IL SB1187

Amends the Chicago Police Pension Fund provisions for Tier 2 officers (those hired on or after January 1, 2011) to calculate "final average salary" using the better of two methods: either the highest 96 consecutive months within the last 120 months of service, or the highest 48 consecutive months within the last 60 months of service

Increases the annual salary cap adjustment for Tier 2 officers from one-half of the annual Consumer Price Index increase to the full annual CPI increase (still capped at 3%), with the base salary cap starting at $106,800 in 2011

Expands survivor benefits for Tier 2 officers' families: surviving spouses may receive 54% of the officer's monthly salary at death, children with a surviving spouse receive 12% of salary per child until age 18, and orphaned children receive 20% of salary per child until age 18

Applies retroactively to all Tier 2 survivor beneficiaries regardless of whether the deceased officer was in service on the effective date, and prohibits any retroactive adjustment of employee contributions

Amends the State Mandates Act to exempt this legislation from state reimbursement requirements and takes effect immediately upon becoming law