SB1221 Summary

• Changes the threshold for employer contributions triggered by teacher salary increases from a fixed 6% to an amount based on the consumer price index (CPI), effective after June 30, 2015.

• The CPI-based percentage is determined annually using the unadjusted percentage increase in the consumer price index for the 12 months ending in September, as calculated by the Department of Insurance's Public Pension Division.

• Exempts salary increases under collective bargaining agreements in effect on February 1, 2015 from the new CPI threshold, keeping those agreements at the 6% threshold until they are terminated, amended, or renewed.

• Applies to the Downstate Teacher Article of the Illinois Pension Code regarding excess salary increase contributions owed by school districts and other employers to the Teachers' Retirement System.

• Takes effect immediately upon becoming law.