◊ SPECIAL NOTICE ◊

Healthcare Insurance Premium Deduction and Payment Authorization

The Policemen’s Annuity & Benefit Fund of Chicago (the “Fund”), in accordance with the provisions of the Pension Protection Act of 2006 (the “Act”) (IRS Publication 575) will deduct a specified monthly healthcare insurance premium amount from an annuitant’s monthly annuity benefit, and pay such amount to a designated healthcare insurance provider as authorized by an Annuitant member. The Act provides that Eligible Public Safety Officers may deduct up to $3000 per year in Health Care premiums, paid monthly directly from an Annuitant’s retirement assets, from their taxable income. It is important to note that this tax treatment is afforded only to the Retired Member and not a Surviving Spouse.

The Fund will assist interested Annuitants that are paying their own Health Care premiums to complete the necessary forms to authorize the Fund to deduct these premiums from their monthly annuitant check and make the payments directly to the healthcare or long term care vendor on their behalf. To achieve the tax exclusion, the annuitant must designate the exclusion on his/her Internal Revenue Service Form 1040, as explained in the Form 1040 instructions.

IF YOU WOULD LIKE TO PARTICIPATE IN THIS PROCESS: Please contact the Fund office to discuss the Fund’s requirements for the process. Appropriate forms will be forwarded to those annuitants that can appropriately take advantage of this program.

IMPLEMENTATION OF 3% AUTOMATIC ANNUAL INCREASES (COLA)

As previously reported, on November 20, 2016, the Illinois State Legislature enacted Public Act 099-0905 providing the 3% Automatic Annual Increase to those members born on or after January 1, 1955 but before January 1, 1966, retiring with at least 20 years of active service (or having been mandatorily retired) and having attained age 55. The pertinent excerpts of that legislation is as follows:

(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1) Sec. 5-167.1. Automatic increase in annuity; retirement from service after September 1, 1967.

(a) A policeman who retires from service after September 1, 1967 with at least 20 years of service credit shall, upon either the first of the month following the first anniversary of his date of retirement if he is age 60 (age 55 if born before January 1, 1966) or over on that anniversary date, or upon the first of the month following his attainment of age 60 (age 55 if born before January 1, 1966)…

…and beginning January 1, 2017 for policemen born on or after January 1, 1955 but before January 1, 1966, such increases shall be 3% and such policemen shall not be subject to the 30% maximum increase.

The Retirement Board is pleased to report that staff has completed the necessary calculations and have implemented the changes for the approximately 1,700 eligible retired members affected by this new legislation. These retired members have already received the retroactive payments afforded by this change and will now receive a non-compounded, 3% Automatic Annual Increase posted to their retirement checks effective each January 1, and included in the January 31 benefit check each year beginning January 31, 2019.

ATTENTION RETIREES

Serve Just a reminder; for any changes you need or want to make to an address, banking information or tax changes, the printable forms are available on our website, (See Links Below) As always, any change must be accompanied by your signature. We ask that you complete the appropriate form, sign and return it to our office. Your signature is required to assist in deterring fraud of any nature.

REMEMBER

Attention All members, Active, Retired and Surviving Spouses;

As life events occur, relocations, marriages, births, deaths, divorce, etc. you should keep the Pension Fund updated of any and all changes. This is to assure you received news, updates and/or tax forms in a timely fashion.

Benefits

Printable Forms

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