100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3175

 

Introduced 2/15/2018, by Sen. Emil Jones, III

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-229
30 ILCS 805/8.42 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the greater of (rather than the lesser of) 3%, including all previous adjustments, or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB100 19069 RPS 34325 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB3175LRB100 19069 RPS 34325 b

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 6-229 as follows:
 
6    (40 ILCS 5/6-229)
7    Sec. 6-229. Provisions applicable to new hires; Tier 2.
8    (a) Notwithstanding any other provision of this Article,
9the provisions of this Section apply to a person who first
10becomes a fireman under this Article on or after January 1,
112011, and to certain qualified survivors of such a fireman.
12Such persons, and the benefits and restrictions that apply
13specifically to them under this Article, may be referred to as
14"Tier 2".
15    (b) A fireman who has withdrawn from service, has attained
16age 50 or more, and has 10 or more years of service in that
17capacity shall be entitled, upon proper application being
18received by the Fund, to receive a Tier 2 monthly retirement
19annuity for his service as a fireman. The Tier 2 monthly
20retirement annuity shall be computed by multiplying 2.5% for
21each year of such service by his or her final average salary,
22subject to an annuity reduction factor of one-half of 1% for
23each month that the fireman's age at retirement is under age

 

 

SB3175- 2 -LRB100 19069 RPS 34325 b

155. The Tier 2 monthly retirement annuity is in lieu of any age
2and service annuity or other form of retirement annuity under
3this Article.
4    The maximum retirement annuity under this subsection (b)
5shall be 75% of final average salary.
6    For the purposes of this subsection (b), "final average
7salary" means the average monthly salary obtained by dividing
8the total salary of the fireman during the 96 consecutive
9months of service within the last 120 months of service in
10which the total salary was the highest by the number of months
11of service in that period.
12    Beginning on January 1, 2011, for all purposes under this
13Code (including without limitation the calculation of benefits
14and employee contributions), the annual salary based on the
15plan year of a member or participant to whom this Section
16applies shall not exceed $106,800; however, until 2019, that
17amount shall annually thereafter be increased by the lesser of
18(i) 3% of that amount, including all previous adjustments, or
19(ii) one-half the annual unadjusted percentage increase (but
20not less than zero) in the consumer price index-u for the 12
21months ending with the September preceding each November 1,
22including all previous adjustments; however, beginning in
232019, that amount shall annually thereafter be increased by the
24greater of (i) 3% of that amount, including all previous
25adjustments, or (ii) one-half the annual unadjusted percentage
26increase (but not less than zero) in the consumer price index-u

 

 

SB3175- 3 -LRB100 19069 RPS 34325 b

1for the 12 months ending with the September preceding each
2November 1, including all previous adjustments.
3    (b-5) For the purposes of this Section, "consumer price
4index-u" means the index published by the Bureau of Labor
5Statistics of the United States Department of Labor that
6measures the average change in prices of goods and services
7purchased by all urban consumers, United States city average,
8all items, 1982-84 = 100. The new amount resulting from each
9annual adjustment shall be determined by the Public Pension
10Division of the Department of Insurance and made available to
11the boards of the retirement systems and pension funds by
12November 1 of each year.
13    (c) Notwithstanding any other provision of this Article,
14for a person who first becomes a fireman under this Article on
15or after January 1, 2011, eligibility for and the amount of the
16annuity to which the qualified surviving spouse, children, and
17parents of the fireman are entitled under this subsection (c)
18shall be determined as follows:
19        (1) The surviving spouse of a deceased fireman to whom
20    this Section applies shall be deemed qualified to receive a
21    Tier 2 surviving spouse's annuity under this paragraph (1)
22    if: (i) the deceased fireman meets the requirements
23    specified under subdivision (A), (B), (C), or (D) of this
24    paragraph (1); and (ii) the surviving spouse would not
25    otherwise be excluded from receiving a widow's annuity
26    under the eligibility requirements for a widow's annuity

 

 

SB3175- 4 -LRB100 19069 RPS 34325 b

1    set forth in Section 6-142. The Tier 2 surviving spouse's
2    annuity is in lieu of the widow's annuity determined under
3    any other Section of this Article and is subject to the
4    requirements of Section 6-143.2.
5        As used in this subsection (c), "earned pension" means
6    a Tier 2 monthly retirement annuity determined under
7    subsection (b) of this Section, including any increases the
8    fireman had received pursuant to Section 6-164.
9            (A) If the deceased fireman was receiving an earned
10        pension at the date of his or her death, the Tier 2
11        surviving spouse's annuity under this paragraph (1)
12        shall be in the amount of 66 2/3% of the fireman's
13        earned pension at the date of death.
14            (B) If the deceased fireman was not receiving an
15        earned pension but had at least 10 years of service at
16        the time of death, the Tier 2 surviving spouse's
17        annuity under this paragraph (1) shall be the greater
18        of: (i) 30% of the salary attached to the rank of first
19        class firefighter in the classified career service at
20        the time of the fireman's death; or (ii) 66 2/3% of the
21        Tier 2 monthly retirement annuity that the deceased
22        fireman would have been eligible to receive under
23        subsection (b) of this Section, based upon the actual
24        service accrued through the day before the fireman's
25        death, but determined as though the fireman was at
26        least age 55 on the day before his or her death and

 

 

SB3175- 5 -LRB100 19069 RPS 34325 b

1        retired on that day.
2            (C) If the deceased fireman was an active fireman
3        with at least 1 1/2 but less than 10 years of service
4        at the time of death, the Tier 2 surviving spouse's
5        annuity under this paragraph (1) shall be in the amount
6        of 30% of the salary attached to the rank of first
7        class firefighter in the classified career service at
8        the time of the fireman's death.
9            (D) Notwithstanding subdivisions (A), (B), and (C)
10        of this paragraph (1), if the performance of an act or
11        acts of duty results directly in the death of a fireman
12        subject to this Section, or prevents him from
13        subsequently resuming active service in the fire
14        department, then a surviving spouse who would
15        otherwise meet the eligibility requirements for a
16        death in the line of duty widow's annuity granted under
17        Section 6-140 shall be deemed to be qualified for a
18        Tier 2 surviving spouse's annuity under this
19        subdivision (D); except that no such annuity shall be
20        paid to the surviving spouse of a fireman who dies
21        while in receipt of disability benefits when the
22        fireman's death was caused by an intervening illness or
23        injury unrelated to the illness or injury that had
24        prevented him from subsequently resuming active
25        service in the fire department. The Tier 2 surviving
26        spouse's annuity calculated under this subdivision (D)

 

 

SB3175- 6 -LRB100 19069 RPS 34325 b

1        shall be in lieu of, but in the same amount and paid in
2        the same manner as, the widow's annuity provided under
3        Section 6-140; except that the salary used for
4        computing a Tier 2 surviving spouse's annuity under
5        this subdivision (D) shall be subject to the Tier 2
6        salary cap provided under subsection (b) of this
7        Section.
8            (E) Notwithstanding any other provision of this
9        Article, the monthly Tier 2 surviving spouse's annuity
10        under subdivision (A) or (B) of this paragraph (1)
11        shall be increased on the January 1 next occurring
12        after (i) attainment of age 60 by the recipient of the
13        Tier 2 surviving spouse's annuity or (ii) the first
14        anniversary of the Tier 2 surviving spouse's annuity
15        start date, whichever is later, and on each January 1
16        thereafter, by 3% or one-half the annual unadjusted
17        percentage increase in the consumer price index-u for
18        the 12 months ending with September preceding each
19        November 1, whichever is less, of the originally
20        granted Tier 2 surviving spouse's annuity. If the
21        annual unadjusted percentage change in the consumer
22        price index-u for a 12-month period ending in September
23        is zero or, when compared with the preceding period,
24        decreases, then the annuity shall not be increased.
25            (F) Notwithstanding the other provisions of this
26        paragraph (1), for a qualified surviving spouse who is

 

 

SB3175- 7 -LRB100 19069 RPS 34325 b

1        entitled to a Tier 2 surviving spouse's annuity under
2        subdivision (A), (B), (C), or (D) of this paragraph
3        (1), that Tier 2 surviving spouse's annuity shall not
4        be less than the amount of the minimum widow's annuity
5        established from time to time under Section 6-128.4.
6        (2) Surviving children of a deceased fireman subject to
7    this Section who would otherwise meet the eligibility
8    requirements for a child's annuity set forth in Sections
9    6-147 and 6-148 shall be deemed qualified to receive a Tier
10    2 child's annuity under this subsection (c), which shall be
11    in lieu of, but in the same amount and paid in the same
12    manner as, the child's annuity provided under those
13    Sections; except that any salary used for computing a Tier
14    2 child's annuity shall be subject to the Tier 2 salary cap
15    provided under subsection (b) of this Section. For purposes
16    of determining any pro rata reduction in child's annuities
17    under this subsection (c), references in Section 6-148 to
18    the combined annuities of the family shall be deemed to
19    refer to the combined Tier 2 surviving spouse's annuity, if
20    any, and the Tier 2 child's annuities payable under this
21    subsection (c).
22        (3) Surviving parents of a deceased fireman subject to
23    this Section who would otherwise meet the eligibility
24    requirements for a parent's annuity set forth in Section
25    6-149 shall be deemed qualified to receive a Tier 2
26    parent's annuity under this subsection (c), which shall be

 

 

SB3175- 8 -LRB100 19069 RPS 34325 b

1    in lieu of, but in the same amount and paid in the same
2    manner as, the parent's annuity provided under Section
3    6-149; except that any salary used for computing a Tier 2
4    parent's annuity shall be subject to the Tier 2 salary cap
5    provided under subsection (b) of this Section. For the
6    purposes of this Section, a reference to "annuity" in
7    Section 6-149 includes: (i) in the context of a widow, a
8    Tier 2 surviving spouse's annuity and (ii) in the context
9    of a child, a Tier 2 child's annuity.
10    (d) The General Assembly finds and declares that the
11provisions of this Section, as enacted by Public Act 96-1495,
12require clarification relating to necessary eligibility
13standards and the manner of determining and paying the intended
14Tier 2 benefits and contributions in order to enable the Fund
15to unambiguously implement and administer benefits for Tier 2
16members. The changes to this Section and the conforming changes
17to Sections 6-150, 6-158, 6-164 (except for the changes to
18subsection (a) of that Section), 6-166, and 6-167 made by this
19amendatory Act of the 99th General Assembly are enacted to
20clarify the provisions of this Section as enacted by Public Act
2196-1495, and are hereby declared to represent and be consistent
22with the original and continuing intent of this Section and
23Public Act 96-1495.
24    (e) The changes to Sections 6-150, 6-158, 6-164 (except for
25the changes to subsection (a) of that Section), 6-166, and
266-167 made by this amendatory Act of the 99th General Assembly

 

 

SB3175- 9 -LRB100 19069 RPS 34325 b

1are intended to be retroactive to January 1, 2011 (the
2effective date of Public Act 96-1495) and, for the purposes of
3Section 1-103.1 of this Code, they apply without regard to
4whether the relevant fireman was in service on or after the
5effective date of this amendatory Act of the 99th General
6Assembly.
7(Source: P.A. 99-905, eff. 11-29-16.)
 
8    Section 90. The State Mandates Act is amended by adding
9Section 8.42 as follows:
 
10    (30 ILCS 805/8.42 new)
11    Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
12of this Act, no reimbursement by the State is required for the
13implementation of any mandate created by this amendatory Act of
14the 100th General Assembly.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.