Public Act 100-0023 added a third tier of participants to the MEABF of Chicago. A comparison of Tier 2 and Tier 3 benefits can be seen here.
Senate Bill 42, which had been vetoed by Governor Rauner, was overridden by the Illinois Senate and the Illinois House of Representatives. As of a result of the override, Senate Bill 42 now has become law, Public Act 100-0023.
The main changes to MEABF (“Fund”) are:
1)New hires by Employers identified in MEABF’s article that do not have reciprocal status, will contribute 11.5% of their salary for pension purposes.
2)Beginning in 2018, the City of Chicago will contribute more towards MEABF. The annual static amounts will grow for five years (“ramp up”) and then switch to an actuarially calculated annual contribution with the goal being to achieve a 90% funded ratio over 40 years.
To view the legislation, please click here. Pages relating to this Fund can be located at pages 259 to 269 and pages 377 to 408.
MEABF is required to administer the Fund in accordance with the Illinois law that governs the Fund.