Synopsis As Introduced Amends the Chicago Police Article of the Illinois Pension Code. Compounds the automatic annual increase in retirement annuity. Also increases it to 3%, reduces the minimum age to 55, and removes the 30% maximum increase limitation for all annuitants. 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 363 is $463.7 million. The increase in normal cost estimated to be $27.4 million and the annual payment needed to amortize the estimated increase in the accrued liability over 40 years is $24.0 million. Therefore, the estimated 1st year cost of Senate Bill 363 is $51.4 million, or 5.93% of payroll. As payroll grows, the annual cost will increase commensurate with payroll.