IL HB2855

Lowers the age at which Tier 2 Chicago police officers and firefighters begin receiving annual cost-of-living adjustments (COLAs) on their retirement annuities from age 60 to age 55

Changes the annual COLA calculation for Tier 2 members to a flat 3% of the original retirement annuity, eliminating the current formula that caps increases at the lesser of 3% or half the consumer price index increase

Eliminates the early retirement penalty for Tier 2 police officers and firefighters who retire after age 50 with 20 or more years of service; currently benefits are reduced by 0.5% for each month under age 55

Applies to Chicago Police and Chicago Firefighter pension funds for members who first became employees on or after January 1, 2011 (Tier 2 employees)

Amends the State Mandates Act to require implementation without state reimbursement to local governments