May 1, 2007
FOR IMMEDIATE RELEASE

For more information, contact Andre Garner, Director of the Department of Communications & Public Affairs at 312-603-0393 or afgarner@cookcountygov.com.

Cook County Alternative Retirement Offer Approved by State House

Officials note that there will be no financial cost to County, which expects Pension Fund ratio to rise with reduction of future liabilities.

Cook County, IL – Cook County Board President Todd Stroger today applauded the passage of Senate Bill 377, which is expected to increase the funding ratio of the Cook County and Forest Preserve District pension funds by allowing eligible employees to voluntarily separate from service in exchange for an enhanced lump-sum payment of their pension contributions.

The offer allows current County and Forest Preserve District employees in active service as of December 31, 2006 through the signing of the bill – when it becomes law – to increase the value of their personal contributions to the County’s Pension Fund by 50% if they agree to voluntarily resign from County service, forfeit accrued pension credits, and separate employment within 60 days of the date the legislation becomes law. Employees must withdraw the total value of their pension contributions to take advantage of the offer.

Because the employees’ service is effectively deleted from the County’s pension fund liability in exchange for a lump-sum payment, the cost of pension benefits to these employees is eliminated, at a savings over the long term to the County’s and Forest Preserve’s pension funds. The legislation is budget-neutral to Cook County.

Cook County’s offer is modeled on a similar program deployed last year by the State of Illinois, the 2006 Alternative Retirement Cancellation Payment, or ARCP. That program allowed eligible state employees to receive a lump sum payment of their contributions with regular interest, times two.

Virtually the entire workforce of Cook County and Forest Preserve is expected to be eligible for the offer. Senate Bill 377 now returns to the Illinois State Senate for its consideration of President Stroger's pension refund proposal.

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