98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1592

 

Introduced , by Rep. Arthur Turner

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-167.1  from Ch. 108 1/2, par. 5-167.1
30 ILCS 805/8.37 new

    Amends the Chicago Police Article of the Illinois Pension Code. Provides that, for policemen born on or after January 1, 1955, beginning on January 1, 2014, automatic annual increases shall be 3% and such policemen shall not be subject to the 30% maximum increase. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB098 09497 EFG 39640 b

HOME RULE NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB1592LRB098 09497 EFG 39640 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 5-167.1 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 60 (age 55 if born before
13January 1, 1955) or over on that anniversary date, or upon the
14first of the month following his attainment of age 60 (age 55
15if born before January 1, 1955) if it occurs after the first
16anniversary of his retirement date, have his then fixed and
17payable monthly annuity increased by 1 1/2% and such first
18fixed annuity as granted at retirement increased by an
19additional 1 1/2% in January of each year thereafter up to a
20maximum 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

 

 

HB1592- 2 -LRB098 09497 EFG 39640 b

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, 2014 for
6policemen born on or after January 1, 1955, such increases
7shall be 3% and such policemen shall not be subject to the 30%
8maximum 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

 

 

HB1592- 3 -LRB098 09497 EFG 39640 b

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 on or after January 1, 1955 who
14qualifies for a minimum annuity and retires after September 1,
151967 but has not received the initial increase under this
16subsection before January 1, 2014 is entitled to receive the
17initial increase under this subsection on (1) January 1, 2014,
18(2) the first anniversary of the date of retirement, or (3)
19attainment of age 55, whichever occurs last. The changes to
20this Section made by this amendatory Act of the 98th General
21Assembly apply without regard to whether the policeman or
22annuitant terminated service before the effective date of this
23amendatory Act.
24    (b) Subsection (a) of this Section is not applicable to an
25employee receiving a term annuity.
26    (c) To help defray the cost of such increases in annuity,

 

 

HB1592- 4 -LRB098 09497 EFG 39640 b

1there shall be deducted, beginning September 1, 1967, from each
2payment of salary to a policeman, 1/2 of 1% of each salary
3payment concurrently with and in addition to the salary
4deductions otherwise made for annuity purposes.
5    The city, in addition to the contributions otherwise made
6by it for annuity purposes under other provisions of this
7Article, shall make matching contributions concurrently with
8such salary deductions.
9    Each such 1/2 of 1% deduction from salary and each such
10contribution by the city of 1/2 of 1% of salary shall be
11credited to the Automatic Increase Reserve, to be used to
12defray the cost of the 1 1/2% annuity increase provided by this
13Section. Any balance in such reserve as of the beginning of
14each calendar year shall be credited with interest at the rate
15of 3% per annum.
16    Such deductions from salary and city contributions shall
17continue while the policeman is in service.
18    The salary deductions provided in this Section are not
19subject to refund, except to the policeman himself, in any case
20in which a policeman withdraws prior to qualification for
21minimum annuity and applies for refund or applies for annuity,
22and also where a term annuity becomes payable. In such cases,
23the total of such salary deductions shall be refunded to the
24policeman, without interest, and charged to the Automatic
25Increase Reserve.
26    (d) Notwithstanding any other provision of this Article,

 

 

HB1592- 5 -LRB098 09497 EFG 39640 b

1the monthly annuity of a person who first becomes a policeman
2under this Article on or after the effective date of this
3amendatory Act of the 97th General Assembly shall be increased
4on the January 1 occurring either on or after the attainment of
5age 60 or the first anniversary of the annuity start date,
6whichever is later. Each annual increase shall be calculated at
73% or one-half the annual unadjusted percentage increase (but
8not less than zero) in the consumer price index-u for the 12
9months ending with the September preceding each November 1,
10whichever is less, of the originally granted retirement
11annuity. If the annual unadjusted percentage change in the
12consumer price index-u for a 12-month period ending in
13September is zero or, when compared with the preceding period,
14decreases, then the annuity shall not be increased.
15    For the purposes of this subsection (d), "consumer price
16index-u" means the index published by the Bureau of Labor
17Statistics of the United States Department of Labor that
18measures the average change in prices of goods and services
19purchased by all urban consumers, United States city average,
20all items, 1982-84 = 100. The new amount resulting from each
21annual adjustment shall be determined by the Public Pension
22Division of the Department of Insurance and made available to
23the boards of the pension funds.
24(Source: P.A. 96-1495, eff. 1-1-11; 97-344, eff. 8-12-11.)
 
25    Section 90. The State Mandates Act is amended by adding

 

 

HB1592- 6 -LRB098 09497 EFG 39640 b

1Section 8.37 as follows:
 
2    (30 ILCS 805/8.37 new)
3    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
4of this Act, no reimbursement by the State is required for the
5implementation of any mandate created by this amendatory Act of
6the 98th General Assembly.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.