Changes to the Illinois Pension Code

In early June, three changes to the Illinois Pension Code that affect some TRS members were signed into law:

• A reduction in the “threshold” affecting employer contributions on year-to-year salary increases for a TRS member from 6 percent to 3 percent, if the pay hikes would factor into the calculation of a member’s initial pension.
  
• A new law requires TRS to offer all eligible inactive members a chance for a one-time, irrevocable “accelerated pension benefit payment” in return for giving up any future claim to a TRS benefit.
• A new law requires TRS to offer all retiring Tier 1 members a chance for a one-time, irrevocable change in the automatic annual increase to their TRS pensions, along with an “accelerated pension benefit payment.”

Implementation of these new laws will take time. The statute says TRS must implement the law “as soon as practical,” and is in the process of developing the IT systems and protocols necessary to administer these acts.
We cannot answer all questions at this time regarding any effect these laws will have on any member’s TRS benefits.

Here’s what we know: READ MORE . . .