Current Legislation
104th General Assembly
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House Bills
School District Property Tax Grant Relief Program
Bill Number: HB 9 | Sponsor(s): Rep. Ugaste | Status: Not Law
Amends the School Code to create a school district property tax relief grant program. Provides that the difference, if any, between: (1) 25% of the general funds budget and (2) State contributions to GARS, SERS, SURS, TRS, CTPF, and JRS, must be deposited into the Education Property Tax Relief Fund for distribution to school districts. Effective immediately.
State Retiree Medicare Primacy Coordination Audit and Assistance Program
Bill Number: HB 17 | Sponsor(s): Rep. Weaver | Status: Not Law
Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois to require CMS, in conjunction with SERS, SURS, TRS, JRS, and GARS, to enter into a contract with a qualified and experienced administrator to: (1) identify annuitants, retirees, benefit recipients, survivors or dependents who are eligible for, but who have not been enrolled in, Medicare; and (2) assist such persons with enrolling in Social Security and Medicare. Requires the administrator to conduct an annual audit of the SEGIP, TRIP, and CIP to identify and enroll Medicare-eligible persons with Medicare as their primary health care benefits coverage. Requires the administrator to assist eligible individuals with enrollment in Social Security Disability Insurance and Medicare. Requires the administrator to provide an annual report showing the number of persons transitioned to Social Security Disability Insurance and Medicare and the amount of savings to the State. Effective January 1, 2026.
Fracking – Proceeds
Bill Number: HB 51 | Sponsor(s): Rep. Meier | Status: Not Law
Amends the Illinois Hydraulic Fracturing Act to require 80% of the proceeds due to fracking to be paid into the Pension Stabilization Fund and 20% to be paid into the Carbon Dioxide Pipeline Fund. (Currently, 100% of the proceeds are paid into the General Revenue Fund.) (The Pension Stabilization Fund was created to reduce the unfunded actuarial accrued liabilities of GARS, SERS, SURS, TRS, and JRS.) Makes other changes. Effective immediately.
Police and Firefighters Tier I
Bill Number: HB 1045 | Sponsor(s): Rep. Cabello | Status: Not Law
Amends several provisions of the Illinois Pension Code to make police officers and firefighters Tier I members. Applies the changes to active and inactive participants on and after January 1, 2011. Applies benefit increases prospectively and does not entitle a participant to retroactive benefit payments or increases. Does not cause or result in any retroactive adjustment of any employee contributions. Makes other changes. Effective immediately.
Police and Firefighters Tier I
Bill Number: HB 1046 | Sponsor(s): Rep. Cabello | Status: Not Law
Amends several provisions of the Illinois Pension Code to make police officers and firefighters Tier I members. Applies the changes to active and inactive participants on and after January 1, 2011. Applies benefit increases prospectively and does not entitle a participant to retroactive benefit payments or increases. Does not cause or result in any retroactive adjustment of any employee contributions. Makes other changes. Effective immediately.
FY 2026 Budget Implementation Bill
Bill Number: HB 1075 | Sponsor(s): Rep. Gabel (Sen. Sims) | Status: Public Act 104-0002
Amends several provisions of the Illinois Pension Code to make police officers and firefighters Tier I members. Applies the changes to active and inactive participants on and after January 1, 2011. Applies benefit increases prospectively and does not entitle a participant to retroactive benefit payments or increases. Does not cause or result in any retroactive adjustment of any employee contributions. Makes other changes. Effective immediately.
Foreign Land Ownership and Foreign Countries of Concern Act
Bill Number: HB 1162 | Sponsor(s): Rep. Miller | Status: Not Law
Creates the Foreign Land Ownership and Foreign Countries of Concern Act. Prohibits the following foreign countries of concern from (1) owning agricultural land in Illinois; and (2) purchasing real property on or within 10 miles of any military installations or critical infrastructure facilities in Illinois: the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, and the Syrian Arab Republic. Prohibits the People’s Republic of China and the Chinese Communist Party from owning real property in Illinois. Prohibits certain governmental entities from entering into contracts: (1) that would give foreign countries of concern access to an individual’s personal identifying information; and (2) that would provide an economic incentive to a foreign country of concern. No effective date listed.
Enslavement Era Disclosure and Redress Act
Bill Number: HB 1227 | Sponsor(s): Rep. Harper | Status: Not Law
Creates the Enslavement Era Disclosure and Redress Act. Requires each contractor that participates in a competitive bidding process with the State of Illinois to complete an affidavit certifying that that it has reviewed its records for participation in slave holding or the slave trade. Requires the affidavit to disclose certain information if the contractor or a related party has participated in slaveholding or the slave trade. Requires each contractor who has disclosed participation in slaveholding or the slave trade to provide a statement of financial redress and any financial contributions to the Redress Fund. Makes other changes. Effective immediately.
Investment Report Deadline
Bill Number: HB 1447 | Sponsor(s): Rep. Kelly (Sen. Porfirio) | Status: Public Act 104-0182
Amends the Accountability for the Investment of Public Funds Act to require investment reports under the Act to be published no later than the end of each month (currently, by the 15th of the month). Makes other changes. Effective August 15, 2025.
Suspension of Pension Benefits Pending Job-Related Felony Conviction
Bill Number: HB 1727 | Sponsor(s): Rep. Elik | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to: (1) suspend benefit or annuity payments for a member or participant who is indicted or charged by information with a job-related felony; (2) resume benefit or annuity payments (including payment of the amount of the suspended annuity or benefit payments with interest) if the member or participant is not convicted of the job-related felony; and (3) prohibit the suspended annuity or benefit payments from being paid to the member or participant if they are convicted of the job-related felony. Effective immediately.
Felony Forfeiture – Disqualifying Offenses
Bill Number: HB 1841 | Sponsor(s): Rep. Tarver | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to prohibit benefits from being paid to: (1) any person who is convicted of a disqualifying offense; and (2) any person who would otherwise receive a survivor benefit who is convicted of a disqualifying offense. Defines “disqualifying offense” as any of the following offenses: indecent solicitation of a child, sexual exploitation of a child, custodial sexual misconduct, exploitation of a child, child pornography, aggravated child pornography, first degree murder, second degree murder, predatory criminal sexual assault of a child, aggravated criminal sexual assault, criminal sexual assault, aggravated kidnaping, and aggravated battery resulting in great bodily harm or permanent disability or disfigurement. Applies to a person who first becomes a member or participant on or after the effective date of the legislation. Effective immediately.
Tier II Police Retire at 55
Bill Number: HB 2332 | Sponsor(s): Rep. Ryan | Status: Not Law
Amends the State Universities Retirement System article of the Illinois Pension Code to allow a Tier II member with at least 20 years of service as a police officer to retire at age 55 (instead of age 60) under the special formula for police officers and firefighters. Provides that the changes apply retroactively to January 1, 2011. No effective date listed.
RSP Lump-Sum Retiree Health Insurance
Bill Number: HB 2378 | Sponsor(s): Rep. Kifowit | Status: Not Law
Amends the State Employees Group Insurance Act of 1971 to allow community college retirees who take lump-sum distributions from the Retirement Savings Plan to receive retiree health insurance benefits. Amends the State Universities Retirement System article of the Illinois Pension Code to establish that a participant in the Retirement Savings Plan retires and their retirement begins when they are eligible for retirement (including reciprocal retirement, if applicable) and begins receiving retirement income from their Retirement Savings Plan account. No effective date listed.
RSP Lump-Sum Retiree Health Insurance
Bill Number: HA #1 to HB 2378 | Sponsor(s): Rep. Kifowit | Status: Not Law
Amends the State Employees Group Insurance Act of 1971 to allow community college retirees who take lump-sum distributions from the Retirement Savings Plan to receive retiree health insurance benefits if (1) they continue to make a payment for the cost of benefits identified by the Department of Central Management Services (CMS) with an ongoing monthly payment through a payment structure provided by CMS; (2) they pay the actual cost associated with obtaining and processing that payment otherwise incurred by CMS; and (3) they agree in writing that no benefit will be offered or owed when these costs are unpaid. Amends the State Universities Retirement System article of the Illinois Pension Code to establish that a participant in the Retirement Savings Plan retires and their retirement begins when they are eligible for retirement (including reciprocal retirement, if applicable) and begins receiving retirement income from their Retirement Savings Plan account. No effective date listed.
Tier II Police Retire at 55
Bill Number: HB 2477 | Sponsor(s): Rep. Kifowit | Status: Not Law
Amends the State Universities Retirement System article of the Illinois Pension Code to allow a Tier II member with at least 20 years of service as a police officer to retire at age 55 (instead of age 60) under the special formula for police officers and firefighters. No effective date listed.
Tier II Omnibus
Bill Number: HB 2540 | Sponsor(s): Rep. Kifowit | Status: Not Law
Amends several articles of the Illinois Pension Code to adjust Tier II benefits. Specifically: (1) increases the Tier II pensionable earnings limit to the Social Security wage base; (2) adjusts the Tier II final rate of earnings period to the highest 6 (instead of 8) consecutive years out of the last 10 years of employment; (3) allows Tier II members in service on/after January 1, 2028 to retire under the same age and service credit requirements as Tier I members (i.e., any age with 30 years of service, age 55 with 8 years of service, and age 62 with 5 years of service); (4) allows Tier II police officers to retire at age 55 with 20 years of service under the alternative formula; (5) allows Tier II members to retire at age 60 with 10 years of service and a reduced annuity (unless they max-out, in which case no reduction applies); (6) adjusts Tier II automatic annual increases to 3% non-compounded, applicable on the later of age 65 or 1 year after retirement; (7) changes the funding target to 100% by FY 2049, implements 20-year amortization strips, ends phase-in of assumption changes in FY 2036, and ends use of the actuarial value of assets beginning with FY 2036. Allows a member or participant to repay a refund and establish service credit if they are an active participant in any retirement system or employed in a position that would allow them to participate if they had not opted-out, if certain criteria are met. Establishes that once a Tier I member becomes a Tier I member under one retirement system, they remain a Tier I member in any other retirement system. Allows eligible members of downstate police pension funds, downstate firefighters pension funds, Chicago Police Pension Fund, and Chicago Firefighters Pension Fund to retire under the Retirement Systems Reciprocal Act. Amends the Budget Stabilization Act to transfer amounts from the General Revenue Fund to the Pension Stabilization Fund: $175 million in FY 2031; $250 million in FY 2032, FY 2033, and FY 2034; $750 million in FY 2035, FY 2036, FY 2037, FY 2038, FY 2039, FY 2040, and FY 2041. Makes other changes. Effective immediately.
Chicago Police and Fire Reciprocity
Bill Number: HB 2704 | Sponsor(s): Rep. Kelly | Status: Not Law
Amends the Chicago Police Pension Fund and the Chicago Firefighters Pension Fund articles of the Illinois Pension Code to allow eligible members of the funds to retire under the Retirement Systems Reciprocal Act. No effective date listed.
Undo Tier II Pension Reform
Bill Number: HB 2711 | Sponsor(s): Rep. Kelly | Status: Not Law
Amends several articles of the Illinois Pension Code to adjust benefits for Tier II members in service on and after January 1, 2026. (Tier II members not in service on and after January 1, 2026 do not receive the benefit adjustments, except for the change to the pensionable earnings limit and automatic annual increases.) Specifically: (1) Increases the Tier II pensionable earnings limit to the Social Security wage base, beginning January 1, 2026. (2) Adjusts the Tier II final rate of earnings period for Tier II members who receive earnings on and after January 1, 2026 to the greater of the highest 4 consecutive academic years of service or the final 48 consecutive months of employment. (3) Adjusts Tier II automatic annual increases in retirement annuities to 3% non-compounded, beginning January 1, 2026. (4) Adjusts Tier II age and service credit requirements for a retirement annuity to be the same as Tier I members (i.e., any age with 30 years of service, age 55 with 8 years of service, and age 62 with 5 years of service). (5) Allows Tier II police officers in service on or after January 1, 2026 to retire under the alternative formula at age 50 with 25 years of service or age 55 with 20 years of service. (6) Applies automatic annual increases beginning on the January 1 occurring 1 year after retirement. (7) Establishes that a Tier I member remains a Tier I member in any reciprocal system (see JRS lawsuit). (8) Creates vested inactive and Tier I AAI buyouts under GARS, CTPF, and JRS. (9) Adds downstate police pension funds, downstate firefighters pension funds, the Chicago police pension fund, and the Chicago firefighters pension fund to the Retirement Systems Reciprocal Act. (10) Allows Tier I and Tier II SURS members to receive up to 2 years of service credit for unused, unpaid sick leave. (11) Re-instates exemptions to the 6% billing requirement for salary increases given since June 1, 2005. (12) Makes other changes. Effective Immediately.
Prohibited Investments – Remove Companies that Boycott Israel
Bill Number: HB 2723 | Sponsor(s): Rep. Rashid | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to remove companies that boycott Israel from the list of prohibited investments for the state-funded retirement systems. Effective immediately.
Financial Literacy Training Program
Bill Number: HB 2778 | Sponsor(s): Rep. Kifowit| Status: Not Law
Amends the Board of Higher Education Act to require the Board of Higher Education to award a grant to a statewide association of public pension funds affiliated with a public institution of higher education to develop and deliver an in-person financial literacy training program for public employees. Requires the program to consist of in-person training regarding retirement income, including pension benefits, Social Security benefits, and employer-sponsored deferred compensation and retiree health care savings plans. Requires the program to include instruction in financial planning and important elements of consumer finance, such as debt, educational savings, budgeting, and related subjects. Requires the program to provide in-person instruction and recorded programs to assist public employees who work on nontraditional shift assignments. Makes the grant subject to appropriation. No effective date listed.
Public Safety Deferred Retirement Option Plan and Reciprocity
Bill Number: HB 2779 | Sponsor(s): Rep. Kifowit| Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to create a deferred retirement option plan (DROP) for members of downstate police pension funds, downstate firefighters pension funds, the Chicago Police Pension Fund, the Chicago Firefighters Pension Fund, the Illinois Municipal Retirement Fund, the Cook County Pension Fund, the State Employees Retirement System, and the State Universities Retirement System. Allows eligible members to elect to participate in the DROP between January 1, 2027 and January 1, 2030. Defines an eligible member as a member who: (1) is otherwise eligible to retire under certain provisions of the Illinois Pension Code, including under the alternative formula for police officers under SURS; (2) is not receiving a disability benefit or retirement annuity; (3) is actively employed as a police officer; (4) is not subject to mandatory retirement during participation in the DROP. Allows an eligible member to participate in the DROP for a period of up to 5 years. Requires the applicable pension fund or retirement system to transfer the following amounts to the member’s DROP account: (1) the member’s monthly retirement annuity, including automatic annual increases; (2) the member’s employee contributions; and (3) interest on the member’s account at the actual rate of return on investment experienced by the applicable pension fund or retirement system, but no less than 0%. Amends the downstate police pension fund, downstate firefighters pension fund, Chicago Police Pension Fund, and Chicago Firefighters Pension Fund articles of the Illinois Pension Code to allow eligible members of the funds to retire under the Retirement Systems Reciprocal Act. Makes other changes. No effective date listed.
Prohibited Investments – Hamas-restricted Companies
Bill Number: HB 2780 | Sponsor(s): Rep. Moylan | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to prohibit the State-funded retirement systems from investing in Hamas-restricted companies. Defines Hamas-restricted companies as: (1) Hamas; (2) any company wholly or partially managed or controlled by Hamas; (3) any company identified as sponsoring terrorist activities in conjunction with Hamas or fined, penalized, or sanctioned for any violation of United States rules and restrictions relating to Hamas; and (4) any company that has business operations that involve contracts with or provision of supplies or services to Hamas, companies in which Hamas has any direct or indirect equity share, or consortiums or projects commissioned by Hamas. Defines “Hamas” as the organizations commonly known as Hamas and Palestinian Islamic Jihad that are subject to sanction or other restrictions placed on commercial activity imposed by the United States government due to an executive or congressional declaration as a Foreign Terrorist Organization. Requires annual certifications that assets have not been invested in Hamas-restricted companies. No effective date listed.
Public Safety Deferred Retirement Option Plan and Reciprocity
Bill Number: HB 2856 | Sponsor(s): Rep. Kifowit | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to create a deferred retirement option plan (DROP) for members of downstate police pension funds, downstate firefighters pension funds, the Chicago Police Pension Fund, the Chicago Firefighters Pension Fund, the Illinois Municipal Retirement Fund, the Cook County Pension Fund, the State Employees Retirement System, and the State Universities Retirement System. Allows eligible members to elect to participate in the DROP between January 1, 2027 and January 1, 2030. Defines an eligible member as a member who: (1) is otherwise eligible to retire under certain provisions of the Illinois Pension Code, including under the alternative formula for police officers under SURS; (2) is not receiving a disability benefit or retirement annuity; (3) is actively employed as a police officer; (4) is not subject to mandatory retirement during participation in the DROP. Allows an eligible member to participate in the DROP for a period of up to 5 years. Requires the applicable pension fund or retirement system to transfer the following amounts to the member’s DROP account: (1) the member’s monthly retirement annuity, including automatic annual increases; (2) the member’s employee contributions; and (3) interest on the member’s account at the actual rate of return on investment experienced by the applicable pension fund or retirement system, but no less than 0%. Amends the downstate police pension fund, downstate firefighters pension fund, Chicago Police Pension Fund, and Chicago Firefighters Pension Fund articles of the Illinois Pension Code to allow eligible members of the funds to retire under the Retirement Systems Reciprocal Act. Makes other changes. No effective date listed.
SURS Deferred Retirement Option Plan
Bill Number: HB 2920 | Sponsor(s): Rep. Stuart | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to create a deferred retirement option plan (DROP) for eligible SURS members. Defines an eligible SURS member as an active member who: (1) is eligible to retire with a full and unreduced pension; (2) not receiving a disability or retirement annuity from SURS; and (3) employed in a position covered under a collective bargaining agreement. Allows eligible SURS members to elect to participate in the DROP between January 1, 2026 and January 1, 2029 for a period of up to 5 years. Establishes the member’s account balance as: (1) the member’s retirement annuity, including automatic annual increases; and (2) the member’s employee contributions. Effective immediately.
Illinois Inclusive Venture Investment Act
Bill Number: HB 2937 | Sponsor(s): Rep. West | Status: Not Law
Creates the Illinois Inclusive Venture Investment Act. Provides that for every dollar invested by a covered institution in an eligible minority-owned financial manager, venture capital firm, or minority-led startup, the State Treasurer must provide a matching contribution of up to 50 cents per dollar using existing funds managed by the State Treasurer. Provides that investments that exceed annual performance benchmarks, as determined by historical market returns for venture capital or institutional portfolios, must receive an additional 25 cents per dollar in matching funds from the State Treasurer. Establishes that, to be eligible to participate in the program, covered institutions must allocate at least 20% of their investment portfolios to: (1) minority-owned venture capital firms; (2) minority-led startups; (3) minority-owned financial managers; or (4) special investment incentives supporting diverse founders, including: university startup incubator programs aimed at supporting underrepresented entrepreneurs and nonprofit business accelerator programs providing mentorship, training, and resources for minority founders. Defines a “covered institution” as including public pension funds or retirement systems of State or local governments. Effective July 1, 2026.
Downstate Firefighters Pension Fund Reciprocity
Bill Number: HB 3084 | Sponsor(s): Rep. Ortiz | Status: Not Law
Amends the Downstate Firefighters Pension Fund article of the Illinois Pension Code to allow eligible members of the Fund to retire under the Retirement Systems Reciprocal Act. No effective date listed.
Non-Coordinated Tier II Benefits
Bill Number: HB 3113 | Sponsor(s): Rep. Wilhour | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to provide that if a non-coordinated Tier II member would receive a pension benefit that is less than their hypothetical Social Security benefit, then the eligible Tier II member’s pension benefit must be increased to the amount of the hypothetical Social Security benefit plus $1. Requires this determination to be made on an annual basis and the amount of the pension benefit to be adjusted annually. No effective date listed.
Prohibited Investments – China
Bill Number: HB 3123 | Sponsor(s): Rep. Wilhour | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to prohibit the state-funded retirement systems from investing in: (1) Chinese Communist Party sovereign debt; (2) Chinese Communist Party-backed securities; (3) any investment instrument issued by an entity that is domiciled or has its principal place of business in the People’s Republic of China; (4) any investment instrument issued by a company that is subject to Chinese Military-Industrial Complex Companies Sanctions; and (5) any bank that is domiciled or has its principal place of business in the People’s Republic of China. Defines a “company that is subject to Chinese Military-Industrial Complex Companies Sanctions” as a company that is subject to sanctions under the Chinese Military-Industrial Complex Companies Sanctions Regulations (31 CFR Part 586), any Presidential Executive Order imposing sanctions against the People’s Republic of China or the Chinese Communist Party, or any federal directive issued pursuant to any such Executive Order. Makes other changes. No effective date listed.
Pensions Omnibus
Bill Number: HB 3193 | Sponsor(s): Rep. Kifowit (Sen. Martwick) | Status: Public Act 104-0284
Amends several provisions of the Illinois Pension Code and makes the following changes pertaining to SURS: (1) requires every retirement system and pension fund to indemnify and protect trustees and staff against all damage claims and suits, including the defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees (currently, such indemnification is permissive); (2) allows every retirement system and pension fund to indemnify and protect its consultants against all damage claims and suits, including the defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees (currently, such indemnification is permissive); (3) provides that a survivors insurance beneficiary or their representative may waive the right to receive survivorship benefits within 6 months after SURS notifies the person of the benefits payable (instead of 6 months after the death of the participant to annuitant); (4) makes technical changes related to the SURS Tier II final average salary to reflect the corresponding provisions of Article 1 of the Illinois Pension Code; (5) requires SURS employers to pay any 6% bill within 7 years (instead of 3 years) after the employer’s receipt of the bill; and (6) provides that an employer that is liable for aggregate affected annuitant contributions in excess of $300,000 for employing the same affected annuitant during academic years 2021, 2022, and 2023 must receive a credit for said contributions made by the employer against future contributions or penalties owed to SURS to by the employer. Makes other changes. Effective August 15, 2025.
SURS Technical Correction – Survivor Benefits Waiver
Bill Number: HB 3194 | Sponsor(s): Rep. Yang Rohr | Status: Not Law
Amends the State Universities Retirement System article of the Illinois Pension Code to provide that a survivor’s insurance beneficiary has 6 months from the date of notification from SURS to decide whether to waive survivor benefits. (Currently, a survivor’s insurance beneficiary has 6 months from the date of death of the participant or annuitant to decide whether to waive survivor benefits.) Effective immediately.
Bond Authorization Act of 2025
Bill Number: HB 3374 | Sponsor(s): Rep. Rita (Sen. Sims) | Status: Public Act 104-0008
Creates the Bond Authorization Act of 2025. Authorizes the use of an additional $200 million in State Pension Acceleration Bonds to fund Vested Inactive Buyouts and Tier I AAI Buyouts under SERS, SURS, and TRS. (NOTE: The total State Pension Obligation Acceleration Bond authorization increases from $2 billion to $2.2 billion.) Makes other changes. Effective January 1, 2026.
State Comptroller – Rainy Day Fund
Bill Number: HB 3436 | Sponsor(s): Rep. Manley | Status: Not Law
Amends the State Finance Act to allow moneys to be paid from the Budget Stabilization Fund to address outstanding vouchers if the amount of accounts payable exceeds $4 billion. Amends the Budget Stabilization Act to make the following changes: (1) prohibits the General Assembly from spending more than 99% of estimated general funds revenues if such estimates exceed the prior fiscal year’s revenue estimates by more than 4% and accounts payable are less than $3 billion; (2) ceases contributions to the Budget Stabilization Fund once the balance in the fund is equal to 10% of the general funds revenues for the prior fiscal year; (3) allows transfers from the Budget Stabilization Fund to maintain the State’s accounts payable at less than $3 billion; (4) provides that if general funds revenues are reported to exceed 4% growth from the prior fiscal year and the reported accounts payable are less than $3 billion, then 0.5% of the updated estimated revenues are transferred into the Budget Stabilization Fund and 0.5% of the updated estimated revenues are transferred into the Pension Stabilization Fund; (5) provides that when the General Assembly does not spend more than 99% of the estimated general funds revenues and the Budget Stabilization Fund is equal to 10% of general funds revenues, 1% of the estimated general funds revenues are deposited into the Pension Stabilization Fund. Makes other changes. Effective immediately.
FY 2026 Governor Introduced Budget
Bill Number: HB 3953 | Sponsor(s): Rep. Gabel | Status: Not Law
Appropriates the full certified state contribution to SURS for FY 2026 ($2,319,446,000). Of this amount, $2,104,446,000 comes from the General Revenue Fund and $215,000,000 comes from the State Pensions Fund. Appropriates the full certified state contribution to the College Insurance Program for FY 2026 from the Education Assistance Fund ($10,966,632). Appropriates $9,000,000 from the General Revenue Fund to SURS for an the cost of increasing the Tier II pensionable earnings limitation to 100% of the Social Security Taxable Wage Base for FY 2026. Effective July 1, 2025.
Fossil Fuel Divestment
Bill Number: HB 3961 | Sponsor(s): Rep. Guzzardi| Status: Not Law
Creates the Fossil Fuel Divestment Act. Establishes findings of the General Assembly. Amends the General Provisions article of the Illinois Pension Code to prohibit GARS, SERS, SURS, TRS, JRS, and ISBI from investing in fossil fuel companies. Requires each system to publish a report identifying investments in fossil fuel companies and to update that information quarterly. Requires divestment of any fossil fuel holdings by January 1, 2030. Requires each system, beginning January 1, 2026, to issue an annual report reviewing its environmental, social, and governance investment policy and specifies the contents of the report. Effective immediately.
FY 2026 Governor Introduced Budget – Governor’s Salary
Bill Number: HB 4007 | Sponsor(s): Rep. Gabel| Status: Not Law
Appropriates $237,900 for the Governor’s salary for FY 2026. Currently, the Governor’s salary is $226,800 for FY 2025. (40 ILCS 5/15-155(j-5) requires SURS employers to pay the employer normal cost on the portion of an employee’s earnings that exceeds the Governor’s salary.) Makes other changes. Effective July 1, 2025.
Post-Retirement Annuitant Earnings Limitations – Critical Operations
Bill Number: HB 4096 | Sponsor(s): Rep. La Ha| Status: Not Law
Amends the SURS Article of the Illinois Pension Code to modify the post-retirement annuitant earnings limitations. Specifically, provides that the post-retirement annuitant earnings limitations do not apply for any period of service on or after March 9, 2020 during which the annuitant returns to employment to perform a critical operation during a state of emergency or disaster that is declared by the Governor. Provides that, for such reemployment on or after March 9, 2020 and before the effective date of the legislation, SURS must pay the amount of suspended or canceled benefits with interest at the effective rate to the annuitant, and if the annuitant repaid benefits to SURS, then SURS must pay the amount of repayment with interest at the effective rate to the annuitant. Prohibits an annuitant’s benefits from being suspended if the annuitant made an employment-related decision having reasonably relied on a statement or statements by one or more representatives of SURS that benefits would not be suspended if such a decision were made. Effective immediately.
Firefighters Reciprocity
Bill Number: HB 4117 | Sponsor(s): Rep. Kelly | Status: Not Law
Amends the Downstate Firefighters and Chicago Firefighters Articles of the Illinois Pension Code to allow firefighters to retire under the Retirement Systems Reciprocal Act. Makes other changes. Effective immediately.
Senate Bills
Undo Tier II Pension Reform
Bill Number: SB 2 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends several articles of the Illinois Pension Code to adjust benefits for Tier II members in service on and after January 1, 2026. (Tier II members not in service on and after January 1, 2026 do not receive the benefit adjustments, except for the change to the pensionable earnings limit and automatic annual increases.) Specifically: (1) Increases the Tier II pensionable earnings limit to the Social Security wage base, beginning January 1, 2026. (2) Adjusts the Tier II final rate of earnings period for Tier II members who receive earnings on and after January 1, 2026 to the greater of the highest 4 consecutive academic years of service or the final 48 consecutive months of employment. (3) Adjusts Tier II automatic annual increases in retirement annuities to 3% non-compounded, beginning January 1, 2026. (4) Adjusts Tier II age and service credit requirements for a retirement annuity to be the same as Tier I members (i.e., any age with 30 years of service, age 55 with 8 years of service, and age 62 with 5 years of service). (5) Allows Tier II police officers in service on or after January 1, 2026 to retire under the alternative formula at age 50 with 25 years of service or age 55 with 20 years of service. (6) Applies automatic annual increases beginning on the January 1 occurring 1 year after retirement. (7) Establishes that a Tier I member remains a Tier I member in any reciprocal system (see JRS lawsuit). (8) Creates vested inactive and Tier I AAI buyouts under GARS, CTPF, and JRS. (9) Adds downstate police pension funds, downstate firefighters pension funds, the Chicago police pension fund, and the Chicago firefighters pension fund to the Retirement Systems Reciprocal Act. (10) Allows Tier I and Tier II SURS members to receive up to 2 years of service credit for unused, unpaid sick leave. (11) Re-instates exemptions to the 6% billing requirement for salary increases given since June 1, 2005. (12) Makes other changes. Effective Immediately.
Foreign Countries of Concern Act
Bill Number: SB 48 | Sponsor(s): Sen. Rezin | Status: Not Law
Creates the Foreign Countries of Concern Act. Prohibits certain public entities from engaging in any of the following activities with foreign countries of concern: (1) entering into contracts that would grant access to an individual’s personal identifying information; and (2) entering into an agreement or contract for an economic incentive. Defines “foreign countries of concern” as the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, Venezuela, or the Syrian Arab Republic. Prohibits foreign countries of concern from owning or controlling: (1) agricultural land in Illinois; and (2) real property on or within 10 miles of any military installation in Illinois or critical infrastructure facility in Illinois. Prohibits the People’s Republic of China from owning real property in Illinois. Makes other changes. No effective date listed.
Fossil Fuel Divestment
Bill Number: SB 130 | Sponsor(s): Sen. Johnson | Status: Not Law
Creates the Fossil Fuel Divestment Act. Establishes findings of the General Assembly. Amends the General Provisions article of the Illinois Pension Code to prohibit GARS, SERS, SURS, TRS, JRS, and ISBI from investing in fossil fuel companies. Requires each system to publish a report identifying investments in fossil fuel companies and to update that information quarterly. Requires divestment of any fossil fuel holdings by January 1, 2030. Requires each system, beginning January 1, 2026, to issue an annual report reviewing its environmental, social, and governance investment policy and specifies the contents of the report. Effective immediately.
MWDBE – Veterans Goals
Bill Number: SB 171 | Sponsor(s): Sen. Wilcox | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to: (1) add veteran-owned businesses to the MWDBE goals under the Act; and (2) add veteran-owned businesses to the disclosures required by investment advisors, consultants, and private market funds prior to the award of a contract. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act to make corresponding changes including, but not limited to: (1) renaming the Act to the Business Enterprise for Minorities, Women, Veterans, and Persons with Disabilities Act and (2) defining a “veteran” and a “veteran-owned business” under the Act. Makes other changes. Effective immediately.
CIP – Decline Dental Option
Bill Number: SB 200 | Sponsor(s): Sen. Rose | Status: Not Law
Amends the State Employees Group Insurance Act of 1971 to require the Director of the Department of Central Management Services to provide community college benefit recipients with the option to decline dental coverage for themselves and their dependent beneficiaries. No effective date listed.
Downstate Police and Fire Reciprocity
Bill Number: SB 1281 | Sponsor(s): Sen. Bryant | Status: Not Law
Amends the Downstate Police and Firefighters’ Pension Fund articles of the Illinois Pension Code to adopt the Retirement Systems Reciprocal Act for downstate police and firefighters pension funds. No effective date listed.
Return to Work Law for Affected Annuitant Exemptions
Bill Number: SB 1374 | Sponsor(s): Sen. Rose | Status: Not Law
Amends the SURS article of the Illinois Pension Code to make the following changes under the return to work law for affected annuitants: (1) to provide that an affected annuitant is no longer an affected annuitant during any period in which they receive compensation for that employment equal to 40% or less of their highest annual earnings prior to retirement; and (2) changes the amount of the employer contribution to the lesser of 3 times the monthly annuity of the affected annuitant or $100,000, applied retroactively to January 1, 2021. (Under current law, an affected annuitant remains an affected annuitant unless: they return to active service and do not receive an annuity from SURS or they receive an annualized retirement annuity of less than $10,000. The employer contribution is 12 times the monthly annuity of the affected annuitant.) Effective immediately.
SEGIP – Vouchers
Bill Number: SB 1379 | Sponsor(s): Sen. Rose | Status: Not Law
Amends the State Employees Group Insurance Act of 1971 to require the Director of the Department of Central Management Services to implement a program for Medicare-primary members and their Medicare-primary dependents to choose their own Medicare Advantage Plans, beginning January 1, 2026. Establishes that the program consists of a voucher, issued monthly, in the amount the State would have contributed toward that member’s monthly premium if the Medicare-primary member elected to participate in group health benefits program offered by the State and requires the voucher to be used by the Medicare-primary member to pay the monthly premium cost of an individual Medicare Advantage plan of their own choosing. Provides that any premium cost in excess of the voucher is the Medicare-primary member’s responsibility. Effective immediately.
State Comptroller – Rainy Day Fund
Bill Number: SB 1415 | Sponsor(s): Sen. Halpin | Status: Not Law
Amends the State Finance Act to allow moneys to be paid from the Budget Stabilization Fund to address outstanding vouchers if the amount of accounts payable exceeds $4 billion. Amends the Budget Stabilization Act to make the following changes: (1) prohibits the General Assembly from spending more than 99% of estimated general funds revenues if such estimates exceed the prior fiscal year’s revenue estimates by more than 4% and accounts payable are less than $3 billion; (2) ceases contributions to the Budget Stabilization Fund once the balance in the fund is equal to 10% of the general funds revenues for the prior fiscal year; (3) allows transfers from the Budget Stabilization Fund to maintain the State’s accounts payable at less than $3 billion; (4) provides that if general funds revenues are reported to exceed 4% growth from the prior fiscal year and the reported accounts payable are less than $3 billion, then 0.5% of the updated estimated revenues are transferred into the Budget Stabilization Fund and 0.5% of the updated estimated revenues are transferred into the Pension Stabilization Fund; (5) provides that when the General Assembly does not spend more than 99% of the estimated general funds revenues and the Budget Stabilization Fund is equal to 10% of general funds revenues, 1% of the estimated general funds revenues are deposited into the Pension Stabilization Fund. Makes other changes. Effective immediately.
Deferred Compensation Plan – Cross-Selling Exemptions
Bill Number: SB 1453 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the SURS article of the Illinois Pension Code to: (1) permit cross-selling of nonplan products and services in response to a request by the System; and (2) establish that links to the recordkeeper’s affiliate’s website that are generally available to the public, are about commercial products, and may be encountered by a participant in the regular course of navigating the recordkeeper’s affiliated website do not constitute promotion, recommendation, endorsement, or solicitation of participants to purchase nonplan products. Makes other changes. Effective immediately.
State Deferred Compensation Plan Fees
Bill Number: SB 1455 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the Deferred Compensation Article of the Illinois Pension Code to require the Department of Central Management Services, beginning January 1, 2026, to provide for the recovery of its expenses for administering the State’s Deferred Compensation Plan by charging fees equitably prorated among the participating employers. Effective immediately.
State Deferred Compensation Plan Fees
Bill Number: SA #1 to SB 1455 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the Deferred Compensation Article of the Illinois Pension Code to require the Department of Central Management Services, beginning January 1, 2026, to provide for the recovery of its expenses for administering the State’s Deferred Compensation Plan by charging fees equitably prorated among the participating employers. Effective immediately.
Pension Board Member Training Act
Bill Number: SB 1456 | Sponsor(s): Sen. Martwick | Status: Not Law
Creates the Pension Board Member Training Act. Amends the General Provisions article of the Illinois Pension Code to require the Department of Insurance to develop and implement a curriculum designed to provide pension board members with necessary education on: (1) legal and fiduciary responsibilities of pension fund management; (2) investment strategies and financial management principles related to pension funds; (3) ethical considerations in public pension governance; (4) actuarial assessments and reporting requirements; (5) relevant State and federal laws regarding pensions and retirement benefits; (6) risk management and actuarial funding policies; and (7) other subjects deemed necessary by the Department of Insurance to effectively govern pension funds. Requires the curriculum to be made available online to all pension board members. Requires the Department of Insurance to: (1) create, maintain, and update the curriculum as necessary to reflect changes in law and best practices; (2) ensure that that the curriculum is accessible online, with resources to facilitate completion of the training; and (3) provide a system for documenting and tracking the completion of training by pension board members. Requires every pension board member to complete the training on an annual basis. Requires completion of the annual training to be documented and such documentation to be provided to the Department of Insurance. Establishes that attendance at pension board meetings cannot be deemed to fulfill this annual training requirement. Authorizes the Department of Insurance to adopt rules for implementation and enforcement. No effective date listed.
Pension Board Member Training Act
Bill Number: SA #1 to SB 1456 | Sponsor(s): Sen. Martwick | Status: Not Law
Creates the Public Pension Board Member Training Act. Requires the State Treasurer to develop and implement a curriculum to provide pension board members relevant training on: (1) legal and fiduciary responsibilities of pension fund management; (2) ethical considerations in public pension governance; (3) actuarial assessments and reporting requirements; (4) relevant State and federal laws regarding pensions and retirement benefits; (5) risk management and actuarial funding policies; and (6) other subjects deemed necessary by the State Treasurer to effectively govern pension funds. Requires every pension board member to complete the training provided by the State Treasurer on an annual basis. Prohibits attendance at pension board business meetings from being deemed to fulfill the annual training requirement. Provides that a pension board member who does not complete the training will be issued a fine of $500 every 6 months until the training is completed. Makes other changes. No effective date listed.
Pension Board Member Training Act
Bill Number: SA #2 to SB 1456 | Sponsor(s): Sen. Martwick | Status: Not Law
Creates the Public Pension Board Member Training Act. Requires the State Treasurer to develop and implement a curriculum to provide pension board members relevant training on: (1) legal and fiduciary responsibilities of pension fund management; (2) ethical considerations in public pension governance; (3) actuarial assessments and reporting requirements; (4) relevant State and federal laws regarding pensions and retirement benefits; (5) risk management and actuarial funding policies; and (6) other subjects deemed necessary by the State Treasurer to effectively govern pension funds. Requires every pension board member to complete the training provided by the State Treasurer on an annual basis, except that: (1) a pension board member who completes at least one hour of training conducted by a pension board on fiduciary duties and the six topics covered under the State Treasurer’s training is deemed to satisfy the training requirements for the year in which the training occurred; and (2) in that instance, the pension board must document that determination in its meeting minutes and provide such documentation to the State Treasurer. Prohibits attendance at pension board business meetings from being deemed to fulfill the annual training requirement, except that the annual training may occur during a committee or board meeting of the pension board if the training is conducted as a separate agenda item during the meeting. Requires the State Treasurer, by January 15th and July 15th of each year beginning in 2027, to compile a public report on the Treasurer’s website listing pension board members who have not completed the training, along with their titles and the pension boards they serve on. Makes other changes. No effective date listed.
Disability Benefits Maximization Program
Bill Number: SB 1629 | Sponsor(s): Sen. Anderson | Status: Not Law
Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois to require CMS, in conjunction with SERS, SURS, TRS, JRS, and GARS, to enter into a contract with a qualified and experienced administrator to: (1) identify annuitants, retirees, benefit recipients, survivors or dependents who are eligible for, but who have not been enrolled in, Medicare; and (2) assist such persons with enrolling in Social Security and Medicare. Requires the administrator to conduct an annual audit of the SEGIP, TRIP, and CIP to identify and enroll Medicare-eligible persons with Medicare as their primary health care benefits coverage. Requires the administrator to assist eligible individuals with enrollment in Social Security Disability Insurance and Medicare. Requires the administrator to provide an annual report showing the number of persons transitioned to Social Security Disability Insurance and Medicare and the amount of savings to the State. Effective January 1, 2026.
Post-90% State Contributions Switch to ADC
Bill Number: SB 1668 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the General Assembly Retirement System, State Employees Retirement System, State Universities Retirement System, Teachers Retirement System, and Judges Retirement System articles of the Illinois Pension Code to modify the statutory funding formula as follows: (1) once the system is 90% funded, then the State contributions to the system for the upcoming fiscal year must be calculated based on an actuarially determined contribution rate; (2) the actuarially determined contribution rate cannot be less than the amount for the preceding fiscal year if the system’s funded ratio is less than 90%; and (3) the actuarially determined contribution rate cannot be less than the normal cost for the applicable fiscal year. No effective date listed.
Local Government Retirement Plan Responsibility Act
Bill Number: SB 1692 | Sponsor(s): Sen. Martwick | Status: Not Law
Creates the Local Government Retirement Plan Responsibility Act. Requires any 457 plan or a 403(b) plan offered by a unit of local government or school district to comply with the applicable provisions of Article 1 of the Illinois Pension Code, including, but not limited to, provisions concerning fiduciary duties, funding, investments, and the rights of participants, regardless of whether the retirement plan is established under the Illinois Pension Code. No effective date listed.
Mandatory Trustee, Staff, and Consultant Indemnification
Bill Number: SB 1710 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to require (instead of permit) every retirement system and pension fund to indemnify and protect trustees, staff, and consultants against all damage claims and suits, including their defense, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees. No effective date listed.
Public Safety Deferred Retirement Option Plan and Reciprocity
Bill Number: SB 1726 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to create a deferred retirement option plan (DROP) for members of downstate police pension funds, downstate firefighters pension funds, the Chicago Police Pension Fund, the Chicago Firefighters Pension Fund, the Illinois Municipal Retirement Fund, the Cook County Pension Fund, the State Employees Retirement System, and the State Universities Retirement System. Allows eligible members to elect to participate in the DROP between January 1, 2027 and January 1, 2030. Defines an eligible member as a member who: (1) is otherwise eligible to retire under certain provisions of the Illinois Pension Code, including under the alternative formula for police officers under SURS; (2) is not receiving a disability benefit or retirement annuity; (3) is actively employed as a police officer; (4) is not subject to mandatory retirement during participation in the DROP. Allows an eligible member to participate in the DROP for a period of up to 5 years. Requires the applicable pension fund or retirement system to transfer the following amounts to the member’s DROP account: (1) the member’s monthly retirement annuity, including automatic annual increases; (2) the member’s employee contributions; and (3) interest on the member’s account at the actual rate of return on investment experienced by the applicable pension fund or retirement system, but no less than 0%. Amends the downstate police pension fund, downstate firefighters pension fund, Chicago Police Pension Fund, and Chicago Firefighters Pension Fund articles of the Illinois Pension Code to allow eligible members of the funds to retire under the Retirement Systems Reciprocal Act. Makes other changes. No effective date listed.
Foreign Countries of Concern
Bill Number: SB 1780 | Sponsor(s): Sen. Anderson | Status: Not Law
Amends the Invest in Illinois Act to prohibit an award of economic incentives from being made to an entity if (1) the entity is organized under the laws of or has its principal place of business in a foreign country of concern or (2) the government of a foreign control of concern has a controlling interest in the entity. Defines a “foreign country of concern” as the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, Venezuela, or the Syrian Arab Republic, including any agency of or any other entity of significant control of such foreign country of concern. No effective date listed.
SURS Technical Correction – Survivor Benefits Waiver
Bill Number: SB 1894 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the State Universities Retirement System article of the Illinois Pension Code to provide that a survivor’s insurance beneficiary has 6 months from the date of notification from SURS to decide whether to waive survivor benefits. (Currently, a survivor’s insurance beneficiary has 6 months from the date of death of the participant or annuitant to decide whether to waive survivor benefits.) Effective immediately.
Income Tax Surcharge and Pension Funding Changes
Bill Number: SB 1896 | Sponsor(s): Sen. Martwick | Status: Not Law
Amends the Illinois Income Tax Act to impose a temporary income tax surcharge on: (1) all individuals, trusts, and estates equal to 0.5% of the taxpayer’s net income, beginning in tax year 2026 and continuing through tax year 2034; and (2) all corporations equal to 0.7% of the taxpayer’s net income, beginning in tax year 2026 and continuing through tax year 2034. Amends several provisions of the Illinois Pension Code to change the funding schedule for GARS, SERS, SURS, TRS, and JRS as follows: (1) establishes the minimum required State contribution for FY 2026 through FY 2037 as the amount for the systems to become 90% funded by FY 2046 + normal cost of any benefit increases + amount to amortize cost of benefit increases for inactive members over 15 years or by FY 2055 (whichever occurs first); (2) establishes the minimum required State contribution for FY 2038 through FY 2056 as normal cost + administrative expenses + interest on liabilities + amount to pay 100% liabilities by FY 2056 + 15-year amortization of cost of actuarial or investment assumption changes and gains or losses, beginning in FY 2042 + normal cost of benefit changes + amount to amortize cost of benefit increases for inactive members over 15 years or by FY 2055 (whichever occurs first); (3) establishes the minimum required State contribution in FY 2057 as amount to maintain 100% funding; and (4) appropriates income tax surcharge to reduce unfunded liabilities. Amends the General Provisions article of the Illinois Pension Code to create the State-Funded Retirement Systems Council to appoint and oversee a Pension Funding Trustee to monitor and verify State funding to the state-funded retirement systems. Requires the Trustee to calculate the cost of any benefit enhancements through FY 2055, beginning September 30, 2025 and to recalculate the cost every three years until FY 2055. Effective immediately.
Illinois Inclusive Venture Investment Act
Bill Number: SB 1900 | Sponsor(s): Sen. Sims | Status: Not Law
Creates the Illinois Inclusive Venture Investment Act. Provides that for every dollar invested by a covered institution in an eligible minority-owned financial manager, venture capital firm, or minority-led startup, the State Treasurer must provide a matching contribution of up to 50 cents per dollar using existing funds managed by the State Treasurer. Provides that investments that exceed annual performance benchmarks, as determined by historical market returns for venture capital or institutional portfolios, must receive an additional 25 cents per dollar in matching funds from the State Treasurer. Establishes that, to be eligible to participate in the program, covered institutions must allocate at least 20% of their investment portfolios to: (1) minority-owned venture capital firms; (2) minority-led startups; (3) minority-owned financial managers; or (4) special investment incentives supporting diverse founders, including: university startup incubator programs aimed at supporting underrepresented entrepreneurs and nonprofit business accelerator programs providing mentorship, training, and resources for minority founders. Defines a “covered institution” as including public pension funds or retirement systems of State or local governments. Effective July 1, 2026.
Modified We Are One Coalition Proposal
Bill Number: HA #1 to SB 1937 | Sponsor(s): Rep. Hoffman | Status: Not Law
Amends several articles of the Illinois Pension Code, but makes the following changes impacting SURS: (1) increases the Tier II final average salary to the Social Security wage base, beginning Jan. 1, 2027; (2) lowers the Tier II final average salary period for non-public safety employees to the highest 6 consecutive academic years of service within the last 10 years of service prior to termination, beginning Jan. 1, 2027; (3) lowers the Tier II final average salary period for public safety employees with at least 20 years of service to the greater of: (a) the highest 48 consecutive months of service out of the last 60 months of service or (b) the highest 96 consecutive months of service out of the last 120 months of service, beginning Jan. 1, 2027; (4) increases automatic annual increases on retirement annuities to 3% non-compounded, beginning Jan. 1, 2027; (5) applies the Retirement Systems Reciprocal Act to police and firefighter pension funds; (6) allows a person who took a refund or opted-out of participation in a retirement system to purchase service credit for the refund or opt-out; (7) establishes that once a member is a Tier I member, they are always a Tier I member (See GARS + JRS); (8) transfers a total of $8.65 billion from the General Revenue Fund to the Pension Stabilization Fund between FY 2030 and FY 2049 and excludes these amounts from the calculation of State contributions until they are received; (8) changes the funding target from 90% to 100% of assets to liabilities by the end of FY 2049 (instead of FY 2045); (9) smoothes year-to-year changes in unfunded liability over a 20-year period beginning in FY 2036; (10) switches to an entry age normal actuarial cost method beginning in FY 2050; (11) eliminates actuarial value of assets beginning on July 1, 2035; (12) eliminates smoothing of changes in actuarial or investment assumptions beginning in FY 2036; (13) allows a Tier II member to retire at age 65 with 20 years of service (and as early as age 60 with 20 years of service and an age reduction), beginning Jan. 1, 2027 (immediately for SURS); (14) allows a Tier II member to retire at age 62 with 36.36 years of service (and as early as 57 with 36.36 years of service and an age reduction), beginning Jan. 1, 2027 (immediately for SURS); (15) allows a Tier II police officer to retire at age 52 with 20 years of service credit, beginning Jan. 1, 2027; and (16) applies automatic annual increases on retirement annuities beginning the later of January 1 after the retirement age applicable to that member or 1 year after retirement. Makes other changes. Effective immediately.
Modified We Are One Coalition Proposal
Bill Number: HA #2 to SB 1937 | Sponsor(s): Rep. Hoffman | Status: Not Law
Amends several articles of the Illinois Pension Code, but makes the following changes impacting SURS: (1) increases the Tier II final average salary to the Social Security wage base, beginning Jan. 1, 2027; (2) lowers the Tier II final average salary period for non-public safety employees to the highest 6 consecutive academic years of service within the last 10 years of service prior to termination, beginning Jan. 1, 2027; (3) lowers the Tier II final average salary period for public safety employees with at least 20 years of service to the greater of: (a) the highest 48 consecutive months of service out of the last 60 months of service or (b) the highest 96 consecutive months of service out of the last 120 months of service, beginning Jan. 1, 2027; (4) increases automatic annual increases on retirement annuities to 3% non-compounded, beginning Jan. 1, 2027; (5) applies the Retirement Systems Reciprocal Act to police and firefighter pension funds, beginning January 1, 2027; (6) allows a person who took a refund or opted-out of participation in a retirement system to purchase service credit for the refund or opt-out; (7) establishes that once a member is a Tier I member, they are always a Tier I member (See GARS + JRS); (8) transfers a total of $11.1 billion from the General Revenue Fund to the Pension Stabilization Fund between FY 2030 and FY 2049; (9) changes the funding target from 90% to 100% of assets to liabilities by the end of FY 2049 (instead of FY 2045); (10) smoothes year-to-year changes in unfunded liability over a 20-year period beginning in FY 2036; (11) switches to an entry age normal actuarial cost method beginning in FY 2050; (12) eliminates actuarial value of assets beginning on July 1, 2035; (13) eliminates smoothing of changes in actuarial or investment assumptions beginning in FY 2036; (14) allows a Tier II member to retire at age 65 with 20 years of service (and as early as age 60 with 20 years of service and an age reduction), beginning Jan. 1, 2027 (immediately for SURS); (15) allows a Tier II member to retire at age 62 with 36.36 years of service (and as early as 57 with 36.36 years of service and an age reduction), beginning Jan. 1, 2027 (immediately for SURS); (16) allows a Tier II police officer to retire at age 52 with 20 years of service credit, beginning Jan. 1, 2027; and (17) applies automatic annual increases on retirement annuities beginning the later of January 1 after the retirement age applicable to that member or 1 year after retirement. Makes other changes. Effective immediately.
Illinois Antitrust Act – AG Consent
Bill Number: SB 1998 | Sponsor(s): Sen. Guzman | Status: Not Law
Amends the Illinois Antitrust Act to establish that the Attorney General must provide written consent to a covered transaction before it may take effect if a private equity group or hedge fund provides any financing to the covered transaction. Defines “hedge fund” and “private equity group.” No effective date listed.
Pension Trustees – No Senate Confirmation
Bill Number: SB 2114 | Sponsor(s): Sen. Balkema | Status: Not Law
Amends the SERS, SURS, TRS, Illinois State Board of Investment, and Police Officers’ Pension Investment Fund articles of the Illinois Pension Code to eliminate the requirement that Governor appointed trustees be confirmed by the Senate. Makes other changes. No effective date listed.
Enslavement Era Disclosure and Redress Act
Bill Number: SB 2212 | Sponsor(s): Sen. Preston | Status: Not Law
Creates the Enslavement Era Disclosure and Redress Act. Requires each contractor that participates in a competitive bidding process with the State of Illinois to complete an affidavit certifying that that it has reviewed its records for participation in slave holding or the slave trade. Requires the affidavit to disclose certain information if the contractor or a related party has participated in slaveholding or the slave trade. Requires each contractor who has disclosed participation in slaveholding or the slave trade to provide a statement of financial redress and any financial contributions to the Redress Fund. Makes other changes. Effective immediately.
Fiduciary Oversight Agency Act
Bill Number: SB 2212 | Sponsor(s): Sen. Martwick | Status: Not Law
Creates the Fiduciary Oversight Agency Act. Establishes the purpose of the Act to: (1) establish a Fiduciary Oversight Agency within the Department of Insurance tasked with monitoring and reviewing public sector retirement plans, including both pension and supplemental plans (such as 457 plans), to ensure compliance with State laws and fiduciary standards; and (2) give the Agency enforcement authority to address any noncompliance with applicable laws and standards. Requires the Agency to: (1) review operations of public sector retirement plans to ensure compliance with State laws and fiduciary standards; (2) investigate complains or reports of noncompliance with fiduciary standards or applicable laws; (3) provide guidance, training, and educational resources on legal and fiduciary obligations under Illinois law; (4) issue reports and recommendations on improvements to enhance compliance, transparency, and overall plan health; and (5) implement corrective actions when violations of fiduciary standards or laws are identified. Empowers the Agency to: (1) enforce compliance through administrative sanctions, penalties, and corrective orders; (2) conduct audits, investigations, and reviews; and (3) initiate civil or administrative proceedings. Requires the Agency to submit an annual report. No effective date listed.
Foreign Adversary Divestment Act
Bill Number: SB 2365 | Sponsor(s): Sen. Plummer | Status: Not Law
Creates the Foreign Adversary Divestment Act. Prohibits all State-managed funds and local-managed funds from holding investments in any foreign adversary, company domiciled within a foreign adversary, State-owned enterprise of a foreign adversary, or other entity within a foreign adversary. Prohibits all State-managed and local-managed funds from investing or depositing public funds into any bank that is domiciled or has its principal place of business in a foreign adversary. Requires all State-managed funds to immediately begin divestment and complete such divestment by the earlier of January 1, 2027 or 2 years after the effective date of the Act. Defines “foreign adversary” as the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Madury, or the Syrian Arab Republic, or any other entity deemed to be a foreign adversary by the Governor in consultation with the Director of the Illinois Emergency Management Agency and Office of Homeland Security. No effective date listed.
First 2025 General Revisory Act
Bill Number: SB 2394 | Sponsor(s): Sen. Cunningham (Rep. Gabel) | Status: Public Act 104-0417
Creates the First 2025 General Revisory Act. Establishes the intent of the Act not to make any substantive change in the law but to reconcile conflicts that have arisen from multiple amendments and enactments and make technical corrections and revisions in the law. Amends the State Universities Retirement System article of the Illinois Pension Code to make the following technical, non-substantive corrections to Section 15-112: (1) corrects a reference to Public Act 90-511, which became effective on August 22, 1997; (2) changes “20 percent” to “20%,” and (3) inserts the word “the” before references to determining the final rate of earnings. Makes other changes. Effective August 15, 2025.
Prohibited Investments – Remove Companies that Boycott Israel
Bill Number: SB 2462 | Sponsor(s): Sen. Porfirio | Status: Not Law
Amends the General Provisions article of the Illinois Pension Code to remove companies that boycott Israel from the list of prohibited investments for the state-funded retirement systems. Effective immediately.
FY 2026 Budget
Bill Number: SA #1 to SB 2508 | Sponsor(s): Sen. Sims | Status: Not Law
Appropriates the full certified state contribution to SURS for FY 2026 ($2,319,446,000). Of this amount, $2,069,446,000 comes from the General Revenue Fund and $250,000,000 comes from the State Pensions Fund. Appropriates the full certified state contribution to the College Insurance Program for FY 2026 from the Education Assistance Fund ($10,966,632). Appropriates $237,900 for the Governor’s salary for FY 2026. Currently, the Governor’s salary is $226,800 for FY 2025. (40 ILCS 5/15-155(j-5) requires SURS employers to pay the employer normal cost on the portion of an employee’s earnings that exceeds the Governor’s salary.) Makes other changes. Effective July 1, 2025.
FY 2026 Budget
Bill Number: SA #2 to SB 2508 | Sponsor(s): Sen. Sims | Status: Not Law
Appropriates the full certified state contribution to SURS for FY 2026 ($2,319,446,000). Of this amount, $2,069,446,000 comes from the General Revenue Fund and $250,000,000 comes from the State Pensions Fund. Appropriates the full certified state contribution to the College Insurance Program for FY 2026 from the Education Assistance Fund ($10,966,632). Appropriates $237,900 for the Governor’s salary for FY 2026. Currently, the Governor’s salary is $226,800 for FY 2025. (40 ILCS 5/15-155(j-5) requires SURS employers to pay the employer normal cost on the portion of an employee’s earnings that exceeds the Governor’s salary.) Makes other changes. Effective July 1, 2025.
FY 2026 Budget
Bill Number: SA #3 to SB 2508 | Sponsor(s): Sen. Sims | Status: Not Law
Appropriates the full certified state contribution to SURS for FY 2026 ($2,319,446,000). Of this amount, $2,069,446,000 comes from the General Revenue Fund and $250,000,000 comes from the State Pensions Fund. Appropriates the full certified state contribution to the College Insurance Program for FY 2026 from the Education Assistance Fund ($10,966,632). Appropriates $237,900 for the Governor’s salary for FY 2026. Currently, the Governor’s salary is $226,800 for FY 2025. (40 ILCS 5/15-155(j-5) requires SURS employers to pay the employer normal cost on the portion of an employee’s earnings that exceeds the Governor’s salary.) Makes other changes. Effective July 1, 2025.
FY 2026 Budget
Bill Number: SB 2510 | Sponsor(s): Sen. Sims (Rep. Welch) | Status: Public Act 104-0003
Appropriates the full certified state contribution to SURS for FY 2026 ($2,319,446,000). Of this amount, $2,069,446,000 comes from the General Revenue Fund and $250,000,000 comes from the State Pensions Fund. Appropriates the full certified state contribution to the College Insurance Program for FY 2026 from the Education Assistance Fund ($10,966,632). Appropriates $237,900 for the Governor’s salary for FY 2026. Currently, the Governor’s salary is $226,800 for FY 2025. (40 ILCS 5/15-155(j-5) requires SURS employers to pay the employer normal cost on the portion of an employee’s earnings that exceeds the Governor’s salary.) Makes other changes. Effective July 1, 2025.
FY 2026 Governor Introduced Budget
Bill Number: SB 2596 | Sponsor(s): Sen. Sims | Status: Not Law
Appropriates the full certified state contribution to SURS for FY 2026 ($2,319,446,000). Of this amount, $2,104,446,000 comes from the General Revenue Fund and $215,000,000 comes from the State Pensions Fund. Appropriates the full certified state contribution to the College Insurance Program for FY 2026 from the Education Assistance Fund ($10,966,632). Appropriates $9,000,000 from the General Revenue Fund to SURS for an the cost of increasing the Tier II pensionable earnings limitation to 100% of the Social Security Taxable Wage Base for FY 2026. Effective July 1, 2025.
FY 2026 Governor Introduced Budget – Governor’s Salary
Bill Number: SB 2606 | Sponsor(s): Sen. Sims | Status: Not Law
Appropriates $237,900 for the Governor’s salary for FY 2026. Currently, the Governor’s salary is $226,800 for FY 2025. (40 ILCS 5/15-155(j-5) requires SURS employers to pay the employer normal cost on the portion of an employee’s earnings that exceeds the Governor’s salary.) Makes other changes. Effective July 1, 2025.
House Resolutions
House Rules
Bill Number: HR 15 | Sponsor(s): Rep. Gabel | Status: Adopted
Establishes the House Rules for the 104th General Assembly. Makes the following changes from the House Rules of the 103rd General Assembly: (1) adds Appropriations – Pensions and Personnel as a standing committee; (2) changes the name of the Appropriations – Public Safety standing committee to the Appropriations – Public Safety and Infrastructure standing committee; and (3) allows a principal sponsor to be changed in the House while the bill is in the Senate.
SURS Retiree Appreciation Day
Bill Number: HR 89 | Sponsor(s): Rep. Kifowit | Status: Adopted
Resolves that the House of Representatives declares June 13, 2025 as SURS Retiree Appreciation Day to honor and recognize the ongoing contributions and value of SURS retirees. Resolves that the day is an opportunity for all Illinoisans to express gratitude and appreciation for SURS retirees, host community events and recognition ceremonies, and encourage businesses to offer discounts and services as a sign of recognition for SURS retirees’ contributions. Resolves that Illinois public officials are urged to take part in celebrations and activities to honor SURS retirees and highlight programs that support SURS retirees in maintaining active, fulfilling lives. Resolves that the day is a reminder of the importance of ensuring a strong, supportive, and engaged community for all citizens, regardless of age or career stage.
No Tax on Retirement Income
Bill Number: HR 112 | Sponsor(s): Rep. McCombie | Status: Not Adopted
Resolves that the House of Representatives states its belief that the Illinois Income Tax Act should not be amended to permit taxing retirement income.
Senate Resolutions
Senate Rules
Bill Number: SR 4 | Sponsor(s): Sen. Lightford | Status: Adopted
Establishes the Senate Rules for the 104th General Assembly. Makes the following changes from the Senate Rules of the 103rd General Assembly: (1) eliminates the Senate Redistricting Committee; (2) adds the Child Welfare, Commerce, Consumer Protection, Criminal Law, and Pensions as standing committees and eliminates Early Childhood Education as a standing committee; (3) requires Senators to avoid threats, inciting violence, or other assaults during debate; (4) makes certain roll call verification rules permanent; (5) removes the residential address of a nominee on executive appointment messages and replaces it with the county in which the nominee resides; (6) updates a reference to Mason’s Manual of Legislative Procedure.
Reject Social Security Retirement Age Increase
Bill Number: SR 39 | Sponsor(s): Sen. Belt | Status: Not Adopted
Resolves that the Senate urges Congress to reject any proposals to raise the Social Security retirement age and instead focus on strengthening and securing the program to ensure it provides the necessary benefits to millions of Americans nationwide.
SURS Retiree Appreciation Day
Bill Number: SR 112 | Sponsor(s): Sen. Harriss | Status: Adopted
Resolves that the Senate declares June 13, 2025 as SURS Retiree Appreciation Day to honor and recognize the ongoing contributions and value of SURS retirees. Resolves that the day is an opportunity for all Illinoisans to express gratitude and appreciation for SURS retirees, host community events and recognition ceremonies, and encourage businesses to offer discounts and services as a sign of recognition for SURS retirees’ contributions. Resolves that Illinois public officials are urged to take part in celebrations and activities to honor SURS retirees and highlight programs that support SURS retirees in maintaining active, fulfilling lives. Resolves that the day is a reminder of the importance of ensuring a strong, supportive, and engaged community for all citizens, regardless of age or career stage.
Retirement Savings Options
Bill Number: SR 113 | Sponsor(s): Sen. Martwick | Status: Not Adopted
Resolves that the Senate recognizes the moral responsibility of all employers to ensure their valued employees have a path to secure retirement and urges employers across the State to provide quality retirement savings options for their employees in recognition of the importance of securing financial independence in retirement and the positive impact that it will have on the well-being of both individual employees and the State’s economy as a whole.