IL HB3898

Eliminates supplemental benefit payments under Illinois Pension Code Section 7-144.3 effective January 1, 2015, applying to all current and future annuitants regardless of employment status after the amendment's effective date.

Allows supplemental benefit payments to eligible retirement and surviving spouse annuitants on July 1 each year prior to January 1, 2015, based on 0.62% of the last annual participating payroll for participating municipalities and instrumentalities.

Requires eligible persons to receive a retirement or surviving spouse annuity from the Fund on the July 1 payment date and have been receiving that annuity for the preceding 12 months, with an exception for surviving spouses whose annuity began less than one year prior.

Allocates supplemental benefit payments to each eligible person proportionally based on their share of total annuity payments made by the Fund in June preceding the July 1 payment date, subject to federal benefit limitations for qualified public pension plans.

Allows supplemental benefit payments to cease immediately if the Illinois Pension Code is amended to change retirement annuity increases from uncompounded to compounded annual increases.