RETIRED MEMBERS

Event Changes – Keep the Fund Updated

 

Address, Banking, Tax Changes

 

It is important for annuitants to notify the Fund immediately when you experience any life event changes.  Life event changes include an Address change, a Federal Withholding Tax change, and any Banking information changes (account number and/or routing number).

Change forms are available on our website FORMS.  Return completed change forms to the Fund office by mail or by email to payments@chipabf.org. When sending any event change forms to PABF, a copy of a valid driver’s license or state ID must accompany the completed change form.

 

Healthcare Insurance Tax Exclusion and Premium Deductions

 

Public Safety Officers Tax Exclusion

 

As a retired Public Safety Officer, you may be eligible to exclude up to $3,000 of income for health, dental, vision, and long-term care insurance premium payments. This exclusion is for retired officers only; the tax exclusion does not apply to a surviving spouse benefit or child benefits. If you have any questions regarding this exclusion, please consult with your tax advisor.

Healthcare Premiums

 

The Fund will only deduct insurance premiums for the following insurance groups:

  • BMO – the City health plan for retirees who leave after age 55, until their Medicare eligibility date (age 65), or officers who retired prior to April 1984 and are currently in the Korshak group.  877-299-5111
  • BCBS NON-MEDICARE – the Blue Cross plan initially sponsored by the City, and is now administered by Blue Cross. 800-292-6398
  • BCBS MEDICARE – the Blue Cross Advantage plan initially sponsored by the City, but is now administered by Blue Cross.  877-566-8520
  • AETNA – the Medicare Advantage plan sponsored by the FOP and is administered by Retiree First.  They also have a non-Medicare option.  312-248-7251
  • UNITED – United America Insurance Company (a traditional Medicare supplement plan) sponsored by the Sergeant’s Association and administered by Mike Marron.  312-802-0587
  • Vision/Dental – sponsored by the FOP and administered by Source One.  844-466-0883

To enroll in a plan, you must contact the provider directly.  The Fund cannot cancel your plan; we can only start/stop your premium deduction from your annuity payment.

  1. If an annuitant’s monthly healthcare premium exceeds his/her monthly salary, the annuitant cannot have health premiums deducted from the monthly annuity.
  2. Annuitants are responsible for advising the Fund in writing of any changes to premium amounts.  This may be due to loss of coverage for a spouse or other dependent.

All questions concerning eligibility or plan coverage must be directed to the health insurance plan provider.

 

Healthcare Subsidy Eligibility

 

Subsidy

 

Pursuant to court order and current law, all eligible City of Chicago employee annuitants (both current and future employee annuitants), but not spousal or child annuitants, are entitled to received  a health insurance subsidy of:

  • $55 per month if the annuitant is not qualified to received Medicare benefits, or
  • $21 per month if the annuitant is qualified to received Medicare benefits.

 

 

To be eligible:

 

  • Annuitant must have retired on or after August 23, 1989; and
  • Annuitant must have been hired prior to June 30, 2003; and
  • Annuitant must participate in a group healthcare plan* for which the PABF deducts the insurance premiums from the annuitant’s monthly annuity.

All eligible subsidy payments will be included in the annuitant’s respective monthly annuity payment.  If you have any questions regarding the healthcare subsidy, contact the Fund’s health administrator at 312-744-3891.

 

*Current group healthcare plans include:  (i) the Blue Cross/Blue Shield plans sponsored by the City of Chicago; (ii) the Aetna plans sponsored by the Fraternal Order of Police Chicago Lodge 7; and (iii) the United American Insurance Co. plans sponsored by the Chicago Police Sergeants’ Association.

 

 

 

Tier 1 Annuitants Automatic Annual Increases (aka COLA)

Retired Tier 1 participants retiring with at least 20 years of service will receive an increase of 3% based on their originally granted annuity beginning on the later of; the 1st of the month after the participant reaches age 55, 1st of the month after the participant has been retired at least one year, or on 1/1/2023 with the signing of Public Act 103-0582. This annuity shall be increased by an additional 3% of the originally granted annuity each January 1st thereafter continuing for their lifetime.

Tier 2 Annuitants Automatic Annual Increases (aka COLA)

The monthly annuity of a Tier 2 participant shall be increased on the January 1st occurring on or after the participant reaches age 60, or the 1st anniversary of the annuity start date, whichever is later. This annuity shall be increased each January 1st thereafter. Each annual increase shall be calculated at 3% or one-half of the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12-month period ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u decreases, then the annuity shall not be increased.

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