HB2705ham001 104TH GENERAL ASSEMBLY

Rep. Michael J. Kelly

Filed: 3/25/2026

10400HB2705ham001 LRB104 10841 RPS 36006 a

AMENDMENT TO HOUSE BILL 2705

AMENDMENT NO. ______. Amend House Bill 2705 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Pension Code is amended by changing Sections 4-106, 4-109.1, and 7-109.3 and by adding Sections 3-111.10, 3-146, 4-109.5, 4-138.15, 5-238.5, 5-240, 6-229.5, and 6-235 as follows:

(40 ILCS 5/3-111.10 new)

Sec. 3-111.10. Membership date; previous service in any other pension fund or retirement system. Notwithstanding any other provision of this Code, the date an individual first became a member or participant under any pension fund or retirement system established under this Code, regardless of whether that pension fund or retirement system is a participating pension fund or retirement system under the Retirement Systems Reciprocal Act, shall be deemed to be the date that the individual first became a police officer under this Article for purposes of determining the applicable tier of benefits to which the police officer is entitled, regardless of whether the individual first became a police officer under this Article on or after January 1, 2011. In no case shall an individual who qualified for Tier 1 benefits or as a Tier 1 member or participant under any other pension fund or retirement system established under this Code be deemed to be a police officer who first became a police officer on or after January 1, 2011 or otherwise subject to the Tier 2 benefit provisions. Notwithstanding Section 1-103.1, this Section applies without regard to whether the police officer was in service on or after the effective date of this amendatory Act of the 104th General Assembly.

(40 ILCS 5/3-146 new)

Sec. 3-146. Retirement Systems Reciprocal Act. The Retirement Systems Reciprocal Act, Article 20 of this Code, is adopted and made a part of this Article, but only with respect to a person who, on or after the effective date of this amendatory Act of the 104th General Assembly, is entitled under this Article to begin receiving a retirement annuity or survivor's annuity (as those terms are defined in Article 20) and who elects to proceed under the Retirement Systems Reciprocal Act.

(40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)

Sec. 4-106. Firefighter, firefighters. "Firefighter, firefighters":

(a) In municipalities which have adopted Division 1 of Article 10 of the Illinois Municipal Code, any person employed in the municipality's fire service as a firefighter, fire engineer, marine engineer, fire pilot, bomb technician or scuba diver; and in any of these positions where such person's duties also include those of a firefighter as classified by the Civil Service Commission of that city, and whose duty is to participate in the work of controlling and extinguishing fires at the location of any such fires.

(b) In municipalities which are subject to Division 2.1 of Article 10 of the Illinois Municipal Code, any person employed by a city in its fire service as a firefighter, fire engineer, marine engineer, fire pilot, bomb technician, or scuba diver; and, in any of these positions whose duties also include those of a firefighter and are certified in the same manner as a firefighter in that city.

(c) Any person employed in a municipality's or fire protection district's fire service as a de facto firefighter.

In this definition, "de facto firefighter" means a firefighter:

(1) who spends a majority of the firefighter's working time participating in the work of controlling and extinguishing fires at the location of any such fires, preparing for such work or waiting to respond to such calls for work; and

(2) whose scheduled or actual work hours are commensurate in duration and frequency with firefighters who are subject to Division 1 or Division 2.1 of Article 10 of the Illinois Municipal Code.

"De facto firefighter" does not include part-time firefighters who are not covered under this Section; auxiliary, reserve, or voluntary firefighters, including paid-on-call firefighters; and clerks, dispatchers, or other civilian employees of a fire department or fire protection district who are not routinely expected to perform firefighter duties. In municipalities which are subject to neither Division 1 nor Division 2.1 of Article 10 of the Illinois Municipal Code, any person who would have been included as a firefighter under sub-paragraph (a) or (b) above except that he served as a de facto and not as a de jure firefighter.

(d) Notwithstanding the other provisions of this Section, "firefighter" does not include any person who is actively participating in the State Universities Retirement System under subsection (h) of Section 15-107 with respect to the employment for which he or she is a participating employee in that System.

(e) This amendatory Act of 1977 does not affect persons covered by this Article prior to September 22, 1977.

The changes made to this Section by this amendatory Act of the 104th General Assembly do not affect persons covered by this Article before the effective date of this amendatory Act of the 104th General Assembly.

(Source: P.A. 90-576, eff. 3-31-98.)

(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)

Sec. 4-109.1. Increase in pension.

(a) Except as provided in subsection (e), the monthly pension of a firefighter who retires after July 1, 1971 and prior to January 1, 1986, shall, upon either the first of the month following the first anniversary of the date of retirement if 60 years of age or over at retirement date, or upon the first day of the month following attainment of age 60 if it occurs after the first anniversary of retirement, be increased by 2% of the originally granted monthly pension and by an additional 2% in each January thereafter. Effective January 1976, the rate of the annual increase shall be 3% of the originally granted monthly pension.

(b) The monthly pension of a firefighter who retired from service with 20 or more years of service, on or before July 1, 1971, shall be increased, in January of the year following the year of attaining age 65 or in January 1972, if then over age 65, by 2% of the originally granted monthly pension, for each year the firefighter received pension payments. In each January thereafter, he or she shall receive an additional increase of 2% of the original monthly pension. Effective January 1976, the rate of the annual increase shall be 3%.

(c) The monthly pension of a firefighter who is receiving a disability pension under this Article, regardless of when the firefighter first became a firefighter under this Article, shall be increased, in January of the year following the year the firefighter attains age 60, or in January 1974, if then over age 60, by 3% 2% of the originally granted monthly pension for each year he or she received pension payments. In each January thereafter, the firefighter shall receive an additional increase of 3% 2% of the original monthly pension. Effective January 1976, the rate of the annual increase shall be 3%.

(c-1) On January 1, 1998, every child's disability benefit payable on that date under Section 4-110 or 4-110.1 shall be increased by an amount equal to 1/12 of 3% of the amount of the benefit, multiplied by the number of months for which the benefit has been payable. On each January 1 thereafter, every child's disability benefit payable under Section 4-110 or 4-110.1 shall be increased by 3% of the amount of the benefit then being paid, including any previous increases received under this Article. These increases are not subject to any limitation on the maximum benefit amount included in Section 4-110 or 4-110.1.

(c-2) On July 1, 2004, every pension payable to or on behalf of a minor or disabled surviving child that is payable on that date under Section 4-114 shall be increased by an amount equal to 1/12 of 3% of the amount of the pension, multiplied by the number of months for which the benefit has been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and July 1, 2008, every pension payable to or on behalf of a minor or disabled surviving child that is payable under Section 4-114 shall be increased by 3% of the amount of the pension then being paid, including any previous increases received under this Article. These increases are not subject to any limitation on the maximum benefit amount included in Section 4-114.

(d) The monthly pension of a firefighter who retires after January 1, 1986, shall, upon either the first of the month following the first anniversary of the date of retirement if 55 years of age or over, or upon the first day of the month following attainment of age 55 if it occurs after the first anniversary of retirement, be increased by 1/12 of 3% of the originally granted monthly pension for each full month that has elapsed since the pension began, and by an additional 3% in each January thereafter.

The changes made to this subsection (d) by this amendatory Act of the 91st General Assembly apply to all initial increases that become payable under this subsection on or after January 1, 1999. All initial increases that became payable under this subsection on or after January 1, 1999 and before the effective date of this amendatory Act shall be recalculated and the additional amount accruing for that period, if any, shall be payable to the pensioner in a lump sum.

(e) Notwithstanding the provisions of subsection (a), upon the first day of the month following (1) the first anniversary of the date of retirement, or (2) the attainment of age 55, or (3) July 1, 1987, whichever occurs latest, the monthly pension of a firefighter who retired on or after January 1, 1977 and on or before January 1, 1986 and did not receive an increase under subsection (a) before July 1, 1987, shall be increased by 3% of the originally granted monthly pension for each full year that has elapsed since the pension began, and by an additional 3% in each January thereafter. The increases provided under this subsection are in lieu of the increases provided in subsection (a).

(f) In July 2009, the monthly pension of a firefighter who retired before July 1, 1977 shall be recalculated and increased to reflect the amount that the firefighter would have received in July 2009 had the firefighter been receiving a 3% compounded increase for each year he or she received pension payments after January 1, 1986, plus any increases in pension received for each year prior to January 1, 1986. In each January thereafter, he or she shall receive an additional increase of 3% of the amount of the pension then being paid. The changes made to this Section by this amendatory Act of the 96th General Assembly apply without regard to whether the firefighter was in service on or after its effective date.

(g) Notwithstanding any other provision of this Article, the monthly pension of a person who first becomes a firefighter under this Article on or after January 1, 2011 shall be increased on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted pension. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the pension shall not be increased.

For the purposes of this subsection (g), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds.

(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)

(40 ILCS 5/4-109.5 new)

Sec. 4-109.5. Membership date; previous service in any other pension fund or retirement system. Notwithstanding any other provision of this Code, the date an individual first became a member or participant under any pension fund or retirement system established under this Code, regardless of whether that pension fund or retirement system is a participating pension fund or retirement system under the Retirement Systems Reciprocal Act, shall be deemed to be the date that the individual first became a firefighter under this Article for purposes of determining the applicable tier of benefits to which the firefighter is entitled, regardless of whether the individual first became a firefighter under this Article on or after January 1, 2011. In no case shall an individual who qualified for Tier 1 benefits or as a Tier 1 member or participant under any other pension fund or retirement system established under this Code be deemed to be a firefighter who first became a firefighter on or after January 1, 2011 or otherwise subject to the Tier 2 benefit provisions. Notwithstanding Section 1-103.1, this Section applies without regard to whether the firefighter was in service on or after the effective date of this amendatory Act of the 104th General Assembly.

(40 ILCS 5/4-138.15 new)

Sec. 4-138.15. Retirement Systems Reciprocal Act. The Retirement Systems Reciprocal Act, Article 20 of this Code, is adopted and made a part of this Article, but only with respect to a person who, on or after the effective date of this amendatory Act of the 104th General Assembly, is entitled under this Article to begin receiving a retirement annuity or survivor's annuity (as those terms are defined in Article 20) and who elects to proceed under the Retirement Systems Reciprocal Act.

(40 ILCS 5/5-238.5 new)

Sec. 5-238.5. Membership date; previous service in any other pension fund or retirement system. Notwithstanding any other provision of this Code, the date an individual first became a member or participant under any pension fund or retirement system established under this Code, regardless of whether that pension fund or retirement system is a participating pension fund or retirement system under the Retirement Systems Reciprocal Act, shall be deemed to be the date that the individual first became a policeman under this Article for purposes of determining the applicable tier of benefits to which the policeman is entitled, regardless of whether the individual first became a police officer under this Article on or after January 1, 2011. In no case shall an individual who qualified for Tier 1 benefits or as a Tier 1 member or participant under any other pension fund or retirement system established under this Code be deemed to be a policeman who first became a policeman on or after January 1, 2011 or otherwise subject to the Tier 2 benefit provisions. Notwithstanding Section 1-103.1, this Section applies without regard to whether the policeman was in service on or after the effective date of this amendatory Act of the 104th General Assembly.

(40 ILCS 5/5-240 new)

Sec. 5-240. Retirement Systems Reciprocal Act. The Retirement Systems Reciprocal Act, Article 20 of this Code, is adopted and made a part of this Article, but only with respect to a person who, on or after the effective date of this amendatory Act of the 104th General Assembly, is entitled under this Article to begin receiving a retirement annuity or survivor's annuity (as those terms are defined in Article 20) and who elects to proceed under the Retirement Systems Reciprocal Act.

(40 ILCS 5/6-229.5 new)

Sec. 6-229.5. Membership date; previous service in any other pension fund or retirement system. Notwithstanding any other provision of this Code, the date an individual first became a member or participant under any pension fund or retirement system established under this Code, regardless of whether that pension fund or retirement system is a participating pension fund or retirement system under the Retirement Systems Reciprocal Act, shall be deemed to be the date that the individual first became a fireman under this Article for purposes of determining the applicable tier of benefits to which the fireman is entitled, regardless of whether the individual first became a fireman under this Article on or after January 1, 2011. In no case shall an individual who qualified for Tier 1 benefits or as a Tier 1 member or participant under any other pension fund or retirement system established under this Code be deemed to be a fireman who first became a fireman on or after January 1, 2011 or otherwise subject to the Tier 2 benefit provisions. Notwithstanding Section 1-103.1, this Section applies without regard to whether the fireman was in service on or after the effective date of this amendatory Act of the 104th General Assembly.

(40 ILCS 5/6-235 new)

Sec. 6-235. Retirement Systems Reciprocal Act. The Retirement Systems Reciprocal Act, Article 20 of this Code, is adopted and made a part of this Article, but only with respect to a person who, on or after the effective date of this amendatory Act of the 104th General Assembly, is entitled under this Article to begin receiving a retirement annuity or survivor's annuity (as those terms are defined in Article 20) and who elects to proceed under the Retirement Systems Reciprocal Act.

(40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)

Sec. 7-109.3. "Sheriff's Law Enforcement Employees".

(a) "Sheriff's law enforcement employee" or "SLEP" means:

(1) A county sheriff and all deputies, other than special deputies, employed on a full time basis in the office of the sheriff.

(2) A person who has elected to participate in this Fund under Section 3-109.1 of this Code, and who is employed by a participating municipality to perform police duties.

(3) A law enforcement officer employed on a full time basis by a Forest Preserve District, provided that such officer shall be deemed a "sheriff's law enforcement employee" for the purposes of this Article, and service in that capacity shall be deemed to be service as a sheriff's law enforcement employee, only if the board of commissioners of the District have so elected by adoption of an affirmative resolution. Such election, once made, may not be rescinded.

(4) A person not eligible to participate in a fund established under Article 3 of this Code who is employed on a full-time basis by a participating municipality or participating instrumentality to perform police duties at an airport, but only if the governing authority of the employer has approved sheriff's law enforcement employee status for its airport police employees by adoption of an affirmative resolution. Such approval, once given, may not be rescinded.

(5) A person first hired on or after January 1, 2011 who (i) is employed by a participating municipality that has both 30 or more full-time police officers and 50 or more full-time firefighters and has not established a fund under Article 3 or Article 4 of this Code and (ii) is employed on a full-time basis by that participating municipality to perform police duties or firefighting and EMS duties; but only if the governing authority of that municipality has approved sheriff's law enforcement employee status for its police officer or firefighter employees by adoption of an affirmative resolution. The resolution must specify that SLEP status shall be applicable to such employment occurring on or after the adoption of the resolution. Such resolution shall be irrevocable, but shall automatically terminate upon the establishment of an Article 3 or 4 fund by the municipality.

(6) A person who is not eligible to participate in a fund established under Article 4 and is employed on a full-time basis by a participating municipality to perform duties as a paramedic, emergency medical technician (EMT), emergency medical technician-intermediate (EMT-I), or advanced emergency medical technician (A-EMT); but only if the governing authority of that municipality has approved sheriff's law enforcement employee status for such employees by adoption of an affirmative resolution. The resolution must specify that SLEP status shall be applicable to such employment occurring on or after the adoption of the resolution. Such resolution shall be irrevocable.

(b) An employee who is a sheriff's law enforcement employee and is granted military leave or authorized leave of absence shall receive service credit in that capacity. Sheriff's law enforcement employees shall not be entitled to out-of-State service credit under Section 7-139.

(Source: P.A. 100-354, eff. 8-25-17; 100-1097, eff. 8-26-18.)

Section 90. The State Mandates Act is amended by adding Section 8.50 as follows:

(30 ILCS 805/8.50 new)

Sec. 8.50. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 104th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.".