IL HB3270

Establishes an implementation date no later than July 1, 2025 for the State Employees' Retirement System, State Universities Retirement System, and Teachers' Retirement System to offer optional benefits to Tier 2 members and new members.

Caps annual earnings subject to pension calculations at the federal Social Security Wage Base for participating members, with retirement annuities computed at 1.25% per year of service multiplied by final average salary.

Provides annual cost-of-living adjustments equal to one-half of the annual Consumer Price Index-W increase (minimum zero), with retirement eligibility at Social Security normal retirement age but no earlier than age 67 with 10 years of service credit.

Requires employee contributions of 6.2% of salary (capped at the normal cost of benefits), with survivor annuities set at 66 2/3% of the retiree's retirement benefit and employer contributions of 2-6% of salary for the defined contribution plan portion.

Establishes a defined contribution plan component with minimum 4% employee contributions, variety of investment and payout options, and employer contributions vesting immediately upon payment, with participants able to transfer or roll over contributions to other qualified retirement plans.