Pension

Helpful Links:

https://fabf.org/PDF/SummaryOfBenefits.pdf

Overview:  As a firefighter and/or paramedic you are eligible for the City of Chicago pension plan governed by Illinois Pension Code (40 IlCS 5/1 et seq).

For most firefighters and paramedics the pension is your largest retirement asset providing significant monthly cash flow.

SALARY &  EMPLOYEE CONTRIBUTION RATE

Salary throughout this website refers to Career Service Salary and Exempt Rank Salary for participants meeting certain criteria. Each participant’s total contribution percentage is currently 9 1/8% of salary broken down as follows:

  •      7 1/8% for Firefighter's Annuity
  •      1 1/2% for Spouse's Annuity
  •      3/8 of 1% for the Increment after Retirement (Annuity Increment)
  •      1/8 of 1% for Ordinary Disability Benefits (This is not Refundable)

 

Pension Tier 1 Participants hired before 01/01 2011 are Tier 1

Final Average Salary- Highest average monthly salary of 48 consecutive months within the last 10 years of service Minimum Formula Annuity Eligibility-Unreduced at age 50 with at least 20 years of service.

Minimum Annuity Formula-50% of Final Average Salary for 1st 20 years of service + 2.5% of Final Average Salary for each year (or fraction there of) of service in excess of 20 years of service.

Early Retirement Eligibility- Same as Tier 2. Age 50 with 10 years of service.

Early Retirement Formula-Accumulation of age and service annuity contributions plus 10% of city contributions for each completed year after 10 years of service.

Compulsory Age Annuity- 30% of Final Average Salary for 1st 10 years of service plus an additional 2% for each year or fraction thereof in excess of 10 years; can't exceed 50% of Final.

Cost of Living Increase- 3% simple interest starts later of age 55 or 1 year after retirement and every January 1st thereafter for life.

Pension Tier 2 Participants hired on or after January 1st 2011 are Tier 2

Final Average Salary- 96 consecutive months within last 10 years of service: capped at $119,893** Minimum Formula Annuity Eligibility-Unreduced at age 55 with at least 10 years of service.

Minimum Annuity Formula-2.5% of Final Average Salary for each completed year of service.

Early Retirement Eligibility- Same as Tier 1 Age 50 with 10 years of service.

Early Retirement Formula-Reduced by.05%per month under the age of 55.

Compulsory Age Annuity- 2.5% of Final Average Salary for each completed year of service.

Maximum Annuity- Can not exceed 75% of Final Average Salary.

Cost of Living Increase- Lesser of 3 % or ½ of the annual increase in CPI-U not compounded; begins January 1st after the later of age 60 or the first anniversary of retirement.

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