Rep. Robert Martwick

Filed: 4/5/2018

 

 


 

 


 
10000HB4659ham001LRB100 17234 RPS 36998 a

1
AMENDMENT TO HOUSE BILL 4659

2    AMENDMENT NO. ______. Amend House Bill 4659 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 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

 

 

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1fixed and payable monthly annuity increased by 3% 1 1/2% and
2such first fixed annuity as granted at retirement increased by
3an additional 3% 1 1/2% in January of each year thereafter up
4to a maximum increase of 30%. Beginning January 1, 1983 for
5policemen born before January 1, 1930, and beginning January 1,
61988 for policemen born on or after January 1, 1930 but before
7January 1, 1940, and beginning January 1, 1996 for policemen
8born on or after January 1, 1940 but before January 1, 1945,
9and beginning January 1, 2000 for policemen born on or after
10January 1, 1945 but before January 1, 1950, and beginning
11January 1, 2005 for policemen born on or after January 1, 1950
12but before January 1, 1955, and beginning January 1, 2017 for
13policemen born on or after January 1, 1955 but before January
141, 1966, such increases shall be 3% and such policemen shall
15not be subject to the 30% maximum increase.
16    Any policeman born before January 1, 1945 who qualifies for
17a minimum annuity and retires after September 1, 1967 but has
18not received the initial increase under this subsection before
19January 1, 1996 is entitled to receive the initial increase
20under this subsection on (1) January 1, 1996, (2) the first
21anniversary of the date of retirement, or (3) attainment of age
2255, whichever occurs last. The changes to this Section made by
23Public Act 89-12 apply beginning January 1, 1996 and without
24regard to whether the policeman or annuitant terminated service
25before the effective date of that Act.
26    Any policeman born before January 1, 1950 who qualifies for

 

 

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1a minimum annuity and retires after September 1, 1967 but has
2not received the initial increase under this subsection before
3January 1, 2000 is entitled to receive the initial increase
4under this subsection on (1) January 1, 2000, (2) the first
5anniversary of the date of retirement, or (3) attainment of age
655, whichever occurs last. The changes to this Section made by
7this amendatory Act of the 92nd General Assembly apply without
8regard to whether the policeman or annuitant terminated service
9before the effective date of this amendatory Act.
10    Any policeman born before January 1, 1955 who qualifies for
11a minimum annuity and retires after September 1, 1967 but has
12not received the initial increase under this subsection before
13January 1, 2005 is entitled to receive the initial increase
14under this subsection on (1) January 1, 2005, (2) the first
15anniversary of the date of retirement, or (3) attainment of age
1655, whichever occurs last. The changes to this Section made by
17this amendatory Act of the 94th General Assembly apply without
18regard to whether the policeman or annuitant terminated service
19before the effective date of this amendatory Act.
20    Any policeman born before January 1, 1966 who qualifies for
21a minimum annuity and retires after September 1, 1967 but has
22not received the initial increase under this subsection before
23January 1, 2017 is entitled to receive an initial increase
24under this subsection on (1) January 1, 2017, (2) the first
25anniversary of the date of retirement, or (3) attainment of age
2655, whichever occurs last, in an amount equal to 3% for each

 

 

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1complete year following the date of retirement or attainment of
2age 55, whichever occurs later. The changes to this subsection
3made by this amendatory Act of the 99th General Assembly apply
4without regard to whether the policeman or annuitant terminated
5service before the effective date of this amendatory Act.
6    Any policeman born after January 1, 1966 who qualifies for
7a minimum annuity and retires after September 1, 1967 but has
8not received the initial increase under this subsection before
9January 1, 2019 is entitled to receive the initial increase
10under this subsection on (1) January 1, 2019, (2) the first
11anniversary of the date of retirement, or (3) attainment of age
1255, whichever occurs last. The changes to this Section made by
13this amendatory Act of the 100th General Assembly apply without
14regard to whether the policeman or annuitant terminated service
15before the effective date of this amendatory Act.
16    (b) Subsection (a) of this Section is not applicable to an
17employee receiving a term annuity.
18    (c) To help defray the cost of such increases in annuity,
19there shall be deducted, beginning September 1, 1967, from each
20payment of salary to a policeman, 1/2 of 1% of each salary
21payment concurrently with and in addition to the salary
22deductions otherwise made for annuity purposes.
23    The city, in addition to the contributions otherwise made
24by it for annuity purposes under other provisions of this
25Article, shall make matching contributions concurrently with
26such salary deductions.

 

 

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1    Each such 1/2 of 1% deduction from salary and each such
2contribution by the city of 1/2 of 1% of salary shall be
3credited to the Automatic Increase Reserve, to be used to
4defray the cost of the annuity increase provided by this
5Section. Any balance in such reserve as of the beginning of
6each calendar year shall be credited with interest at the rate
7of 3% per annum.
8    Such deductions from salary and city contributions shall
9continue while the policeman is in service.
10    The salary deductions provided in this Section are not
11subject to refund, except to the policeman himself, in any case
12in which: (i) the policeman withdraws prior to qualification
13for minimum annuity or Tier 2 monthly retirement annuity and
14applies for refund, (ii) the policeman applies for an annuity
15of a type that is not subject to annual increases under this
16Section, or (iii) a term annuity becomes payable. In such
17cases, the total of such salary deductions shall be refunded to
18the policeman, without interest, and charged to the Automatic
19Increase Reserve.
20    (d) Notwithstanding any other provision of this Article,
21the Tier 2 monthly retirement annuity of a person who first
22becomes a policeman under this Article on or after the
23effective date of this amendatory Act of the 97th General
24Assembly shall be increased on the January 1 occurring either
25on or after (i) the attainment of age 60 or (ii) the first
26anniversary of the annuity start date, whichever is later. Each

 

 

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1annual increase shall be calculated at 3% or one-half the
2annual unadjusted percentage increase (but not less than zero)
3in the consumer price index-u for the 12 months ending with the
4September preceding each November 1, whichever is less, of the
5originally granted retirement annuity. If the annual
6unadjusted percentage change in the consumer price index-u for
7a 12-month period ending in September is zero or, when compared
8with the preceding period, decreases, then the annuity shall
9not be increased.
10    For the purposes of this subsection (d), "consumer price
11index-u" means the index published by the Bureau of Labor
12Statistics of the United States Department of Labor that
13measures the average change in prices of goods and services
14purchased by all urban consumers, United States city average,
15all items, 1982-84 = 100. The new amount resulting from each
16annual adjustment shall be determined by the Public Pension
17Division of the Department of Insurance and made available to
18the boards of the pension funds by November 1 of each year.
19(Source: P.A. 99-905, eff. 11-29-16.)
 
20    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
21    Sec. 6-164. Automatic annual increase; retirement after
22September 1, 1959.
23    (a) A fireman qualifying for a minimum annuity who retires
24from service after September 1, 1959 shall, upon either the
25first of the month following the first anniversary of his date

 

 

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1of retirement if he is age 60 (age 55 if born before January 1,
21966) or over on that anniversary date, or upon the first of
3the month following his attainment of age 60 (age 55 if born
4before January 1, 1966) if that occurs after the first
5anniversary of his retirement date, have his then fixed and
6payable monthly annuity increased by 1 1/2%, and such first
7fixed annuity as granted at retirement increased by an
8additional 1 1/2% in January of each year thereafter up to a
9maximum increase of 30%. Beginning July 1, 1982 for firemen
10born before January 1, 1930, and beginning January 1, 1990 for
11firemen born after December 31, 1929 and before January 1,
121940, and beginning January 1, 1996 for firemen born after
13December 31, 1939 but before January 1, 1945, and beginning
14January 1, 2004, for firemen born after December 31, 1944 but
15before January 1, 1955, and beginning January 1, 2017, for
16firemen born after December 31, 1954 but before January 1,
171966, such increases shall be 3% and such firemen shall not be
18subject to the 30% maximum increase.
19    Any fireman born before January 1, 1945 who qualifies for a
20minimum annuity and retires after September 1, 1967 but has not
21received the initial increase under this subsection before
22January 1, 1996 is entitled to receive the initial increase
23under this subsection on (1) January 1, 1996, (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 1995 apply beginning January 1, 1996 and

 

 

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1apply without regard to whether the fireman or annuitant
2terminated service before the effective date of this amendatory
3Act of 1995.
4    Any fireman born before January 1, 1955 who qualifies for a
5minimum annuity and retires after September 1, 1967 but has not
6received the initial increase under this subsection before
7January 1, 2004 is entitled to receive the initial increase
8under this subsection on (1) January 1, 2004, (2) the first
9anniversary of the date of retirement, or (3) attainment of age
1055, whichever occurs last. The changes to this Section made by
11this amendatory Act of the 93rd General Assembly apply without
12regard to whether the fireman or annuitant terminated service
13before the effective date of this amendatory Act.
14    Any fireman born after December 31, 1954 but before January
151, 1966 who qualifies for a minimum annuity and retires after
16September 1, 1967 is entitled to receive an increase under this
17subsection on (1) January 1, 2017, (2) the first anniversary of
18the date of retirement, or (3) attainment of age 55, whichever
19occurs last, in an amount equal to an increase of 3% of his
20then fixed and payable monthly annuity upon the first of the
21month following the first anniversary of his date of retirement
22if he is age 55 or over on that anniversary date or upon the
23first of the month following his attainment of age 55 if that
24date occurs after the first anniversary of his retirement date
25and such first fixed annuity as granted at retirement shall be
26increased by an additional 3% in January of each year

 

 

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1thereafter. In the case of a fireman born after December 31,
21954 but before January 1, 1966 who received an increase in any
3year of 1.5%, that fireman shall receive an increase for any
4such year so that the total increase is equal to 3% for each
5year the fireman would have been otherwise eligible had the
6fireman not received any increase. The changes to this
7subsection made by this amendatory Act of the 99th General
8Assembly apply without regard to whether the fireman or
9annuitant terminated service before the effective date of this
10amendatory Act. The changes to this subsection made by this
11amendatory Act of the 100th General Assembly are a declaration
12of existing law and shall not be construed as a new enactment.
13    The changes to this subsection made by this amendatory Act
14of the 100th General Assembly apply without regard to whether
15the fireman or annuitant terminated service before the
16effective date of this amendatory Act of the 100th General
17Assembly.
18    (b) Subsection (a) of this Section is not applicable to an
19employee receiving a term annuity.
20    (c) To help defray the cost of such increases in annuity,
21there shall be deducted, beginning September 1, 1959, from each
22payment of salary to a fireman, 1/8 of 1% of each such salary
23payment and an additional 1/8 of 1% beginning on September 1,
241961, and September 1, 1963, respectively, concurrently with
25and in addition to the salary deductions otherwise made for
26annuity purposes.

 

 

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1    Each such additional 1/8 of 1% deduction from salary which
2shall, on September 1, 1963, result in a total increase of 3/8
3of 1% of salary, shall be credited to the Automatic Increase
4Reserve, to be used, together with city contributions as
5provided in this Article, to defray the cost of the annuity
6increments specified in this Section. Any balance in such
7reserve as of the beginning of each calendar year shall be
8credited with interest at the rate of 3% per annum.
9    The salary deductions provided in this Section are not
10subject to refund, except to the fireman himself in any case in
11which: (i) the fireman withdraws prior to qualification for
12minimum annuity or Tier 2 monthly retirement annuity and
13applies for refund, (ii) the fireman applies for an annuity of
14a type that is not subject to annual increases under this
15Section, or (iii) a term annuity becomes payable. In such
16cases, the total of such salary deductions shall be refunded to
17the fireman, without interest, and charged to the
18aforementioned reserve.
19    (d) Notwithstanding any other provision of this Article,
20the Tier 2 monthly retirement annuity of a person who first
21becomes a fireman under this Article on or after January 1,
222011 shall be increased on the January 1 occurring either on or
23after (i) the attainment of age 60 or (ii) the first
24anniversary of the annuity start date, whichever is later. Each
25annual increase shall be calculated at 3% or one-half the
26annual unadjusted percentage increase (but not less than zero)

 

 

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1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, whichever is less, of the
3originally granted retirement annuity. If the annual
4unadjusted percentage change in the consumer price index-u for
5a 12-month period ending in September is zero or, when compared
6with the preceding period, decreases, then the annuity shall
7not be increased.
8    For the purposes of this subsection (d), "consumer price
9index-u" means the index published by the Bureau of Labor
10Statistics of the United States Department of Labor that
11measures the average change in prices of goods and services
12purchased by all urban consumers, United States city average,
13all items, 1982-84 = 100. The new amount resulting from each
14annual adjustment shall be determined by the Public Pension
15Division of the Department of Insurance and made available to
16the boards of the pension funds by November 1 of each year.
17(Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17;
18100-539, eff. 11-7-17.)
 
19    Section 90. The State Mandates Act is amended by adding
20Section 8.42 as follows:
 
21    (30 ILCS 805/8.42 new)
22    Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
23of this Act, no reimbursement by the State is required for the
24implementation of any mandate created by this amendatory Act of

 

 

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1the 100th General Assembly.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".