She said consolidating police and fire pensions into the Illinois Municipal Retirement Fund "will increase investment returns and significantly reduce administration costs, all while not encroaching on constitutional protections.". But representatives of the pension plans said consolidating them will cost money that could take up to 20 years to recover and that there are more pressing issues facing the systems, including Tier 2 benefits that are inadequate. Because the state is prioritizing pensions, everything else – social services and education included – takes a backseat. 272 0 obj <>stream t 217.528.8800  f 312.212.5277  e [email protected], Copyright © 2020 Illinois Policy | Illinois' comeback story starts here, Illinois pension costs skyrocketed by 500%, crowding out government services, cost $14 million to $19 million more per year. All active members of an downstate police pension fund (Article 3 pension fund) can vote for their representatives on the newly created investment board. I got gun shy and then had them move it into a fixed interest earning. For now I am Downstate tier 1. Downstate Pension Fund is better than CPD's. The group’s recommendation: Mandate merging the 649 various funds’ assets into two – one plan for police, another for firefighters. 30 years x 1.67% = 50.1% • 50.1% x $3,600 FAC = $1803.60 per month, or $21,643.20 pension benefit annually. The goal of consolidating downstate police and fire pension funds has been on the radar of the Illinois Municipal League for several years. Hey ChiTownDet or anyone, is it better to go through PDs 401k, 457b plans or just start your own savings? Consider education funding, which most agree is a fundamental government service. The rapidly increasing cost of pensions is crowding out core government services. endstream endobj startxref Gov Blagojevich - "I'am the American dream....". But beyond this lack of due diligence, the governor’s pension consolidation bill doesn’t touch Illinois’ true pension problem: the five state-run systems and their massive $137 billion shortfall. OF THE ILLINOIS PENSION CODE I. Before adjourning for the end of veto session last week, lawmakers added to the consolidation bill pension benefit enhancements for employees hired after 2011 – without estimating the cost. Chicago Office | Illinois Policy Mount Prospect Mayor Arlene Juracek, who is president of the Illinois Municipal League, said local governments face problems similar to the state when trying to keep up with pension payments. then {{format_dollars}}{{start_price}}{{format_cents}} per month. Please subscribe to keep reading. Multiple systems, not one "universal" program like some people believe there is. I pay close to attention to what pensions departments offer or plans they offer. Since fiscal year 2000, after adjusting for inflation, state spending on education has grown by 21%. PUBLIC 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 Compensation, by Daniel W. Ryan. Enjoy more articles by logging in or creating a free account. In the meantime, the House Personnel and Pensions Committee listened to pros and cons of the idea. It just seems like the smart thing to do considering the long term benefits. The problem with the bill that passed is that lawmakers didn’t run the numbers before voting in favor of the measure. When I think of a large consolidation that would happen, I immediately worry we could throw any of those things out of balance.". The chart below outlines the benefit levels for Police and Fire pension funds for Tier 1 and Tier 2 active members. There is a myriad of different systems that police officers in Illinois may participate in based on the type of department, size of the community, etc. If hired after 01/2011, you have to work until 55 to get the above and if you retire before you're 55 yoa, you get , I believe, 2.5% deducted for every year before 55 yoa. J.B. Pritzker’s desk that would consolidate more than 640 suburban and downstate public safety pension funds. Yup, above sums it up well. I was looking for any information on the Police Pension System in Illinois. J.B. Pritzker who appointed a task force in February to look into the feasibility of consolidating local pensions "beginning with downstate police and fire funds." I apologize for getting ahead of myself but I guess it's never too early to start thinking about that stuff. There are currently 4940 users online. NATURE OF POLICE PENSION FUND A. Fast-growing local pension costs are the primary driver of Illinois homeowners’ sky-high property taxes. 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. My pension is funded by my municipality. IMRF Executive Director Brian Collins also urged lawmakers proceed with caution. J.B. Pritzker said new leadership and an infusion of funding are keys to stabilizing the Department of Child and Family Service…, DECATUR — Raising the Illinois age to 21 to buy tobacco products is causing smokers, law enforcement and retailers to question how the new rul…. In reality, now it makes sense to get on at 25 yoa, as if you get on at 21, you have to work 34 yrs for max pension vs 30 yrs if you were hired before 2011. State spending on everything from child protection, state police, college aid for low-income students and more has fallen by nearly one-third during that time. In simple terms, the younger you are the more chance you can take, the closer to retirement, have it in safer investments. The group is supposed to deliver recommendations by July 1. �x �8lS�\đ���˜���&w���&O�@9���-Ȅ+�a��4���f�30&��me`�,e�g�%��:C�@)����9�26�o�0pO����P �d3�G�B�Ηa`����H � ��,� I highly advise anyone getting otj to start putting into it as soon as you get hired. Non-Covered Example: The employee is not covered by Social Security, is 60 years old, has 30 years of credited service, and a final average compensation of $3,800 per month. All times are GMT-6. %PDF-1.5 %���� After reading the above post I think it's time for me to sign up for deferred comp. The law will create one investment fund for police officers, the Police ... Downstate Public Safety Pension Consolidation Page 2 TIER 2 BENEFIT CHANGES If this is your first visit be sure to check out the frequently asked questions by clicking here. Believe it or not, just putting in $100 per check (actually only about $60 of your net pay), over the course of 25 years can give you upwards of $130K. Of course someone will ask what is best. Tier II Benefits . starts here. Five things to do after you register to vote, Watch now: Decatur city manager talks about COVID cases. Copyright 1996-2017,, Southcomm Business Media - Public Safety Interactive. Def comp can be a "risk" depending upon what risk you want to take. Especially for younger guys, new otj, without home mortgage interest deductions, or heavy medical deductions, it's the best way to knock several thousand $$ off your gross and lower the tax bite each year. comeback PUBLIC 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 Compensation, by Daniel W. Ryan. You can help protect your retirement but you have to vote in the new elections! Local government pension costs are no less burdensome. Downstate police and fire pensions are funded at about 55 percent. And generally, if you were hired before 2011, you get 50% of your averaged out best 3 or4 years out of 10 years pay and must be at least 50 years old to start collecting. “The single most impactful step that the State can take to address the underfunding of downstate and suburban police and fire pension funds is to consolidate the plans’ investment assets,” the report reads. Either way, unless you want an early withdrawal penalty, you can't take the money out until retirement age anyway. Then the crash happened and I lost thousands in a few month. I don't even know anymore considering most police pensions are now tiered depending on your hire date. That means I can retire at 50 years old with 20 years on. However, the Act did change the final average salary period and the I purposely left this topic open for discussion. "IMRF is one of the highest funded plans in the country," he said. Most users ever online was 26,947 at 08:36 PM on 12-29-2019. ^^^Exactly what he said! Watch Now: Why are federal elections held on Tuesdays? NATURE OF POLICE PENSION FUND A. It's either put in a more or less fixed fund or you can decide how to divide it and what mutual funds you can put it in that are part of your dept's deferred comp company. Administrative costs amount to over $1,400 a year for police funds, $1,369 a year for firefighter funds and only $368 a year for IMRF participants. There's a very delicate balance. 319 members and 4621 guests. I think I was confusing the two. This covered the Downstate Pension Fund (most suburbs) and Chicago Police and Fire Pension Funds. She said a recent study showed millions could be saved each year in administrative costs with the consolidation. J.B. Pritzker on Wednesday signed into law the consolidation of 649 downstate and suburban police and fire pension plans into two new pension funds. Biennial Book 1 Compliance Fee Downstate ROR Fund List Interrogatory Questions Participant Datasheets Status Count with NPA Tax Levy Details Mailing Labels Document Library Report Pension Data Portal User Security Report Active/Inactive Fund Report Investment Summary Review Spouse Detail It was never an investment problem, it was a restriction problem.". ILLINOIS PUBLIC PENSION FUND ASSOCIATION. 0 While the governor’s task force publicly stated the enhancements would cost $14 million to $19 million more per year, this number was not backed up by any type of public data or methodology to justify it. The only real answer to Illinois’ pension crisis is a constitutional amendment that protects earned benefits but allows for changes to future benefit growth.