IL HB3518

Creates new Section 1-155 of the Illinois Pension Code allowing Tier 1 participants (those who joined before January 1, 2011) to irrevocably elect Consumer Price Index-U based annual increases to retirement and supplemental annuities.

Annual increases equal the unadjusted percentage increase in Consumer Price Index-U for the 12 months ending September, with a minimum floor of 1% and maximum cap of 5%.

Public Pension Division of the Department of Insurance must calculate and publish adjustment amounts by November 1 each year for pension funds and retirement systems.

Excludes participants in Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter pension funds (Articles 3, 4, 5, and 6).

Pension funds and retirement systems must inform all Tier 1 participants of their option to make this election; applies regardless of whether participant is in active service; takes effect immediately upon becoming law.