Illinois 2025-2026 Regular Session

Illinois House Bill HB2711

Introduced
2/4/25  
Refer
2/6/25  
Refer
3/4/25  

Caption

PEN CD-TIER 2 BENEFITS

Summary

HB2711 is a broad pension bill that amends the Illinois Pension Code across multiple retirement systems and articles. Its central feature is a set of Tier 2 benefit changes for public employees hired on or after January 1, 2011, including lowering the retirement age in some cases, changing final average salary formulas, and increasing automatic annual pension increases to 3% of the originally granted annuity for many Tier 2 retirees and survivors beginning January 1, 2026. The bill also raises or reworks salary caps used in pension calculations, tying them to the Social Security wage base for certain members and articles, and it makes those higher caps retroactive for some active members without requiring additional employee contributions. The bill also expands or clarifies pension eligibility and benefit treatment for several specific groups. It gives certain Department of Human Services, Department of Corrections, Department of Juvenile Justice, Lottery, and highway worker employees access to alternative retirement annuity provisions; authorizes service conversion and reciprocal service treatment across several police and firefighter articles; expands SLEP status in IMRF for some county correctional officers, probation officers, and certain firefighters; and adds “de facto firefighter” to the Downstate Firefighter Article. It also creates an accelerated pension benefit payment option for the General Assembly, Chicago Teachers, and Judges Articles, and adjusts minimum retirement, disability, and survivor benefits for firefighters. In practical terms, the bill would significantly increase pension obligations and broaden benefit formulas for many current and future public employees and retirees, especially Tier 2 members. It would also change how pensionable pay is calculated in several systems, which could increase future annuities for affected members whose salaries are capped under current law. The bill expressly states that implementation is required without reimbursement by the State under the State Mandates Act and that it takes effect immediately. Because there is no committee transcript or recorded vote history provided, there is no documented debate or formal vote sentiment in the materials supplied. Based on the bill text alone, the measure appears to be strongly pro-benefit and pro-retiree, with a clear intent to improve Tier 2 pension terms and expand coverage for public safety and other public employees. At the same time, the bill’s breadth and cost implications suggest likely fiscal concern for the State and affected pension systems, especially given the retroactive salary-cap changes and the increase in automatic annual adjustments. The main points of contention likely center on cost, retroactivity, and equity between Tier 1 and Tier 2 members. Supporters would likely emphasize recruitment, retention, and fairness for public employees, particularly police, firefighters, correctional staff, and judges. Opponents would likely focus on the fiscal impact on pension systems and taxpayers, the expansion of benefits to additional groups, and the bill’s retroactive treatment of salary caps and annuity calculations.

Impact

HB2711 would amend numerous sections of the Illinois Pension Code to increase or modify retirement benefits, salary bases, cost-of-living adjustments, survivor benefits, and retirement ages for multiple public pension systems. It would particularly affect Tier 2 members, certain public safety employees, judges, legislators, teachers, and IMRF participants, while also adding new cross-system reciprocity and service-conversion rules. The bill would likely increase future pension liabilities and administrative complexity across state and local retirement systems, and it requires implementation without state reimbursement.

Sentiment

No committee testimony or vote record was provided, so there is no direct evidence of support or opposition from hearings or floor action. From the text, the bill is clearly designed to expand benefits and improve retirement terms for public employees, suggesting a favorable posture toward labor and retiree interests. The absence of recorded debate leaves fiscal and policy sentiment inferred rather than documented, but the measure’s scope suggests it would be controversial among those concerned about pension costs.

Contention

The likely points of contention are the bill’s cost, its retroactive application of higher salary caps and benefit formulas, and the fairness of improving Tier 2 benefits relative to existing Tier 1 structures. Supporters would likely include public employee groups, public safety workers, teachers, judges, and retiree advocates seeking stronger benefits and earlier retirement eligibility. Fiscal conservatives, budget officials, and taxpayer advocates would likely object to the expanded liabilities, the immediate effective date, and the mandate that the State implement the changes without reimbursement.

Companion Bills

No companion bills found.

Previously Filed As

IL SB0002

PEN CD-TIER 2 BENEFITS

IL SB1934

PEN CD-TIER 2 SURVIVOR BENEFIT

IL SB1711

PEN CD-CHI FIRE-TIER 2 SALARY

IL HB2855

PEN CD-CHI POLICE&FIRE-TIER 2

IL SB1725

PEN CD-CHI POLICE&FIRE-TIER 2

IL HB1310

PEN CD-DNS FIRE-TIER 2

IL SB3430

PEN CD-ACCEL BENEFIT PAYMENT

IL SB3388

PEN CD-ACCEL BENEFIT PAYMENT

IL SB3404

PEN CD-ACCEL BENEFIT PAYMENT

IL SB1187

PEN CD-CHI POLICE-TIER 2

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