IL HB3081

Amends the Illinois Pension Code by adding Section 1-161 to establish new limits on annual benefit increases for State-funded pension and retirement systems.

Caps annual increases for current annuitants, participants, and survivors (those receiving benefits before January 1, 2011) at 2% of the benefit compounded annually.

Limits annual increases for new participants (those who became participants after January 1, 2011) to the lesser of 2% or one-half the annual unadjusted percentage increase in the consumer price index-u, with a floor of zero percent.

Applies to all annuitants, participants, and survivors in retirement systems and pension funds established under Articles 2, 14, 15, 16, and 18 of the Illinois Pension Code.

Takes effect immediately upon becoming law.