The Fund has discovered a pension contribution shortfall affecting approximately 3,000 active Tier 2 members. The shortfall occurred based on a fiscal year discrepancy with the City of Chicago because the City counted the retroactive salary contract payments members received 1/1/2022 towards the 2022 annual salary cap. (Tier 2 members are subject to an annual salary cap each plan year in accordance with Section 40 ILCS 5/5-238(b) of the Illinois Pension Statutes.) As a result of the City application of the amounts received toward the 2022 annual salary cap, the City did not withhold the correct 9% of members’ salary and duty availability pay for the required payment to the Fund and instead paid that amount directly to the members. In adherence with Section 40 ILCS 5/5-169(a), the Fund is required to collect the missing contributions including statutory interest of 3%. If the members’ missing contributions go unpaid until the time of their retirement, then the amount due (including accrued interest) will be withheld from their future annuity payment.

Any Tier 2 member who receives a letter and has any questions can call the Benefit Calculations Group at the Fund at (312) 235-4597.