IL SB1956

Lowers the age threshold for automatic annuity increases from age 60 to age 55 for Chicago police officers retiring after September 1, 1967 with at least 20 years of service credit.

Increases the annual automatic annuity increase rate from 1.5% to 3% and removes the previous 30% maximum cap on cumulative increases for eligible officers.

Extends eligibility for initial annuity increases to police officers born on or after January 1, 1966, with the initial increase available on January 1, 2023, the first retirement anniversary, or age 55 attainment, whichever occurs last.

Requires continued 0.5% salary deductions from police officers and matching 0.5% contributions from the city to fund the Automatic Increase Reserve, which covers the cost of annuity increases with 3% annual interest.

Exempts the State from reimbursement requirements under the State Mandates Act for costs associated with implementing this amendatory Act.