remain: one year per fiscal year, one day per calendar day, and 10 days per two-calendar-week period.

County workers can retain military credit

Contributing county pension members can buy up to 24 months of active-duty military credit unless dishonorably discharged. Service need not follow county employment or occur during wartime. Members must pay while still in county service, using the greater specified pre-service or post-service pay rate, plus interest. Interest runs from the date used to set that rate through payment. The law removes the rule forfeiting this credit and refunding payment upon applying for or receiving the specified early retirement incentive.

Investigators gain pension credit purchase options

Former arson investigators employed on January 1, 1995 can convert their arson service into eligible pension service. They must be out of service, not yet receiving a retirement annuity, and pay a contribution difference based on Social Security status when applying. State's Attorneys Appellate Prosecutor investigators and controlled substance inspectors can purchase up to 10 years of prior municipal police or sheriff's law enforcement service. They must file a written election and pay the Board's required contribution difference and interest. Credit established under the specified combined rules cannot exceed 12 years.

Public workers gain automatic retirement savings

Eligible active full-time and part-time contractual university-system members can choose the defined contribution retirement benefit. Automatic enrollment for newly active members begins as soon as practicable on or after January 1, 2022. Unless members opt out during the notice period, 3% of pre-tax pay goes into savings starting the next pay period, or as soon as practicable; members can change contributions as law allows. Automatically enrolled members can request their initial contribution back within 90 days, adjusted for earnings and fees. They lose the related employer match, which pays plan expenses, and the refund counts as gross income in the tax year received.

Sheriff employees gain pension transfer choices

Active sheriff's law enforcement employees can elect in writing to transfer municipal police pension service into the Illinois Municipal Retirement Fund. The election window runs from the law's effective date through no later than 6 months afterward. The police fund transfers accumulated employee amounts and an equal employer contribution. Employees can pay a contribution shortfall with interest or accept less service credit. The new credit cannot exceed the service actually earned.

Teachers can buy technical teaching credit

Illinois Teachers' Retirement System members can buy up to 2 years of qualifying career and technical teaching service. The service cannot already be credited in another public pension system. Members must have been certified or licensed when teaching, provide employment proof, and apply in writing by June 30, 2028. They must pay the required contribution and complete 10 years of contributing teacher service before using the credit.

Pension members gain easier trustee elections

Participants need 200 signatures, down from 400, to petition for a trustee candidate in covered pension elections. Boards can adopt rules allowing internet ballots, phone ballots, or both. These methods can replace or supplement mail ballots, but boards do not have to adopt them.

University employers gain retiree contribution credits

Employers receive a credit when covered contributions for employing the same affected retiree exceeded $300,000 across academic years 2021, 2022, and 2023. They can use the credit against future contributions or penalties owed to the State Universities Retirement System. The provision does not specify the credit amount.

Disability applicants need medical reports and exams

Employees applying for the Article 13 ordinary disability benefit must submit a written application with a medical report. The report must come from at least one licensed health care professional. Covered employees must also undergo an exam at least annually with a licensed professional appointed by the Board.

Retired teachers lose pensions for excess work

Covered service-retirement pensioners have pension benefits withheld in proportion to each workday above their annual reemployment limit. For retirees teaching only driver education after regular school hours, withholding counts each 7.5-hour period above 900 school-year hours. The pro-rata rule applies beginning July 1, 2020.

Local governments bear unreimbursed mandate costs

Illinois does not have to reimburse local governments for carrying out mandates created by this law. Local governments may have to cover those implementation costs themselves. The law gives no cost amount or specific effect on household taxes or services.

Pension funds cover trustee legal costs

Illinois Pension Code systems and funds must cover specified damage claims and defense costs for trustees and staff. Coverage applies to alleged negligent or wrongful acts within their work or under trustees' direction. Funds can extend the protection to consultants. Willful misconduct and gross negligence are not covered.

Retirees can choose estimated pension payments

Members eligible for alternative retirement annuities under Sections 14-108 or 14-110 can elect estimated monthly payments. The deadline to start payments is 30 days after the later of two dates: the last workday or the date 30 days after filing. Within 6 months after the annuity begins, the System must pay any shortfall or recover any overpayment.

Retirees gain broader labor organization payments

Retirees can authorize annuity withholding for payments to a designated labor organization, not just for dues. At least 100 retirees must authorize withholding for that organization. The Board can allow a 3-to-6-month trial period with fewer authorizations. Authorized amounts reduce the annuity paid directly to the retiree.

Survivors face deadline to waive benefits

A survivor-benefit beneficiary or authorized representative can waive benefits by written notice to the Board. The notice must arrive within 6 months after the System notifies the person of benefits payable after a death. The waiver must also arrive before any payment under that person's application.

Pension boards gain stronger investigation powers

The covered pension Board can subpoena witnesses and records about Fund matters. This includes disability claims, benefit reviews, collections, death determinations, and felony-forfeiture investigations. The party seeking the subpoena pays witness attendance and travel fees at Illinois circuit court rates. The Board can seek a circuit court order to enforce compliance.

Public employers get longer pension payment terms

Covered municipal, university, and teacher-system employers now have 7 years, instead of 3, to finish paying earnings-growth pension bills. University bills cover required costs from academic-year full-time-equivalent earnings rising more than 6% with the same employer. Teacher bills cover added benefit costs when pension-calculation salary exceeds the prior school year's full-time salary rate by more than 6% with the same employer. For university-system bills, interest starts on unpaid amounts on day 91 after receipt. These are employer bills, not direct employee charges.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Amy Briel

    Democratic • House

  • Anne Stava

    Democratic • House

  • Bob Morgan

    Democratic • House

  • Eva-Dina Delgado

    Democratic • House

  • Janet Yang Rohr

    Democratic • House

  • Justin Slaughter

    Democratic • House

  • Martha Deuter

    Democratic • House

  • Mary Beth Canty

    Democratic • House

  • Maurice A. West, II

    Democratic • House

  • Rachel Ventura

    Democratic • Senate

  • Robert F. Martwick

    Democratic • Senate

  • Stephanie A. Kifowit

    Democratic • House

  • Tracy Katz Muhl

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 620 • No: 94

House vote • 5/31/2025

Senate Committee Amendment No. 1 House Concurs

Yes: 103 • No: 12 • Other: 1

House vote • 5/31/2025

Senate Floor Amendment No. 4 House Concurs

Yes: 103 • No: 12 • Other: 1

House vote • 5/31/2025

Senate Floor Amendment No. 3 House Concurs

Yes: 103 • No: 12 • Other: 1

House vote • 5/31/2025

Senate Floor Amendment No. 2 House Concurs

Yes: 103 • No: 12 • Other: 1

House vote • 5/30/2025

Senate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee;

Yes: 8 • No: 4

House vote • 5/30/2025

Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee;

Yes: 8 • No: 4

House vote • 5/30/2025

Senate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee;

Yes: 8 • No: 4

House vote • 5/30/2025

Senate Floor Amendment No. 4 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee;

Yes: 8 • No: 4

Senate vote • 5/29/2025

Third Reading - Passed;

Yes: 57 • No: 0

Senate vote • 5/28/2025

Senate Floor Amendment No. 2 Recommend Do Adopt Pensions;

Yes: 9 • No: 0

Senate vote • 5/15/2025

Do Pass as Amended Executive;

Yes: 9 • No: 4

House vote • 4/11/2025

Third Reading - Short Debate - Passed

Yes: 85 • No: 26

House vote • 4/11/2025

House Floor Amendment No. 1 Recommends Be Adopted Rules Committee;

Yes: 5 • No: 0

House vote • 3/20/2025

Do Pass / Short Debate Personnel & Pensions Committee;

Yes: 11 • No: 0

Actions Timeline

  1. Public Act . . . . . . . . . 104-0284

    8/15/2025House
  2. Effective Date January 1, 2026; some provisions

    8/15/2025House
  3. Effective Date August 15, 2025; some provisions

    8/15/2025House
  4. Governor Approved

    8/15/2025House
  5. Sent to the Governor

    6/24/2025House
  6. Passed Both Houses

    5/31/2025House
  7. House Concurs

    5/31/2025House
  8. Senate Floor Amendment No. 4 House Concurs 103-012-001

    5/31/2025House
  9. Senate Floor Amendment No. 3 House Concurs 103-012-001

    5/31/2025House
  10. Senate Floor Amendment No. 2 House Concurs 103-012-001

    5/31/2025House
  11. Senate Committee Amendment No. 1 House Concurs 103-012-001

    5/31/2025House
  12. Added Co-Sponsor Rep. Eva-Dina Delgado

    5/31/2025House
  13. Added Co-Sponsor Rep. Amy Briel

    5/31/2025House
  14. Senate Floor Amendment No. 4 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee; 008-004-000

    5/30/2025House
  15. Senate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee; 008-004-000

    5/30/2025House
  16. Senate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee; 008-004-000

    5/30/2025House
  17. Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Personnel & Pensions Committee; 008-004-000

    5/30/2025House
  18. Added Chief Co-Sponsor Rep. Mary Beth Canty

    5/30/2025House
  19. Chief Sponsor Changed to Rep. Stephanie A. Kifowit

    5/30/2025House
  20. Added Co-Sponsor Rep. Tracy Katz Muhl

    5/30/2025House
  21. Added Co-Sponsor Rep. Bob Morgan

    5/30/2025House
  22. Added Co-Sponsor Rep. Martha Deuter

    5/30/2025House
  23. Senate Floor Amendment No. 4 Motion to Concur Rules Referred to Personnel & Pensions Committee

    5/30/2025House
  24. Senate Floor Amendment No. 3 Motion to Concur Rules Referred to Personnel & Pensions Committee

    5/30/2025House
  25. Senate Floor Amendment No. 2 Motion to Concur Rules Referred to Personnel & Pensions Committee

    5/30/2025House

Bill Text

  • Engrossed

  • Enrolled

  • House Amendment 1

  • Introduced

  • Senate Amendment 1

  • Senate Amendment 2

  • Senate Amendment 3

  • Senate Amendment 4

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