State of Illinois
90th General Assembly
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90_HB0836

      40 ILCS 5/3-111           from Ch. 108 1/2, par. 3-111
      40 ILCS 5/3-111.1         from Ch. 108 1/2, par. 3-111.1
      40 ILCS 5/3-112.1 new
      30 ILCS 805/8.21 new
          Amends the Downstate Police Article of the  Pension  Code
      to  provide  a  noncompounded  3% annual increase in survivor
      pensions.  Bases the calculation of retirement  pensions  and
      the  initial  automatic annual increase in retirement pension
      on  the  number  of  months  (rather  than  full  years)   of
      creditable service.  Amends the State Mandates Act to require
      implementation without reimbursement.  Effective immediately.
                                                     LRB9002619EGfg
                                               LRB9002619EGfg
 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Sections 3-111 and 3-111.1 and adding Section 3-112.1 and  to
 3    amend the State Mandates Act.
 4        Be  it  enacted  by  the People of the State of Illinois,
 5    represented in the General Assembly:
 6        Section 5.  The  Illinois  Pension  Code  is  amended  by
 7    changing  Sections  3-111  and  3-111.1  and  adding  Section
 8    3-112.1 as follows:
 9        (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
10        Sec. 3-111.  Pension.
11        (a) A police officer age 50 or more with 20 or more years
12    of  creditable  service,  who  is  no  longer in service as a
13    police officer, shall receive a pension of 1/2 of the  salary
14    attached  to the rank held by the officer on the police force
15    for one year immediately prior to  retirement  or,  beginning
16    July 1, 1987 for persons terminating service on or after that
17    date, the salary attached to the rank held on the last day of
18    service  or  for one year prior to the last day, whichever is
19    greater.  The pension shall be increased by 1/12th of  2%  of
20    such salary for each additional month year of service over 20
21    years, up to 30 years, and by 1/12th of 1% of such salary for
22    each  additional  month  year  of service over 30 years, to a
23    maximum of 75% of such salary.  No pension in  effect  on  or
24    granted  after  June  30,  l973  shall  be less than $200 per
25    month.   Beginning  July  1,  1987,  the  minimum  retirement
26    pension for a police officer having  at  least  20  years  of
27    creditable service shall be $400 per month, without regard to
28    whether or not retirement occurred prior to that date.
29        (b)  A  police  officer  mandatorily retired from service
30    due to age by operation of law, having at least  8  but  less
31    than  20 years of creditable service, shall receive a pension
                            -2-                LRB9002619EGfg
 1    equal to 1/12th of 2.5% 2 1/2% of the salary attached to  the
 2    rank  he  or  she  held  on  the  police  force  for one year
 3    immediately prior to retirement or, beginning  July  1,  1987
 4    for  persons  terminating  service on or after that date, the
 5    salary attached to the rank held on the last day  of  service
 6    or  for one year prior to the last day, whichever is greater,
 7    for each month year of creditable service.
 8        A police officer who retires or is separated from service
 9    having at least 8 years but less than 20 years of  creditable
10    service,  who  is  not  mandatorily  retired  due  to  age by
11    operation of law, and who does not  apply  for  a  refund  of
12    contributions  at  his  or  her  last  separation from police
13    service, shall receive a pension upon attaining age 60  equal
14    to  1/12th of 2.5% of the salary attached to the rank held by
15    the  police  officer  on  the  police  force  for  one   year
16    immediately  prior  to  retirement or, beginning July 1, 1987
17    for persons terminating service on or after  that  date,  the
18    salary  attached  to the rank held on the last day of service
19    or for one year prior to the last day, whichever is  greater,
20    for each month year of creditable service.
21    (Source: P.A. 85-941.)
22        (40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
23        Sec. 3-111.1.  Increase in pension.
24        (a)  Except  as  provided  in subsection (e), the monthly
25    pension of a police officer who retires after July  1,  1971,
26    and prior to January 1, 1986, shall be increased, upon either
27    the first of the month following the first anniversary of the
28    date  of retirement if the officer is 60 years of age or over
29    at retirement date, or  upon  the  first  day  of  the  month
30    following  attainment  of age 60 if it occurs after the first
31    anniversary of retirement, by 3% of  the  originally  granted
32    pension  and  by  an  additional 3% of the originally granted
33    pension in January of each year thereafter.
                            -3-                LRB9002619EGfg
 1        (b)  The monthly pension of a police officer who  retired
 2    from  service  with 20 or more years of service, on or before
 3    July 1, 1971, shall be  increased  in  January  of  the  year
 4    following the year of attaining age 65 or in January of 1972,
 5    if  then over age 65, by 3% of the originally granted pension
 6    for each year the police officer received  pension  payments.
 7    In  each  January  thereafter,  he  or  she  shall receive an
 8    additional increase of 3% of the original pension.
 9        (c)  The monthly pension of a police officer who  retires
10    on disability or is retired for disability shall be increased
11    in  January  of  the year following the year of attaining age
12    60, by 0.25% 3% of the original grant  of  pension  for  each
13    month  year  he  or  she  received pension payments.  In each
14    January thereafter,  the  police  officer  shall  receive  an
15    additional increase of 3% of the original pension.
16        (d)  The  monthly pension of a police officer who retires
17    after January 1, 1986, shall be increased,  upon  either  the
18    first  of  the  month  following the first anniversary of the
19    date of retirement if the officer is 55 years of age or  over
20    at  the  retirement  date, or upon the first day of the month
21    following attainment of age 55 if it occurs after  the  first
22    anniversary  of  retirement,  by  0.25%  3% of the originally
23    granted pension for each full month  year  that  has  elapsed
24    since  the  pension  began,  and  by  an additional 3% of the
25    originally  granted  pension  in   January   of   each   year
26    thereafter.
27        (e)  Notwithstanding  the  provisions  of subsection (a),
28    upon the first day of  the  month  following  (1)  the  first
29    anniversary  of the date of retirement, or (2) the attainment
30    of age 55, or (3) July 1, 1987, whichever occurs latest,  the
31    monthly  pension  of a police officer who retired on or after
32    January 1, 1977 and on or before January 1, 1986, and did not
33    receive an increase under subsection (a) before July 1, 1987,
34    shall be increased by 0.25%  3%  of  the  originally  granted
                            -4-                LRB9002619EGfg
 1    monthly  pension  for  each  full month year that has elapsed
 2    since the pension began, and  by  an  additional  3%  of  the
 3    originally  granted  pension  in each January thereafter. The
 4    increases provided under this subsection are in lieu  of  the
 5    increases provided in subsection (a).
 6        (f)  Notwithstanding   the   other   provisions  of  this
 7    Section, beginning with increases granted on or after July 1,
 8    1993,  the  second  and  all  subsequent   automatic   annual
 9    increases  granted  under subsection (a), (b), (d), or (e) of
10    this Section shall be calculated  as  3%  of  the  amount  of
11    pension  payable  at  the time of the increase, including any
12    increases previously granted under this Section, rather  than
13    3% of the originally granted pension amount.  Section 1-103.1
14    does not apply to this subsection (f).
15    (Source: P.A. 87-1265.)
16        (40 ILCS 5/3-112.1 new)
17        Sec.  3-112.1.  Automatic  annual  increase in pension to
18    survivors.  Beginning January 1, 1998, every pension  payable
19    to  the  survivor  of  a  deceased  police  officer  shall be
20    increased on each January 1 occurring on or after  the  first
21    anniversary  of the commencement of the pension, by an amount
22    equal to 3% of the originally granted pension, without regard
23    to whether the deceased police officer was in service  on  or
24    after the effective date of this amendatory Act of 1997.
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.
                            -5-                LRB9002619EGfg
 1        Section 99. Effective date.  This Act takes  effect  upon
 2    becoming law.

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