Governor signs SB1946: Change in Benefits for New Hires.
On April 14th, the governor signed Senate Bill 1946 into law. The Bill modifies benefits for most Illinois public pension systems, including Cook County and Forest Preserve plans.
Cook County and Forest Preserve Employees hired and contributing before January 1, 2011 are not affected by this legislation.
The provisions of the bill will become effective January 1, 2011. Those changes include:
- Earliest age to receive an unreduced retirement benefit will be 67.
- Earliest age to receive a reduced retirement benefit will be 62. The annuity would be reduced by one-half of 1% for each month the member's age is under age 67.
- Final Average Salary will be calculated using the highest 96 consecutive months of the last 10 years of service.
- Final Average Salary will be capped at $106,800; this amount automatically increases by the lesser of 3% or one-half of the increase in the Consumer Price Index.
- Surviving spouse annuity will be 66-2/3% of the annuity the deceased member had been receiving or had earned if they were not yet retired.
- The annual annuity increase would be 3% or one-half the Consumer Price Index, whichever is lower. The increase will be based on the originally granted annuity.
- If a member retires before age 67, the member would not be eligible for any annual annuity increases until he or she reaches age 67.
- The benefit accrual remains at 2.4% per year of service.