Public Act 100-1166 Summary

• Establishes retirement eligibility at age 65 (reduced from age 67) for public employees hired on or after July 6, 2017 under Articles 8 and 11 of the Illinois Pension Code, with a 0.5% monthly reduction for retirement before age 65.

• Requires employees hired between January 1, 2011 and July 6, 2017 under Articles 8 and 11 to make an irrevocable election between October 1-November 15, 2017: either accept the reduced age 65 retirement with increased contribution rates, or maintain the age 67 retirement requirement with standard contribution rates.

• Adjusts employee contribution rates: employees electing the reduced retirement age contribute 7.5%-8.5% through 2019, then scaled to normal cost; rates can reduce to 5.5% if the pension fund reaches 90% funding and maintains 75% or higher funding ratio.

• Caps annual earnings subject to pension calculations at $106,800 (effective January 1, 2011), adjusted annually by the lesser of 3% or half the consumer price index increase.

• Modifies annuity payment procedures to require annuitants directing payments to financial institutions to hold the pension fund harmless from errors regarding federal insurance status of those institutions.