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HB 3113

PEN CD-NONCOVERED EMPLOYEES

104th Regular Session Introduced by Blaine Wilhour

HB 3113 guarantees a minimum pension for eligible Tier 2 non-Social Security members, equal to their hypothetical Social Security benefit plus $1, adjusted annually.

Referred to Rules Committee
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Bill Summary · HB 3113

Summary — HB 3113 (PEN CD‑NONCOVERED EMPLOYEES)

Status: Introduced Feb 2025; Referred to Rules Committee.
Sponsor: Rep. Blaine Wilhour (primary) and multiple cosponsors.

Purpose

HB 3113 creates a guaranteed minimum pension for certain Tier 2 members of Illinois public retirement systems whose service is not covered by Social Security. If a member’s pension would be smaller than the Social Security benefit they would have received had their service been covered, the pension is increased to match that hypothetical Social Security benefit (plus $1). The bill requires an annual determination and adjustment.

Key provisions

  • Adds Section 1-163 to the Illinois Pension Code defining:
    • “Eligible Tier 2 member”: a person who first became a member of a retirement system or pension fund under the Code on or after January 1, 2011 and whose service under the applicable Article is not eligible for Social Security coverage.
    • “Hypothetical Social Security benefit”: the Social Security benefit value that an eligible Tier 2 member would have received if their service had been eligible for Social Security coverage.
  • Minimum guarantee: If an eligible Tier 2 member’s pension is less than their hypothetical Social Security benefit, the pension is raised to equal that hypothetical benefit plus $1.
  • Annual process: The comparison and any pension adjustment must be performed yearly; pension amounts are adjusted each year accordingly.
  • In the State Employees, State Universities, and Downstate Teachers Articles, any benefit increase produced by this amendatory Act is explicitly excluded from the statutory definition of “new benefit increase.” (The “new benefit increase” rules ordinarily impose funding, reporting, and expiration requirements on benefit changes.)
  • Amends the State Mandates Act to require implementation of this provision without reimbursement by the State (i.e., systems/local units would not receive state reimbursement for costs required by the Act).

Who is affected

  • Directly: Tier 2 public retirement system members (joined on/after Jan 1, 2011) whose service is not covered by Social Security—these members would receive a minimum pension at least equal to the hypothetical Social Security benefit plus $1 when applicable.
  • Indirectly: Public pension systems, employers, and plan sponsors (state agencies, universities, local governments) that provide benefits under the Illinois Pension Code; actuarial liabilities and employer contribution needs could change.
  • The exclusion from “new benefit increase” for specified Articles affects how funding/expiration rules apply for State Employees, State Universities, and Downstate Teachers systems.

Fiscal and administrative implications

  • Likely increases retirement system liabilities and annual pension outlays for affected members, requiring actuarial adjustments and possible higher employer contributions over time.
  • Because the bill excludes these increases from the “new benefit increase” framework for certain systems and requires implementation without State reimbursement, affected systems and local employers may bear direct cost increases without dedicated new State funding.

Legislative status / timeline (selected)

  • Filed: Feb 18–20, 2025 (first reading).
  • House actions: Passed in the House (recorded 04-29-2025); engrossed and transmitted to the other chamber.
  • Senate actions: Read 1st time and referred to State Affairs (05-05-2025); public hearing held and left pending (05-08-2025).

Notes: The bill’s practical impact will depend on the number of eligible non‑covered Tier 2 members, actuarial valuation results, and whether the exclusion from “new benefit increase” rules limits legislative funding obligations.

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

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