3/2/2020 1 Understanding Your SURS Benefits Tier I & Tier II Important 2 This presentation is for SURS members who are in Tier I & II Participation (Certification) date: The date you first become a participant with SURS, or another eligible Illinois retirement system covered under the Illinois Retirement Systems "The Pension Clause of the Illinois Constitution shall not be deemed a suicide pact requiring any government to let retiree benefits reduce it, and its taxpayers, to penury. so a firefighter who worked 28 1/2 years would receive a pension of 71.25% of . I want to commend the [Illinois Senate] President for his work on this and his courage in carrying this and working with us in a bipartisan fashion.. If you retire: The following cannot be counted toward the 10-year requirement for a SLEP pension: The amount of your pension is based on your earnings and your service credit. Between age 50 and 55, your pension will be reduced by 1/2% for each month you are under age 55, At age 55 or older, your pension will not be reduced, Unused, unpaid sick days converted to service credit, Regular service credit not converted to SLEP, Service credit in an Illinois reciprocal retirement system, Service credit in a local police pension plan. Pension benefits are based on the eight highest consecutive years out of the last 10 in which the salary used to calculate benefits cannot exceed the Tier 2 annual salary maximum for that calendar year. On July 1, 2011, this cap for Tier I members will be reduced to 100 days or 500 hours per year. '/_layouts/15/expirationconfig.aspx' endstream endobj 415 0 obj <> endobj 416 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/Type/Page>> endobj 417 0 obj <>stream All IMRF employers now have two key documents available in Employer Access with information necessary for financial planning, accounting, and reporting purposes. javascript:commonShowModalDialog('{SiteUrl}'+ Elected county offices include auditor, circuit court clerk, coroner, assessor (if elected), county clerk, sheriff, states attorney, and treasurer. State statute requires that the DOI provide these calculations to impacted Retirement Systems and pension Funds by November 1 of each year. Illinois Downstate Police and Fire Pension Plans March 13, 2012 Jason Franken, FSA, EA, MAAA. . The formula to calculate a Tier 2 Regular Plan pension is: 1-2/3% of your FRE (up to the wage cap) for each of the first 15 years of service credit, plus; 2% of your FRE(up to the wage cap) for each additional year of service credit over 15 years. If a more conservative bond rate were used (for example, 4%), the total normal cost, and the employers share, would both increase a back-of-the-envelope calculation suggests that the total normal cost would increase by 50%, from 8% to 12%; subtract out the 9% employee contribution and youve got an employer normal cost of 3%. 245 0 obj <>stream '/_layouts/15/DocSetVersions.aspx' We barely had time to look at it in committee. Now, nearly a year and a half later, the Tier 3 hybrid plan hasnt been implemented. Final average salary used to calculate pensions capped at $123,489.18 in 2023. Tier 2 pensioners are everybody hired after 2010 who is participating in almost every state and local government pension in Illinois. The Benefit Calculator does not accommodate calculations of Tier 1 conversions from disability to retirement benefits, Tier 1 dependent benefits, or any Tier 2 benefits. Theyll have to enroll going backwards.. Thus, its total capital ratio was 16.8% (14.18% + 2.62%). Your pension benefit will be reinstated the day following your removal from the bench. See for yourself on pages 18-20 of that actuary report. But, for a plan thats supposed to be replacing Social Security and providing additional benefits besides, this is not sustainable. The pension is equal to 2.5% of his or her "final average salary" for each year of service. The amount varies every year, but it will always be less than your monthly pension amount. SLEP members include many Illinois county sheriffs and deputy sheriffs, correctional officers, forest preserve district rangers, airport police and police chiefs. Because it was created behind closed doors which makes it all the more worthwhile to repeat the exercise of reading the legislative transcripts of the day it was brought to the floor of the Illinois State House and Senate for a vote. %PDF-1.5 % '/_layouts/15/itemexpiration.aspx' Tier 1 Final Compensation means the salary upon which pension contributions were based in the last 12 months of creditable service preceding retirement. 21112b`xsDjyY8)Y (0o= X\xcWd~eF`Y-L? 23 S.E. In 2046, the final year of the actuarys projection, this value improves to -1.04%. + '?List={ListId}&ID={ItemId}'), /_layouts/15/images/sendOtherLoc.gif?rev=23, javascript:GoToPage('{SiteUrl}' + Tier 2 employees are subject to a pensionable salary cap that began at $106,800 and has grown since 2011 at half of inflation or 3% per year, whichever is less. : '/_layouts/15/DocSetVersions.aspx' The contribution is 9 . Usually, this is the average of the last96 months of service. Pension Application; Credited Service; Refunds; Optional Service Credit; Retirement Annuity; Death Benefit; Tier 2 Salary Limitations; Benefits Tier 3 was shoved into the states omnibus budget bill back in July of 2017. The law suspends a Tier II member's retirement benefits if the Tier 2 is a "defined benefit" plan that provides pension benefits based upon final pay and years of service. But for Petes sake, do the math first! Rep. Roger Eddy (R) supports Tyron in splitting the pension reform from the contribution break. Retired members are not eligible for this credit. Age 60 with 8 years of service. . The benefit accrual is 2.4% for every year of accrued service credit. Thats where bills go to die. You can also fax your form to us at 630-706-4289 or mail the form to us. But I think theres still some value in observing our legislators in action. In recognition of the small nature of these changes and the very large debts still remaining, the bill also created yet another commission, with no effect, and in subsequent years, still more commissions met. 22nd Ave Pompano Beach, Fl. hb```n4``f`s|``pX6Q^]7yx'l#:8E +'?ID={ItemId}&List={ListId}'); return false;} if(pageid == 'audit') {STSNavigate(unescape(decodeURI('{SiteUrl}'))+ If the CPI decreases or is zero, no increase is paid. Additional Service Credit. Article 1A - Regulation Of Public Pension Funds Article 2 - General Assembly Retirement System Article 3 - Police Pension Fund - Municipalities 500,000 And Under Article 4 - Firefighters' Pension Fund - Municipalities 500,000 And Under Article 5 - Policemen's Annuity And Benefit Fund--Cities Over 500,000 The January after you have received one year of benefit payments. *f9HW,VxhKXiW0P5]u@0 Your tier is determined by the first date you began participating in IMRF or certain Illinois reciprocal systems. Photographer: Daniel Acker/Bloomberg *** Local Caption *** Michael Madigan, Illinois Pension Modernization Task Force, sooner or later fail the safe harbor test. Police officers do contribute into Social Security. Illinois Municipal Retirement Fund 2211 S. York Road Suite 500 Oak Brook, Illinois 60523-2374 Phone: 800.275.4673 or 630.368.1010 Fax: 630.368.5397 www.imrf.org Judges' Retirement System 2101 S.Veterans Parkway P.O. State statute requires that the DOI provide these calculations to impacted Retirement Systems and pension Funds by November 1 of each year. I write about retirement policy from an actuary's perspective. The contribution schedule that is targeted at reaching a 90% funding level in the year 2045 relies in part on the plans liabilities growing more slowly than they otherwise would, due to the coming retirements of Tier I participants and the increasing growth in the Tier 2 workforce. IMRF members' and employers' rights and obligations are governed by Article 7 of the Illinois Pension Code. The chart below summarizes the differences in calculating benefits for Tier 1 and Tier 2 employees. If you first participated in IMRF or reciprocal system (except Judges or General Assembly retirement systems): Membership in SLEP is based on several factors including the members role at the employer and type of appointment. Illinois' pension crisis is the nation's worst at nearly $236 billion or 27.3% of GDP in fiscal year 2020, according to Moody's Investors Service. * Applies to members who began employment on or after September 1, 1983. Your FRE is your highest average earnings over a certain period of time. . A long series of additional noncontroversial bills (or bills presented as noncontroversial) were likewise passed, a group of student nurses from Harper College and hair braiders from Chicago in the gallery were recognized, and then SB 1946 was brought up for discussion, with then-House Speaker Michael Madigan announcing that amendments 2 and 3 were being withdrawn, and beginning discussion on Amendment 4. Members who joined CTPF on or after January 1, 2011, are Tier 2. [H]ow can you go home and face your voters and not even had time to discuss this with them, had a town hall meeting, had time to e-mail them, is beyond my comprehension. I was looking for any information on the Police Pension System in Illinois. Your Final Rate of Earnings (FRE). +'?ID={ItemId}&List={ListId}'); return false;}}, null); javascript:SP.UI.ModalDialog.ShowPopupDialog('{SiteUrl}'+ '4HD:X$28 OI*E_ a`t v7uk%coiF 0 +D PFRS RETIREMENT BENEFITS BY MEMBERSHIP TIER TIER 1 (Enrolled on or before May 21, 2010) . javascript:commonShowModalDialog('{SiteUrl}'+ When you first retire, you must have retired on or before June 30 to receive a 13th Payment the next year. Use the Pension Calculator in your Member Access account to create your own pension estimates. Whats more, this calculation is based on a valuation interest rate of 7%. Pension increases are not limited by the maximum retirement benefit. '/_layouts/15/hold.aspx' In 2027, the cap is projected to grow to $127,088, reaching a level below the average wage for teachers at retirement, which is projected to grow to $128,090. first. The calculations include: For the General AssemblyRetirement System (Article 2) the annuity COLA and the increase in the annual salary maximum equals the lesser of 3% or the full CPI-U. The Tier 2 contribution towards the Tier 1 unfunded liability is only $6.89 billion over the next thirty years, out of total projected contributions from taxpayers and Tier 1 employees of $246 billion. dunkaroos frosting vs rainbow chip; stacey david gearz injury @Dogcop, this is a good place to set the . And after some additional discussion on the details of the anti-double-dipping provisions, the vote is taken, with 92 voting in favor, 17 against. JRS will recalculate your benefit based on your additional judicial service. Eddy raises concerns about the effect the bill would have on retired workers returning to substitute teach, then returns again to the Chicago pension holiday, as does Rep. Dave Winters (R), who points out that the holiday now will been trouble later, then asks: What are the total savings, first year-savings, if this Bill comes to fruition?, We dont have actuarial numbers relative to this Amendment. Background . The precise details of the Tier 2 benefit program differ for each of the 5 state retirement systems (for teachers, state employees, university employees, judges, and legislators), and variations exist for the retirement programs for City of Chicago employees, and other public employees in Illinois, but there were three key changes in the Tier 2 benefits: For the teachers, the impact of these provisions is harshest, especially bearing in mind that Illinois teachers (unlike those of 35 other states) do not participate in Social Security. endstream endobj startxref But these calculations did not occur in advance of Illinois implementation of its two prior reform attempts, the Tier 2 and Tier 3 plan changes to the benefit provisions for new hires. '/_layouts/15/expirationconfig.aspx' Yes, even if employees might not like the outcome and even if the results of the calculation were to determine that the new formulas retirement income, while smaller, was tolerable enough, it remains the case that the actuaries did the math. . Opinions expressed by Forbes Contributors are their own. Rep. Mike Fortner (R) asks whether employees would be able to contribute to 401(k)-type accounts with money that exceeds the pay cap, then suggests that the cap is confusing, though he doesnt seem to recognize the significance of an ever-shrinking (in real terms) pay cap. '/_layouts/15/hold.aspx' INTRODUCTION SURS is a qualified 401(a) retirement plan that provides retirement, disability, death and survivor benefits to eligible SURS participants and annui-tants. It looks like your browser does not have JavaScript enabled. The employee contribution is divided as follows: 7% for the employee annuity 1.5% for the widow annuity 0.5% for the annual increase in annuity In addition, every sworn police officer contributes $2.50 per month to defray the cost of the ordinary death benefit. If you first participated in IMRF's SLEP plan: The ECO plan is an alternative benefit plan for elected county officials and provides enhanced disability, retirement, and death benefits. Call us at (877) 927-5877, Monday through Friday, 8:30 am to 4:30 pm, to request a Recognized Illinois Non-public Service Certification form. Years of Service. '/_layouts/15/docsetsend.aspx' 8*:h L@6+P*h`(K0W`A4:P! But the 9% employee contribution exceeds the normal cost only at a 7% discount rate. Contact JRS if reciprocal service allows you to reach the maximum benefit and before accepting an independent benefit from a reciprocal system. 216 0 obj <>/Filter/FlateDecode/ID[<6CAB9B1017770449BB6280DA965695D7>]/Index[197 36]/Info 196 0 R/Length 91/Prev 89858/Root 198 0 R/Size 233/Type/XRef/W[1 2 1]>>stream Tier 2 members in Teachers' Retirement System of the State of Illinois first contributed to TRS on or after Jan. 1, 2011 and have no pre-existing creditable service with a reciprocal pension system prior to Jan. 1, . Madigan discussed his reaction to the budget address by Governor Bruce Rauner earlier today. 2. UBLIC SAFETY FINANCIAL AND INVESTMENT TRAINING (IPPFA PS-FIT) NOTE: This Section is excerpted from Retirement Income for Illinois Fire and Police: Pensions, Social Security and Deferred . ), Whereupon Winters, again, as did Reis, asks for a delay until we can actually get some actuarial numbers back.. Age-based Reduction. 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