IL HB1502

Reduces retirement eligibility age from 67 to 62 for new public employee pension system members hired on or after January 1, 2011, provided they have at least 10 years of service credit.

Eliminates the reduced annuity option previously available to members retiring at age 62, which had imposed a 0.5% monthly reduction for each month under age 67.

Caps annual earnings subject to pension calculations at $106,800 as of January 1, 2011, with annual adjustments limited to the lesser of 3% or one-half the consumer price index increase.

Establishes survivor annuities at 66 2/3% of the retired member's annuity and provides annual increases to retirement and survivor annuities equal to the lesser of 3% or one-half the consumer price index increase.

Exempts the mandate from State reimbursement requirements under the State Mandates Act and takes effect immediately upon enactment.