IL SB1345

Increases retirement age eligibility for new members of Articles 8 and 11 (Chicago Fire and Police) hired on or after the effective date to age 65 with at least 10 years of service credit, reducing the annuity by 0.5% for each month under age 65.

Allows existing members who joined Articles 8 or 11 between January 1, 2011 and the effective date to elect between the new age 65 retirement or the original age 67 requirement, with the election period set between October 1, 2017 and November 15, 2017.

Establishes a compensation cap of $106,800 annually for new hires (as of January 1, 2011), with adjustments limited to the lesser of 3% annually or one-half the consumer price index increase.

Changes the definition of "Tier 2 member" in Article 15 to reference the implementation date under Section 1-161 rather than a fixed 6-month timeframe.

Modifies final average salary calculations for new hires to use 96 consecutive months (8 years) within the last 120 months (10 years) of service, replacing previous article-specific definitions.