HB5377 Summary

• Amends the Illinois Pension Code to reduce cost-of-living adjustments (COLAs) for five state-funded retirement systems for persons who first became participants before January 1, 2011 and have not yet begun receiving retirement annuities.

• For affected participants, automatic annual COLA increases are limited to 3% of the first $50,000 of annual annuity, with amounts exceeding $50,000 receiving the lesser of 3% or one-half the Consumer Price Index increase (but not less than zero).

• Changes apply to participants in the General Assembly Retirement System, Judges Retirement System, State Universities Retirement System, Teachers' Retirement System, and State Employees' Retirement System.

• Modifies six sections of the Illinois Pension Code (40 ILCS 5/2-119.1, 14-114, 15-136, 16-133.1, 16-136.1, and 18-125.1) by adding new subsections that specify the reduced COLA formula.

• Does not affect participants who first became members on or after January 1, 2011, or those already receiving retirement annuities before the effective date of this act.