Timeline

• February, 2009

  SB1946 is introduced. This bill proposes a minor, narrow technical change for how pensionable pay was calculated for leaves of absence without pay. This is known as a shell bill, which is a piece of legislation that has no real policy content and is designed to allow lawmakers to swap in completely new text at any time.

• March 24th, 2010
  9:30 AM

  SB1946 is gutted, and the innocuous minor changes in the original bill were replaced with a comprehensive Tier 2 pension system.

• 

  March 24th, 2010
  8:24 PM

  Less than 12 hours after the new language was introduced, with virtually no public debate or analysis of the impact this would have, the General Assembly passes SB1946 through both chambers.

• April 14th, 2010

  Tier 2 reform is signed into law as Public Act 96-0889, demanding public employees pay for the state’s financial mismanagement.

• 

  2011

  AFL-CIO begins a coalition building effort of Illinois public unions – called We Are One Illinois – to fight for Tier 2 reform through mobilizing efforts including town halls, witness slips, organized legislator phone calls, and more.

• 2013-2016

  The We Are One coalition files landmark lawsuits to protect further pension reductions for Tier 1 members.

• 2016-2023

  Week of Action campaigns continue to organize town halls to educate union members about Tier 2 inequities. Coordinated petition pushes generate over 100,000 constituent emails to legislators.

• 

  November 13th, 2024

  Thousands gather in the largest rally at the Springfield Capitol Building. Representatives from each of the major public sector unions speak to encourage lawmakers to act.

• A pension reform bill – SB2024 -supported by the We Are One Illinois coalition is introduced directly following the rally. The General Assembly will not take a floor vote on it, saying more negotiation is needed to meet the Governor’s demands.

• 2025

  New legislation – SB1937 – is negotiated by union leaders that meets a new set of Governor Pritzker’s demands:

  Any Pension reform must be fully funded

  • The Governor’s requested pension fund increase has already taken effect – and will help fund Tier 2 changes along with other changes.

  Illinois cannot receive a credit downgrade from the bond rating agencies

  • Once Illinois pays off its pension obligation bonds, the same payments can be shifted to Tier 2 – resulting in a credit-neutral funding solution.

  No state revenue increased

  • Illinois has already set aside millions for when the state is inevitably sued for violating safe harbor provisions. This “Safe Harbor Fund” will instead be used to fill the funding gap in the short term while pension obligation bonds expire.

  SB1937 Fact Sheet
• October, 2025

  SB1937 passes out of committee. Tens of thousands more fill out witness slips as proponents of the legislation.

  No floor vote is taken. Governor Pritzker’s demands have shifted once again, and the General Assembly is unwilling to risk political capital to take up the vote.

• November, 2025

  Members within IEA begin development on a new grassroots plan to Undo Tier 2. It calls for a return to effective, old-style unionism: member-to-member organizing to leverage a union’s greatest power: labor.

  Shareable Infographic
• April, 2026

  IEA lobbyists promote new legislative agenda. Tier 2 is not amongst top priorities, as there is “nothing more that can be done until the Governor decides to come to the negotiating table”. Tier 2 strategy shifts; now pushing for a new “Millionaire Surcharge” in the hope increased funding will make it easier to negotiate pension reform.

• May, 2026

  Less than a month after launching the push for the Millionaire Surcharge, it is killed without a floor vote in the General Assembly. No clear plan to usher in pension reform that differs from previous failed strategies has been shared publicly.

• Any public employee who began employment on or after Jan 1, 2011 is part of a “Tier 2” pension system.

  Tier 1	Tier 2
  When can you retire (for full benefits)?
  60 / 55 with 35 years of service	67 with 10 years service
  How is my retirement benefit calculated?
  Average of the highest earnings over four years in your consecutive last 10 years of service	Average of the highest earnings over eight years in your consecutive last 10 years of service
  What is the amount of my annual pension increase?
  3% compounded annually	Lower of 3% compounded annually OR 1/2 of increase in consumer price index (your pension will not keep up with inflation)
  What is the relationship to Safe Harbor laws?
  Does not violate Safe Harbor – better than Social Security	Tier 2 will violate federal safe harbor laws – potentially requires social security for members

• Tier 2 pensions in Illinois are rated as the WORST public pensions in the U.S. (Bellwether Education Partners).

  Teacher pension systems in 22 states allow for retirement at 55 years old. The average (mean) retirement age at which full benefits may be claimed for full-career teachers in the U.S. is 58.5. Illinois Tier 2 stands alone with the oldest teacher retirement age in the country at 67.

  Teacher Retirement Ages in the U.S.Download

We’ve tried mobilizing: phone calls, rallies, town halls, witness slips, social media, and more. Tier 2 has persisted through those efforts for over 15 years. Between lackluster “Safe Harbor” pension reform plans by the Governor and public pension threats by outside groups, the time to demand change is NOW.