FABF Website Admin / Sunday, February 1, 2026 / Categories: News & Events, Legislation Tier II Wage Caps Effective for 2026 With the adoption of Public Act 104 0065, the salary cap for Tier II CFD employees increased to $141,407.74 on July 1, 2025. Per the guidance of the Illinois Department of Insurance this legislated salary cap is to be annualized and is to remain effective through June 30, 2026. As required by state law, the Illinois Department of Insurance annually calculates the maximum salary for annuity purposes for Tier II participants. This amount is based on the Consumer Price Index – All Urban Consumers (CPI‑U) for the 12 months ending in September and is adjusted on November 1 for the following calendar year. The adjustment equals the lesser of 3% or one‑half of the annual CPI‑U increase. The CPI‑U increase for the applicable period was 3.0%, resulting in a 2026 Tier II salary cap of $145,649.97. This annualized salary cap will be effective for the period starting July 1, 2026, and remain effective through June 30, 2027, or until further guidance is provided. Update on Retro Check Pension Contributions HELPS Federal Tax Break for Retired Fire and Paramedics Print 8