Last month, Teamsters Local 700 worked with Cook County leadership and state legislators to pass House Bill 2352, a bill that will upgrade pension benefits for Local 700 Tier 2 members working at Cook County while strengthening the entire county pension system.

“A pension is a promise, and that means ensuring the stability of the entire pension system,” said Local 700 President Ramon Williams. “House Bill 2352 makes important improvements to shore up the Cook County pension system while also boosting benefits for Tier 2 participants. Teamsters Local 700 helped lead the charge along with other labor allies and County officials, and I applaud state legislators and Cook County President Toni Preckwinkle for getting this bill passed.”

The three main components of the bill include raising the current Tier 2 salary cap from $123,489 to $160,200, allowing all employees to purchase up to two years of military service that was performed prior to County employment, and beginning actuarial based pension contributions that will bring the system to 100% funded by 2047.

“This is a financially prudent step toward confronting our pension challenges,” said Cook County President Toni Preckwinkle in a news release. “I am very proud of our work over the last several years to increase funding by billions of dollars and this legislation will build on this progress. This all speaks to a stronger, more stable Cook County. I appreciate the hard work of our finance team, Senator Martwick and Representatives Evans and Burke.”

The increase in the Tier 2 cap ensures Cook County is consistent with Federal Safe Harbor guidance which says pension benefits provided to an employee instead of Social Security must be comparable to the value of Social Security benefits to make sure employees are not receiving less than what they would under Social Security.

Current law only allows employees hired before 1993 to apply for creditable retirement service of up to two years of military service. This new legislation expands eligibility to military/veteran employees hired after 1993.

When adjusted for inflation, Cook County expects this Tier 2 fix to cost approximately $3 million each year over the next 30 years for a present value cost of $98.8 million. The cost of the legislation will be covered exclusively by Cook County with no cost to the state, and allows the County to use any funding source for pension fund contributions, not just property tax revenues to provide flexibility.

Cook County has been making larger pension fund contributions than state law requires over the last seven years through an intergovernmental agreement, which this legislation now codifies into state law.

The legislation, sponsored by Rep. Marcus Evans and Sen. Robert Martwick, now goes to the governor for his signature.