IL SB3355

Increases automatic annual retirement annuity increases from 1.5% to 3% for Chicago police officers born on or after January 1, 1955, beginning January 1, 2012.

Removes the 30% maximum lifetime increase cap for police officers born on or after January 1, 1955 receiving the 3% annual increases.

Applies the new 3% increase rate and no-cap provision to officers who retired before January 1, 2012 but have not yet received their initial increase.

Requires 0.5% salary deductions from officers and matching 0.5% contributions from the City of Chicago to fund the increased annuity costs through an Automatic Increase Reserve.

Amends the State Mandates Act to exempt the bill from state reimbursement requirements and takes effect immediately upon becoming law.