Bill
HB 2704
Allows Chicago Police/Firefighter annuitants after the act to elect the Retirement Systems Reciprocal Act, coordinating multi-system service for retirement benefits.
Status and timeline
- Bill number: HB 2704 (Illinois)
- Primary sponsor: Rep. Michael J. Kelly
- Introduced: February 6, 2025
- Key actions: Referred to State Affairs; passed both chambers in June 2025
- Signed by Governor: June 27, 2025
- Note: The bill text adopts an existing statutory mechanism (the Retirement Systems Reciprocal Act) into Chicago Police and Chicago Firefighter pension Articles; the bill text refers to benefits effective “on or after the effective date” of the amendatory act.
Purpose and intent
- To permit certain members (and survivors) covered by the Chicago Police and Chicago Firefighter pension Articles to elect to be governed by the Retirement Systems Reciprocal Act (Article 20 of the Illinois Pension Code). The Reciprocal Act coordinates service credit and benefit computation across multiple Illinois public pension systems so that service in different systems can be aggregated for eligibility and annuity calculations.
Key provisions
- Adds new sections to the Illinois Pension Code:
- 40 ILCS 5/5-240 (Chicago Police Article)
- 40 ILCS 5/6-235 (Chicago Firefighter Article)
- Each new section: adopts Article 20 (Retirement Systems Reciprocal Act) and makes it part of the Chicago Police/Firefighter Articles, but only:
- For a person who, on or after the bill’s effective date, is entitled under the Chicago Police or Firefighter Article to begin receiving a retirement annuity or survivor’s annuity; and
- Who elects to proceed under the Retirement Systems Reciprocal Act.
- State Mandates Act amended (30 ILCS 805/8.49): declares that implementation of this bill creates no reimbursable State mandate — i.e., no State reimbursement is required for local entities implementing the change.
Who is affected
- Primary beneficiaries: Chicago Police and Chicago Firefighter members (and eligible survivors) who become entitled to an annuity on or after the bill’s effective date and who choose the reciprocal election.
- Pension administrators: Chicago Police and Firefighter pension boards and other Illinois public pension systems that participate in reciprocal arrangements will need to process elective reciprocal cases and coordinate service/benefit calculations.
- Local governments/pension funds: may see administrative workload to implement elective reciprocity; however, the bill specifies no state reimbursement for such costs.
Practical effect and implications
- Provides portability/coordination option for Chicago public safety employees with service in multiple Illinois systems, potentially enabling aggregation of service for vesting or benefit computation at retirement.
- The election is optional and limited to those who become entitled to an annuity on or after the effective date — it does not automatically convert existing retirees.
- Administrative coordination among pension funds will be required to implement reciprocal determinations; the bill explicitly exempts related implementation costs from state reimbursement.
Limitations / open items
- The bill text uses “effective date of this amendatory Act” but does not specify an exact calendar-effective date in the excerpt; implementation timing will follow the act’s final effective date as provided in law.
Compiled from official sources — confirm details with the bill’s official record.
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