Illinois 2025-2026 Regular Session

Illinois House Bill HB3113

Introduced
2/6/25  

Caption

PEN CD-NONCOVERED EMPLOYEES

Summary

HB3113 would create a new minimum pension benefit for certain Tier 2 public employees in Illinois whose service is not covered by Social Security. The bill defines an “eligible Tier 2 member” as someone who first joined an Illinois retirement system on or after January 1, 2011 and whose job service is not eligible for Social Security coverage. For those members, the bill creates a “hypothetical Social Security benefit” calculation and requires their pension to be increased if their pension would otherwise be less than that hypothetical amount, with the benefit raised to that amount plus $1. The comparison would be made annually, and the pension would be adjusted each year. The bill amends the Illinois Pension Code in the State Employees, State Universities, and Downstate Teachers Articles to ensure that any increase created by this change is not treated as a “new benefit increase” under existing pension funding rules. It also amends the State Mandates Act to require implementation without reimbursement by the State. In practical terms, the measure would establish a statutory floor for certain noncovered Tier 2 pensions and would likely increase benefit payments for affected employees and retirement systems. The general sentiment reflected by the bill text is pro-benefit for affected workers, but there is no committee transcript or vote history available here to show broader support or opposition. Because the bill was introduced by a single sponsor and no recorded votes or hearings are included, the available context does not show whether it had bipartisan backing or faced organized resistance. The structure of the bill suggests it is intended to address concerns that some Tier 2 non-Social Security employees receive retirement benefits below what comparable Social Security-covered workers would receive. The main point of contention likely concerns cost and pension policy. By requiring annual benefit increases for a defined group and excluding those increases from the usual “new benefit increase” classification, the bill shifts financial obligations onto the affected retirement systems and potentially the State or participating employers. Opponents would likely focus on fiscal impact, unfunded liabilities, and the precedent of tying public pensions to a Social Security benchmark, while supporters would likely argue that noncovered employees should not receive lower retirement protection simply because their service is outside Social Security coverage.

Impact

HB3113 would add a new Section 1-163 to the Illinois Pension Code and modify provisions in the State Employees, State Universities, and Downstate Teachers retirement articles to create a statutory minimum pension floor for certain Tier 2 members without Social Security coverage. It would also amend the State Mandates Act to require implementation without state reimbursement. The bill would affect public retirement systems, employers participating in those systems, and eligible Tier 2 employees whose pension benefits fall below the bill’s hypothetical Social Security benchmark.

Sentiment

No committee transcripts or recorded votes are provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. The bill’s text indicates a policy goal of improving retirement benefits for a targeted group of public employees, suggesting a favorable orientation toward those workers. At the same time, the absence of fiscal notes, hearings, or votes means the broader sentiment cannot be measured from the supplied record.

Contention

The likely controversy is fiscal. The bill would require annual benefit adjustments for eligible Tier 2 noncovered employees and explicitly removes those increases from the definition of a “new benefit increase,” which may be viewed as bypassing existing pension funding safeguards. Critics would likely question the cost to retirement systems and the State, as well as the mandate to implement without reimbursement. Supporters would likely emphasize fairness for employees who do not receive Social Security coverage and argue that their pensions should not fall below a Social Security-equivalent floor.

Companion Bills

No companion bills found.

Previously Filed As

IL SB1934

PEN CD-TIER 2 SURVIVOR BENEFIT

IL SB1711

PEN CD-CHI FIRE-TIER 2 SALARY

IL HB1307

PEN CD-IMRF-FIRE/PARAMEDIC

IL SB2342

PEN CD-SERS-DC PLAN

IL HB2868

PEN CD-IMRF-SLEP DISABILITY

IL HB1310

PEN CD-DNS FIRE-TIER 2

IL SB1725

PEN CD-CHI POLICE&FIRE-TIER 2

IL HB2855

PEN CD-CHI POLICE&FIRE-TIER 2

IL HB4015

PEN CD-DNST POLICE-RECIPROCITY

IL SB1267

PEN CD-IMRF-ANNUITY SUSPENSION

Similar Bills

No similar bills found.