IL HB3657

Amends the Illinois Pension Code to increase the annual salary cap for Tier 2 police officers and firefighters (hired on or after January 1, 2011) from $106,800 to $141,407.74 beginning July 1, 2025, with future annual increases tied to the full CPI-U rate rather than half the CPI-U rate

Modifies the "final average salary" calculation for Tier 2 police retirement benefits to allow the greater of either the 96-month average within the last 120 months of service or the 48-month average within the last 60 months of service

Enhances survivor benefits for Tier 2 police and firefighter families by adding a new option of 54% of the deceased officer's monthly salary for surviving spouses, and providing 12% of monthly salary per child (up to age 18) when there is a surviving spouse, or 20% per child when there is no surviving spouse

Applies enhanced survivor benefit provisions retroactively regardless of whether the deceased officer was in service on or after the effective date, while prohibiting any retroactive adjustment of employee contributions

Exempts the State from reimbursement requirements under the State Mandates Act for implementation of these pension changes