96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3105

 

Introduced 2/8/2010, by Sen. James A. DeLeo

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.34 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides for an annual increase in a retirement annuity at age 55 if the fireman was born before January 1, 1960 (was, before January 1, 1955). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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

 

 

A BILL FOR

 

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1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 6-164 as follows:
 
6     (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
7     Sec. 6-164. Automatic annual increase; retirement after
8 September 1, 1959.
9     (a) A fireman qualifying for a minimum annuity who retires
10 from service after September 1, 1959 shall, upon either the
11 first of the month following the first anniversary of his date
12 of retirement if he is age 60 (age 55 if born before January 1,
13 1960 1955) or over on that anniversary date, or upon the first
14 of the month following his attainment of age 60 (age 55 if born
15 before January 1, 1960 1955) if that occurs after the first
16 anniversary of his retirement date, have his then fixed and
17 payable monthly annuity increased by 1 1/2%, and such first
18 fixed annuity as granted at retirement increased by an
19 additional 1 1/2% in January of each year thereafter up to a
20 maximum increase of 30%. Beginning July 1, 1982 for firemen
21 born before January 1, 1930, and beginning January 1, 1990 for
22 firemen born after December 31, 1929 and before January 1,
23 1940, and beginning January 1, 1996 for firemen born after

 

 

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1 December 31, 1939 but before January 1, 1945, and beginning
2 January 1, 2004, for firemen born after December 31, 1944 but
3 before January 1, 1955, and beginning January 1, 2011 for
4 firemen born after December 31, 1954 but before January 1,
5 1960, such increases shall be 3% and such firemen shall not be
6 subject to the 30% maximum increase.
7     Any fireman born before January 1, 1945 who qualifies for a
8 minimum annuity and retires after September 1, 1967 but has not
9 received the initial increase under this subsection before
10 January 1, 1996 is entitled to receive the initial increase
11 under this subsection on (1) January 1, 1996, (2) the first
12 anniversary of the date of retirement, or (3) attainment of age
13 55, whichever occurs last. The changes to this Section made by
14 this amendatory Act of 1995 apply beginning January 1, 1996 and
15 apply without regard to whether the fireman or annuitant
16 terminated service before the effective date of this amendatory
17 Act of 1995.
18     Any fireman born before January 1, 1955 who qualifies for a
19 minimum annuity and retires after September 1, 1967 but has not
20 received the initial increase under this subsection before
21 January 1, 2004 is entitled to receive the initial increase
22 under this subsection on (1) January 1, 2004, (2) the first
23 anniversary of the date of retirement, or (3) attainment of age
24 55, whichever occurs last. The changes to this Section made by
25 this amendatory Act of the 93rd General Assembly apply without
26 regard to whether the fireman or annuitant terminated service

 

 

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1 before the effective date of this amendatory Act.
2     Any fireman born before January 1, 1960 who qualifies for a
3 minimum annuity and retires after September 1, 1967 but has not
4 received the initial increase under this subsection before
5 January 1, 2011 is entitled to receive the initial increase
6 under this subsection on (1) January 1, 2011, (2) the first
7 anniversary of the date of retirement, or (3) attainment of age
8 55, whichever occurs last. The changes to this Section made by
9 this amendatory Act of the 96th General Assembly apply without
10 regard to whether the fireman or annuitant terminated service
11 before the effective date of this amendatory Act.
12     (b) Subsection (a) of this Section is not applicable to an
13 employee receiving a term annuity.
14     (c) To help defray the cost of such increases in annuity,
15 there shall be deducted, beginning September 1, 1959, from each
16 payment of salary to a fireman, 1/8 of 1% of each such salary
17 payment and an additional 1/8 of 1% beginning on September 1,
18 1961, and September 1, 1963, respectively, concurrently with
19 and in addition to the salary deductions otherwise made for
20 annuity purposes.
21     Each such additional 1/8 of 1% deduction from salary which
22 shall, on September 1, 1963, result in a total increase of 3/8
23 of 1% of salary, shall be credited to the Automatic Increase
24 Reserve, to be used, together with city contributions as
25 provided in this Article, to defray the cost of the 1 1/2%
26 annuity increments herein specified. Any balance in such

 

 

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1 reserve as of the beginning of each calendar year shall be
2 credited with interest at the rate of 3% per annum.
3     The salary deductions provided in this Section are not
4 subject to refund, except to the fireman himself, in any case
5 in which a fireman withdraws prior to qualification for minimum
6 annuity and applies for refund, or applies for annuity, and
7 also where a term annuity becomes payable. In such cases, the
8 total of such salary deductions shall be refunded to the
9 fireman, without interest, and charged to the aforementioned
10 reserve.
11 (Source: P.A. 93-654, eff. 1-16-04.)
 
12     Section 90. The State Mandates Act is amended by adding
13 Section 8.34 as follows:
 
14     (30 ILCS 805/8.34 new)
15     Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8
16 of this Act, no reimbursement by the State is required for the
17 implementation of any mandate created by this amendatory Act of
18 the 96th General Assembly.
 
19     Section 99. Effective date. This Act takes effect upon
20 becoming law.