HB3175 Summary

• Changes the earnings increase threshold for State Universities and Downstate Teacher pension plan employers from a fixed 6% to the unadjusted consumer price index-u (CPI-U) for academic/school years beginning July 1, 2017 and later.

• Requires employers to pay the present value of increased pension benefits when participant earnings exceed the CPI-U threshold, replacing the previous 6% cap calculation methodology.

• Defines "consumer price index-u" as the Bureau of Labor Statistics index measuring average price changes for goods and services purchased by urban consumers (base year 1982-84 = 100).

• Applies the CPI-U threshold change to both university participants under Section 15-155 and teachers under Section 16-158 of the Illinois Pension Code.

• Exempts implementation from State Mandates Act reimbursement requirements and takes effect immediately upon passage.