Legislative

BCN Strategies, LLC

103^rd ILLINOIS GENERAL ASSEMBLY:

The House and Senate have officially wrapped up the first week of the legislative veto session.  Both Chambers have canceled session for Thursday and will reconvene next week Tuesday, November 18, 2024.  Several bills and resolutions were filed, but none created as much chatter as The Fair Retirement and Recruitment Act.  House Personnel and Pensions Chairwoman, Stephanie Kifowit filed HB 5909 and Senate Special Committee on Pensions Chairman, Robert Martwick filed an identical version, SB 3988 to address inequities between Tier 1 and Tier 2.  

 

At first glance the bills appear to address the following:

• Bring the final average salary pension calculation back in line with Tier 1.
• Implementing an across the board 3% simple cost of living adjustment for all Tier 2 members.
• Aligning the Tier 2 retirement age requirements with Tier 1.
• Adjusting the pension salary cap to match the Social Security Wage Base, often referred to as the Safe Harbor Provision. 
• Additional job-specific changes that will be reflected in the pension code to address issues particular to various professions and pension calculations. 

HB 5909 and SB 3988 were filed yesterday and have not received committee assignments.  As of right now, the fiscal impact of the legislation is yet to be determined.  The legislature is expected to pass the legislation by or before Lame Duck session in January.