Salary Limitations/Cola Increase
In accordance with state law, the Illinois Department of Insurance annually determines certain annuity limitations for use in benefit determinations by the Retirement Systems and Pension Funds operating under the Illinois Pension Code. The calculations include:
- The retirement Cost of Living Adjustment ("COLA") applicable to Tier 2 participants, and
- The annual salary maximum applicable to Tier 2 participants.
For the General Assembly Retirement System (Article 2) the annuity COLA and the increase in the annual salary maximum equals the lesser of 3% or the full CPI-U. The following table outlines the COLA to be applied and the maximum salary for Tier 2 annuity purposes.