IL HB3265

Changes the earnings increase threshold for State Universities and Downstate Teacher pension systems from a fixed 6% to the unadjusted consumer price index-u (CPI-U) percentage for academic/school years beginning on or after July 1, 2013.

Requires employers to pay the present value of increased pension benefits resulting from earnings increases exceeding the CPI-U threshold, with System billing procedures and dispute resolution mechanisms allowing 30-day recalculation requests and 90-day payment windows.

Exempts certain earnings increases from the CPI-U threshold calculation, including those under pre-existing contracts, overload/summer work, promotions to existing positions, and increases for employees 10+ years from retirement eligibility.

Adds Section 8.37 to the State Mandates Act exempting this legislation from state reimbursement requirements to local employers and school districts.

Takes effect immediately upon enactment.