Illinois General Assembly - Full Text of SB0419
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Full Text of SB0419  100th General Assembly

SB0419ham003 100TH GENERAL ASSEMBLY

Rep. Robert Martwick

Filed: 6/27/2017

 

 


 

 


 
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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) A fireman qualifying for a minimum annuity who retires
7from service after September 1, 1959 shall, upon either the
8first of the month following the first anniversary of his date
9of retirement if he is age 60 (age 55 if born before January 1,
101966) or over on that anniversary date, or upon the first of
11the month following his attainment of age 60 (age 55 if born
12before January 1, 1966) if that occurs after the first
13anniversary of his retirement date, have his then fixed and
14payable monthly annuity increased by 1 1/2%, and such first
15fixed annuity as granted at retirement increased by an
16additional 1 1/2% in January of each year thereafter up to a
17maximum increase of 30%. Beginning July 1, 1982 for firemen
18born before January 1, 1930, and beginning January 1, 1990 for
19firemen born after December 31, 1929 and before January 1,
201940, and beginning January 1, 1996 for firemen born after
21December 31, 1939 but before January 1, 1945, and beginning
22January 1, 2004, for firemen born after December 31, 1944 but
23before January 1, 1955, and beginning January 1, 2017, for
24firemen born after December 31, 1954 but before January 1,
251966, such increases shall be 3% and such firemen shall not be

 

 

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1subject to the 30% maximum increase.
2    Any fireman born before January 1, 1945 who qualifies for a
3minimum annuity and retires after September 1, 1967 but has not
4received the initial increase under this subsection before
5January 1, 1996 is entitled to receive the initial increase
6under this subsection on (1) January 1, 1996, (2) the first
7anniversary of the date of retirement, or (3) attainment of age
855, whichever occurs last. The changes to this Section made by
9this amendatory Act of 1995 apply beginning January 1, 1996 and
10apply without regard to whether the fireman or annuitant
11terminated service before the effective date of this amendatory
12Act of 1995.
13    Any fireman born before January 1, 1955 who qualifies for a
14minimum annuity and retires after September 1, 1967 but has not
15received the initial increase under this subsection before
16January 1, 2004 is entitled to receive the initial increase
17under this subsection on (1) January 1, 2004, (2) the first
18anniversary of the date of retirement, or (3) attainment of age
1955, whichever occurs last. The changes to this Section made by
20this amendatory Act of the 93rd General Assembly apply without
21regard to whether the fireman or annuitant terminated service
22before the effective date of this amendatory Act.
23    Any fireman born after December 31, 1954 but before January
241, 1966 who qualifies for a minimum annuity and retires after
25September 1, 1967 but has not received the initial increase
26under this subsection before January 1, 2017 is entitled to

 

 

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1receive an initial increase under this subsection on (1)
2January 1, 2017, (2) the first anniversary of the date of
3retirement, or (3) attainment of age 55, whichever occurs last,
4in an amount equal to an increase of 3% of his then fixed and
5payable monthly annuity upon the first of the month following
6the first anniversary of his date of retirement if he is age 55
7or over on that anniversary date or upon the first of the month
8following his attainment of age 55 if that date occurs after
9the first anniversary of his retirement date and such first
10fixed annuity as granted at retirement shall be increased by an
11additional 3% in January of each year thereafter. In the case
12of a fireman born after December 31, 1954 but before January 1,
131966 who received an increase in any year of 1.5%, that fireman
14shall receive an increase for any such year so that the total
15increase is equal to 3% for each year the fireman would have
16been otherwise eligible had the fireman not received any
17increase for each complete year following the date of
18retirement or attainment of age 55, whichever occurs later. The
19changes to this subsection made by this amendatory Act of the
2099th General Assembly apply without regard to whether the
21fireman or annuitant terminated service before the effective
22date of this amendatory Act. The changes to this subsection
23made by this amendatory Act of the 100th General Assembly are a
24declaration of existing law and shall not be construed as a new
25enactment.
26    (b) Subsection (a) of this Section is not applicable to an

 

 

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1employee receiving a term annuity.
2    (c) To help defray the cost of such increases in annuity,
3there shall be deducted, beginning September 1, 1959, from each
4payment of salary to a fireman, 1/8 of 1% of each such salary
5payment and an additional 1/8 of 1% beginning on September 1,
61961, and September 1, 1963, respectively, concurrently with
7and in addition to the salary deductions otherwise made for
8annuity purposes.
9    Each such additional 1/8 of 1% deduction from salary which
10shall, on September 1, 1963, result in a total increase of 3/8
11of 1% of salary, shall be credited to the Automatic Increase
12Reserve, to be used, together with city contributions as
13provided in this Article, to defray the cost of the annuity
14increments specified in this Section. Any balance in such
15reserve as of the beginning of each calendar year shall be
16credited with interest at the rate of 3% per annum.
17    The salary deductions provided in this Section are not
18subject to refund, except to the fireman himself in any case in
19which: (i) the fireman withdraws prior to qualification for
20minimum annuity or Tier 2 monthly retirement annuity and
21applies for refund, (ii) the fireman applies for an annuity of
22a type that is not subject to annual increases under this
23Section, or (iii) a term annuity becomes payable. In such
24cases, the total of such salary deductions shall be refunded to
25the fireman, without interest, and charged to the
26aforementioned reserve.

 

 

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1    (d) Notwithstanding any other provision of this Article,
2the Tier 2 monthly retirement annuity of a person who first
3becomes a fireman under this Article on or after January 1,
42011 shall be increased on the January 1 occurring either on or
5after (i) the attainment of age 60 or (ii) the first
6anniversary of the annuity start date, whichever is later. Each
7annual increase shall be calculated at 3% or one-half the
8annual unadjusted percentage increase (but not less than zero)
9in the consumer price index-u for the 12 months ending with the
10September preceding each November 1, whichever is less, of the
11originally granted retirement annuity. If the annual
12unadjusted percentage change in the consumer price index-u for
13a 12-month period ending in September is zero or, when compared
14with the preceding period, decreases, then the annuity shall
15not be increased.
16    For the purposes of this subsection (d), "consumer price
17index-u" means the index published by the Bureau of Labor
18Statistics of the United States Department of Labor that
19measures the average change in prices of goods and services
20purchased by all urban consumers, United States city average,
21all items, 1982-84 = 100. The new amount resulting from each
22annual adjustment shall be determined by the Public Pension
23Division of the Department of Insurance and made available to
24the boards of the pension funds by November 1 of each year.
25(Source: P.A. 99-905, eff. 11-29-16.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".