Summary of SB 1523, affecting the Park Employees Annuity and Benefit und of !hicago "also called the !

hicago Park #istrict Pension und$ Retirement Age Increases Tier I Note: Current Tier I normal retirement age is age 50 with 10 years of service. increases normal retirement age %y & years ' from age 5( to age 5& ' for )ier 1 mem%ers *ho *ill %e younger than +5 years old on ,anuary 1, 2(15

Retirement Age Decreases Tier II decreases normal and early retirement ages for )ier 2 mem%ers %y t*o years

COLA Reductions Note: Current Tier I COLA is ! sim"le in the Chicago #ar$s system. )ier - !./A con0erts to a )ier -- !./A "i1e1, the lesser of 32 or 3 of !P- and remains simple$ )hree4year staggered !./A holiday in years 2(15, 2(15, and 2(16

Duty Disability Benefit Reductions Note: The current %uty %isa&ility &enefit is '5! of salary. 7educes duty disa%ility %enefit to 5+2 of salary in 2(15, 532 of salary in 2(15, and 522 of salary in 2(161

Increased Employee Contributions Note: Current em"loyee contri&utions is (! for Tier I an% II. increases employee contri%utions from 62 to 1(2 in 2(15, 112 in 2(15, and 122 in 2(16 once fund reaches 6(2 funded, decreases employee contri%utions to 1(152 "note8 higher contri%utions kick in again if fund goes %elo* 6(2$

Increased Employer Contributions Note: Currently) the *oar% of #ar$ Commissioners is re+uire% to contri&ute an amount e+ual to the em"loyee contri&utions %uring the fiscal year two years "rior to the year the ta, is levie%) multi"lie% &y 1.10. )he amendment gradually increases the employer contri%ution multiplier, as follo*s8

or 2(15, the multiplier is 115 times the amount of employee contri%utions during the 124month fiscal year ending #ecem%er 31, 2(131 or 2(19, the multiplier is 1151 or 2(15 and 2(1&, the multiplier is 2131 or 2(16 and thereafter until the funded ratio is 6(2, the multiplier is 216 times the employee contri%utions during the fiscal year 2 years prior to the year for *hich the applica%le ta: is le0ied1 Beginning in the fiscal year in *hich the und attains a funding ratio of at least 6(2, the contri%ution shall %e the lesser of "1$ 216( times the employee contri%utions during the fiscal year 2 years prior to the year for *hich the applica%le ta: is le0ied, or "2$ the amount needed to maintain a funded ratio of 6(21

Supplemental Employer Contributions in addition to Increased Regular Employer Contributions! -n addition to the increased employer contri%utions outlined immediately a%o0e, the employer shall also contri%ute an additional ;1215 million in 2(15, ;1215 million in 2(19, and ;5( million in 2(161

"unding #uarantee Language $ea% SB & Language! e:cerpt from amendment te:t "emphasis added$8 <if the %oard of park commissioners fails to pay the amount guaranteed under this Section *ithin 9( days after the date set forth %y the retirement %oard, the retirement %oard may bring a mandamus action in the -llinois Supreme !ourt or the !ircuit !ourt of !ook !ounty to compel the %oard of park commissioners to make the re=uired payment>1111? -n ordering the %oard of park commissioners to make the re=uired payment, the court may order a reasonable payment sc'edule to ena%le the %oard of park commissioners to make the re=uired payment (it'out significantly imperiling t'e public 'ealt') safety) or (elfare*@

Benefit Increases Cannot Ta%e Effect +nless ,aid "or and -erified by Actuaries

Acts *ith future %enefit increases affecting the systems employees <must identify and pro0ide for payment to the fund of additional funding at least sufficient to fund the resulting annual increase in cost to the fund as it accrues1 E0ery ne* %enefit increase is contingent upon the Aeneral Assem%ly pro0iding the additional funding re=uired1@ .ther*ise, the %enefit increase is null and 0oid1

,ension "unds Cannot Be +sed to Subsidi.e Retiree /ealt' Care

e:cerpt from the %ill8 <)he und shall not use any contri%ution recei0ed %y the und under this Article to pro0ide a su%sidy for the cost of participation in a retiree health care program1@