One of the notable changes in SB1187 includes raising the limit on salary for Tier 2 policemen, allowing for an annual increase based on the consumer price index-u. The law will now stipulate that surviving spouses' annuities for certain Tier 2 policemen will be proportionate to the deceased policeman's monthly salary at the time of death, also introducing new structures for child benefits following a policeman's death. These adjustments aim to enhance the financial security of officers' families.
Summary
SB1187 aims to amend the Chicago Police Article of the Illinois Pension Code specifically concerning Tier 2 policemen. The bill proposes new definitions and calculations for determining a Tier 2 policeman's 'final average salary', which will be the greater of two calculated averages based on different service periods. This change is designed to affect the retirement benefits policemen receive, adjusting calculations to ensure a more accurate reflection of their salary over time.
Contention
Controversy surrounding SB1187 may arise from the broader implications of shifting pension calculations and benefits without state reimbursement for mandates, as stated in the amendments to the State Mandates Act. There may be concerns regarding the sustainability of the pension funds with these changes, particularly from those worried about state financial responsibilities towards public employee benefits.