101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3052

 

Introduced 2/5/2020, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Chicago Police Article of the Illinois Pension Code. Provides that for Tier 2 policemen, "final average salary" is the greater of: (i) the average monthly salary obtained by dividing the total salary of the policeman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest; or (ii) the average monthly salary obtained by dividing the total salary of the policeman during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest. Provides that the limit on salary for all purposes under the Code for Tier 2 policemen shall annually be increased by the lesser of 3% or the annual (instead of one-half of the annual) unadjusted percentage increase in the consumer price index-u, including all previous adjustments. Provides that the surviving spouse's annuity for certain Tier 2 policemen shall be 54% of the policeman's monthly salary at the time of the policeman's death. Provides that if the deceased policeman was a parent of a child or children and there is a surviving spouse, 12% of the policeman's monthly salary at the date of death, or 12% of the policeman's earned pension, shall be granted to the guardian of any such minor child or children. Provides that upon the death of the surviving spouse leaving one or more children under the age of 18, or upon the death of a policeman leaving one or more children but no surviving spouse, a monthly pension of 20% of the policeman's monthly salary at the date of death or 20% of the policeman's earned pension at the date of death shall be granted to the guardian of each such child until the child reaches age 18. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 19782 RPS 69293 b

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

 

 

A BILL FOR

 

SB3052LRB101 19782 RPS 69293 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 5-238 as follows:
 
6    (40 ILCS 5/5-238)
7    Sec. 5-238. 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 policeman under this Article on or after January 1,
112011, and to certain qualified survivors of such a policeman.
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 policeman who has withdrawn from service, has
16attained age 50 or more, and has 10 or more years of service in
17that capacity shall be entitled, upon proper application being
18received by the Fund, to receive a Tier 2 monthly retirement
19annuity for his service as a police officer. 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 police officer's age at retirement is under

 

 

SB3052- 2 -LRB101 19782 RPS 69293 b

1age 55. The Tier 2 monthly retirement annuity is in lieu of any
2age and service annuity or other form of retirement annuity
3under this 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 greater of: (i) the average monthly salary
8obtained by dividing the total salary of the policeman during
9the 96 consecutive months of service within the last 120 months
10of service in which the total salary was the highest by the
11number of months of service in that period; or (ii) the average
12monthly salary obtained by dividing the total salary of the
13policeman during the 48 consecutive months of service within
14the last 60 months of service in which the total salary was the
15highest by the number of months of service in that period.
16    Beginning on January 1, 2011, for all purposes under this
17Code (including without limitation the calculation of benefits
18and employee contributions), the annual salary based on the
19plan year of a member or participant to whom this Section
20applies shall not exceed $106,800; however, that amount shall
21annually thereafter be increased by the lesser of (i) 3% of
22that amount, including all previous adjustments, or (ii)
23one-half the annual unadjusted percentage increase (but not
24less than zero) in the consumer price index-u for the 12 months
25ending with the September preceding each November 1, including
26all previous adjustments.

 

 

SB3052- 3 -LRB101 19782 RPS 69293 b

1    Nothing in this amendatory Act of the 101st General
2Assembly shall cause or otherwise result in any retroactive
3adjustment of any employee contributions.
4    (c) Notwithstanding any other provision of this Article,
5for a person who first becomes a policeman under this Article
6on or after January 1, 2011, eligibility for and the amount of
7the annuity to which the qualified surviving spouse, children,
8and parents are entitled under this subsection (c) shall be
9determined as follows:
10        (1) The surviving spouse of a deceased policeman to
11    whom this Section applies shall be deemed qualified to
12    receive a Tier 2 surviving spouse's annuity under this
13    paragraph (1) if: (i) the deceased policeman meets the
14    requirements specified under subdivision (A), (B), (C), or
15    (D) of this paragraph (1); and (ii) the surviving spouse
16    would not otherwise be excluded from receiving a widow's
17    annuity under the eligibility requirements for a widow's
18    annuity set forth in Section 5-146. The Tier 2 surviving
19    spouse's annuity is in lieu of the widow's annuity
20    determined under any other Section of this Article and is
21    subject to the requirements of Section 5-147.1.
22        As used in this subsection (c), "earned annuity" means
23    a Tier 2 monthly retirement annuity determined under
24    subsection (b) of this Section, including any increases the
25    policeman had received pursuant to Section 5-167.1.
26            (A) If the deceased policeman was receiving an

 

 

SB3052- 4 -LRB101 19782 RPS 69293 b

1        earned annuity at the date of his or her death, the
2        Tier 2 surviving spouse's annuity under this paragraph
3        (1) shall be in the amount of 66 2/3% of the
4        policeman's earned annuity at the date of death.
5            If the deceased policeman was a parent of a child
6        or children, including any child who has been conceived
7        but not yet born, and there is a surviving spouse, 12%
8        of the policeman's earned annuity at the date of death
9        shall be granted to the guardian of any such minor
10        child or children for each such child until attainment
11        of age 18. Upon the death of the surviving spouse
12        leaving one or more children under the age of 18, or
13        upon the death of a policeman leaving one or more
14        children under the age of 18 but no surviving spouse, a
15        monthly pension of 20% of the policeman's monthly
16        salary at the date of death shall be granted to the
17        duly appointed guardian of each such child for the
18        support and maintenance of each such child until the
19        child reaches age 18. The benefit in this paragraph is
20        in lieu of a benefit under paragraph (2) of this
21        subsection (c) but does not apply if the beneficiary is
22        entitled to receive a greater benefit under paragraph
23        (2) of this subsection (c).
24            (B) If the deceased policeman was not receiving an
25        earned annuity but had at least 10 years of service at
26        the time of death, the Tier 2 surviving spouse's

 

 

SB3052- 5 -LRB101 19782 RPS 69293 b

1        annuity under this paragraph (1) shall be the greater
2        of: (i) 30% of the annual maximum salary attached to
3        the classified civil service position of a first class
4        patrolman at the time of his death; (ii) 54% of the
5        policeman's monthly salary at the time of the
6        policeman's death; or (iii) (ii) 66 2/3% of the Tier 2
7        monthly retirement annuity that the deceased policeman
8        would have been eligible to receive under subsection
9        (b) of this Section, based upon the actual service
10        accrued through the day before the policeman's death,
11        but determined as though the policeman was at least age
12        55 on the day before his or her death and retired on
13        that day.
14            If the deceased policeman was a parent of a child
15        or children, including any child who has been conceived
16        but not yet born, and there is a surviving spouse, 12%
17        of the policeman's monthly salary at the date of death
18        shall be granted to the guardian of any such minor
19        child or children for each such child until attainment
20        of age 18. Upon the death of the surviving spouse
21        leaving one or more children under the age of 18, or
22        upon the death of a policeman leaving one or more
23        children under the age of 18 but no surviving spouse, a
24        monthly pension of 20% of the policeman's monthly
25        salary at the date of death shall be granted to the
26        duly appointed guardian of each such child for the

 

 

SB3052- 6 -LRB101 19782 RPS 69293 b

1        support and maintenance of each such child until the
2        child reaches age 18. The benefit in this paragraph is
3        in lieu of a benefit under paragraph (2) of this
4        subsection (c) but does not apply if the beneficiary is
5        entitled to receive a greater benefit under paragraph
6        (2) of this subsection (c).
7            (C) If the deceased policeman was an active
8        policeman with at least 1 1/2 but less than 10 years of
9        service at the time of death, the Tier 2 surviving
10        spouse's annuity under this paragraph (1) shall be the
11        greater of: (i) in the amount of 30% of the annual
12        maximum salary attached to the classified civil
13        service position of a first class patrolman at the time
14        of his death; or (ii) 54% of the policeman's monthly
15        salary at the time of the policeman's death.
16            If the deceased policeman was a parent of a child
17        or children, including any child who has been conceived
18        but not yet born, and there is a surviving spouse, 12%
19        of the policeman's monthly salary at the date of death
20        shall be granted to the guardian of any such minor
21        child or children for each such child until attainment
22        of age 18. Upon the death of the surviving spouse
23        leaving one or more children under the age of 18, or
24        upon the death of a policeman leaving one or more
25        children under the age of 18 but no surviving spouse, a
26        monthly pension of 20% of the policeman's monthly

 

 

SB3052- 7 -LRB101 19782 RPS 69293 b

1        salary at the date of death shall be granted to the
2        duly appointed guardian of each such child for the
3        support and maintenance of each such child until the
4        child reaches age 18. The benefit in this paragraph is
5        in lieu of a benefit under paragraph (2) of this
6        subsection (c) but does not apply if the beneficiary is
7        entitled to receive a greater benefit under paragraph
8        (2) of this subsection (c).
9            (D) If the performance of an act or acts of duty
10        results directly in the death of a policeman subject to
11        this Section, or prevents him from subsequently
12        resuming active service in the police department, and
13        if the policeman's Tier 2 surviving spouse would
14        otherwise meet the eligibility requirements for a
15        compensation annuity or supplemental annuity granted
16        under Section 5-144, then in addition to the Tier 2
17        surviving spouse's annuity provided under subdivision
18        (A), (B), or (C) of this paragraph (1), whichever
19        applies, the Tier 2 surviving spouse shall be qualified
20        to receive compensation annuity or supplemental
21        annuity, as would be provided under Section 5-144, in
22        order to bring the total benefit up to the applicable
23        75% salary limitation provided in that Section, but
24        subject to the Tier 2 salary cap provided under
25        subsection (b) of this Section; except that no such
26        annuity shall be paid to the surviving spouse of a

 

 

SB3052- 8 -LRB101 19782 RPS 69293 b

1        policeman who dies while in receipt of disability
2        benefits when the policeman's death was caused by an
3        intervening illness or injury unrelated to the illness
4        or injury that had prevented him from subsequently
5        resuming active service in the police department.
6            (E) Notwithstanding any other provision of this
7        Article, the monthly Tier 2 surviving spouse's annuity
8        under subdivision (A) or (B) of this paragraph (1)
9        shall be increased on the January 1 next occurring
10        after (i) attainment of age 60 by the recipient of the
11        Tier 2 surviving spouse's annuity or (ii) the first
12        anniversary of the Tier 2 surviving spouse's annuity
13        start date, whichever is later, and on each January 1
14        thereafter, by 3% or one-half the annual unadjusted
15        percentage increase (but not less than zero) in the
16        consumer price index-u for the 12 months ending with
17        the September preceding each November 1, whichever is
18        less, of the originally granted Tier 2 surviving
19        spouse's annuity. If the unadjusted percentage change
20        in the consumer price index-u for a 12-month period
21        ending in September is zero or, when compared with the
22        preceding period, decreases, then the annuity shall
23        not be increased.
24            For the purposes of this Section, "consumer price
25        index-u" means the index published by the Bureau of
26        Labor Statistics of the United States Department of

 

 

SB3052- 9 -LRB101 19782 RPS 69293 b

1        Labor that measures the average change in prices of
2        goods and services purchased by all urban consumers,
3        United States city average, all items, 1982-84 = 100.
4        The new amount resulting from each annual adjustment
5        shall be determined by the Public Pension Division of
6        the Department of Insurance and made available to the
7        boards of the pension funds.
8            (F) Notwithstanding the other provisions of this
9        paragraph (1), for a qualified surviving spouse who is
10        entitled to a Tier 2 surviving spouse's annuity under
11        subdivision (A), (B), (C), or (D) of this paragraph
12        (1), that Tier 2 surviving spouse's annuity shall not
13        be less than the amount of the minimum widow's annuity
14        established from time to time under Section 5-167.4.
15        (2) Surviving children of a deceased policeman subject
16    to this Section who would otherwise meet the eligibility
17    requirements for a child's annuity set forth in Sections
18    5-151 and 5-152 shall be deemed qualified to receive a Tier
19    2 child's annuity under this subsection (c), which shall be
20    in lieu of, but in the same amount and paid in the same
21    manner as, the child's annuity provided under those
22    Sections; except that any salary used for computing a Tier
23    2 child's annuity shall be subject to the Tier 2 salary cap
24    provided under subsection (b) of this Section. For purposes
25    of determining any pro rata reduction in child's annuities
26    under this subsection (c), references in Section 5-152 to

 

 

SB3052- 10 -LRB101 19782 RPS 69293 b

1    the combined annuities of the family shall be deemed to
2    refer to the combined Tier 2 surviving spouse's annuity, if
3    any, and the Tier 2 child's annuities payable under this
4    subsection (c).
5        (3) Surviving parents of a deceased policeman subject
6    to this Section who would otherwise meet the eligibility
7    requirements for a parent's annuity set forth in Section
8    5-152 shall be deemed qualified to receive a Tier 2
9    parent's annuity under this subsection (c), which shall be
10    in lieu of, but in the same amount and paid in the same
11    manner as, the parent's annuity provided under Section
12    5-152.1; except that any salary used for computing a Tier 2
13    parent's annuity shall be subject to the Tier 2 salary cap
14    provided under subsection (b) of this Section. For the
15    purposes of this Section, a reference to "annuity" in
16    Section 5-152.1 includes: (i) in the context of a widow, a
17    Tier 2 surviving spouse's annuity and (ii) in the context
18    of a child, a Tier 2 child's annuity.
19    Notwithstanding Section 1-103.1, the changes made to this
20subsection by this amendatory Act of the 101st General Assembly
21apply without regard to whether the deceased policeman was in
22service on or after the effective date of this amendatory Act
23of the 101st General Assembly. The changes made by this
24amendatory Act of the 101st General Assembly shall not diminish
25the survivor's benefits described in this Section.
26    (d) The General Assembly finds and declares that the

 

 

SB3052- 11 -LRB101 19782 RPS 69293 b

1provisions of this Section, as enacted by Public Act 96-1495,
2require clarification relating to necessary eligibility
3standards and the manner of determining and paying the intended
4Tier 2 benefits and contributions in order to enable the Fund
5to unambiguously implement and administer benefits for Tier 2
6members. The changes to this Section and the conforming changes
7to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the
8changes to subsection (a) of that Section), 5-169, and 5-170
9made by this amendatory Act of the 99th General Assembly are
10enacted to clarify the provisions of this Section as enacted by
11Public Act 96-1495, and are hereby declared to represent and be
12consistent with the original and continuing intent of this
13Section and Public Act 96-1495.
14    (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
15(except for the changes to subsection (a) of that Section),
165-169, and 5-170 made by this amendatory Act of the 99th
17General Assembly are intended to be retroactive to January 1,
182011 (the effective date of Public Act 96-1495) and, for the
19purposes of Section 1-103.1 of this Code, they apply without
20regard to whether the relevant policeman was in service on or
21after the effective date of this amendatory Act of the 99th
22General Assembly.
23(Source: P.A. 99-905, eff. 11-29-16.)
 
24    Section 90. The State Mandates Act is amended by adding
25Section 8.44 as follows:
 

 

 

SB3052- 12 -LRB101 19782 RPS 69293 b

1    (30 ILCS 805/8.44 new)
2    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 101st General Assembly.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.

 

 

SB3052- 13 -LRB101 19782 RPS 69293 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/5-238
4    30 ILCS 805/8.44 new