101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5592

 

Introduced , by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/4-109.1  from Ch. 108 1/2, par. 4-109.1
30 ILCS 805/8.44 new

    Amends the Downstate Firefighters Article of the Illinois Pension Code. Provides that each annual increase for Tier 2 members shall be calculated at 3% of the originally granted pension (rather than the lesser of 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for a 12-month period ending in September preceding each November 1). Provides that the changes shall apply without regard to whether a Tier 2 member is in active service under the Article on or after the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 19174 RPS 68637 b

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

 

 

A BILL FOR

 

HB5592LRB101 19174 RPS 68637 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 4-109.1 as follows:
 
6    (40 ILCS 5/4-109.1)  (from Ch. 108 1/2, par. 4-109.1)
7    Sec. 4-109.1. Increase in pension.
8    (a) Except as provided in subsection (e), the monthly
9pension of a firefighter who retires after July 1, 1971 and
10prior to January 1, 1986, shall, upon either the first of the
11month following the first anniversary of the date of retirement
12if 60 years of age or over at retirement date, or upon the
13first day of the month following attainment of age 60 if it
14occurs after the first anniversary of retirement, be increased
15by 2% of the originally granted monthly pension and by an
16additional 2% in each January thereafter. Effective January
171976, the rate of the annual increase shall be 3% of the
18originally granted monthly pension.
19    (b) The monthly pension of a firefighter who retired from
20service with 20 or more years of service, on or before July 1,
211971, shall be increased, in January of the year following the
22year of attaining age 65 or in January 1972, if then over age
2365, by 2% of the originally granted monthly pension, for each

 

 

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1year the firefighter received pension payments. In each January
2thereafter, he or she shall receive an additional increase of
32% of the original monthly pension. Effective January 1976, the
4rate of the annual increase shall be 3%.
5    (c) The monthly pension of a firefighter who is receiving a
6disability pension under this Article shall be increased, in
7January of the year following the year the firefighter attains
8age 60, or in January 1974, if then over age 60, by 2% of the
9originally granted monthly pension for each year he or she
10received pension payments. In each January thereafter, the
11firefighter shall receive an additional increase of 2% of the
12original monthly pension. Effective January 1976, the rate of
13the annual increase shall be 3%.
14    (c-1) On January 1, 1998, every child's disability benefit
15payable on that date under Section 4-110 or 4-110.1 shall be
16increased by an amount equal to 1/12 of 3% of the amount of the
17benefit, multiplied by the number of months for which the
18benefit has been payable. On each January 1 thereafter, every
19child's disability benefit payable under Section 4-110 or
204-110.1 shall be increased by 3% of the amount of the benefit
21then being paid, including any previous increases received
22under this Article. These increases are not subject to any
23limitation on the maximum benefit amount included in Section
244-110 or 4-110.1.
25    (c-2) On July 1, 2004, every pension payable to or on
26behalf of a minor or disabled surviving child that is payable

 

 

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1on that date under Section 4-114 shall be increased by an
2amount equal to 1/12 of 3% of the amount of the pension,
3multiplied by the number of months for which the benefit has
4been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
5July 1, 2008, every pension payable to or on behalf of a minor
6or disabled surviving child that is payable under Section 4-114
7shall be increased by 3% of the amount of the pension then
8being paid, including any previous increases received under
9this Article. These increases are not subject to any limitation
10on the maximum benefit amount included in Section 4-114.
11    (d) The monthly pension of a firefighter who retires after
12January 1, 1986, shall, upon either the first of the month
13following the first anniversary of the date of retirement if 55
14years of age or over, or upon the first day of the month
15following attainment of age 55 if it occurs after the first
16anniversary of retirement, be increased by 1/12 of 3% of the
17originally granted monthly pension for each full month that has
18elapsed since the pension began, and by an additional 3% in
19each January thereafter.
20    The changes made to this subsection (d) by this amendatory
21Act of the 91st General Assembly apply to all initial increases
22that become payable under this subsection on or after January
231, 1999. All initial increases that became payable under this
24subsection on or after January 1, 1999 and before the effective
25date of this amendatory Act shall be recalculated and the
26additional amount accruing for that period, if any, shall be

 

 

HB5592- 4 -LRB101 19174 RPS 68637 b

1payable to the pensioner in a lump sum.
2    (e) Notwithstanding the provisions of subsection (a), upon
3the first day of the month following (1) the first anniversary
4of the date of retirement, or (2) the attainment of age 55, or
5(3) July 1, 1987, whichever occurs latest, the monthly pension
6of a firefighter who retired on or after January 1, 1977 and on
7or before January 1, 1986 and did not receive an increase under
8subsection (a) before July 1, 1987, shall be increased by 3% of
9the originally granted monthly pension for each full year that
10has elapsed since the pension began, and by an additional 3% in
11each January thereafter. The increases provided under this
12subsection are in lieu of the increases provided in subsection
13(a).
14    (f) In July 2009, the monthly pension of a firefighter who
15retired before July 1, 1977 shall be recalculated and increased
16to reflect the amount that the firefighter would have received
17in July 2009 had the firefighter been receiving a 3% compounded
18increase for each year he or she received pension payments
19after January 1, 1986, plus any increases in pension received
20for each year prior to January 1, 1986. In each January
21thereafter, he or she shall receive an additional increase of
223% of the amount of the pension then being paid. The changes
23made to this Section by this amendatory Act of the 96th General
24Assembly apply without regard to whether the firefighter was in
25service on or after its effective date.
26    (g) Notwithstanding any other provision of this Article,

 

 

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1the monthly pension of a person who first becomes a firefighter
2under this Article on or after January 1, 2011 shall be
3increased on the January 1 occurring either on or after the
4attainment of age 60 or the first anniversary of the pension
5start date, whichever is later. Each annual increase shall be
6calculated at 3% or one-half the annual unadjusted percentage
7increase (but not less than zero) in the consumer price index-u
8for the 12 months ending with the September preceding each
9November 1, whichever is less, of the originally granted
10pension. If the annual unadjusted percentage change in the
11consumer price index-u for a 12-month period ending in
12September is zero or, when compared with the preceding period,
13decreases, then the pension shall not be increased.
14    For the purposes of this subsection (g), "consumer price
15index-u" means the index published by the Bureau of Labor
16Statistics of the United States Department of Labor that
17measures the average change in prices of goods and services
18purchased by all urban consumers, United States city average,
19all items, 1982-84 = 100. The new amount resulting from each
20annual adjustment shall be determined by the Public Pension
21Division of the Department of Insurance and made available to
22the boards of the pension funds.
23    Notwithstanding Section 1-103.1, the changes made by this
24amendatory Act of the 101st General Assembly apply without
25regard to whether the person who first became a firefighter
26under this Article on or after January 1, 2011 is in active

 

 

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1service under this Article on or after the effective date of
2this amendatory Act of the 101st General Assembly.
3(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
 
4    Section 90. The State Mandates Act is amended by adding
5Section 8.44 as follows:
 
6    (30 ILCS 805/8.44 new)
7    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
8of this Act, no reimbursement by the State is required for the
9implementation of any mandate created by this amendatory Act of
10the 101st General Assembly.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.