The bill explicitly states that it will take effect immediately upon becoming law and includes provisions that require its implementation without state reimbursement as indicated in the amendments to the State Mandates Act. This aspect could lead to financial implications for local entities tasked with managing pension funds, as they may bear the costs associated with administering these changes.
Summary
House Bill 1644 amends the Illinois Pension Code to establish that retirement and supplemental annuities for participants in any pension fund or retirement system will be subject to annual increases that are aligned with the 10-year moving average of the unadjusted percentage increase in the consumer price index for urban consumers. This provision is designed to maintain the purchasing power of retirees against inflation, enhancing their financial security over time. Importantly, these changes would apply regardless of whether the participant is in active service on or after the effective date of the bill.