92nd General Assembly
Summary of SB0803
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Senate Sponsors:
MOLARO.

Short description: 
PEN CD-ARTS 8 & 11 OMNIBUS                                                 

Synopsis of Bill as introduced:
        Amends the Chicago Municipal  Article  of  the  Illinois  Pension      
   Code.  Removes the requirement that a legally adopted child be adopted      
   before  the  employee  attains  age  55  to  be  considered  a  child.      
   Eliminates  the  service  requirement  for  eligibility for children's      
   annuity for children of employees who die in service.  Grants  the  3%      
   post-retirement  increase  beginning  at  the latest of: (i) the third      
   year after retirement, (ii) attainment of age 53, or (iii)  the  first      
   payment  date on or after the date 60 days after the effective date of      
   this amendatory Act  of  the  92nd  General  Assembly,  for  employees      
   retiring  before  attainment of age 60.  Changes the accrual rate from      
   2.2% to 2.4% per year and the maximum retirement annuity from  75%  to      
   80%   of   final  average  salary.   For  persons  receiving  ordinary      
   disability benefits, provides that  employee  contributions  shall  be      
   credited  to the employee without deduction, but these credits are not      
   available for refund.  Amends the  Chicago  Laborers  Article  of  the      
   Pension Code to change the accrual rate from 2.2% to 2.4% per year and      
   the  maximum  retirement  annuity  from  75%  to  80% of final average      
   salary.  Grants the  3%  post-retirement  increase  beginning  at  the      
   latest of: (i) the third year after retirement, (ii) attainment of age      
   53, or (iii) the first payment date on or after the date 60 days after      
   the  effective  date  of  this  amendatory  Act  of  the  92nd General      
   Assembly,  for  employees  retiring  before  attainment  of  age   60.      
   Provides  an  alternative  annuity  for  the  surviving  spouse  of an      
   employee who dies in service with at least 10 years of  service  under      
   certain conditions.  Creates an additional formula for determining the      
   annuity  payable  to the widows of certain employees who have at least      
   10 years of service and have been  married  for  at  least  10  years.      
   Eliminates  the  service  requirement  for  eligibility for children's      
   annuity for children of employees who die in service.   Provides  that      
   an  adopted  child  shall  be  entitled  to  the  same child's annuity      
   benefits as those provided for  natural  children  if  the  child  was      
   adopted  before  the  employee  withdrew  from  service.   For persons      
   receiving  ordinary  disability  benefits,  provides   that   employee      
   contributions shall be credited to the employee without deduction, but      
   these credits are not available for refund.  Amends the State Mandates      
   Act   to  require  implementation  without  reimbursement.   Effective      
   immediately.                                                                
          PENSION NOTE (Pension Laws Commission)                               
          Based on 12/31/98 membership data, in the Chicago Municipal          
          Employees' Pension Fund, SB 803 would increase the accrued           
          liability by an estimated $295 million. The contribution             
          required to amortize the increase in accrued liability is $25.8      
          million and the estimated increase in normal cost is $11.5           
          million, for an estimated total annual cost of $37.2 million,        
          or 3.18% of payroll. For the Chicago Laborers' Pension Fund,         
          SB 803 would increase the accrued liability by an estimated          
          $66.9 million. The contribution required to amortize the in-         
          crease in accrued liability is $5.7 million and the estimated        
          increase in normal cost is $2 million, for a estimated total         
          annual cost of $7.8 million, or 4.54% of payroll.                    
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   0


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