HB2993 Summary

• Amends the Illinois Pension Code to establish a two-tier system for State Universities Retirement System (SURS) members: "Tier 1" includes members who first participated before January 1, 2011, and "Tier 2" includes new members after that date.

• Tier 2 members face stricter retirement eligibility (age 67 with 10 years of service, or age 62 with reduced benefits) compared to Tier 1 members, and are subject to an annual earnings cap of $106,800 (adjusted annually by 3% or one-half CPI increase).

• Tier 2 members receive lower survivor annuity benefits (66 2/3% of retirement annuity versus variable percentages for Tier 1) and reduced annual cost-of-living adjustments (3% or one-half CPI increase, whichever is less).

• Modifies retirement annuity calculations, contribution requirements, and benefit structures for new hires while preserving existing benefits for current members.

• Makes technical changes to board governance, operations procedures, and administrative provisions for the retirement system.