IL SB1648

Amends the Illinois Pension Code to distinguish disability annuity provisions for employees based on when they became pension participants: prior to January 1, 2011 versus on or after January 1, 2011.

For pre-2011 participants, employees who exhaust ordinary disability benefits before age 60 and remain disabled can receive an annuity based on accumulated contributions, with minimum annuity protections and automatic annual increases applying if applicable.

For post-2010 participants, employees who exhaust ordinary disability benefits and remain disabled before becoming eligible for retirement can receive an annuity based on accumulated contributions, with no minimum annuity protections or automatic annual increases.

Adds Section 14-126.5 allowing members whose disability benefits terminate at age 65 or after 5 years (if benefits started after age 60) to immediately receive retirement annuity without early retirement reductions if they have at least 10 years of creditable service.

Exempts the State from reimbursement obligations under the State Mandates Act for implementing these pension changes.