Bill
SB 1711
Replaces half of CPI-U with full CPI-U for annual Tier 2 salary cap increases (3% cap), starting 2026; boosts pensionable pay, future benefits, and employer costs.
Status: Introduced (Referred to Assignments). Introduced Feb. 27, 2025 (sponsor: Sen. Robert F. Martwick).
Statutory changes: amends 40 ILCS 5/6-229 (Illinois Pension Code, Chicago Firefighter Article) and adds 30 ILCS 805/8.49 to the State Mandates Act. Effective immediately.
Purpose
- To change how the annual limit on salary for “Tier 2” Chicago firemen (members who first became firemen on or after Jan. 1, 2011) is adjusted each year, beginning in 2026, thereby increasing the allowable pensionable salary used to compute contributions and benefits.
Key provisions
- Current statutory base: For Tier 2 members, the annual salary used for pension purposes has been capped at $106,800 (base established Jan. 1, 2011) and has been adjusted annually through 2025 by the lesser of (i) 3% or (ii) one-half of the annual unadjusted percentage increase in the CPI‑U for the 12 months ending the previous September.
- Change effective beginning in 2026: The annual adjustment formula is amended so the cap is increased each year by the lesser of (i) 3% or (ii) the full annual unadjusted percentage increase (but not less than zero) in the CPI‑U for the 12 months ending the previous September. All previous adjustments are included (i.e., compounded on the adjusted amount).
- Definition: “Consumer price index‑u” (CPI‑U) is the U.S. Bureau of Labor Statistics index for all urban consumers (U.S. city average, all items).
- Administration: The Public Pension Division of the Department of Insurance will compute the new capped amount and make it available to retirement boards and funds by November 1 each year.
- State Mandates Act: The bill adds a provision that requires implementation without reimbursement (i.e., no state reimbursement to local governments for costs created by the mandate).
Who is affected
- Tier 2 Chicago firemen (those hired on or after Jan. 1, 2011) and their beneficiaries — affects the maximum salary that may be used in calculating employee contributions, final average salary, and benefit amounts.
- Chicago Firefighters’ pension fund, the City of Chicago (employer contribution obligations), and potentially municipal budgets, due to upward pressure on pensionable salary and benefits.
Timing and procedure
- Adjustment formula change takes effect for annual adjustments beginning in 2026; the bill is effective immediately upon enactment.
- Annual recalculation and public posting by Nov. 1 each year.
Potential impact (qualitative)
- By replacing “one-half the CPI‑U” with the full CPI‑U (subject to a 3% cap), the pensionable salary cap for Tier 2 members will generally grow faster than under prior law (up to 3% per year), which may increase future pension benefits and employer contribution costs. Exact fiscal effects would depend on future CPI movements and membership salary distributions; no fiscal estimate is provided in the text.
Note on document contents
- The provided document also contains unrelated text from an Arizona SB 1711 (establishing an obesity treatment study committee). This summary focuses only on the Illinois Pension Code provisions titled “PEN CD‑CHI FIRE‑TIER 2 SALARY.”
Compiled from official sources — confirm details with the bill’s official record.
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