Rep. Robert Martwick

Filed: 5/28/2017

 

 


 

 


 
10000SB0419ham001LRB100 05036 RPS 27201 a

1
AMENDMENT TO SENATE BILL 419

2    AMENDMENT NO. ______. Amend Senate Bill 419 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 4-108.5 and 6-164 as follows:
 
6    (40 ILCS 5/4-108.5)
7    Sec. 4-108.5. Service for providing certain fire
8protection services.
9    (a) A firefighter for a participating municipality who was
10employed as an active firefighter providing fire protection for
11a village or incorporated town with a population of greater
12than 10,000 but less than 11,000 located in a county with a
13population of greater than 600,000 and less than 700,000, as
14estimated by the United States Census on July 1, 2004, may
15elect to establish creditable service for periods of that
16employment in which the firefighter provided fire protection

 

 

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1services for the participating municipality if, by May 1, 2007,
2the firefighter (i) makes written application to the Board and
3(ii) pays into the pension fund the amount that the person
4would have contributed had deductions from salary been made for
5this purpose at the time the service was rendered, plus
6interest thereon at 6% per annum compounded annually from the
7time the service was rendered until the date of payment.
8    (b) Time spent providing fire protection on a part-time
9basis for a village or incorporated town with a population of
10greater than 10,000 but less than 11,000 located in a county
11with a population of greater than 600,000 and less than
12700,000, as estimated by the United States Census on July 1,
132004, shall be calculated at the rate of one year of creditable
14service for each 5 years of time spent providing such fire
15protection, if the firefighter (i) has at least 5 years of
16creditable service as an active firefighter, (ii) has at least
175 years of such service with a qualifying village or
18incorporated town, (iii) applies for the creditable service
19within 30 days after the effective date of this amendatory Act
20of the 94th General Assembly, and (iv) contributes to the Fund
21an amount representing employee contributions for the number of
22years of creditable service granted under this subsection (b)
23based on the salary and contribution rate in effect for the
24firefighter at the date of entry into the fund, as determined
25by the Board. The amount of creditable service granted under
26this subsection (b) may not exceed 3 years.

 

 

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1    (c) This subsection applies only to a person who was first
2employed by a municipality in 2008 to provide fire protection
3services on a full-time basis as a firefighter or fire chief,
4but was prevented from participating in a pension fund under
5this Article until 2015 by reason of the employing
6municipality's delay in establishing a pension fund as required
7under this Article. Such a person may elect to establish
8creditable service for periods of such employment by that
9municipality during which he or she did not participate, by
10applying to the board in writing and paying to the pension fund
11the employee contributions that he or she would have made had
12deductions from salary been made for employee contributions at
13the time the service was rendered, together with interest
14thereon at the rate of 6% per annum, compounded annually, from
15the time the service was rendered to the date of payment;
16except that the granting of such creditable service is
17contingent upon the consent of the governing body of the
18municipality and payment to the pension fund by the
19municipality of the corresponding employer contributions, plus
20interest.
21    For the purposes of Sections 4-109, 4-109.1, and 4-114, and
22notwithstanding any other provision of this Article, for a
23person who establishes creditable service under this
24subsection (c), the date upon which the person first became a
25participating firefighter under this Article shall be deemed to
26be no later than the first day of employment for which such

 

 

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1creditable service has been granted.
2(Source: P.A. 97-813, eff. 7-13-12.)
 
3    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
4    Sec. 6-164. Automatic annual increase; retirement after
5September 1, 1959.
6    (a) For a person who first became a fireman under this
7Article before January 1, 2011 (Tier 1):
8        (1) A fireman qualifying for a minimum annuity who
9    retires from service after September 1, 1959 shall, upon
10    either the first of the month following the first
11    anniversary of his date of retirement if he is age 60 (age
12    55 if born before January 1, 1966) or over on that
13    anniversary date, or upon the first of the month following
14    his attainment of age 60 (age 55 if born before January 1,
15    1966) if that occurs after the first anniversary of his
16    retirement date, have his then fixed and payable monthly
17    annuity increased by 1 1/2%, and such first fixed annuity
18    as granted at retirement increased by an additional 1 1/2%
19    in January of each year thereafter up to a maximum increase
20    of 30%. Beginning July 1, 1982 for firemen born before
21    January 1, 1930, and beginning January 1, 1990 for firemen
22    born after December 31, 1929 and before January 1, 1940,
23    and beginning January 1, 1996 for firemen born after
24    December 31, 1939 but before January 1, 1945, and beginning
25    January 1, 2004, for firemen born after December 31, 1944

 

 

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1    but before January 1, 1955, and beginning January 1, 2017,
2    for firemen born after December 31, 1954 but before January
3    1, 1966, such increases shall be 3% and such firemen shall
4    not be subject to the 30% maximum increase.
5        (2) Any fireman born before January 1, 1945 who
6    qualifies for a minimum annuity and retires after September
7    1, 1967 but has not received the initial increase under
8    this subsection before January 1, 1996 is entitled to
9    receive the initial increase under this subsection on (1)
10    January 1, 1996, (2) the first anniversary of the date of
11    retirement, or (3) attainment of age 55, whichever occurs
12    last. The changes to this Section made by this amendatory
13    Act of 1995 apply beginning January 1, 1996 and apply
14    without regard to whether the fireman or annuitant
15    terminated service before the effective date of this
16    amendatory Act of 1995.
17        (3) Any fireman born before January 1, 1955 who
18    qualifies for a minimum annuity and retires after September
19    1, 1967 but has not received the initial increase under
20    this subsection before January 1, 2004 is entitled to
21    receive the initial increase under this subsection on (1)
22    January 1, 2004, (2) the first anniversary of the date of
23    retirement, or (3) attainment of age 55, whichever occurs
24    last. The changes to this Section made by this amendatory
25    Act of the 93rd General Assembly apply without regard to
26    whether the fireman or annuitant terminated service before

 

 

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1    the effective date of this amendatory Act.
2        (4) Any fireman born before January 1, 1966 who
3    qualifies for a minimum annuity and retires after September
4    1, 1967 but has not received the initial increase under
5    this subsection before January 1, 2017 is entitled to
6    receive an initial increase under this subsection (a) on
7    (1) January 1, 2017, (2) the first anniversary of the date
8    of retirement, or (3) attainment of age 55, whichever
9    occurs last, in an amount equal to 3% for each complete
10    year following the date of retirement or attainment of age
11    55, whichever occurs later. This subdivision (4) does not
12    prohibit any qualified fireman from choosing to have his or
13    her eligibility for and the amount of the initial increase
14    in retirement annuity determined in accordance with
15    subdivision (1) or (5) of this subsection.
16        The changes to this subsection made by Public Act
17    99-905 this amendatory Act of the 99th General Assembly
18    apply without regard to whether the fireman or annuitant
19    terminated service before November 29, 2016 (the effective
20    date of Public Act 99-905) this amendatory Act.
21        (5) A fireman born before January 1, 1966 who qualifies
22    for a minimum annuity and retires after September 1, 1967
23    but has not received the initial increase under this
24    subsection before January 1, 2018 is entitled to receive
25    the initial increase under this subsection on (1) January
26    1, 2018, (2) the first anniversary of the date of

 

 

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1    retirement, or (3) attainment of age 55, whichever occurs
2    last. This subdivision (5) does not prohibit any qualified
3    fireman from choosing to have his or her eligibility for
4    and the amount of the initial increase in retirement
5    annuity determined in accordance with subdivision (1) or
6    (4) of this subsection.
7        (6) A fireman born on or after January 1, 1955 whose
8    eligibility for and the amount of the initial increase in
9    retirement annuity was determined, calculated, and granted
10    under subdivision (1) of this subsection on or after
11    January 1, 2010 and before November 29, 2016 (the effective
12    date of Public Act 99-905) shall receive a one-time
13    adjustment in his or her retirement annuity on January 1,
14    2018, equal to (i) 1.5% of the original fixed annuity for
15    each annual increase in that annuity that was calculated at
16    1.5% instead of 3%, plus (ii) 3% of the original fixed
17    annuity for each annual increase in that annuity that was
18    lost because the eligibility requirement under that
19    subdivision was age 60 rather than age 55 due to the
20    delayed extension of the age 55 provision.
21        (7) A fireman born before January 1, 1966 whose
22    eligibility for and the amount of the initial increase in
23    retirement annuity was determined, calculated, and granted
24    under subdivision (4) of this subsection on or after
25    November 29, 2016 (the effective date of Public Act 99-905)
26    and before the effective date of this amendatory Act of the

 

 

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1    100th General Assembly shall receive a one-time adjustment
2    in his or her retirement annuity on January 1, 2018, equal
3    to 3% of the original fixed annuity, representing the loss
4    of the traditional increase on the January 1 following the
5    first anniversary of retirement, due to the "complete year"
6    language that was included in subdivision (4).
7        (8) It is the purpose of this amendatory Act of the
8    100th General Assembly to clarify the intended application
9    of subdivisions (1) and (4) of this subsection (a), as
10    amended by Public Act 99-905, and to grant a one-time
11    adjustment in certain retirement annuities that have
12    already received the initial increase. The changes to this
13    Section made by this amendatory Act apply without regard to
14    whether the fireman or annuitant terminated service before
15    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, 1959, from each
20payment of salary to a fireman, 1/8 of 1% of each such salary
21payment and an additional 1/8 of 1% beginning on September 1,
221961, and September 1, 1963, respectively, concurrently with
23and in addition to the salary deductions otherwise made for
24annuity purposes.
25    Each such additional 1/8 of 1% deduction from salary which
26shall, on September 1, 1963, result in a total increase of 3/8

 

 

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1of 1% of salary, shall be credited to the Automatic Increase
2Reserve, to be used, together with city contributions as
3provided in this Article, to defray the cost of the annuity
4increments specified in this Section. Any balance in such
5reserve as of the beginning of each calendar year shall be
6credited with interest at the rate of 3% per annum.
7    The salary deductions provided in this Section are not
8subject to refund, except to the fireman himself in any case in
9which: (i) the fireman withdraws prior to qualification for
10minimum annuity or Tier 2 monthly retirement annuity and
11applies for refund, (ii) the fireman applies for an annuity of
12a type that is not subject to annual increases under this
13Section, or (iii) a term annuity becomes payable. In such
14cases, the total of such salary deductions shall be refunded to
15the fireman, without interest, and charged to the
16aforementioned reserve.
17    (d) Notwithstanding any other provision of this Article,
18the Tier 2 monthly retirement annuity of a person who first
19becomes a fireman under this Article on or after January 1,
202011 shall be increased on the January 1 occurring either on or
21after (i) the attainment of age 60 or (ii) the first
22anniversary of the annuity start date, whichever is later. Each
23annual increase shall be calculated at 3% or one-half the
24annual unadjusted percentage increase (but not less than zero)
25in the consumer price index-u for the 12 months ending with the
26September preceding each November 1, whichever is less, of the

 

 

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1originally granted retirement annuity. If the annual
2unadjusted percentage change in the consumer price index-u for
3a 12-month period ending in September is zero or, when compared
4with the preceding period, decreases, then the annuity shall
5not be increased.
6    For the purposes of this subsection (d), "consumer price
7index-u" means the index published by the Bureau of Labor
8Statistics of the United States Department of Labor that
9measures the average change in prices of goods and services
10purchased by all urban consumers, United States city average,
11all items, 1982-84 = 100. The new amount resulting from each
12annual adjustment shall be determined by the Public Pension
13Division of the Department of Insurance and made available to
14the boards of the pension funds by November 1 of each year.
15(Source: P.A. 99-905, eff. 11-29-16.)
 
16    Section 90. The State Mandates Act is amended by adding
17Section 8.41 as follows:
 
18    (30 ILCS 805/8.41 new)
19    Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
20of this Act, no reimbursement by the State is required for the
21implementation of any mandate created by this amendatory Act of
22the 100th General Assembly.
 
23    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.".