The Metropolitan Water Reclamation District submitted this pension proposal to the legislature. This bill was passed by the Illinois House of Representatives on March 29, 2012. The Illinois Senate currently holds the bill in the Assignments Committee.
The proposal calls for increasing employee contributions gradually from 9% to 12% by 2015. Starting in 2013 the employer contribution will equal the actuarially required contribution or the employee contribution multiplied by 4.15, whichever is lower.
The MWRD actuary anticipates that this will increase the MWRD’s contribution to the pension fund from approximately $35 million to $65 million annually. In 2013 the MWRD contribution will equal approximately 37% of payroll. The MWRD pension plan does not include retiree healthcare costs, which are paid by the MWRD.
If Cook County were to implement the MWRD proposal it would require the County to increase its contributions from 13.09% of salary to approximately 18.49% of salary. Cook County Employees would have their contributions increased 3% from 8.5% (9.5% for sheriff’s employees) to 12.5%.
If the County were to assume an 18.49% of salary contribution for 2013 it would increase the County’s contribution approximately $107 million. The total 2013 contribution would be $297 million. The additional $107 million cost would necessitate increasing the amount of revenue collected from property owners within the County or cuts in county services that equaled $107 million. Additionally, this proposal would not have any effect on the County’s unfunded retiree healthcare benefit.
Illinois General Assembly House Bill #4513