IL HB2906

Modifies the "final average salary" calculation for Tier 2 Chicago firefighters hired on or after January 1, 2011, allowing them to use the greater of either a 96-month average or a 48-month average from their last 120 months of service (previously limited to 96-month calculation only).

Tier 2 firefighters remain subject to the existing salary cap of $106,800 annually (as of 2011), with annual adjustments limited to the lesser of 3% or one-half the Consumer Price Index increase.

Maximum Tier 2 retirement annuity is capped at 75% of final average salary, calculated at 2.5% per year of service with reductions for retirement before age 55.

Amends the State Mandates Act to declare that implementation of this bill requires no state reimbursement to local municipalities.

Effective immediately upon becoming law.