98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5310

 

Introduced , by Rep. Daniel J. Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.38 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Beginning December 1, 2014, extends eligibility for the 3% annual increase in retirement annuity at age 55 to firemen born after December 31, 1954 who began service prior to January 1, 2011. 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,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 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
8September 1, 1959.
9    (a) A fireman qualifying for a minimum annuity who retires
10from service after September 1, 1959 shall, upon either the
11first of the month following the first anniversary of his date
12of retirement if he is age 60 (age 55 if he began service prior
13to January 1, 2011 born before January 1, 1955) or over on that
14anniversary date, or upon the first of the month following his
15attainment of age 60 (age 55 if he began service prior to
16January 1, 2011 born before January 1, 1955) if that occurs
17after the first anniversary of his retirement date, have his
18then fixed and payable monthly annuity increased by 1 1/2%, and
19such first fixed annuity as granted at retirement increased by
20an additional 1 1/2% in January of each year thereafter up to a
21maximum increase of 30%. Beginning July 1, 1982 for firemen
22born before January 1, 1930, and beginning January 1, 1990 for
23firemen born after December 31, 1929 and before January 1,

 

 

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11940, and beginning January 1, 1996 for firemen born after
2December 31, 1939 but before January 1, 1945, and beginning
3January 1, 2004, for firemen born after December 31, 1944 but
4before January 1, 1955, and beginning December 1, 2014 for
5firemen born after December 31, 1954 who began service prior to
6January 1, 2011, such increases shall be 3% and such firemen
7shall not be subject to the 30% maximum increase.
8    Any fireman born before January 1, 1945 who qualifies for a
9minimum annuity and retires after September 1, 1967 but has not
10received the initial increase under this subsection before
11January 1, 1996 is entitled to receive the initial increase
12under this subsection on (1) January 1, 1996, (2) the first
13anniversary of the date of retirement, or (3) attainment of age
1455, whichever occurs last. The changes to this Section made by
15this amendatory Act of 1995 apply beginning January 1, 1996 and
16apply without regard to whether the fireman or annuitant
17terminated service before the effective date of this amendatory
18Act of 1995.
19    Any fireman born before January 1, 1955 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, 2004 is entitled to receive the initial increase
23under this subsection on (1) January 1, 2004, (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 93rd General Assembly apply without

 

 

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1regard to whether the fireman or annuitant terminated service
2before the effective date of this amendatory Act.
3    Any fireman who began service prior to January 1, 2011 and
4qualifies for a minimum annuity and retires after September 1,
51967 but has not received the initial increase under this
6subsection before December 1, 2014 is entitled to receive the
7initial increase under this subsection on (1) December 1, 2014,
8(2) the first anniversary of the date of retirement, or (3)
9attainment of age 55, whichever occurs last. The changes to
10this Section made by this amendatory Act of the 98th General
11Assembly apply without regard to whether the fireman or
12annuitant terminated service before the effective date of this
13amendatory Act.
14    (b) Subsection (a) of this Section is not applicable to an
15employee receiving a term annuity.
16    (c) To help defray the cost of such increases in annuity,
17there shall be deducted, beginning September 1, 1959, from each
18payment of salary to a fireman, 1/8 of 1% of each such salary
19payment and an additional 1/8 of 1% beginning on September 1,
201961, and September 1, 1963, respectively, concurrently with
21and in addition to the salary deductions otherwise made for
22annuity purposes.
23    Each such additional 1/8 of 1% deduction from salary which
24shall, on September 1, 1963, result in a total increase of 3/8
25of 1% of salary, shall be credited to the Automatic Increase
26Reserve, to be used, together with city contributions as

 

 

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1provided in this Article, to defray the cost of the 1 1/2%
2annuity increments herein specified. Any balance in such
3reserve as of the beginning of each calendar year shall be
4credited with interest at the rate of 3% per annum.
5    The salary deductions provided in this Section are not
6subject to refund, except to the fireman himself, in any case
7in which a fireman withdraws prior to qualification for minimum
8annuity and applies for refund, or applies for annuity, and
9also where a term annuity becomes payable. In such cases, the
10total of such salary deductions shall be refunded to the
11fireman, without interest, and charged to the aforementioned
12reserve.
13    (d) Notwithstanding any other provision of this Article,
14the monthly annuity of a person who first becomes a fireman
15under this Article on or after January 1, 2011 shall be
16increased on the January 1 occurring either on or after the
17attainment of age 60 or the first anniversary of the annuity
18start date, whichever is later. Each annual increase shall be
19calculated at 3% or one-half the annual unadjusted percentage
20increase (but not less than zero) in the consumer price index-u
21for the 12 months ending with the September preceding each
22November 1, whichever is less, of the originally granted
23retirement annuity. If the annual unadjusted percentage change
24in the consumer price index-u for a 12-month period ending in
25September is zero or, when compared with the preceding period,
26decreases, then the annuity shall not be increased.

 

 

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1    For the purposes of this subsection (d), "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 pension funds.
10(Source: P.A. 96-1495, eff. 1-1-11.)
 
11    Section 90. The State Mandates Act is amended by adding
12Section 8.38 as follows:
 
13    (30 ILCS 805/8.38 new)
14    Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
15of this Act, no reimbursement by the State is required for the
16implementation of any mandate created by this amendatory Act of
17the 98th General Assembly.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.