Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0183

Introduced
1/17/25  

Caption

PEN CD-SERS-ALTERNATE ANNUITY

Summary

SB0183 amends the Illinois Pension Code to extend the State Employees’ Retirement System alternative retirement annuity to a specific group of Tier 2 security employees of the Department of Human Services. Under the bill, these employees would be treated as eligible for the alternative retirement annuity under Section 14-110, which is the enhanced annuity formula already available to certain “alternative formula” public safety and security employees. The bill also allows affected DHS security employees to convert up to 8 years of prior service credit earned before the bill’s effective date into eligible creditable service, provided they file a written election with the retirement board and pay the required amount. The measure is narrowly targeted to DHS security employees, including those working at Chester Mental Health Center, in security units, or as mental health police officers, and it ties their retirement treatment to the same alternative annuity framework used for other covered state security and law enforcement classifications. It also amends the Pension Code’s “new benefit increase” section so that any benefit increase resulting from this act is excluded from the definition of a new benefit increase, which is significant because Illinois law places special funding and expiration rules on new pension benefit enhancements. The bill is effective immediately. The bill’s practical impact would be to improve retirement eligibility and potential pension benefits for a limited class of DHS security employees, while also allowing some past service to be upgraded into more favorable pension credit through employee payment. For the state, this could increase long-term pension liabilities and employer contribution costs for the State Employees’ Retirement System, though the bill does not specify the fiscal amount. For affected employees, it creates a path to earlier or larger retirement benefits and recognizes prior service in a more advantageous pension category. No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears to be a targeted pension enhancement for a specific employee group rather than a broad structural pension reform. Because it expands retirement benefits and permits service conversion, likely points of concern would include pension cost, precedent for other employee groups, and whether the benefit is appropriately limited to DHS security employees. Overall, the bill is best characterized as a specialized pension adjustment for DHS security personnel under Tier 2, with a built-in mechanism for purchasing prior service credit and a statutory carve-out to avoid treatment as a “new benefit increase.”

Impact

SB0183 would amend Sections 1-160, 14-110, and 14-152.1 of the Illinois Pension Code to add Department of Human Services security employees subject to Tier 2 to the class of employees eligible for the alternative retirement annuity under Article 14. It also authorizes those employees to convert up to 8 years of prior service into eligible creditable service by making a written election and paying the required actuarial amount. By excluding the resulting benefit increase from the definition of a “new benefit increase,” the bill avoids the special funding/expiration framework that normally applies to post-2005 pension enhancements.

Sentiment

No committee discussion or vote history was provided, so the record does not show formal support or opposition. From the bill’s structure, the sentiment appears favorable toward a targeted benefit expansion for a defined group of state security employees, with the policy framed as a pension equity adjustment rather than a broad benefit increase. The absence of recorded debate means any broader legislative sentiment cannot be confirmed from the available materials.

Contention

The main likely point of contention is fiscal: the bill expands pension eligibility and permits service-credit conversion, which can increase employer costs and long-term liabilities for the retirement system. Another possible concern is precedent, since granting alternative annuity treatment to one employee group may prompt similar requests from other state worker classifications. Supporters would likely emphasize parity for DHS security employees who perform hazardous or institutional security work, while skeptics would focus on pension affordability and whether the benefit should be limited to this group.

Companion Bills

No companion bills found.

Previously Filed As

IL HB1871

PENCD-SERS-ALTERNATIVE ANNUITY

IL HB4572

PEN CD-IMRF-ANNUITY SUSPENSION

IL SB1267

PEN CD-IMRF-ANNUITY SUSPENSION

IL SB3198

PEN CD-SERS-ALTERNATE ANNUITY

IL SB0242

PEN CD-SERS-TIER 2

IL SB2342

PEN CD-SERS-DC PLAN

IL HB5540

PEN CD-IMRF-ANNUITY PAYMENT

IL SB1630

PEN CD-SERS-CONTRACT SERVICE

IL HB2451

SCH-FOREIGN LANG ALTERNATIVE

IL HB3113

PEN CD-NONCOVERED EMPLOYEES

Similar Bills

No similar bills found.