IL SB0440

Clarifies and amends Tier 2 pension provisions for Chicago police officers and firefighters hired on or after January 1, 2011, including eligibility standards and benefit calculations for members and their survivors.

Lowers the minimum retirement age from 55 to 50 for Tier 2 members with 10+ years of service, with annuity reduced by 0.5% for each month under age 55.

Establishes minimum widow's/surviving spouse's annuities at 125% of the Federal Poverty Level beginning January 1, 2017 for both police and fire pension funds.

Extends automatic 3% annual annuity increases to persons born before January 1, 1966 who retired after September 1, 1967, effective January 1, 2017.

Makes changes retroactive to January 1, 2011 (the Tier 2 program's effective date) and exempts the mandate from state reimbursement requirements.