Pension Note, House Floor Amendment No. 1 (Government Forecasting & Accountability)
HB 2705 (H-AM 1) amends various provisions of the Illinois Pension Code pertaining to public safety employees, including ensuring Tier 1 status and providing for reciprocity, among other changes. An actuarial study would need to be completed in order to determine the fiscal impact of HB 2705 (H-AM 1) To the extent that this bill allows public safety employees with prior service (including non-public safety Tier 1 service) in other pension funds to qualify for Tier 1 status, liabilities of the applicable pension funds would increase. In regard to reciprocity, to the extent that the affected pension funds would be required to pay a pension for non-vested service that currently only qualifies for a refund of contributions, there could be a financial impact, as liabilities would increase in such situations. The magnitude of this impact would depend on the number of affected members and the length of reciprocal service credited. An actuarial study would be needed to analyze several different sample scenarios under which members may avail themselves of reciprocity.