CAPPARELLI-BUGIELSKI-LYONS,JOSEPH-MCAULIFFE-BURKE AND OSTERMAN.
PEN CD-CHGO FIRE-INCR FORMULA
Synopsis of Bill as introduced:
Amends the Chicago Firefighter Article of the Illinois Pension
Code to provide an increase in the retirement benefit formula.
Provides for 2.5% (rather than 2%) of average salary for each year of
service beyond 20. Also makes technical changes. Amends the State
Mandates Act to require implementation without reimbursement.
PENSION NOTE (Pension Laws Commission)
Based on a December 31, 2000 actuarial valuation, HB 407 would
increase the accrued liability of the Chicago Firefighters'
Fund by an estimated $24.0 million. The level dollar annual
payment needed to amortize the estimated increase in unfunded
liability over 40 years is $2.0 million. The estimated annual
increase in normal cost is $1.1 million, or 0.39% of payroll.
Therefore, the estimated increase in total annual cost is $3.0
million, or 1.11% of payroll. As annual normal cost increases
(as a dollar amount), the total annual cost will also increase.
Last action on Bill: SESSION SINE DIE
Last action date: JAN-07-2003
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 0
END OF INQUIRY
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