IL HB5265

Changes Tier 2 retirement age eligibility for Chicago police and firefighters from age 60 to age 55 for annual annuity increases, effective on the later of attaining age 55 or the first anniversary of retirement.

Modifies Tier 2 annual annuity increases to a fixed 3% (instead of 3% or one-half of consumer price index-u, whichever is less) of the originally granted retirement annuity.

Eliminates the age-based reduction factor for Tier 2 police and firefighters retiring after age 50 with 20 or more years of creditable service, ensuring no reduction to their retirement annuity.

Adds Section 8.48 to the State Mandates Act specifying that implementation of these pension changes requires no state reimbursement to local governments.