Retroactive Salary Issue Thousands of Chicago police officers recently received an unexpected letter from their pension fund, informing them of a payroll error that requires approximately 3,000 officers to repay a portion of their pension contributions, along with interest. The error stems from a "fiscal year discrepancy" with the city, which resulted in officers' retroactive salary increase being miscalculated. Tier 2 members of the Policemen's Annuity and Benefit Fund of Chicago, those who joined the force after January 1, 2011, are affected by the error. Union Response and Grievance The Fraternal Order of Police, Lodge 7, which represents most rank-and-file officers, has expressed outrage over the error and plans to file a grievance. The union argues that the city, not the officers, should be responsible for paying the interest charges, as the error was a result of city payroll mismanagement. Union president John Catanzara has accused the city's Finance Department of incompetence and criticized the pension fund for not addressing the issue sooner. Impacts and Consequences The pension error has significant implications for affected officers. Failure to pay the required amount by August 31st will result in the amount, including interest, being withheld from their annuity payments when they retire. The union estimates that the amount owed ranges from approximately $80 to $1,300 per officer. The union is also requesting that the city refund the equivalent of taxes paid on the erroneous earnings. The Policemen's Annuity and Benefit Fund of Chicago is among the city's lowest-funded pension funds, raising concerns about the long-term stability of retirement benefits for officers.
.png)
0 Comments