Key Legislation

SB 2: PENSION CODE-TIER 2 BENEFITS
Sponsor: Sen. Robert F. Martwick
Synopsis: Amends the Illinois Pension Code. Makes changes to Tier 2 benefits, including changing the amount of the automatic annual increase to 3% of the originally granted retirement annuity or 3% of the retirement annuity then being paid for the General Assembly and Judges Articles, changing the limit on the amount of salary for annuity purposes to the Social Security wage base, changing the calculation of final average salary to the Tier 1 calculation for persons who are active members on or after January 1, 2026, and changing the retirement age. Establishes an accelerated pension benefit payment option for the General Assembly, Chicago Teachers, and Judges Articles of the Code. Provides that, with regard to persons subject to the Tier 2 provisions, a security employee of the Department of Human Services, a security employee of the Department of Corrections or the Department of Juvenile Justice, an investigator for the Department of the Lottery, or a State highway worker is entitled to an annuity calculated under the alternative retirement annuity provisions of the State Employee Article of the Code. Authorizes the conversion of service to eligible creditable service. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. Authorizes SLEP status under the Illinois Municipal Retirement Fund for a person who is a county correctional officer or probation officer and for a person who participates in IMRF and qualifies as a firefighter under the Public Safety Employee Benefits Act. In the Downstate Firefighter Article, includes a de facto firefighter in the definition of "firefighter". Defines "de facto firefighter". Provides that the monthly pension of a firefighter who is receiving a disability pension shall be increased at the rate of 3% of the original monthly pension. Makes changes to the minimum retirement annuity payable to a firefighter with 20 or more years of creditable service, the minimum disability pension, and the minimum surviving spouse's pension. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.
Legislative Committee Recommendation: Oppose
Status: Referred to Senate Assignments Committee

HB 1310:  PEN CD-DNS FIRE-TIER 2
Sponsor: Rep. Jay Hoffman
Synopsis: Amends the Downstate Firefighter Article of the Illinois Pension Code. In a provision that reduces the amount of the pension for a Tier 2 firefighter who retires with at least 10 years of creditable service before attaining age 55, provides that the pension of a Tier 2 firefighter who is retiring after attaining age 50 with 20 or more years of creditable service shall not be reduced. Makes a conforming change. Provides that each annual increase for Tier 2 firefighters shall be increased on the January 1 occurring either on or after the attainment of age 55 (instead of age 60) or the first anniversary of the pension start date, whichever is later, and shall be calculated at 3% of the originally granted pension (instead of calculated at the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for a 12-month period ending in September preceding each November 1). Provides that the changes shall apply without regard to whether a Tier 2 firefighter is in active service under the Article on or after the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Legislative Committee Recommendation: Oppose
Status: Assigned to House Appropriations-Pensions & Personnel Committee

HB 1282: INC TX-LGDF TRANSFERS
Sponsor: Rep. Anthony DeLuca
Synopsis: Amends the Illinois Income Tax Act. Increases the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Effective immediately. Additional bills have been introduced that also look to restore the LGDF share of the income tax to 10% (HB 2643, HB 2897, SB 136).
Legislative Committee Recommendation: Support
Status: Assigned to House Income Tax Subcommittee

HB 2963 & SB 1938: METRO & REGIONAL TRANSIT AUTH
Sponsor: Rep. Marcus C. Evans, Jr., Sen. Ram Villivalam
Synopsis: Creates the Road Usage Charge Act. Establishes the Road Usage Charge Advisory Committee to guide the development and evaluation of the road usage charge pilot program and to assess the potential for mileage-based revenue as an alternative to the current system of taxing highway use through motor fuel taxes. Sets forth the membership and duties of the committee. Requires the Department of Transportation, in consultation with the Secretary of State and based on the recommendations of the Committee, to implement a statewide pilot program by January 1, 2026 to assess a user fee on owners of motor vehicles that is based on the number of miles traveled on public roadways in this State by those vehicles. Amends the Metropolitan Transit Authority Act. Provides that, on and after February 1, 2026, the Chicago Transit Board shall have 8 members (currently 7 members). Makes changes to the number of affirmative votes by Directors required to issue bonds. Amends the Regional Transportation Authority Act. Provides that the Annual Budget and 2-Year Financial Plan must show that the aggregate of all projected fare revenues from fares and charges for mass transportation provided by, or under grant or purchase of service contracts of, the Service Boards received in fiscal years 2026 and 2027 shall equal at least 25%, and in fiscal years 2028 and 2029 and every year thereafter at least 15%, of the aggregate cost of providing such public transportation in those fiscal years. Provides that, beginning July 1, 2026, the Regional Transportation Authority shall be the sole agency responsible for the management and oversight of the fare collection systems used on all public transportation provided by the Service Boards. Makes changes to the membership of the Suburban Bus Board and the Commuter Rail Board. Makes changes to the number of affirmative votes required by the Directors of the Authority to approve decisions regarding the strategic plan, coordination of fares and service, appointment of officers and employees, paratransit services, powers of the Commuter Rail Board, labor, budget, taxes, distribution of revenues, issuing and pledging bonds and notes, budget review powers, the annual capital improvement plan, and rate protection contracts. Makes other changes. Effective January 1, 2026.
Legislative Committee Recommendation: Monitor/engage for alignment with NWMC principles
Status: Referred to House Rules Committee and Senate Assignments Committee