Synopsis As Introduced Amends the Chicago Firefighter Article of the Illinois Pension Code. Compounds the automatic annual increase in retirement annuity. For firemen born on or after January 1, 1945 and before January 1, 1950, increases the automatic annual increase in retirement annuity to 3%, removes the 30% maximum, and permits the initial increase at age 55. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Pension Note (Pension Laws Commission)
Would increase accrued liability by an estimated $60.0 million. Annual payment needed to amortize increase in unfunded liability over 40 yrs. is $4.9 million. The increase in normal costs is $0.6 million, or 0.24% of payroll. Therefore, the estimated increase in total annual cost is $5.5 million, or 2.00% of payroll.