SB 1629

Abstract

Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that for Tier 2 firemen, final average salary is the greater of (1) the average monthly salary obtained by dividing the total salary of the fireman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period or (2) the average monthly salary obtained by dividing the total salary of the fireman during the 48 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period (currently, the final average salary is the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. House Floor Amendment No. 1 Provides that for Tier 2 firemen, final average salary is the greater of (1) the average monthly salary obtained by dividing the total salary of the fireman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period or (2) the average monthly salary obtained by dividing the total salary of the fireman during the 48 consecutive months of service within the last 60 months (instead of 120 months) of service in which the total salary was the highest by the number of months of service in that period. Pension Note (Government Forecasting & Accountability) SB 1629 would have a significant fiscal impact on the Chicago Fire pension fund. An actuarial study would be needed to assess the long-term cost. According to the Chicago Fire Pension Fund’s 2021 actuarial valuation, the fund had $5.6 billion in unfunded liabilities, with a funding ratio of 20.9%. Housing Affordability Impact Note (Housing Development Authority) This bill will have no effect on the cost of constructing, purchasing, owning, or selling a single-family residence..