Synopsis As Introduced Amends the Chicago Police Article of the Illinois Pension Code. Beginning January 1, 2006, increases the duty disability benefit to 75% of the current salary attached from time to time to the rank held by the policeman at the time of removal from the police department payroll. 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 368 is $141.5 million. The increase in normal cost estimated to be $3.1 million and the annual payment needed to amortize the estimated increase in the accrued liability over 40 years is $7.0 million. Therefore, the estimated 1st year cost of Senate Bill 368 is $10.1 million, or 1.38% of payroll. As payroll grows, the annual cost will increase with payroll.