Rep. Pritchard's Perspective on Illinois Politics
Observations and comments about state government by State Representative Robert W. Pritchard.
In keeping with other state pension reforms this spring, SB 3538 passed the House last week making comprehensive changes to the benefit and funding structure of public safety employee pensions. Beginning January 1, newly hired employees in the Downstate Police and Fire, Chicago Police and Fire, and sheriff’s employees will fall under the new system.
The negotiated benefit formula changes retirement age to 55 with 10 years of service and reduces benefits for early retirement. Maximum pension benefit will be 75% of base salary, which is capped at $106,800 for pension calculations. Surviving spouse benefits are also reduced.
Cities and Counties will be required to make certified annual pension payments or the State Comptroller will fund them by diverting money intended for the municipality from the Local Government Distribution Fund. Pensions must be funded at the 90 percent level by 2040 which provides more time to reach a lower level of funding than current law.
District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com
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