IL SB1235

Modifies final rate of earnings calculation for Tier 1 members employed at 1/2 time or less for 3 or more years, applying the 20% annual earnings increase limitation beginning September 1, 2024.

Creates new service calculation rules (subsection a-5) for participants beginning September 1, 2024, requiring employees to contribute to the System to earn service credit, with exceptions for service periods subject to prior purchases or transfers.

Eliminates the part-time service adjustment under subsection (b) of Section 15-134.1 for members who become participants on or after September 1, 2024.

Adds Public Act 103 (this amendatory act) to the list of pension law changes excluded from the definition of "new benefit increase" subject to 5-year expiration and additional funding requirements under Section 15-198.

Effective upon becoming law with mutual inseverability clause stating all changes are void if any single change is invalidated.