IPPAC has learned Governor Pritzer’s Commission on Pension Reform has almost finished their work with their report due to be released in October. It is anticipated the proposed legislation, written by the Governor’s office, will accompany the report. The expected recommendation will be to consolidate investment funds from all police and fire pensions into 2 state funds created for that sole reason, and governed by Governor appointed IML Mayors, Investment Representatives, and UNKNOWN OTHERS. THIS LEGISLATION WILL BE MANDATORY. There is a strong indication the legislation will be introduced in the November Veto Session and bulldozed through without much review.
Below is a very brief overview of what the commissions recommendation will be, as nothing has been published and the meetings were not public.
Mandatory consolidation of the Art 3 and Art 4 investments.
Prior to the formation of the new funds, the money will be placed in a “State Fund” for an undetermined period of time until the new investment boards are formed. IMRF is no longer in the picture.
Local Boards will still handle disabilities and retirements, but all investing, auditing and actuary services will come through the state
Tier II changes:
The top pay for tier II will be recalculated to fall inline with Social security Administration rules to ward off SSA Safe Harbor issues
The salary averaging will be reduced to 4 out of the last 5 years instead of the current 8 out of the last ten.
No Tier I changes are expected
The Article 4, 10 year Line of Duty Death vesting will be eliminated
There will be no extension of the 90% funding date at this time.
IPPAC is a member of a coalition of organizations recommending each pension fund adopt a resolution to be sent to the House and Senate discouraging any action being taken in the Veto session. Attorney Cary Collins is working on a draft of a resolution to provide to pension boards for their October quarterly meetings. Since the report and/or legislation has not yet been released, we are only asking the Governor and legislature to slow down and not act on anything during the short veto session.
Leave IMRF alone! It is financially stable, and needs no help! Don’t take what is working to fix what is broken!!
The take-over of my pension by the State of Illinois would be a disaster. I am a 77 year old retired firefighter that began receiving my earned pension in 1999. During my retirement years I have had operations on my back, knees and shoulder. Yes, I realize my age is a factor for the surgeries, however my career choice was the major contributor for these physical problems. My wife and I lead a quiet and modest life on my pension, that I contributed to during my 27 year employment in the fire service. I am totally against the State of Illinois taking over our pension system and destroying it just as the federal government has destroyed the Social Security program.
You are attempting to confiscate funds for your self purpose. This is similar to walking into a bank and make an announcement to take over all accounts of the citizens so you could examine each account. Do it and face Federal Charges. Do this and face Firemen and Policemen strike like your beloved contributors from the Chicago Teachers Union. Remember the Firemen and Policemen will be looking out for the citizens like teachers stick for the children.