SB0014 Summary

• Modifies retirement eligibility and benefits for Chicago municipal employees hired on or after January 1, 2011, raising the minimum retirement age from 62 to 65 for Articles 8 and 11 (municipal and laborers' funds).

• Allows employees hired between January 1, 2011 and the bill's effective date to make an irrevocable election (between June 1-July 15, 2017) to accept higher contribution rates (7.5%-9.5%) in exchange for the reduced retirement age of 60, or maintain original terms with standard contributions.

• Establishes specific required city contributions to the Chicago municipal pension funds: $266-576 million annually from 2018-2022, with contributions from 2023-2058 calculated to achieve 90% funding, phasing in enforcement mechanisms for delinquent city payments beginning in 2018.

• Adds subrogation rights allowing pension funds to recover disability and death benefits from third-party settlements, limited to portions attributed to lost wages rather than medical expenses, pain and suffering, or attorney fees.

• Eliminates alternative annuity options for new city officers hired after the bill's effective date and modifies felony conviction provisions to calculate refunds based on contributions minus benefits already received.