SB3628 Summary

• Modifies Illinois Pension Code provisions for Tier 2 employees hired on or after January 1, 2011, creating a new Section 1-163 that provides alternative benefit calculations for members in Articles 7, 8, 9, 14, and 15.

• Reduces final average salary calculation period from 96 months to 60 months of the highest-earning service within the last 120 months for affected Tier 2 members and participants.

• Lowers retirement eligibility age to 60 with 20 years of service (or age 67 with 10 years of service) for Tier 2 members, with increased annual cost-of-living adjustments calculated as 3% or one-half the consumer price index-u, whichever is greater.

• Provides Department of Corrections and Department of Juvenile Justice security employees alternative retirement eligibility at age 55 (instead of age 60) with 20 years of creditable service under the alternative retirement formula.

• Establishes that changes are retroactive to January 1, 2011 and applies without regard to whether members were in active service on or after the effective date; exempts implementation from State Mandates Act reimbursement requirements.