Synopsis As Introduced Amends the Chicago Police Article of the Illinois Pension Code to provide an increase in the retirement benefit formula. Changes the maximum annuity from 75% to 80% of average salary. Provides for 2.5% (rather than 2%) of average salary for each year of service beyond 20. Applies to persons withdrawing from service after the effective date. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Pension Note (Commission on Gov't Forecasting and Accountability)
According to an analysis prepared by the Fund's actuary (based on 12/31/02 membership data), the estimated increase in accrued liability due to Senate Bill 362 is $138.9 million. The increase in normal cost estimated to be $5.4 million and the payment needed to amortize the estimated increase in the accrued liability over 40 years is $7.1 million. Therefore, the estimated 1st year cost of Senate Bill 362 is $12.5 million, or 1.44% of payroll. As payroll grows, the annual cost will increase with payroll.