SB2533 Summary

• Amends Illinois Pension Code to reorganize Tier 2 member provisions from General Provisions Article to Illinois Municipal Retirement Fund (IMRF) Article, except for persons who elected alternative credits under Section 7-145.1.

• Defines "Tier 1 regular employee" (member before January 1, 2011) and "Tier 2 regular employee" (member on or after January 1, 2011), with different retirement age and benefit calculation requirements.

• Changes Tier 1 regular employee retirement annuity increases from 0.167% to 0.25% of monthly amount for the first increase, and establishes that Tier 2 regular employees receive annual increases of 3% or one-half the annual unadjusted percentage increase in consumer price index-u, whichever is less.

• Modifies surviving spouse annuity amounts: Tier 1 regular employees receive 50% of retirement annuity, while Tier 2 regular employees receive 66 2/3%, with different increase calculations based on employee tier and death circumstances.

• Amends State Mandates Act to require implementation of these pension changes without state reimbursement to municipalities.