SB2005 Amendment Summary

• Amends Illinois Pension Code Section 15-136 to modify retirement annuity calculations for participants in traditional and portable benefit packages.

• For Rule 2 annuity calculations, applies effective interest rates at time of retirement for retirements on or after July 1, 2014, and establishes minimum annuity protection ensuring participants receive no less than they would have if retiring on June 30, 2014.

• Implements new automatic increase limits for Tier 1 members by capping annual 3% increases at the lesser of the total annuity or $1,000 multiplied by years of creditable service, with the $1,000 amount adjusted annually for inflation beginning January 1, 2016.

• Creates delayed automatic increase schedules for Tier 1 members not yet retired as of July 1, 2014, with increases occurring every two, four, six, or eight years depending on age (0% increases in those years).

• Maintains existing Tier 2 member provisions for annual increases of 3% or half the Consumer Price Index-U, whichever is less, beginning at age 67 or first annuity anniversary.