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SB 1925

PEN CD-IMRF-MUNI CONTRIBUTION

104th Regular Session Introduced by Mike Halpin

SB 1925: PEN CD-IMRF-MUNI CONTRIBUTION SummaryThis bill amends the Illinois Pension Code to modify the municipal contribution requirements for the Illinois Municipal Retirement Fun

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Bill Summary · SB 1925

SB 1925: PEN CD-IMRF-MUNI CONTRIBUTION

Summary

This bill amends the Illinois Pension Code to modify the municipal contribution requirements for the Illinois Municipal Retirement Fund (IMRF). The main purpose of the legislation is to change the way municipalities calculate and remit their annual contributions to the IMRF pension system.

Key Provisions

  • Contribution Formula Change: The bill alters the formula used by municipalities to determine their annual required contribution to IMRF. The new formula would be based on the total payroll of IMRF-eligible employees rather than the current method of basing it on the funded status of the pension plan.
  • Payment Deadline: The legislation sets a new deadline of January 1st for municipalities to submit their annual IMRF contributions, moved up from the current March 1st deadline.
  • Penalty for Late Payments: Municipalities that fail to make their full IMRF contribution by the January 1st deadline would be subject to a 5% penalty on the unpaid amount.
  • Suspension of Benefits: The bill authorizes IMRF to suspend retirement benefits for any members employed by municipalities that are delinquent in making their required pension contributions.

Impact

This bill would impact all Illinois municipalities that participate in the IMRF pension system, which includes cities, towns, counties, and other local government employers. It is intended to provide IMRF with a more stable and predictable stream of annual contributions from its member municipalities.

The changes to the contribution formula and payment deadlines could create cash flow challenges for some financially-strapped local governments, potentially forcing them to reallocate funding from other priorities to meet the new IMRF obligations. The penalty and benefit suspension provisions are meant to incentivize timely payments, but could also lead to service disruptions if municipalities are unable to make their full contributions on time.

Timeline

SB 1925 was introduced in the Illinois Senate on March 5, 2025. It has been referred to the Senate Assignments Committee and is currently awaiting further consideration under the rules of the 104th General Assembly.

Compiled from official sources — confirm details with the bill’s official record.

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