The Illinois Library Association is calling for action on Illinois House Bill 3898, which modifies the Illinois Pension Code. Specifically, an amendment to the legislation eliminates the supplemental benefit payment-also referred to as the “13th payment”-from the Illinois Municipal Retirement Fund (IMRF). The payment is essentially deferred compensation intended to balance out the rising cost of inflation, and it has been supported by the Illinois General Assembly since 1992. Currently, each IMRF employer is required to contribute only 0.62% (less than 1 percent) of its annual IMRF funding to cover the 13th payment. The average annual 13th payment to an IMRF retiree was $343 in 2013.
The IMRF has argued that, on top of the financial impact, cutting the 13th payment would violate the Illinois Constitution. The Constitution protects benefits, including those under the 13th payment, for current and retired IMRF-covered employees.
The legislation was introduced on January 3 of this year. It moved out of committee on March 25 and will now be considered by the full House.
For more information on the legislation and its potential effect on the Illinois Municipal Retirement Fund, please see the IMRF website, specifically here and here. To view information on the legislation itself, including updates on its status in the Illinois General Assembly, please go here.