State of Illinois
91st General Assembly
Legislation

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91_SB1467

 
                                               LRB9110680EGfg

 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections  5-167.1 and 5-167.2 and to amend the State Mandates
 3    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 5-167.1 and 5-167.2 as follows:

 8        (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
 9        Sec. 5-167.1.  Automatic increase in annuity;  retirement
10    from service after September 1, 1967.
11        (a)  A policeman who retires from service after September
12    1,  1967 with at least 20 years of service credit shall, upon
13    either the first of the month following the first anniversary
14    of his date of retirement if he is age 60  (age  55  if  born
15    before  January 1, 1945) or over on that anniversary date, or
16    upon the first of the month following his attainment  of  age
17    60 (age 55 if born before January 1, 1945) if it occurs after
18    the  first  anniversary of his retirement date, have his then
19    fixed and payable monthly annuity  increased  by  1 1/2%  and
20    such  first  fixed annuity as granted at retirement increased
21    by an additional 1 1/2% in January of each year thereafter up
22    to a maximum increase of 30%.  Beginning January 1, 1983  for
23    policemen  born before January 1, 1930, and beginning January
24    1, 1988 for policemen born on or after January  1,  1930  but
25    before  January  1,  1940,  and beginning January 1, 1996 for
26    policemen born on or after January 1, 1940 but before January
27    1, 1945, such increases shall be 3% and such policemen  shall
28    not be subject to the 30% maximum increase.
29        Beginning  January  1,  2001,  all annual increases under
30    this subsection shall be at the rate of  3%  of  the  current
31    amount  of  the  annuity,  including  any  previous increases
 
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 1    granted under this Article, and the  30%  maximum  no  longer
 2    applies.   The change made to this Section by this amendatory
 3    Act of the 91st General Assembly is not limited to persons in
 4    service on or after its effective date.
 5        Any policeman born before January 1, 1945  who  qualifies
 6    for a minimum annuity and retires after September 1, 1967 but
 7    has  not  received the initial increase under this subsection
 8    before January 1, 1996 is entitled  to  receive  the  initial
 9    increase  under  this  subsection on (1) January 1, 1996, (2)
10    the first anniversary of  the  date  of  retirement,  or  (3)
11    attainment  of age 55, whichever occurs last.  The changes to
12    this Section made  by  this  amendatory  Act  of  1995  apply
13    beginning  January  1, 1996 and without regard to whether the
14    policeman  or  annuitant  terminated   service   before   the
15    effective date of this amendatory Act of 1995.
16        (b)  Subsection  (a) of this Section is not applicable to
17    an employee receiving a term annuity.
18        (c)  To  help  defray  the  cost  of  such  increases  in
19    annuity, there shall  be  deducted,  beginning  September  1,
20    1967,  from  each payment of salary to a policeman, 1/2 of 1%
21    of each salary payment concurrently with and in  addition  to
22    the salary deductions otherwise made for annuity purposes.
23        The city, in addition to the contributions otherwise made
24    by  it  for  annuity  purposes under other provisions of this
25    Article, shall make matching contributions concurrently  with
26    such salary deductions.
27        Each  such  1/2 of 1% deduction from salary and each such
28    contribution by the city of 1/2 of  1%  of  salary  shall  be
29    credited  to  the  Automatic  Increase Reserve, to be used to
30    defray the cost of the 1 1/2% annuity  increase  provided  by
31    this  Section.   Any  balance  in  such  reserve  as  of  the
32    beginning  of  each  calendar  year  shall  be  credited with
33    interest at the rate of 3% per annum.
34        Such deductions from salary and city contributions  shall
 
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 1    continue while the policeman is in service.
 2        The  salary  deductions  provided in this Section are not
 3    subject to refund, except to the policeman  himself,  in  any
 4    case  in  which  a policeman withdraws prior to qualification
 5    for minimum annuity and applies for  refund  or  applies  for
 6    annuity,  and  also  where a term annuity becomes payable. In
 7    such cases, the total of  such  salary  deductions  shall  be
 8    refunded  to  the policeman, without interest, and charged to
 9    the Automatic Increase Reserve.
10    (Source: P.A. 89-12, eff. 4-20-95.)

11        (40 ILCS 5/5-167.2) (from Ch. 108 1/2, par. 5-167.2)
12        Sec. 5-167.2. Retirement before  September  1,  1967.   A
13    retired  policeman,  qualifying  for  minimum  annuity or who
14    retired from service with 20 or more years of service, before
15    September 1, 1967, shall, in January of  the  year  following
16    the  year he attains the age of 65, or in January of the year
17    1970, if then more than 65 years of age, have his then  fixed
18    and  payable  monthly annuity increased by an amount equal to
19    2% of the original  grant  of  annuity,  for  each  year  the
20    policeman  was  in receipt of annuity payments after the year
21    in which he attains,  or  did  attain  the  age  of  63.   An
22    additional  2%  increase  in  such  then  fixed  and  payable
23    original   granted  annuity  shall  accrue  in  each  January
24    thereafter.  Beginning January 1,  1986,  the  rate  of  such
25    increase  shall  be  3%  instead of 2%.  Beginning January 1,
26    2001, all annual increases under this paragraph shall  be  at
27    the  rate  of  3%  of  the  current  amount  of  the annuity,
28    including any previous increases granted under this  Article.
29    The change made to this Section by this amendatory Act of the
30    91st General Assembly is not limited to persons in service on
31    or after its effective date.
32        The provisions of the preceding paragraph of this Section
33    apply only to a retired policeman eligible for such increases
 
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 1    in  his annuity who contributes to the Fund a sum equal to $5
 2    for each full year of credited service upon which his annuity
 3    was computed.  All such sums contributed shall be placed in a
 4    Supplementary Payment Reserve  and  shall  be  used  for  the
 5    purposes of such Fund account.
 6        Beginning  with  the monthly annuity payment due in July,
 7    1982, the fixed and granted monthly annuity payment  for  any
 8    policeman  who  retired from the service, before September 1,
 9    1976, at age 50 or over with 20 or more years of service  and
10    entitled  to an annuity on January 1, 1974, shall be not less
11    than $400.  It is the intent of the General Assembly that the
12    change made in this Section by this amendatory  Act  of  1982
13    shall apply retroactively to July 1, 1982.
14        Beginning with the monthly annuity payment due on January
15    1,  1986,  the  fixed and granted monthly annuity payment for
16    any policeman who retired from the service before January  1,
17    1986,  at age 50 or over with 20 or more years of service, or
18    any policeman who retired from service due to termination  of
19    disability  and  who  is entitled to an annuity on January 1,
20    1986, shall be not less than $475.
21        Beginning with the monthly annuity payment due on January
22    1, 1992, the fixed and granted monthly  annuity  payment  for
23    any  policeman who retired from the service before January 1,
24    1992, at age 50 or over with 20 or more years of service, and
25    for any policeman who retired from service due to termination
26    of disability and who is entitled to an annuity on January 1,
27    1992, shall be not less than $650.
28        Beginning with the monthly annuity payment due on January
29    1, 1993, the fixed and granted monthly  annuity  payment  for
30    any  policeman who retired from the service before January 1,
31    1993, at age 50 or over with 20 or more years of service, and
32    for any policeman who retired from service due to termination
33    of disability and who is entitled to an annuity on January 1,
34    1993, shall be not less than $750.
 
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 1        Beginning with the monthly annuity payment due on January
 2    1, 1994, the fixed and granted monthly  annuity  payment  for
 3    any  policeman who retired from the service before January 1,
 4    1994, at age 50 or over with 20 or more years of service, and
 5    for any policeman who retired from service due to termination
 6    of disability and who is entitled to an annuity on January 1,
 7    1994, shall be not less than $850.
 8        The difference in amount between the original  fixed  and
 9    granted  monthly annuity of any such policeman on the date of
10    his retirement from  the  service  and  the  monthly  annuity
11    provided  for in the immediately preceding paragraph shall be
12    paid  as  a  supplement  in  the  manner  set  forth  in  the
13    immediately following paragraph.
14        To defray the annual cost of the increases  indicated  in
15    the  preceding  part  of   this  Section, the annual interest
16    income accruing from investments held by this Fund, exclusive
17    of gains or losses on sales or exchanges of assets during the
18    year, over and above 4% a year shall be used  to  the  extent
19    necessary and available to finance the cost of such increases
20    for  the  following year and such amount shall be transferred
21    as of the end of each year beginning with the year 1969 to  a
22    Fund  account designated as the Supplementary Payment Reserve
23    from the Interest and Investment Reserve set forth in Section
24    5-207.
25        In the event  the  funds  in  the  Supplementary  Payment
26    Reserve  in  any  year  arising from: (1) the interest income
27    accruing in the preceding  year above 4% a year and  (2)  the
28    contributions by retired persons are insufficient to make the
29    total  payments  to  all  persons  entitled  to  the  annuity
30    specified  in this Section and (3) any interest earnings over
31    4% a year  beginning  with  the  year  1969  which  were  not
32    previously  used  to  finance  such  increases and which were
33    transferred to the Prior Service Annuity Reserve, may be used
34    to the extent necessary and available to  provide  sufficient
 
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 1    funds to finance such increases for the current year and such
 2    sums  shall  be  transferred  from  the Prior Service Annuity
 3    Reserve.  In the event  the  total  money  available  in  the
 4    Supplementary   Payment   Reserve   from   such  sources  are
 5    insufficient to  make  the  total  payments  to  all  persons
 6    entitled  to  such  increases  for  the year, a proportionate
 7    amount computed as the ratio of the money  available  to  the
 8    total  of the total payments specified for that year shall be
 9    paid to each person for that year.
10        The Fund shall  be  obligated  for  the  payment  of  the
11    increases in  annuity as provided for in this Section only to
12    the extent that the assets for such purpose are available.
13    (Source: P.A. 91-357, eff. 7-29-99.)

14        Section  90.  The State Mandates Act is amended by adding
15    Section 8.24 as follows:

16        (30 ILCS 805/8.24 new)
17        Sec. 8.24. Exempt mandate.   Notwithstanding  Sections  6
18    and  8 of this Act, no reimbursement by the State is required
19    for  the  implementation  of  any  mandate  created  by  this
20    amendatory Act of the 91st General Assembly.

21        Section 99. Effective date.  This Act takes  effect  upon
22    becoming law.

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