Synopsis As Introduced Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases the retirement formula for sheriff's law enforcement employees (SLEPs) to 2.5% of the final rate of earnings for each year of SLEP service. Increases the maximum pension payable to a SLEP from 75% to 80% of the final rate of earnings. Removes the 2-year service requirement for earning new benefits after a return to service as a SLEP. Makes these changes apply to persons in service on or after July 1, 2004. Also increases the additional employee contribution paid by SLEPs to 2.5% of salary. Eliminates the reduction in benefit imposed on a surviving spouse who is more than 5 years younger than the deceased member, for the surviving spouse of any member who dies on or after the effective date. Allows a SLEP to convert up to 10 years of non-SLEP service credit into SLEP credit by paying the difference in employee and employer contributions, plus interest. Makes the additional unfunded liability for all changes subject to a full 30-year amortization period. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
The Fund's actuaries have not yet determined the fiscal impact. Similar legislation in March 2004 would have increased accrued liabilities of the Fund by $36.2 Million and increased average annual costs by 1.18% of payroll when the benefit increases are calculated individually.
House Floor Amendment No. 3 Replaces everything after the enacting clause with the engrossed bill with the following changes: (i) allows the employer, by resolution or ordinance, to provide for amortization of the additional unfunded liability over a 35-year or 40-year period; (ii) increases the additional employee contribution paid by SLEPS to 3%; and (iii) removes the effective date provision.