SB2437 Summary

• Establishes new pension benefit structure for public employees hired on or after the effective date, including reduced retirement ages (age 65 for Articles 8 and 11 instead of 67) and corresponding salary contribution increases (9.5% for new hires).

• Creates an election mechanism for employees hired between January 1, 2011 and the effective date to choose between the new reduced retirement age with higher contributions (7.5%-8.5% escalating to normal cost) or maintaining original retirement age (67) with standard 6.5% contributions.

• Sets specific employer contribution schedules for Chicago pension funds (Fund 56 and Fund 66) for payment years 2018-2022 with amounts ranging from $266-$576 million, then transitioning to actuarial funding methods targeting 90% funding ratio by 2058.

• Adds subrogation provisions allowing the funds to recover disability and death benefits paid from third-party settlements for new participants, limiting recovery to lost salary portions only.

• Modifies felony conviction provisions to calculate refunds based on employee contributions minus previously received benefits, applying only to new hires after the effective date.