PEN CD-CHGO POL-3% COMPOUNDED
Synopsis of Bill as introduced:
Amends the Chicago Police Article of the Illinois Pension Code.
Compounds the automatic annual increase in retirement annuity. Also
increases it to 3%, reduces the minimum age to 55, and removes the 30%
maximum increase limitation for all annuitants. Amends the State
Mandates Act to require implementation without reimbursement.
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 SB 346 is $448.4 million. The increase
in normal cost is estimated to be $9.8 million and the annual
payment needed to amortize the estimated increase in the
accrued liability over 40 years is $22.6 million. Therefore,
the estimated 1st year cost of SB 346 is $32.4 million, or
4.40% 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