Illinois 2023-2024 Regular Session

Illinois House Bill HB4065

Introduced
5/3/23  
Refer
5/4/23  
Introduced
5/3/23  

Caption

PEN CD-POLICE AND FIRE

Impact

The implications of HB 4065 extend to both local and state regulations concerning public employee benefits. By integrating Tier 1 retirement provisions, the bill seeks to enhance financial security for public safety workers upon retirement. It also includes a provision that requires the state comptroller to pay 40% of the certified employer costs back to local government units that provide qualifying services. This arrangement aims to alleviate some of the financial burdens placed on municipalities managing retirement benefits for their employees.

Summary

House Bill 4065 aimed at amending various sections of the Illinois Pension Code to benefit police officers, firefighters, and related public safety employees. The bill proposes removing the Tier 2 salary limitations that currently restrict the amount of salary considered for annuity purposes. Furthermore, it stipulates that the automatic annual increases to retirement pensions or survivor pensions will be calculated using Tier 1 formulas, which are generally more favorable. This change primarily enhances the retirement benefits for these public safety employees, thereby addressing concerns about pension equity and adequacy for retirees.

Contention

Notable points of contention regarding HB 4065 include the fiscal responsibility of municipalities to maintain retirement plans under the new provisions. Critics argue that while the bill improves benefits for first responders, the financial implications for local governments may be substantial, especially for smaller communities already facing budget constraints. Additionally, the bill mandates local governments to cover a portion of health insurance costs for retired employees, which could further strain local finances. The lack of reimbursement options under the State Mandates Act has also raised concerns about the sustainability of these changes and potential impacts on local services.

Companion Bills

No companion bills found.

Previously Filed As

IL HB1046

PEN CD-POLICE AND FIRE

IL HB4334

PEN CD-POLICE AND FIRE

IL HB1627

PEN CD-IMRF-FIRE/PARAMEDIC

IL HB1307

PEN CD-IMRF-FIRE/PARAMEDIC

IL HB2856

PEN CD-POLICE & FIRE-VARIOUS

IL HB2779

PEN CD-POLICE & FIRE-VARIOUS

IL SB1726

PEN CD-POLICE & FIRE-VARIOUS

IL HB2855

PEN CD-CHI POLICE&FIRE-TIER 2

IL SB1725

PEN CD-CHI POLICE&FIRE-TIER 2

IL HB5211

PEN CD-TIER 2 BENEFITS

Similar Bills

IL HB4334

PEN CD-POLICE AND FIRE

IL HB1046

PEN CD-POLICE AND FIRE

IL HB5909

PEN CD-TIER 2 BENEFITS

IL SB0002

PEN CD-TIER 2 BENEFITS

IL SB3988

PEN CD-TIER 2 BENEFITS

IL HB2711

PEN CD-TIER 2 BENEFITS

IL SB1937

PENSION CODE-VARIOUS

IL HB2540

PEN CD-VARIOUS