State of Illinois
90th General Assembly
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90_HB0770

      40 ILCS 5/6-164           from Ch. 108 1/2, par. 6-164
      30 ILCS 805/8.21 new
          Amends the Chicago Firefighter  Article  of  the  Pension
      Code  to  extend  the  3%  annual increase to all persons who
      retire  after  December  31,  1997,  beginning  at  age   55.
      Compounds  the  annual increase for all retirement annuitants
      beginning at age  65.   Amends  the  State  Mandates  Act  to
      require   implementation  without  reimbursement.   Effective
      immediately.
                                                     LRB9003877EGfg
                                               LRB9003877EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 6-164 and to amend the State Mandates Act.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 6-164 as follows:
 7        (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
 8        Sec.  6-164.  Automatic annual increase; retirement after
 9    September 1, 1959.
10        (a)  This subsection (a)  applies  only  to  persons  who
11    retire  before  January  1, 1998.  A fireman qualifying for a
12    minimum annuity who retires from service after  September  1,
13    1959  shall, upon either the first of the month following the
14    first anniversary of his date of retirement if he is  age  60
15    (age  55  if  born  before  January  1, 1945) or over on that
16    anniversary date, or upon the first of  the  month  following
17    his  attainment  of  age 60 (age 55 if born before January 1,
18    1945) if that occurs  after  the  first  anniversary  of  his
19    retirement  date,  have  his  then  fixed and payable monthly
20    annuity increased by 1 1/2%, and such first fixed annuity  as
21    granted  at  retirement  increased by an additional 1 1/2% in
22    January of each year thereafter up to a maximum  increase  of
23    30%.   Beginning July 1, 1982 for firemen born before January
24    1, 1930, and beginning January 1, 1990 for firemen born after
25    December 31, 1929 and before January 1, 1940,  and  beginning
26    January  1, 1996 for firemen born after December 31, 1939 but
27    before January 1, 1945, such increases shall be 3%  and  such
28    firemen shall not be subject to the 30% maximum increase.
29        Any fireman born before January 1, 1945 who qualifies for
30    a minimum annuity and retires after September 1, 1967 but has
31    not  received  the  initial  increase  under  this subsection
                            -2-                LRB9003877EGfg
 1    before January 1, 1996 is entitled  to  receive  the  initial
 2    increase  under  this  subsection on (1) January 1, 1996, (2)
 3    the first anniversary of  the  date  of  retirement,  or  (3)
 4    attainment  of age 55, whichever occurs last.  The changes to
 5    this Section made  by  this  amendatory  Act  of  1995  apply
 6    beginning January 1, 1996 and apply without regard to whether
 7    the  fireman  or  annuitant  terminated  service  before  the
 8    effective date of this amendatory Act of 1995.
 9        Beginning  January  1,  1998,  for  annuitants  who  have
10    attained  age  65 the increases payable under this subsection
11    (a) shall be based on  a  percentage  of  the  total  annuity
12    payable,  including  any  increases previously received under
13    this Section, rather than the original fixed  amount  of  the
14    annuity.   The  changes  to  this subsection (a) made by this
15    amendatory Act of 1997 apply without regard  to  whether  the
16    annuitant  withdrew from service before the effective date of
17    this amendatory Act of 1997.
18        (a-5)  In lieu of the increases provided under subsection
19    (a), on (1) the first anniversary of the date  of  retirement
20    or (2) the annuitant's attainment of age 55, whichever occurs
21    later,  and  in  each  January  thereafter for so long as the
22    annuity is payable, the monthly  retirement  annuity  of  any
23    fireman who qualifies for a minimum annuity and retires after
24    December  31,  1997  shall  be  increased  by  3%  of (i) the
25    original amount of the annuity, if the annuitant is  not  yet
26    age  65, or (ii) the current amount of the annuity, including
27    any previous increases under this Section, if  the  annuitant
28    is  age 65 or older.  This subsection (a-5) is not limited to
29    persons in service on or after the  effective  date  of  this
30    amendatory Act of 1997.
31        (b)  Subsections  (a)  and  (a-5)  Subsection (a) of this
32    Section are is not applicable to an employee receiving a term
33    annuity.
34        (c)  To  help  defray  the  cost  of  such  increases  in
                            -3-                LRB9003877EGfg
 1    annuity, there shall  be  deducted,  beginning  September  1,
 2    1959,  from each payment of salary to a fireman, 1/8 of 1% of
 3    each  such  salary  payment  and  an  additional  1/8  of  1%
 4    beginning on  September  1,  1961,  and  September  1,  1963,
 5    respectively, concurrently with and in addition to the salary
 6    deductions otherwise made for annuity purposes.
 7        Each  such  additional  1/8  of  1% deduction from salary
 8    which shall, on September 1, 1963, result in a total increase
 9    of 3/8 of 1% of salary, shall be credited  to  the  Automatic
10    Increase   Reserve,   to   be   used,   together   with  city
11    contributions as provided in this Article, to defray the cost
12    of the 1  1/2%  annuity  increments  herein  specified.   Any
13    balance  in such reserve as of the beginning of each calendar
14    year shall be credited with interest at the rate  of  3%  per
15    annum.
16        The  salary  deductions  provided in this Section are not
17    subject to refund, except to the fireman himself, in any case
18    in which a  fireman  withdraws  prior  to  qualification  for
19    minimum  annuity  and  applies  for  refund,  or  applies for
20    annuity, and also where a term annuity  becomes  payable.  In
21    such  cases,  the  total  of  such salary deductions shall be
22    refunded to the fireman, without interest, and charged to the
23    aforementioned reserve.
24    (Source: P.A. 89-136, eff. 7-14-95.)
25        Section 90.  The State Mandates Act is amended by  adding
26    Section 8.21 as follows:
27        (30 ILCS 805/8.21 new)
28        Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
29    and 8 of this Act, no reimbursement by the State is  required
30    for  the  implementation  of  any  mandate  created  by  this
31    amendatory Act of 1997.
                            -4-                LRB9003877EGfg
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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