The reforms recently signed into law by Gov. Quinn include:
– Retirement age is raised from 60 to 67 years old; – the earnings cap is decreased from $240- thousand dollars to almost $107-thousand dollars; – double dipping, when someone receives a public pension while drawing salary from a different public system is now prohibited;
– final average salary would be the average of the highest eight consecutive salary years (instead of four) out of the previous 10 years;
– cost of living adjustments would be calculated using simple interest rather than compound interest;
– COLA would be 3 percent or one-half of the inflation rate, whichever is less, and would apply only after age 67;
– maximum General Assembly and judges’ pensions would be 60 percent of the calculated final average salary, down from 85 percent.