One of the noteworthy aspects of SB1632 is the benefits structure it establishes for the surviving spouses and children of Tier 2 policemen. The surviving spouse's annuity is set at 54% of the deceased officer's salary at the time of death. Furthermore, in the event of the death of a policeman, a pension of 20% of the officer's salary or earned pension is to be granted to the guardian of any children until they reach age 18. These provisions provide stability for families of officers, particularly in the immediate aftermath of a loss.
Summary
SB1632 is a legislative bill introduced in Illinois that amends the Chicago Police Article of the Illinois Pension Code, specifically focusing on benefits for Tier 2 policemen. The bill proposes several provisions regarding the calculation of the 'final average salary' of Tier 2 policemen, determining it as the greater of either (i) the average salary over the 96 consecutive months during the last 120 months of service or (ii) the average salary over the 48 consecutive months within the last 60 months of service prior to retirement. Additionally, the bill includes measures to adjust the annual salary limits for Tier 2 policemen, allowing for an increase of the lesser of 3% or the annual unadjusted percentage increase in the consumer price index-u.
Contention
Despite the apparent benefits, opponents have expressed concerns regarding the bill's funding implementation. SB1632 amends the State Mandates Act to require that these changes be implemented without reimbursement from the state, which could place a significant financial burden on local pension funds. Critics worry that the lack of state funding could jeopardize the financial sustainability of the pension system. This discussion adds a layer of complexity to the bill's passage, as it raises questions about the balance between enhancing benefits for police officers and the financial realities at play.