Frey Design

Frey Design

Annual Salary Limitation and Annual Increase to the Monthly Pension for New Hires on
or after January 1, 2011

Source: Illinois Department of Insurance Public Pension Division

In accordance with state law, the Department of Insurance (“Department”) is to annually calculate the maximum annual salary for annuity purposes and the Cost of Living Adjustment to annuity (“COLA”) applicable to Tier II participants and Tier II annuitants in the retirement systems and pension funds established under the Illinois Pension Code, and to make the results of those calculations available to the boards of trustees of those systems and funds by no later than November 1 of each year.

The Department interprets the Illinois Pension Code to provide for a COLA for Tier II annuitants and an increase to the maximum annual salary for annuity purposes of Tier II participants when there has been an annual unadjusted percentage increase in the Consumer Price Index (CPI) for the 12 months ending with the September preceding November 1 of a given year. If the annual unadjusted percentage change in the CPI during that period is zero or is negative, however, then the Department interprets the Illinois Pension Code to require that, in the next calendar year, neither an increase in the maximum annual salary for annuity purposes of Tier II participants nor a COLA for Tier II annuitants shall be provided. For the year ending in September of 2020, the annual unadjusted percentage increases in CPIs are positive; therefore, there will be a COLA for Tier II annuitants and an increase in the maximum annual salary for annuity purposes of Tier II participants.

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Board of Trustees NOTICE OF MEETING – December 18, 2020
Source: IFPIF

NOTICE: BOARD OF TRUSTEES MEETING

To Be Held on Friday, December 18, 2020 9:00 A.M.

Because of the COVID-19 emergency and to comply with social distancing guidance, public participants are encouraged to participate by teleconference and/or videoconference.

Agenda

 

 

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The Market for Reverse Mortgages among Older Americans
Source: Wharton Pension Research Council

Reverse mortgages have long been viewed with skepticism by some retirees, financial planners, and financial institutions. Potential concerns are many, including high costs, dicey sales practices, and the potential of retirees to lose their home if things go badly. Interestingly, the same concerns about reverse mortgages or similar products (‘equity release’ options) seem to persist in
many countries with very different institutions and financial systems.

Yet the need to access additional retirement assets like home equity has never been stronger. Academics and researchers lament the lack of adequate retirement savings and growing debt among older Americans. Media headlines such as ‘Over 60 with Decades Left on the
Mortgage: The New Retirement Math’ in the Wall Street Journal (Rexrode 2020) are common.

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