BURKE, SAVIANO AND OSTERMAN.
PEN CD-CHGO POL-INCR RETMT-80%
Synopsis of Bill as introduced:
Amends the Chicago Police Article of the Illinois Pension Code to
provide an increase in the retirement benefit formula. Changes the
maximum annuity from 75% to 80% of average salary. Provides for 2.5%
(rather than 2%) of average salary for each year of service beyond 20.
Applies to persons withdrawing from service after December 31, 2001.
Amends the State Mandates Act to require implementation without
reimbursement. Effective immediately.
PENSION NOTE (Pension Laws Commission)
According to an analysis prepared by the Fund's actuary (based
on 12/31/98 membership data), the estimated increase in accrued
liability due to HB 1863 is $120.7 million. The increase in
normal cost is estimated to be $4.4 million and the annual
payment needed to amortize the estimated increase in the
accrued liability over 40 years is $6.2 million. Therefore,
the estimated first year cost of HB 1863 is $10.5 million,
or 1.46% of payroll. As payroll grows, the annual cost will
increase commensurate with payroll.
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
Full Text Bill Status