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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4390

Introduced 1/14/2026, by Rep. John M. Cabello

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Municipal Retirement Fund (IMRF) Article of the
Illinois Pension Code. Provides that the amendatory Act may be referred to
as the Pension Equity Act. Provides that, beginning on January 1, 2027, for
all purposes under the Code (including, without limitation, the
calculation of benefits and employee contributions), the annual earnings
of a Tier 2 sheriff's law enforcement employee shall not include overtime
and shall not exceed $145,649.97 (instead of $108,600, as adjusted
annually beginning in 2011) plus the lesser of (i) 3% of that amount or
(ii) the annual unadjusted percentage increase (instead of one-half the
annual unadjusted percentage increase) in the consumer price index-u for
the 12 months ending with September 2026. Provides that, beginning on
January 1, 2028, that amount shall annually thereafter be increased by the
lesser of (i) 3% of that amount, including all previous adjustments, or
(ii) the annual unadjusted percentage increase (instead of one-half the
annual percentage increase) in the consumer price index-u for the 12
months ending with the September preceding each November 1, including all
previous adjustments. Provides that, as soon as practical on or after the
effective date of the amendatory Act, with regard to benefits earned for
the years 2012 through 2026, the Fund shall recalculate benefits for Tier 2
sheriff's law enforcement employees based on the annual salary limitation
that was in effect for that year for Tier 2 police officers under the
Downstate Police Article. Provides that the changes shall not result in
any retroactive adjustment of any employee contributions. Amends the State
Mandates Act to require implementation without reimbursement. Effective
immediately.
LRB104 16796 RPS 30205 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

A BILL FOR

HB4390
LRB104 16796 RPS 30205 b
1

AN ACT concerning public employee benefits.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
This Act may be referred to as the Pension
5
Equity Act.

6

Section 5.
The Illinois Pension Code is amended by
7
changing Section 7-142.1 as follows:

8

(40 ILCS 5/7-142.1)

(from Ch. 108 1/2, par. 7-142.1)
9

Sec. 7-142.1.
Sheriff's law enforcement employees.
10

(a) In lieu of the retirement annuity provided by
11
subparagraph 1 of paragraph (a) of Section 7-142:
12

Any sheriff's law enforcement employee who has 20 or more
13
years of service in that capacity and who terminates service
14
prior to January 1, 1988 shall be entitled at his option to
15
receive a monthly retirement annuity for his service as a
16
sheriff's law enforcement employee computed by multiplying 2%
17
for each year of such service up to 10 years, 2 1/4% for each
18
year of such service above 10 years and up to 20 years, and 2
19
1/2% for each year of such service above 20 years, by his
20
annual final rate of earnings and dividing by 12.
21

Any sheriff's law enforcement employee who has 20 or more
22
years of service in that capacity and who terminates service

HB4390
- 2 -
LRB104 16796 RPS 30205 b
1
on or after January 1, 1988 and before July 1, 2004 shall be
2
entitled at his option to receive a monthly retirement annuity
3
for his service as a sheriff's law enforcement employee
4
computed by multiplying 2.5% for each year of such service up
5
to 20 years, 2% for each year of such service above 20 years
6
and up to 30 years, and 1% for each year of such service above
7
30 years, by his annual final rate of earnings and dividing by
8
12.
9

Any sheriff's law enforcement employee who has 20 or more
10
years of service in that capacity and who terminates service
11
on or after July 1, 2004 shall be entitled at his or her option
12
to receive a monthly retirement annuity for service as a
13
sheriff's law enforcement employee computed by multiplying
14
2.5% for each year of such service by his annual final rate of
15
earnings and dividing by 12.
16

If a sheriff's law enforcement employee has service in any
17
other capacity, his retirement annuity for service as a
18
sheriff's law enforcement employee may be computed under this
19
Section and the retirement annuity for his other service under
20
Section 7-142.
21

In no case shall the total monthly retirement annuity for
22
persons who retire before July 1, 2004 exceed 75% of the
23
monthly final rate of earnings. In no case shall the total
24
monthly retirement annuity for persons who retire on or after
25
July 1, 2004 exceed 80% of the monthly final rate of earnings.
26

(b) Whenever continued group insurance coverage is elected

HB4390
- 3 -
LRB104 16796 RPS 30205 b
1
in accordance with the provisions of Section 367h of the
2
Illinois Insurance Code, as now or hereafter amended, the
3
total monthly premium for such continued group insurance
4
coverage or such portion thereof as is not paid by the
5
municipality shall, upon request of the person electing such
6
continued group insurance coverage, be deducted from any
7
monthly pension benefit otherwise payable to such person
8
pursuant to this Section, to be remitted by the Fund to the
9
insurance company or other entity providing the group
10
insurance coverage.
11

(c) A sheriff's law enforcement employee who began service
12
in that capacity prior to the effective date of this
13
amendatory Act of the 97th General Assembly and who has
14
service in any other capacity may convert up to 10 years of
15
that service into service as a sheriff's law enforcement
16
employee by paying to the Fund an amount equal to (1) the
17
additional employee contribution required under Section
18
7-173.1, plus (2) the additional employer contribution
19
required under Section 7-172, plus (3) interest on items (1)
20
and (2) at the prescribed rate from the date of the service to
21
the date of payment. Application must be received by the Board
22
while the employee is an active participant in the Fund.
23
Payment must be received while the member is an active
24
participant, except that one payment will be permitted after
25
termination of participation.
26

(d) The changes to subsections (a) and (b) of this Section

HB4390
- 4 -
LRB104 16796 RPS 30205 b
1
made by this amendatory Act of the 94th General Assembly apply
2
only to persons in service on or after July 1, 2004. In the
3
case of such a person who begins to receive a retirement
4
annuity before the effective date of this amendatory Act of
5
the 94th General Assembly, the annuity shall be recalculated
6
prospectively to reflect those changes, with the resulting
7
increase beginning to accrue on the first annuity payment date
8
following the effective date of this amendatory Act.
9

(e) Any elected county officer who was entitled to receive
10
a stipend from the State on or after July 1, 2009 and on or
11
before June 30, 2010 may establish earnings credit for the
12
amount of stipend not received, if the elected county official
13
applies in writing to the fund within 6 months after the
14
effective date of this amendatory Act of the 96th General
15
Assembly and pays to the fund an amount equal to (i) employee
16
contributions on the amount of stipend not received, (ii)
17
employer contributions determined by the Board equal to the
18
employer's normal cost of the benefit on the amount of stipend
19
not received, plus (iii) interest on items (i) and (ii) at the
20
actuarially assumed rate.
21

(f) Notwithstanding any other provision of this Article,
22
the provisions of this subsection (f) apply to a person who
23
first becomes a sheriff's law enforcement employee under this
24
Article on or after January 1, 2011.
25

A sheriff's law enforcement employee age 55 or more who
26
has 10 or more years of service in that capacity shall be

HB4390
- 5 -
LRB104 16796 RPS 30205 b
1
entitled at his option to receive a monthly retirement annuity
2
for his or her service as a sheriff's law enforcement employee
3
computed by multiplying 2.5% for each year of such service by
4
his or her final rate of earnings.
5

The retirement annuity of a sheriff's law enforcement
6
employee who is retiring after attaining age 50 with 10 or more
7
years of creditable service shall be reduced by one-half of 1%
8
for each month that the sheriff's law enforcement employee's
9
age is under age 55.
10

The maximum retirement annuity under this subsection (f)
11
shall be 75% of final rate of earnings.
12

For the purposes of this subsection (f), "final rate of
13
earnings" means the average monthly earnings obtained by
14
dividing the total salary of the sheriff's law enforcement
15
employee during the 96 consecutive months of service within
16
the last 120 months of service in which the total earnings was
17
the highest by the number of months of service in that period.
18

Notwithstanding any other provision of this Article,
19
beginning on January 1, 2011
and until January 1, 2027
, for all
20
purposes under this Code (including without limitation the
21
calculation of benefits and employee contributions), the
22
annual earnings of a sheriff's law enforcement employee to
23
whom this Section applies shall not include overtime and shall
24
not exceed $106,800; however, that amount shall annually
25
thereafter be increased by the lesser of (i) 3% of that amount,
26
including all previous adjustments, or (ii) one-half the

HB4390
- 6 -
LRB104 16796 RPS 30205 b
1
annual unadjusted percentage increase (but not less than zero)
2
in the consumer price index-u for the 12 months ending with the
3
September preceding each November 1, including all previous
4
adjustments.
5

Notwithstanding any other provision of this Article,
6
beginning on January 1, 2027, for all purposes under this Code
7
(including without limitation the calculation of benefits and
8
employee contributions), the annual earnings of a sheriff's
9
law enforcement employee to whom this Section applies shall
10
not include overtime and shall not exceed $145,649.97 plus the
11
lesser of (i) 3% of that amount or (ii) the annual unadjusted
12
percentage increase (but not less than zero) in the consumer
13
price index-u for the 12 months ending with September 2026;
14
however, beginning on January 1 2028, that amount shall
15
annually thereafter be increased by the lesser of (i) 3% of
16
that amount, including all previous adjustments, or (ii) the
17
annual unadjusted percentage increase (but not less than zero)
18
in the consumer price index-u for the 12 months ending with the
19
September preceding each November 1, including all previous
20
adjustments.

21

As soon as practical on or after the effective date of this
22
amendatory Act of the 104th General Assembly, with regard to
23
benefits earned for the years 2012 through 2026, the Fund
24
shall recalculate benefits for sheriff's law enforcement
25
employees to whom this Section applies based on the annual
26
salary limitation that was in effect for that year under

HB4390
- 7 -
LRB104 16796 RPS 30205 b
1
subsection (d) of Section 3-111.
2

Nothing in this amendatory Act of the 104th General
3
Assembly shall cause or otherwise result in any retroactive
4
adjustment of any employee contributions. The changes made to
5
this Section by this amendatory Act of the 104th General
6
Assembly apply without regard to whether the sheriff's law
7
enforcement employee was in service on or after the effective
8
date of this amendatory Act of the 104th General Assembly.
9

(g) Notwithstanding any other provision of this Article,
10
the monthly annuity of a person who first becomes a sheriff's
11
law enforcement employee under this Article on or after
12
January 1, 2011 shall be increased on the January 1 occurring
13
either on or after the attainment of age 60 or the first
14
anniversary of the annuity start date, whichever is later.
15
Each annual increase shall be calculated at 3% or one-half the
16
annual unadjusted percentage increase (but not less than zero)
17
in the consumer price index-u for the 12 months ending with the
18
September preceding each November 1, whichever is less, of the
19
originally granted retirement annuity. If the annual
20
unadjusted percentage change in the consumer price index-u for
21
a 12-month period ending in September is zero or, when
22
compared with the preceding period, decreases, then the
23
annuity shall not be increased.
24

(h) Notwithstanding any other provision of this Article,
25
for a person who first becomes a sheriff's law enforcement
26
employee under this Article on or after January 1, 2011, the

HB4390
- 8 -
LRB104 16796 RPS 30205 b
1
annuity to which the surviving spouse, children, or parents
2
are entitled under this subsection (h) shall be in the amount
3
of 66 2/3% of the sheriff's law enforcement employee's earned
4
annuity at the date of death.
5

(i) Notwithstanding any other provision of this Article,
6
the monthly annuity of a survivor of a person who first becomes
7
a sheriff's law enforcement employee under this Article on or
8
after January 1, 2011 shall be increased on the January 1 after
9
attainment of age 60 by the recipient of the survivor's
10
annuity and each January 1 thereafter by 3% or one-half the
11
annual unadjusted percentage increase in the consumer price
12
index-u for the 12 months ending with the September preceding
13
each November 1, whichever is less, of the originally granted
14
pension. If the annual unadjusted percentage change in the
15
consumer price index-u for a 12-month period ending in
16
September is zero or, when compared with the preceding period,
17
decreases, then the annuity shall not be increased.
18

(j) For the purposes of this Section, "consumer price
19
index-u" means the index published by the Bureau of Labor
20
Statistics of the United States Department of Labor that
21
measures the average change in prices of goods and services
22
purchased by all urban consumers, United States city average,
23
all items, 1982-84 = 100. The new amount resulting from each
24
annual adjustment shall be determined by the Public Pension
25
Division of the Department of Insurance and made available to
26
the boards of the pension funds.

HB4390
- 9 -
LRB104 16796 RPS 30205 b
1
(Source: P.A. 100-148, eff. 8-18-17.)

2

Section 90.
The State Mandates Act is amended by adding
3
Section 8.50 as follows:

4

(30 ILCS 805/8.50 new)
5

Sec. 8.50.
Exempt mandate.
Notwithstanding Sections 6 and
6
8 of this Act, no reimbursement by the State is required for
7
the implementation of any mandate created by this amendatory
8
Act of the 104th General Assembly.

9

Section 99.
Effective date.
This Act takes effect upon
10
becoming law.

HB4390
- 10 -
LRB104 16796 RPS 30205 b
1

INDEX

2

Statutes amended in order of appearance

3

40 ILCS 5/7-142.1
from Ch. 108 1/2, par. 7-142.1
4

30 ILCS 805/8.50 new

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