HB4659 EngrossedLRB100 17234 RPS 32393 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 5-167.1 and 6-164 as follows:
 
6    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
7    Sec. 5-167.1. Automatic increase in annuity; retirement
8from service after September 1, 1967.
9    (a) A policeman who retires from service after September 1,
101967 with at least 20 years of service credit shall, upon
11either the first of the month following the first anniversary
12of his date of retirement if he is age 55 60 (age 55 if born
13before January 1, 1966) or over on that anniversary date, or
14upon the first of the month following his attainment of age 55
1560 (age 55 if born before January 1, 1966) if it occurs after
16the first anniversary of his retirement date, have his then
17fixed and payable monthly annuity increased by 3% 1 1/2% and
18such first fixed annuity as granted at retirement increased by
19an additional 3% 1 1/2% in January of each year thereafter up
20to a maximum increase of 30%. Beginning January 1, 1983 for
21policemen born before January 1, 1930, and beginning January 1,
221988 for policemen born on or after January 1, 1930 but before
23January 1, 1940, and beginning January 1, 1996 for policemen

 

 

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1born on or after January 1, 1940 but before January 1, 1945,
2and beginning January 1, 2000 for policemen born on or after
3January 1, 1945 but before January 1, 1950, and beginning
4January 1, 2005 for policemen born on or after January 1, 1950
5but before January 1, 1955, and beginning January 1, 2017 for
6policemen born on or after January 1, 1955 but before January
71, 1966, such increases shall be 3% and such policemen shall
8not be subject to the 30% maximum increase.
9    Any policeman born before January 1, 1945 who qualifies for
10a minimum annuity and retires after September 1, 1967 but has
11not received the initial increase under this subsection before
12January 1, 1996 is entitled to receive the initial increase
13under this subsection on (1) January 1, 1996, (2) the first
14anniversary of the date of retirement, or (3) attainment of age
1555, whichever occurs last. The changes to this Section made by
16Public Act 89-12 apply beginning January 1, 1996 and without
17regard to whether the policeman or annuitant terminated service
18before the effective date of that Act.
19    Any policeman born before January 1, 1950 who qualifies for
20a minimum annuity and retires after September 1, 1967 but has
21not received the initial increase under this subsection before
22January 1, 2000 is entitled to receive the initial increase
23under this subsection on (1) January 1, 2000, (2) the first
24anniversary of the date of retirement, or (3) attainment of age
2555, whichever occurs last. The changes to this Section made by
26this amendatory Act of the 92nd General Assembly apply without

 

 

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1regard to whether the policeman or annuitant terminated service
2before the effective date of this amendatory Act.
3    Any policeman born before January 1, 1955 who qualifies for
4a minimum annuity and retires after September 1, 1967 but has
5not received the initial increase under this subsection before
6January 1, 2005 is entitled to receive the initial increase
7under this subsection on (1) January 1, 2005, (2) the first
8anniversary of the date of retirement, or (3) attainment of age
955, whichever occurs last. The changes to this Section made by
10this amendatory Act of the 94th General Assembly apply without
11regard to whether the policeman or annuitant terminated service
12before the effective date of this amendatory Act.
13    Any policeman born before January 1, 1966 who qualifies for
14a minimum annuity and retires after September 1, 1967 but has
15not received the initial increase under this subsection before
16January 1, 2017 is entitled to receive an initial increase
17under this subsection on (1) January 1, 2017, (2) the first
18anniversary of the date of retirement, or (3) attainment of age
1955, whichever occurs last, in an amount equal to 3% for each
20complete year following the date of retirement or attainment of
21age 55, whichever occurs later. The changes to this subsection
22made by this amendatory Act of the 99th General Assembly apply
23without regard to whether the policeman or annuitant terminated
24service before the effective date of this amendatory Act.
25    Any policeman born after January 1, 1966 who qualifies for
26a minimum annuity and retires after September 1, 1967 but has

 

 

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1not received the initial increase under this subsection before
2January 1, 2019 is entitled to receive the initial increase
3under this subsection on (1) January 1, 2019, (2) the first
4anniversary of the date of retirement, or (3) attainment of age
555, whichever occurs last. The changes to this Section made by
6this amendatory Act of the 100th General Assembly apply without
7regard to whether the policeman or annuitant terminated service
8before the effective date of this amendatory Act.
9    (b) Subsection (a) of this Section is not applicable to an
10employee receiving a term annuity.
11    (c) To help defray the cost of such increases in annuity,
12there shall be deducted, beginning September 1, 1967, from each
13payment of salary to a policeman, 1/2 of 1% of each salary
14payment concurrently with and in addition to the salary
15deductions otherwise made for annuity purposes.
16    The city, in addition to the contributions otherwise made
17by it for annuity purposes under other provisions of this
18Article, shall make matching contributions concurrently with
19such salary deductions.
20    Each such 1/2 of 1% deduction from salary and each such
21contribution by the city of 1/2 of 1% of salary shall be
22credited to the Automatic Increase Reserve, to be used to
23defray the cost of the annuity increase provided by this
24Section. Any balance in such reserve as of the beginning of
25each calendar year shall be credited with interest at the rate
26of 3% per annum.

 

 

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1    Such deductions from salary and city contributions shall
2continue while the policeman is in service.
3    The salary deductions provided in this Section are not
4subject to refund, except to the policeman himself, in any case
5in which: (i) the policeman withdraws prior to qualification
6for minimum annuity or Tier 2 monthly retirement annuity and
7applies for refund, (ii) the policeman applies for an annuity
8of a type that is not subject to annual increases under this
9Section, or (iii) a term annuity becomes payable. In such
10cases, the total of such salary deductions shall be refunded to
11the policeman, without interest, and charged to the Automatic
12Increase Reserve.
13    (d) Notwithstanding any other provision of this Article,
14the Tier 2 monthly retirement annuity of a person who first
15becomes a policeman under this Article on or after the
16effective date of this amendatory Act of the 97th General
17Assembly shall be increased on the January 1 occurring either
18on or after (i) the attainment of age 60 or (ii) the first
19anniversary of the annuity start date, whichever is later. Each
20annual increase shall be calculated at 3% or one-half the
21annual unadjusted percentage increase (but not less than zero)
22in the consumer price index-u for the 12 months ending with the
23September preceding each November 1, whichever is less, of the
24originally granted retirement annuity. If the annual
25unadjusted percentage change in the consumer price index-u for
26a 12-month period ending in September is zero or, when compared

 

 

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1with the preceding period, decreases, then the annuity shall
2not be increased.
3    For the purposes of this subsection (d), "consumer price
4index-u" means the index published by the Bureau of Labor
5Statistics of the United States Department of Labor that
6measures the average change in prices of goods and services
7purchased by all urban consumers, United States city average,
8all items, 1982-84 = 100. The new amount resulting from each
9annual adjustment shall be determined by the Public Pension
10Division of the Department of Insurance and made available to
11the boards of the pension funds by November 1 of each year.
12(Source: P.A. 99-905, eff. 11-29-16.)
 
13    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
14    Sec. 6-164. Automatic annual increase; retirement after
15September 1, 1959.
16    (a) A fireman qualifying for a minimum annuity who retires
17from service after September 1, 1959 shall, upon either the
18first of the month following the first anniversary of his date
19of retirement if he is age 60 (age 55 if born before January 1,
201966) or over on that anniversary date, or upon the first of
21the month following his attainment of age 60 (age 55 if born
22before January 1, 1966) if that occurs after the first
23anniversary of his retirement date, have his then fixed and
24payable monthly annuity increased by 1 1/2%, and such first
25fixed annuity as granted at retirement increased by an

 

 

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1additional 1 1/2% in January of each year thereafter up to a
2maximum increase of 30%. Beginning July 1, 1982 for firemen
3born before January 1, 1930, and beginning January 1, 1990 for
4firemen born after December 31, 1929 and before January 1,
51940, and beginning January 1, 1996 for firemen born after
6December 31, 1939 but before January 1, 1945, and beginning
7January 1, 2004, for firemen born after December 31, 1944 but
8before January 1, 1955, and beginning January 1, 2017, for
9firemen born after December 31, 1954 but before January 1,
101966, such increases shall be 3% and such firemen shall not be
11subject to the 30% maximum increase.
12    Any fireman born before January 1, 1945 who qualifies for a
13minimum annuity and retires after September 1, 1967 but has not
14received the initial increase under this subsection before
15January 1, 1996 is entitled to receive the initial increase
16under this subsection on (1) January 1, 1996, (2) the first
17anniversary of the date of retirement, or (3) attainment of age
1855, whichever occurs last. The changes to this Section made by
19this amendatory Act of 1995 apply beginning January 1, 1996 and
20apply without regard to whether the fireman or annuitant
21terminated service before the effective date of this amendatory
22Act of 1995.
23    Any fireman born before January 1, 1955 who qualifies for a
24minimum annuity and retires after September 1, 1967 but has not
25received the initial increase under this subsection before
26January 1, 2004 is entitled to receive the initial increase

 

 

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1under this subsection on (1) January 1, 2004, (2) the first
2anniversary of the date of retirement, or (3) attainment of age
355, whichever occurs last. The changes to this Section made by
4this amendatory Act of the 93rd General Assembly apply without
5regard to whether the fireman or annuitant terminated service
6before the effective date of this amendatory Act.
7    Any fireman born after December 31, 1954 but before January
81, 1966 who qualifies for a minimum annuity and retires after
9September 1, 1967 is entitled to receive an increase under this
10subsection on (1) January 1, 2017, (2) the first anniversary of
11the date of retirement, or (3) attainment of age 55, whichever
12occurs last, in an amount equal to an increase of 3% of his
13then fixed and payable monthly annuity upon the first of the
14month following the first anniversary of his date of retirement
15if he is age 55 or over on that anniversary date or upon the
16first of the month following his attainment of age 55 if that
17date occurs after the first anniversary of his retirement date
18and such first fixed annuity as granted at retirement shall be
19increased by an additional 3% in January of each year
20thereafter. In the case of a fireman born after December 31,
211954 but before January 1, 1966 who received an increase in any
22year of 1.5%, that fireman shall receive an increase for any
23such year so that the total increase is equal to 3% for each
24year the fireman would have been otherwise eligible had the
25fireman not received any increase. The changes to this
26subsection made by this amendatory Act of the 99th General

 

 

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1Assembly apply without regard to whether the fireman or
2annuitant terminated service before the effective date of this
3amendatory Act. The changes to this subsection made by this
4amendatory Act of the 100th General Assembly are a declaration
5of existing law and shall not be construed as a new enactment.
6    Any fireman who qualifies for a minimum annuity and retires
7after September 1, 1967 is entitled to receive an increase
8under this subsection on (1) January 1, 2019, (2) the first
9anniversary of the date of retirement, or (3) attainment of age
1055, whichever occurs last, in an amount equal to an increase of
113% of his or her then fixed and payable monthly annuity upon
12the first of the month following the first anniversary of his
13or her date of retirement if he or she is age 55 or over on that
14anniversary date or upon the first of the month following his
15or her attainment of age 55 if that date occurs after the first
16anniversary of his or her retirement date and such first fixed
17annuity as granted at retirement shall be increased by an
18additional 3% in January of each year thereafter. In the case
19of a fireman who received an increase in any year of 1.5%, that
20fireman shall receive an increase for any such year so that the
21total increase is equal to 3% for each year the fireman would
22have been otherwise eligible had the fireman not received any
23increase. The changes to this subsection made by this
24amendatory Act of the 100th General Assembly apply without
25regard to whether the fireman or annuitant terminated service
26before the effective date of this amendatory Act of the 100th

 

 

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1General Assembly.
2    (b) Subsection (a) of this Section is not applicable to an
3employee receiving a term annuity.
4    (c) To help defray the cost of such increases in annuity,
5there shall be deducted, beginning September 1, 1959, from each
6payment of salary to a fireman, 1/8 of 1% of each such salary
7payment and an additional 1/8 of 1% beginning on September 1,
81961, and September 1, 1963, respectively, concurrently with
9and in addition to the salary deductions otherwise made for
10annuity purposes.
11    Each such additional 1/8 of 1% deduction from salary which
12shall, on September 1, 1963, result in a total increase of 3/8
13of 1% of salary, shall be credited to the Automatic Increase
14Reserve, to be used, together with city contributions as
15provided in this Article, to defray the cost of the annuity
16increments specified in this Section. Any balance in such
17reserve as of the beginning of each calendar year shall be
18credited with interest at the rate of 3% per annum.
19    The salary deductions provided in this Section are not
20subject to refund, except to the fireman himself in any case in
21which: (i) the fireman withdraws prior to qualification for
22minimum annuity or Tier 2 monthly retirement annuity and
23applies for refund, (ii) the fireman applies for an annuity of
24a type that is not subject to annual increases under this
25Section, or (iii) a term annuity becomes payable. In such
26cases, the total of such salary deductions shall be refunded to

 

 

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1the fireman, without interest, and charged to the
2aforementioned reserve.
3    (d) Notwithstanding any other provision of this Article,
4the Tier 2 monthly retirement annuity of a person who first
5becomes a fireman under this Article on or after January 1,
62011 shall be increased on the January 1 occurring either on or
7after (i) the attainment of age 60 or (ii) the first
8anniversary of the annuity start date, whichever is later. Each
9annual increase shall be calculated at 3% or one-half the
10annual unadjusted percentage increase (but not less than zero)
11in the consumer price index-u for the 12 months ending with the
12September preceding each November 1, whichever is less, of the
13originally granted retirement annuity. If the annual
14unadjusted percentage change in the consumer price index-u for
15a 12-month period ending in September is zero or, when compared
16with the preceding period, decreases, then the annuity shall
17not be increased.
18    For the purposes of this subsection (d), "consumer price
19index-u" means the index published by the Bureau of Labor
20Statistics of the United States Department of Labor that
21measures the average change in prices of goods and services
22purchased by all urban consumers, United States city average,
23all items, 1982-84 = 100. The new amount resulting from each
24annual adjustment shall be determined by the Public Pension
25Division of the Department of Insurance and made available to
26the boards of the pension funds by November 1 of each year.

 

 

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1(Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17;
2100-539, eff. 11-7-17.)
 
3    Section 90. The State Mandates Act is amended by adding
4Section 8.42 as follows:
 
5    (30 ILCS 805/8.42 new)
6    Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
7of this Act, no reimbursement by the State is required for the
8implementation of any mandate created by this amendatory Act of
9the 100th General Assembly.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.