HB5448 restricts participation in the General Assembly Retirement System and the Judges Retirement System to individuals who first become participants before January 8, 2025. This creates a system where new members will not be able to join these retirement programs after the specified date, effectively limiting the program's future liabilities. Additionally, the bill mandates that any benefit increase resulting from these amendments will not be classified as a 'new benefit increase', thus potentially limiting future enhancements to retirement benefits.
House Bill 5448 (HB5448) proposes significant amendments to the Illinois Pension Code, particularly affecting the retirement systems for state employees, legislators, and judges. Notably, the bill sets limitations on the salaries and wages for Tier 2 members, determining that annual earnings shall not exceed 90.5% of the federal Social Security Wage Base starting January 1, 2024. This change is designed to align state retirement benefits with broader fiscal policies and aims to stabilize funding for these pension systems by adjusting the funding formulas in fiscal year 2025.
Opponents of the bill may raise concerns regarding its implications for newly elected officials and judges, as they will be barred from participating in these pension systems. The limitation on participation could be argued as a strategy to save costs at the expense of fair retirement opportunities for future public servants. Furthermore, the requirement for full implementation without state reimbursement for any new mandates set by this bill could lead to disputes over local fiscal responsibilities and funding adequacy.