100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3196

 

Introduced 2/15/2018, by Sen. John G. Mulroe

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-229
30 ILCS 805/8.42 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that for Tier 2 firemen, final average salary is the greater of (1) the average monthly salary obtained by dividing the total salary of the fireman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period or (2) the average monthly salary obtained by dividing the total salary of the fireman during the 48 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period (currently, the final average salary is the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB100 20732 RPS 36210 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB3196LRB100 20732 RPS 36210 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
5Section 6-229 as follows:
 
6    (40 ILCS 5/6-229)
7    Sec. 6-229. Provisions applicable to new hires; Tier 2.
8    (a) Notwithstanding any other provision of this Article,
9the provisions of this Section apply to a person who first
10becomes a fireman under this Article on or after January 1,
112011, and to certain qualified survivors of such a fireman.
12Such persons, and the benefits and restrictions that apply
13specifically to them under this Article, may be referred to as
14"Tier 2".
15    (b) A fireman who has withdrawn from service, has attained
16age 50 or more, and has 10 or more years of service in that
17capacity shall be entitled, upon proper application being
18received by the Fund, to receive a Tier 2 monthly retirement
19annuity for his service as a fireman. The Tier 2 monthly
20retirement annuity shall be computed by multiplying 2.5% for
21each year of such service by his or her final average salary,
22subject to an annuity reduction factor of one-half of 1% for
23each month that the fireman's age at retirement is under age

 

 

SB3196- 2 -LRB100 20732 RPS 36210 b

155. The Tier 2 monthly retirement annuity is in lieu of any age
2and service annuity or other form of retirement annuity under
3this Article.
4    The maximum retirement annuity under this subsection (b)
5shall be 75% of final average salary.
6    For the purposes of this subsection (b), "final average
7salary" means the greater of (1) the average monthly salary
8obtained by dividing the total salary of the fireman during the
996 consecutive months of service within the last 120 months of
10service in which the total salary was the highest by the number
11of months of service in that period or (2) the average monthly
12salary obtained by dividing the total salary of the fireman
13during the 48 consecutive months of service within the last 120
14months of service in which the total salary was the highest by
15the number of months of service in that period.
16    Beginning on January 1, 2011, for all purposes under this
17Code (including without limitation the calculation of benefits
18and employee contributions), the annual salary based on the
19plan year of a member or participant to whom this Section
20applies shall not exceed $106,800; however, that amount shall
21annually thereafter be increased by the lesser of (i) 3% of
22that amount, including all previous adjustments, or (ii)
23one-half the annual unadjusted percentage increase (but not
24less than zero) in the consumer price index-u for the 12 months
25ending with the September preceding each November 1, including
26all previous adjustments.

 

 

SB3196- 3 -LRB100 20732 RPS 36210 b

1    (b-5) For the purposes of this Section, "consumer price
2index-u" means the index published by the Bureau of Labor
3Statistics of the United States Department of Labor that
4measures the average change in prices of goods and services
5purchased by all urban consumers, United States city average,
6all items, 1982-84 = 100. The new amount resulting from each
7annual adjustment shall be determined by the Public Pension
8Division of the Department of Insurance and made available to
9the boards of the retirement systems and pension funds by
10November 1 of each year.
11    (c) Notwithstanding any other provision of this Article,
12for a person who first becomes a fireman under this Article on
13or after January 1, 2011, eligibility for and the amount of the
14annuity to which the qualified surviving spouse, children, and
15parents of the fireman are entitled under this subsection (c)
16shall be determined as follows:
17        (1) The surviving spouse of a deceased fireman to whom
18    this Section applies shall be deemed qualified to receive a
19    Tier 2 surviving spouse's annuity under this paragraph (1)
20    if: (i) the deceased fireman meets the requirements
21    specified under subdivision (A), (B), (C), or (D) of this
22    paragraph (1); and (ii) the surviving spouse would not
23    otherwise be excluded from receiving a widow's annuity
24    under the eligibility requirements for a widow's annuity
25    set forth in Section 6-142. The Tier 2 surviving spouse's
26    annuity is in lieu of the widow's annuity determined under

 

 

SB3196- 4 -LRB100 20732 RPS 36210 b

1    any other Section of this Article and is subject to the
2    requirements of Section 6-143.2.
3        As used in this subsection (c), "earned pension" means
4    a Tier 2 monthly retirement annuity determined under
5    subsection (b) of this Section, including any increases the
6    fireman had received pursuant to Section 6-164.
7            (A) If the deceased fireman was receiving an earned
8        pension at the date of his or her death, the Tier 2
9        surviving spouse's annuity under this paragraph (1)
10        shall be in the amount of 66 2/3% of the fireman's
11        earned pension at the date of death.
12            (B) If the deceased fireman was not receiving an
13        earned pension but had at least 10 years of service at
14        the time of death, the Tier 2 surviving spouse's
15        annuity under this paragraph (1) shall be the greater
16        of: (i) 30% of the salary attached to the rank of first
17        class firefighter in the classified career service at
18        the time of the fireman's death; or (ii) 66 2/3% of the
19        Tier 2 monthly retirement annuity that the deceased
20        fireman would have been eligible to receive under
21        subsection (b) of this Section, based upon the actual
22        service accrued through the day before the fireman's
23        death, but determined as though the fireman was at
24        least age 55 on the day before his or her death and
25        retired on that day.
26            (C) If the deceased fireman was an active fireman

 

 

SB3196- 5 -LRB100 20732 RPS 36210 b

1        with at least 1 1/2 but less than 10 years of service
2        at the time of death, the Tier 2 surviving spouse's
3        annuity under this paragraph (1) shall be in the amount
4        of 30% of the salary attached to the rank of first
5        class firefighter in the classified career service at
6        the time of the fireman's death.
7            (D) Notwithstanding subdivisions (A), (B), and (C)
8        of this paragraph (1), if the performance of an act or
9        acts of duty results directly in the death of a fireman
10        subject to this Section, or prevents him from
11        subsequently resuming active service in the fire
12        department, then a surviving spouse who would
13        otherwise meet the eligibility requirements for a
14        death in the line of duty widow's annuity granted under
15        Section 6-140 shall be deemed to be qualified for a
16        Tier 2 surviving spouse's annuity under this
17        subdivision (D); except that no such annuity shall be
18        paid to the surviving spouse of a fireman who dies
19        while in receipt of disability benefits when the
20        fireman's death was caused by an intervening illness or
21        injury unrelated to the illness or injury that had
22        prevented him from subsequently resuming active
23        service in the fire department. The Tier 2 surviving
24        spouse's annuity calculated under this subdivision (D)
25        shall be in lieu of, but in the same amount and paid in
26        the same manner as, the widow's annuity provided under

 

 

SB3196- 6 -LRB100 20732 RPS 36210 b

1        Section 6-140; except that the salary used for
2        computing a Tier 2 surviving spouse's annuity under
3        this subdivision (D) shall be subject to the Tier 2
4        salary cap provided under subsection (b) of this
5        Section.
6            (E) Notwithstanding any other provision of this
7        Article, the monthly Tier 2 surviving spouse's annuity
8        under subdivision (A) or (B) of this paragraph (1)
9        shall be increased on the January 1 next occurring
10        after (i) attainment of age 60 by the recipient of the
11        Tier 2 surviving spouse's annuity or (ii) the first
12        anniversary of the Tier 2 surviving spouse's annuity
13        start date, whichever is later, and on each January 1
14        thereafter, by 3% or one-half the annual unadjusted
15        percentage increase in the consumer price index-u for
16        the 12 months ending with September preceding each
17        November 1, whichever is less, of the originally
18        granted Tier 2 surviving spouse's annuity. If the
19        annual unadjusted percentage change in the consumer
20        price index-u for a 12-month period ending in September
21        is zero or, when compared with the preceding period,
22        decreases, then the annuity shall not be increased.
23            (F) Notwithstanding the other provisions of this
24        paragraph (1), for a qualified surviving spouse who is
25        entitled to a Tier 2 surviving spouse's annuity under
26        subdivision (A), (B), (C), or (D) of this paragraph

 

 

SB3196- 7 -LRB100 20732 RPS 36210 b

1        (1), that Tier 2 surviving spouse's annuity shall not
2        be less than the amount of the minimum widow's annuity
3        established from time to time under Section 6-128.4.
4        (2) Surviving children of a deceased fireman subject to
5    this Section who would otherwise meet the eligibility
6    requirements for a child's annuity set forth in Sections
7    6-147 and 6-148 shall be deemed qualified to receive a Tier
8    2 child's annuity under this subsection (c), which shall be
9    in lieu of, but in the same amount and paid in the same
10    manner as, the child's annuity provided under those
11    Sections; except that any salary used for computing a Tier
12    2 child's annuity shall be subject to the Tier 2 salary cap
13    provided under subsection (b) of this Section. For purposes
14    of determining any pro rata reduction in child's annuities
15    under this subsection (c), references in Section 6-148 to
16    the combined annuities of the family shall be deemed to
17    refer to the combined Tier 2 surviving spouse's annuity, if
18    any, and the Tier 2 child's annuities payable under this
19    subsection (c).
20        (3) Surviving parents of a deceased fireman subject to
21    this Section who would otherwise meet the eligibility
22    requirements for a parent's annuity set forth in Section
23    6-149 shall be deemed qualified to receive a Tier 2
24    parent's annuity under this subsection (c), which shall be
25    in lieu of, but in the same amount and paid in the same
26    manner as, the parent's annuity provided under Section

 

 

SB3196- 8 -LRB100 20732 RPS 36210 b

1    6-149; except that any salary used for computing a Tier 2
2    parent's annuity shall be subject to the Tier 2 salary cap
3    provided under subsection (b) of this Section. For the
4    purposes of this Section, a reference to "annuity" in
5    Section 6-149 includes: (i) in the context of a widow, a
6    Tier 2 surviving spouse's annuity and (ii) in the context
7    of a child, a Tier 2 child's annuity.
8    (d) The General Assembly finds and declares that the
9provisions of this Section, as enacted by Public Act 96-1495,
10require clarification relating to necessary eligibility
11standards and the manner of determining and paying the intended
12Tier 2 benefits and contributions in order to enable the Fund
13to unambiguously implement and administer benefits for Tier 2
14members. The changes to this Section and the conforming changes
15to Sections 6-150, 6-158, 6-164 (except for the changes to
16subsection (a) of that Section), 6-166, and 6-167 made by this
17amendatory Act of the 99th General Assembly are enacted to
18clarify the provisions of this Section as enacted by Public Act
1996-1495, and are hereby declared to represent and be consistent
20with the original and continuing intent of this Section and
21Public Act 96-1495.
22    (e) The changes to Sections 6-150, 6-158, 6-164 (except for
23the changes to subsection (a) of that Section), 6-166, and
246-167 made by this amendatory Act of the 99th General Assembly
25are intended to be retroactive to January 1, 2011 (the
26effective date of Public Act 96-1495) and, for the purposes of

 

 

SB3196- 9 -LRB100 20732 RPS 36210 b

1Section 1-103.1 of this Code, they apply without regard to
2whether the relevant fireman was in service on or after the
3effective date of this amendatory Act of the 99th General
4Assembly.
5(Source: P.A. 99-905, eff. 11-29-16.)
 
6    Section 90. The State Mandates Act is amended by adding
7Section 8.42 as follows:
 
8    (30 ILCS 805/8.42 new)
9    Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
10of this Act, no reimbursement by the State is required for the
11implementation of any mandate created by this amendatory Act of
12the 100th General Assembly.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.