House Sponsors: GRANBERG-BRADY AND FRANKS. Short description: PEN CD-IMRF-SLEP BENEFITS Synopsis of Bill as introduced: Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Allows a sheriff's law enforcement employee (SLEP) to convert up to 10 years of non-SLEP service credit into SLEP credit by paying the difference in employee contributions, plus interest. Increases the SLEP retirement formula to 2.5% of the final rate of earnings for each year of SLEP service. Allows a person with at least 20 years of SLEP credit to have the pension based on his or her salary rate on the last day of SLEP service. Compounds the 3% annual increase in retirement annuities for SLEPs who retire on or after January 1, 2003; specifies that those retirees do not receive a supplemental benefit payment (13th check). Increases the basic disability benefit for a sheriff's law enforcement employee whose disability is the result of sickness, accident, or injury incurred in or resulting from the performance of an act of duty, from 50% to 65% of the final rate of earnings. Increases the SLEP surviving spouse benefit to 66% of the deceased SLEP's retirement annuity. Removes the 2-year service requirement for earning new benefits after a return to service as a SLEP. Increases the additional employee contribution paid by SLEPs to 3.1% of salary. Also 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. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. PENSION NOTE (Pension Laws Commission) According to IMRF, when calculated individually, the SLEP bene- fit increases contained in HB 4449 would increase the accrued liabilities of the Fund by $126.5 million. The corresponding increase in average annual cost (including normal cost) is estimated to be 7.34% of payroll for SLEP employers, assuming amortization of the increase in accrued liabilities over 30 years. This cost would be reduced by a savings of 0.62% of payroll from discontinuing the supplemental benefit payment and by 1.1% due to increased employee contributions. Therefore, when calculated individually, the total annual cost associated with the benefit increases provided in HB 4449 is estimated to be 5.62% of payroll for SLEP employers. If the cost of the benefits contained in HB 4449 were calculated together, the increase in the accrued liabilities of IMRF and the increase in annual employer cost may be significantly higher than those outlined as if calculated individually. The required contri- butions (as a percent of payroll) may vary widely among employers. Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 0 END OF INQUIRY Full Text Bill Status