Summary of Benefits

Summary Comparison of "Tier 2" and "Tier 3" Benefits
 

 

“Tier 2” Benefits

Illinois Public Act 96-0889 Enacted April 14, 2010

“Tier 3” Benefits

Illinois Public Act 100-0023 Enacted July 6, 2017
Members Impacted  
  • Any person who first became a contributing member or participant under any Designated Reciprocal Fund1 on or after January 1, 2011, but prior to July 6, 2017 (a “Tier 2 Member”)
 
 
  • Any person who first becomes a contributing member or participant under any Designated Reciprocal Fund1 on or after July 6, 2017 (a “Required Tier 3 Member”); or
  • Any Tier 2 Member who, subject to PA 100-0023, irrevocably elects to be subject to the Tier 3 benefit structure (an “Elective Tier 3 Member”)
Benefits
Structure
Eligibility for Employee Annuity:
  • Member is eligible for unreduced minimum formula annuity at age 67 with 10 years of service
  • Member is eligible for reduced minimum formula annuity at age 62 with 10 years of service; reduction for early retirement equal to ½ of 1% per month for each full month below age 67
 
Employee Annuity Amount:
  • Benefit is 2.4% for each year of service multiplied by final average salary
  • Final average salary is based on an 8-year average salary which is capped at $106,800 in 2011, increased annually at the lesser of 3% or 50% of CPI-U for the 12 months ending with the September preceding each November 1
  • Annual increase in annuity (commonly referred to as the “COLA”) is the lesser of 3% or 50% of CPI-U for the 12 months ending each preceding September; applied to original employee annuity amount (not compounded)
 
Eligibility for Annual Increase in Employee Annuity
  • Annual increase in employee annuity starts on the January 1 occurring on or after the latter of:
  • attainment of age 67, or
  • the first anniversary of the annuity start date 
 
Survivor Annuity Amounts (subject to eligibility):
  • Spouse annuity:
    • Benefit is equal to 66⅔% of participant’s annuity or earned annuity
    • Annual increase in spouse annuity (commonly referred to as the “COLA”) is the lesser of 3% or 50% of CPI-U for the 12 months ending each preceding September; applied to original spouse annuity amount (not compounded)
  • Child Annuity (payable until age 18):
    • Benefit is $220 per month if a spouse annuity is payable or $250 per month if no spouse annuity is payable 
 
Eligibility for Annual Increase in Spouse Annuity
  • Annual increase in spouse annuity starts on the January 1 occurring on or after the:
    • start date of the annuity if the deceased member was in receipt of annuity at death, or
    • first anniversary of the spouse annuity start date 

 

Eligibility for Employee Annuity:
  • Member is eligible for unreduced minimum formula annuity at age 65 with 10 years of service
  • Member is eligible for reduced minimum formula annuity at age 60 with 10 years of service; reduction for early retirement equal to ½ of 1% per month for each full month below age 65
 

Employee Annuity Amount:

  • Same as Tier 2
 
 

 

 

 

 

Eligibility for Annual Increase in Employee Annuity
  • Annual increase in employee annuity starts on the January 1 occurring on or after the latter of:
  • attainment of age 65, or
  • the first anniversary of the annuity start date 

 

Survivor Annuity Amounts (subject to eligibility):

  • Same as Tier 2
 
 
 

 

 

 

 

 

Eligibility for Annual Increase in Spouse Annuity
·   Same as Tier 2

 

 

 

 

 

     
     

 

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