SPRINGFIELD —Several Illinois pension systems will soon see reforms to better protect retirement security for all public workers, thanks to legislation led by State Senator Robert Martwick that was just signed into law.
“For too long, hardworking Illinoisans have borne the brunt of bad decisions we have made regarding how our pensions are managed,” said Martwick (D-Chicago). “Thanks to this measure, many key concerns working Illinoisans have surrounding their retirement plans will be addressed so they can leave the workforce knowing their future is secure.”
House Bill 3193 is a comprehensive proposal that addresses issues in current pension administration. Among the initiatives, the legislation includes changes to the Chicago Teachers’ Pension Fund to allow retired teachers who return to work to keep their pension benefits on a prorated basis rather than have them revoked entirely. This provision supports efforts to address the state’s teacher shortage while retaining the hard-earned benefits of retirees who are willing to re-enter the workforce.
In recognition of the risks firefighters face, House Bill 3193 adds breast cancer to the list of occupational diseases covered by disability provisions. It also updates policies within the Metropolitan Water Reclamation District to clarify the definition of salary for employees on disability benefits and require annual medical examinations for workers to continue to receive these benefits.
To provide financial stability for retiring state troopers, the measure requires the State Employees’ Retirement System to issue an estimated annuity payment when they retire. This provision addresses the delays experienced by state troopers whose pensions are calculated using an alternative formula, ensuring they have time to financially plan as they move into the next stage of their lives.
The measure also opens up opportunities for service credit transfers between various systems, including between downstate fire and police funds, military service into the Cook County system, CTE teacher service into the Teachers’ Retirement System, and downstate police to the Illinois Municipal Retirement Fund. These changes will help resolve issues faced by public workers who move between roles or agencies.
“This initiative will ensure Illinois employees can look forward to a retirement that is financially secure, incentivizing employees to come to our state,” said Martwick. “I am proud to lead this legislation and take the first steps to better pension policy for the years to come.”
House Bill 3193 was signed into law on Friday. It is effective immediately.
