101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3612

 

Introduced 2/14/2020, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Chicago Police and Chicago Firefighter Articles of the Illinois Pension Code. Removes a birthdate restriction on eligibility at age 55 for a 3% automatic annual increase in retirement annuity that is not subject to a maximum increase of 30%. Provides that for Tier 2 policemen and firemen, "final average salary" is the average monthly salary: (i) obtained by dividing the total salary during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest; or (ii) obtained by dividing the total salary during the 48 consecutive months of service within the last 120 months of service in which the total salary was the highest. Provides that the Tier 2 limit on salary 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. Provides that the surviving spouse's annuity for certain Tier 2 policemen and firemen shall be 54% of the monthly salary at the time of death. Provides that if the deceased policeman or fireman was a parent of a child and there is a surviving spouse, 12% of the monthly salary at the date of death or 12% of the earned pension shall be granted to the guardian of the minor child. 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 or fireman leaving one or more children under the age of 18 but no surviving spouse, a monthly pension of 20% of the monthly salary at the date of death or 20% of the earned pension shall be granted to the guardian of each such child. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 19205 RPS 68668 b

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

 

 

A BILL FOR

 

SB3612LRB101 19205 RPS 68668 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
5Sections 5-167.1, 5-238, 6-164, and 6-229 as follows:
 
6    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
7    Sec. 5-167.1. Automatic increase in annuity; retirement
8from service after September 1, 1967.
9    (a) A policeman who retires from service after September 1,
101967 with at least 20 years of service credit shall, upon
11either the first of the month following the first anniversary
12of his date of retirement if he is age 55 60 (age 55 if born
13before January 1, 1966) or over on that anniversary date, or
14upon the first of the month following his attainment of age 55
1560 (age 55 if born before January 1, 1966) if it occurs after
16the first anniversary of his retirement date, have his then
17fixed and payable monthly annuity increased by 3% 1 1/2% and
18such first fixed annuity as granted at retirement increased by
19an additional 3% 1 1/2% in January of each year thereafter up
20to a maximum increase of 30%. Beginning January 1, 1983 for
21policemen born before January 1, 1930, and beginning January 1,
221988 for policemen born on or after January 1, 1930 but before
23January 1, 1940, and beginning January 1, 1996 for policemen

 

 

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1born on or after January 1, 1940 but before January 1, 1945,
2and beginning January 1, 2000 for policemen born on or after
3January 1, 1945 but before January 1, 1950, and beginning
4January 1, 2005 for policemen born on or after January 1, 1950
5but before January 1, 1955, and beginning January 1, 2017 for
6policemen born on or after January 1, 1955 but before January
71, 1966, such increases shall be 3% and such policemen shall
8not be subject to the 30% maximum increase.
9    Any policeman born before January 1, 1945 who qualifies for
10a minimum annuity and retires after September 1, 1967 but has
11not received the initial increase under this subsection before
12January 1, 1996 is entitled to receive the initial increase
13under this subsection on (1) January 1, 1996, (2) the first
14anniversary of the date of retirement, or (3) attainment of age
1555, whichever occurs last. The changes to this Section made by
16Public Act 89-12 apply beginning January 1, 1996 and without
17regard to whether the policeman or annuitant terminated service
18before the effective date of that Act.
19    Any policeman born before January 1, 1950 who qualifies for
20a minimum annuity and retires after September 1, 1967 but has
21not received the initial increase under this subsection before
22January 1, 2000 is entitled to receive the initial increase
23under this subsection on (1) January 1, 2000, (2) the first
24anniversary of the date of retirement, or (3) attainment of age
2555, whichever occurs last. The changes to this Section made by
26this amendatory Act of the 92nd General Assembly apply without

 

 

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1regard to whether the policeman or annuitant terminated service
2before the effective date of this amendatory Act.
3    Any policeman born before January 1, 1955 who qualifies for
4a minimum annuity and retires after September 1, 1967 but has
5not received the initial increase under this subsection before
6January 1, 2005 is entitled to receive the initial increase
7under this subsection on (1) January 1, 2005, (2) the first
8anniversary of the date of retirement, or (3) attainment of age
955, whichever occurs last. The changes to this Section made by
10this amendatory Act of the 94th General Assembly apply without
11regard to whether the policeman or annuitant terminated service
12before the effective date of this amendatory Act.
13    Any policeman born before January 1, 1966 who qualifies for
14a minimum annuity and retires after September 1, 1967 but has
15not received the initial increase under this subsection before
16January 1, 2017 is entitled to receive an initial increase
17under this subsection on (1) January 1, 2017, (2) the first
18anniversary of the date of retirement, or (3) attainment of age
1955, whichever occurs last, in an amount equal to 3% for each
20complete year following the date of retirement or attainment of
21age 55, whichever occurs later. The changes to this subsection
22made by this amendatory Act of the 99th General Assembly apply
23without regard to whether the policeman or annuitant terminated
24service before the effective date of this amendatory Act.
25    Any policeman born after January 1, 1966 who qualifies for
26a minimum annuity and retires after September 1, 1967 but has

 

 

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1not received the initial increase under this subsection before
2January 1, 2021 is entitled to receive the initial increase
3under this subsection on (1) January 1, 2021, (2) the first
4anniversary of the date of retirement, or (3) attainment of age
555, whichever occurs last. The changes to this Section made by
6this amendatory Act of the 101st General Assembly apply without
7regard to whether the policeman or annuitant terminated service
8before the effective date of this amendatory Act of the 101st
9General Assembly.
10    (b) Subsection (a) of this Section is not applicable to an
11employee receiving a term annuity.
12    (c) To help defray the cost of such increases in annuity,
13there shall be deducted, beginning September 1, 1967, from each
14payment of salary to a policeman, 1/2 of 1% of each salary
15payment concurrently with and in addition to the salary
16deductions otherwise made for annuity purposes.
17    The city, in addition to the contributions otherwise made
18by it for annuity purposes under other provisions of this
19Article, shall make matching contributions concurrently with
20such salary deductions.
21    Each such 1/2 of 1% deduction from salary and each such
22contribution by the city of 1/2 of 1% of salary shall be
23credited to the Automatic Increase Reserve, to be used to
24defray the cost of the annuity increase provided by this
25Section. Any balance in such reserve as of the beginning of
26each calendar year shall be credited with interest at the rate

 

 

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1of 3% per annum.
2    Such deductions from salary and city contributions shall
3continue while the policeman is in service.
4    The salary deductions provided in this Section are not
5subject to refund, except to the policeman himself, in any case
6in which: (i) the policeman withdraws prior to qualification
7for minimum annuity or Tier 2 monthly retirement annuity and
8applies for refund, (ii) the policeman applies for an annuity
9of a type that is not subject to annual increases under this
10Section, or (iii) a term annuity becomes payable. In such
11cases, the total of such salary deductions shall be refunded to
12the policeman, without interest, and charged to the Automatic
13Increase Reserve.
14    (d) Notwithstanding any other provision of this Article,
15the Tier 2 monthly retirement annuity of a person who first
16becomes a policeman under this Article on or after the
17effective date of this amendatory Act of the 97th General
18Assembly shall be increased on the January 1 occurring either
19on or after (i) the attainment of age 60 or (ii) the first
20anniversary of the annuity start date, whichever is later. Each
21annual increase shall be calculated at 3% or one-half the
22annual unadjusted percentage increase (but not less than zero)
23in the consumer price index-u for the 12 months ending with the
24September preceding each November 1, whichever is less, of the
25originally granted retirement annuity. If the annual
26unadjusted percentage change in the consumer price index-u for

 

 

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1a 12-month period ending in September is zero or, when compared
2with the preceding period, decreases, then the annuity shall
3not be increased.
4    For the purposes of this subsection (d), "consumer price
5index-u" means the index published by the Bureau of Labor
6Statistics of the United States Department of Labor that
7measures the average change in prices of goods and services
8purchased by all urban consumers, United States city average,
9all items, 1982-84 = 100. The new amount resulting from each
10annual adjustment shall be determined by the Public Pension
11Division of the Department of Insurance and made available to
12the boards of the pension funds by November 1 of each year.
13(Source: P.A. 99-905, eff. 11-29-16.)
 
14    (40 ILCS 5/5-238)
15    Sec. 5-238. Provisions applicable to new hires; Tier 2.
16    (a) Notwithstanding any other provision of this Article,
17the provisions of this Section apply to a person who first
18becomes a policeman under this Article on or after January 1,
192011, and to certain qualified survivors of such a policeman.
20Such persons, and the benefits and restrictions that apply
21specifically to them under this Article, may be referred to as
22"Tier 2".
23    (b) A policeman who has withdrawn from service, has
24attained age 50 or more, and has 10 or more years of service in
25that capacity shall be entitled, upon proper application being

 

 

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1received by the Fund, to receive a Tier 2 monthly retirement
2annuity for his service as a police officer. The Tier 2 monthly
3retirement annuity shall be computed by multiplying 2.5% for
4each year of such service by his or her final average salary,
5subject to an annuity reduction factor of one-half of 1% for
6each month that the police officer's age at retirement is under
7age 55. The Tier 2 monthly retirement annuity is in lieu of any
8age and service annuity or other form of retirement annuity
9under this Article.
10    The maximum retirement annuity under this subsection (b)
11shall be 75% of final average salary.
12    For the purposes of this subsection (b), "final average
13salary" means the greater of: (i) the average monthly salary
14obtained by dividing the total salary of the policeman during
15the 96 consecutive months of service within the last 120 months
16of service in which the total salary was the highest by the
17number of months of service in that period; or (ii) the average
18monthly salary obtained by dividing the total salary of the
19policeman during the 48 consecutive months of service within
20the last 120 months of service in which the total salary was
21the highest by the number of months of service in that period.
22    Beginning on January 1, 2011, for all purposes under this
23Code (including without limitation the calculation of benefits
24and employee contributions), the annual salary based on the
25plan year of a member or participant to whom this Section
26applies shall not exceed $106,800; however, that amount shall

 

 

SB3612- 8 -LRB101 19205 RPS 68668 b

1annually thereafter be increased by the lesser of (i) 3% of
2that amount, including all previous adjustments, or (ii)
3one-half the annual unadjusted percentage increase (but not
4less than zero) in the consumer price index-u for the 12 months
5ending with the September preceding each November 1, including
6all previous adjustments.
7    Nothing in this amendatory Act of the 101st General
8Assembly shall cause or otherwise result in any retroactive
9adjustment of any employee contributions.
10    (c) Notwithstanding any other provision of this Article,
11for a person who first becomes a policeman under this Article
12on or after January 1, 2011, eligibility for and the amount of
13the annuity to which the qualified surviving spouse, children,
14and parents are entitled under this subsection (c) shall be
15determined as follows:
16        (1) The surviving spouse of a deceased policeman to
17    whom this Section applies shall be deemed qualified to
18    receive a Tier 2 surviving spouse's annuity under this
19    paragraph (1) if: (i) the deceased policeman meets the
20    requirements specified under subdivision (A), (B), (C), or
21    (D) of this paragraph (1); and (ii) the surviving spouse
22    would not otherwise be excluded from receiving a widow's
23    annuity under the eligibility requirements for a widow's
24    annuity set forth in Section 5-146. The Tier 2 surviving
25    spouse's annuity is in lieu of the widow's annuity
26    determined under any other Section of this Article and is

 

 

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1    subject to the requirements of Section 5-147.1.
2        As used in this subsection (c), "earned annuity" means
3    a Tier 2 monthly retirement annuity determined under
4    subsection (b) of this Section, including any increases the
5    policeman had received pursuant to Section 5-167.1.
6            (A) If the deceased policeman was receiving an
7        earned annuity at the date of his or her death, the
8        Tier 2 surviving spouse's annuity under this paragraph
9        (1) shall be in the amount of 66 2/3% of the
10        policeman's earned annuity at the date of death.
11            If the deceased policeman was a parent of a child
12        or children, including any child who has been conceived
13        but not yet born, and there is a surviving spouse, 12%
14        of the policeman's earned annuity at the date of death
15        shall be granted to the guardian of any such minor
16        child or children for each such child until attainment
17        of age 18. Upon the death of the surviving spouse
18        leaving one or more children under the age of 18, or
19        upon the death of a policeman leaving one or more
20        children under the age of 18 but no surviving spouse, a
21        monthly pension of 20% of the policeman's monthly
22        salary at the date of death shall be granted to the
23        duly appointed guardian of each such child for the
24        support and maintenance of each such child until the
25        child reaches age 18. The benefit in this paragraph is
26        in lieu of a benefit under paragraph (2) of this

 

 

SB3612- 10 -LRB101 19205 RPS 68668 b

1        subsection (c) but does not apply if the beneficiary is
2        entitled to receive a greater benefit under paragraph
3        (2) of this subsection (c).
4            (B) If the deceased policeman was not receiving an
5        earned annuity but had at least 10 years of service at
6        the time of death, the Tier 2 surviving spouse's
7        annuity under this paragraph (1) shall be the greater
8        of: (i) 30% of the annual maximum salary attached to
9        the classified civil service position of a first class
10        patrolman at the time of his death; (ii) 54% of the
11        policeman's monthly salary at the time of the
12        policeman's death; or (iii) (ii) 66 2/3% of the Tier 2
13        monthly retirement annuity that the deceased policeman
14        would have been eligible to receive under subsection
15        (b) of this Section, based upon the actual service
16        accrued through the day before the policeman's death,
17        but determined as though the policeman was at least age
18        55 on the day before his or her death and retired on
19        that day.
20            If the deceased policeman was a parent of a child
21        or children, including any child who has been conceived
22        but not yet born, and there is a surviving spouse, 12%
23        of the policeman's monthly salary at the date of death
24        shall be granted to the guardian of any such minor
25        child or children for each such child until attainment
26        of age 18. Upon the death of the surviving spouse

 

 

SB3612- 11 -LRB101 19205 RPS 68668 b

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

 

 

SB3612- 12 -LRB101 19205 RPS 68668 b

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

 

 

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1        annuity, as would be provided under Section 5-144, in
2        order to bring the total benefit up to the applicable
3        75% salary limitation provided in that Section, but
4        subject to the Tier 2 salary cap provided under
5        subsection (b) of this Section; except that no such
6        annuity shall be paid to the surviving spouse of a
7        policeman who dies while in receipt of disability
8        benefits when the policeman's death was caused by an
9        intervening illness or injury unrelated to the illness
10        or injury that had prevented him from subsequently
11        resuming active service in the police department.
12            (E) Notwithstanding any other provision of this
13        Article, the monthly Tier 2 surviving spouse's annuity
14        under subdivision (A) or (B) of this paragraph (1)
15        shall be increased on the January 1 next occurring
16        after (i) attainment of age 60 by the recipient of the
17        Tier 2 surviving spouse's annuity or (ii) the first
18        anniversary of the Tier 2 surviving spouse's annuity
19        start date, whichever is later, and on each January 1
20        thereafter, by 3% or one-half the annual unadjusted
21        percentage increase (but not less than zero) in the
22        consumer price index-u for the 12 months ending with
23        the September preceding each November 1, whichever is
24        less, of the originally granted Tier 2 surviving
25        spouse's annuity. If the unadjusted percentage change
26        in the consumer price index-u for a 12-month period

 

 

SB3612- 14 -LRB101 19205 RPS 68668 b

1        ending in September is zero or, when compared with the
2        preceding period, decreases, then the annuity shall
3        not be increased.
4            For the purposes of this Section, "consumer price
5        index-u" means the index published by the Bureau of
6        Labor Statistics of the United States Department of
7        Labor that measures the average change in prices of
8        goods and services purchased by all urban consumers,
9        United States city average, all items, 1982-84 = 100.
10        The new amount resulting from each annual adjustment
11        shall be determined by the Public Pension Division of
12        the Department of Insurance and made available to the
13        boards of the pension funds.
14            (F) Notwithstanding the other provisions of this
15        paragraph (1), for a qualified surviving spouse who is
16        entitled to a Tier 2 surviving spouse's annuity under
17        subdivision (A), (B), (C), or (D) of this paragraph
18        (1), that Tier 2 surviving spouse's annuity shall not
19        be less than the amount of the minimum widow's annuity
20        established from time to time under Section 5-167.4.
21        (2) Surviving children of a deceased policeman subject
22    to this Section who would otherwise meet the eligibility
23    requirements for a child's annuity set forth in Sections
24    5-151 and 5-152 shall be deemed qualified to receive a Tier
25    2 child's annuity under this subsection (c), which shall be
26    in lieu of, but in the same amount and paid in the same

 

 

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1    manner as, the child's annuity provided under those
2    Sections; except that any salary used for computing a Tier
3    2 child's annuity shall be subject to the Tier 2 salary cap
4    provided under subsection (b) of this Section. For purposes
5    of determining any pro rata reduction in child's annuities
6    under this subsection (c), references in Section 5-152 to
7    the combined annuities of the family shall be deemed to
8    refer to the combined Tier 2 surviving spouse's annuity, if
9    any, and the Tier 2 child's annuities payable under this
10    subsection (c).
11        (3) Surviving parents of a deceased policeman subject
12    to this Section who would otherwise meet the eligibility
13    requirements for a parent's annuity set forth in Section
14    5-152 shall be deemed qualified to receive a Tier 2
15    parent's annuity under this subsection (c), which shall be
16    in lieu of, but in the same amount and paid in the same
17    manner as, the parent's annuity provided under Section
18    5-152.1; except that any salary used for computing a Tier 2
19    parent's annuity shall be subject to the Tier 2 salary cap
20    provided under subsection (b) of this Section. For the
21    purposes of this Section, a reference to "annuity" in
22    Section 5-152.1 includes: (i) in the context of a widow, a
23    Tier 2 surviving spouse's annuity and (ii) in the context
24    of a child, a Tier 2 child's annuity.
25    Notwithstanding Section 1-103.1, the changes made to this
26subsection by this amendatory Act of the 101st General Assembly

 

 

SB3612- 16 -LRB101 19205 RPS 68668 b

1apply without regard to whether the deceased policeman was in
2service on or after the effective date of this amendatory Act
3of the 101st General Assembly. The changes made by this
4amendatory Act of the 101st General Assembly shall not diminish
5the survivor's benefits described in this Section.
6    (d) The General Assembly finds and declares that the
7provisions of this Section, as enacted by Public Act 96-1495,
8require clarification relating to necessary eligibility
9standards and the manner of determining and paying the intended
10Tier 2 benefits and contributions in order to enable the Fund
11to unambiguously implement and administer benefits for Tier 2
12members. The changes to this Section and the conforming changes
13to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the
14changes to subsection (a) of that Section), 5-169, and 5-170
15made by this amendatory Act of the 99th General Assembly are
16enacted to clarify the provisions of this Section as enacted by
17Public Act 96-1495, and are hereby declared to represent and be
18consistent with the original and continuing intent of this
19Section and Public Act 96-1495.
20    (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
21(except for the changes to subsection (a) of that Section),
225-169, and 5-170 made by this amendatory Act of the 99th
23General Assembly are intended to be retroactive to January 1,
242011 (the effective date of Public Act 96-1495) and, for the
25purposes of Section 1-103.1 of this Code, they apply without
26regard to whether the relevant policeman was in service on or

 

 

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1after the effective date of this amendatory Act of the 99th
2General Assembly.
3(Source: P.A. 99-905, eff. 11-29-16.)
 
4    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
5    Sec. 6-164. Automatic annual increase; retirement after
6September 1, 1959.
7    (a) A fireman qualifying for a minimum annuity who retires
8from service after September 1, 1959 shall, upon either the
9first of the month following the first anniversary of his date
10of retirement if he is age 60 (age 55 if born before January 1,
111966) or over on that anniversary date, or upon the first of
12the month following his attainment of age 60 (age 55 if born
13before January 1, 1966) if that occurs after the first
14anniversary of his retirement date, have his then fixed and
15payable monthly annuity increased by 1 1/2%, and such first
16fixed annuity as granted at retirement increased by an
17additional 1 1/2% in January of each year thereafter up to a
18maximum increase of 30%. Beginning July 1, 1982 for firemen
19born before January 1, 1930, and beginning January 1, 1990 for
20firemen born after December 31, 1929 and before January 1,
211940, and beginning January 1, 1996 for firemen born after
22December 31, 1939 but before January 1, 1945, and beginning
23January 1, 2004, for firemen born after December 31, 1944 but
24before January 1, 1955, and beginning January 1, 2017, for
25firemen born after December 31, 1954 but before January 1,

 

 

SB3612- 18 -LRB101 19205 RPS 68668 b

11966, such increases shall be 3% and such firemen shall not be
2subject to the 30% maximum increase.
3    Any fireman born before January 1, 1945 who qualifies for a
4minimum annuity and retires after September 1, 1967 but has not
5received the initial increase under this subsection before
6January 1, 1996 is entitled to receive the initial increase
7under this subsection on (1) January 1, 1996, (2) the first
8anniversary of the date of retirement, or (3) attainment of age
955, whichever occurs last. The changes to this Section made by
10this amendatory Act of 1995 apply beginning January 1, 1996 and
11apply without regard to whether the fireman or annuitant
12terminated service before the effective date of this amendatory
13Act of 1995.
14    Any fireman born before January 1, 1955 who qualifies for a
15minimum annuity and retires after September 1, 1967 but has not
16received the initial increase under this subsection before
17January 1, 2004 is entitled to receive the initial increase
18under this subsection on (1) January 1, 2004, (2) the first
19anniversary of the date of retirement, or (3) attainment of age
2055, whichever occurs last. The changes to this Section made by
21this amendatory Act of the 93rd General Assembly apply without
22regard to whether the fireman or annuitant terminated service
23before the effective date of this amendatory Act.
24    Any fireman born after December 31, 1954 but before January
251, 1966 who qualifies for a minimum annuity and retires after
26September 1, 1967 is entitled to receive an increase under this

 

 

SB3612- 19 -LRB101 19205 RPS 68668 b

1subsection on (1) January 1, 2017, (2) the first anniversary of
2the date of retirement, or (3) attainment of age 55, whichever
3occurs last, in an amount equal to an increase of 3% of his
4then fixed and payable monthly annuity upon the first of the
5month following the first anniversary of his date of retirement
6if he is age 55 or over on that anniversary date or upon the
7first of the month following his attainment of age 55 if that
8date occurs after the first anniversary of his retirement date
9and such first fixed annuity as granted at retirement shall be
10increased by an additional 3% in January of each year
11thereafter. In the case of a fireman born after December 31,
121954 but before January 1, 1966 who received an increase in any
13year of 1.5%, that fireman shall receive an increase for any
14such year so that the total increase is equal to 3% for each
15year the fireman would have been otherwise eligible had the
16fireman not received any increase. The changes to this
17subsection made by this amendatory Act of the 99th General
18Assembly apply without regard to whether the fireman or
19annuitant terminated service before the effective date of this
20amendatory Act. The changes to this subsection made by this
21amendatory Act of the 100th General Assembly are a declaration
22of existing law and shall not be construed as a new enactment.
23    Any fireman who qualifies for a minimum annuity and retires
24after September 1, 1967 is entitled to receive an increase
25under this subsection on (1) January 1, 2021, (2) the first
26anniversary of the date of retirement, or (3) attainment of age

 

 

SB3612- 20 -LRB101 19205 RPS 68668 b

155, whichever occurs last, in an amount equal to an increase of
23% of his or her then fixed and payable monthly annuity upon
3the first of the month following the first anniversary of his
4or her date of retirement if he or she is age 55 or over on that
5anniversary date or upon the first of the month following his
6or her attainment of age 55 if that date occurs after the first
7anniversary of his or her retirement date and such first fixed
8annuity as granted at retirement shall be increased by an
9additional 3% in January of each year thereafter. In the case
10of a fireman who received an increase in any year of 1.5%, that
11fireman shall receive an increase for any such year so that the
12total increase is equal to 3% for each year the fireman would
13have been otherwise eligible had the fireman not received any
14increase. The changes to this subsection made by this
15amendatory Act of the 101st General Assembly apply without
16regard to whether the fireman or annuitant terminated service
17before the effective date of this amendatory Act of the 101st
18General Assembly.
19    (b) Subsection (a) of this Section is not applicable to an
20employee receiving a term annuity.
21    (c) To help defray the cost of such increases in annuity,
22there shall be deducted, beginning September 1, 1959, from each
23payment of salary to a fireman, 1/8 of 1% of each such salary
24payment and an additional 1/8 of 1% beginning on September 1,
251961, and September 1, 1963, respectively, concurrently with
26and in addition to the salary deductions otherwise made for

 

 

SB3612- 21 -LRB101 19205 RPS 68668 b

1annuity purposes.
2    Each such additional 1/8 of 1% deduction from salary which
3shall, on September 1, 1963, result in a total increase of 3/8
4of 1% of salary, shall be credited to the Automatic Increase
5Reserve, to be used, together with city contributions as
6provided in this Article, to defray the cost of the annuity
7increments specified in this Section. Any balance in such
8reserve as of the beginning of each calendar year shall be
9credited with interest at the rate of 3% per annum.
10    The salary deductions provided in this Section are not
11subject to refund, except to the fireman himself in any case in
12which: (i) the fireman withdraws prior to qualification for
13minimum annuity or Tier 2 monthly retirement annuity and
14applies for refund, (ii) the fireman applies for an annuity of
15a type that is not subject to annual increases under this
16Section, or (iii) a term annuity becomes payable. In such
17cases, the total of such salary deductions shall be refunded to
18the fireman, without interest, and charged to the
19aforementioned reserve.
20    (d) Notwithstanding any other provision of this Article,
21the Tier 2 monthly retirement annuity of a person who first
22becomes a fireman under this Article on or after January 1,
232011 shall be increased on the January 1 occurring either on or
24after (i) the attainment of age 60 or (ii) the first
25anniversary of the annuity start date, whichever is later. Each
26annual increase shall be calculated at 3% or one-half the

 

 

SB3612- 22 -LRB101 19205 RPS 68668 b

1annual unadjusted percentage increase (but not less than zero)
2in the consumer price index-u for the 12 months ending with the
3September preceding each November 1, whichever is less, of the
4originally granted retirement annuity. If the annual
5unadjusted percentage change in the consumer price index-u for
6a 12-month period ending in September is zero or, when compared
7with the preceding period, decreases, then the annuity shall
8not be increased.
9    For the purposes of this subsection (d), "consumer price
10index-u" means the index published by the Bureau of Labor
11Statistics of the United States Department of Labor that
12measures the average change in prices of goods and services
13purchased by all urban consumers, United States city average,
14all items, 1982-84 = 100. The new amount resulting from each
15annual adjustment shall be determined by the Public Pension
16Division of the Department of Insurance and made available to
17the boards of the pension funds by November 1 of each year.
18(Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17;
19100-539, eff. 11-7-17.)
 
20    (40 ILCS 5/6-229)
21    Sec. 6-229. Provisions applicable to new hires; Tier 2.
22    (a) Notwithstanding any other provision of this Article,
23the provisions of this Section apply to a person who first
24becomes a fireman under this Article on or after January 1,
252011, and to certain qualified survivors of such a fireman.

 

 

SB3612- 23 -LRB101 19205 RPS 68668 b

1Such persons, and the benefits and restrictions that apply
2specifically to them under this Article, may be referred to as
3"Tier 2".
4    (b) A fireman who has withdrawn from service, has attained
5age 50 or more, and has 10 or more years of service in that
6capacity shall be entitled, upon proper application being
7received by the Fund, to receive a Tier 2 monthly retirement
8annuity for his service as a fireman. The Tier 2 monthly
9retirement annuity shall be computed by multiplying 2.5% for
10each year of such service by his or her final average salary,
11subject to an annuity reduction factor of one-half of 1% for
12each month that the fireman's age at retirement is under age
1355. The Tier 2 monthly retirement annuity is in lieu of any age
14and service annuity or other form of retirement annuity under
15this Article.
16    The maximum retirement annuity under this subsection (b)
17shall be 75% of final average salary.
18    For the purposes of this subsection (b), "final average
19salary" means the greater of: (i) the average monthly salary
20obtained by dividing the total salary of the fireman during the
2196 consecutive months of service within the last 120 months of
22service in which the total salary was the highest by the number
23of months of service in that period; or (ii) the average
24monthly salary obtained by dividing the total salary of the
25fireman during the 48 consecutive months of service within the
26last 120 months of service in which the total salary was the

 

 

SB3612- 24 -LRB101 19205 RPS 68668 b

1highest by the number of months of service in that period.
2    Beginning on January 1, 2011, for all purposes under this
3Code (including without limitation the calculation of benefits
4and employee contributions), the annual salary based on the
5plan year of a member or participant to whom this Section
6applies shall not exceed $106,800; however, that amount shall
7annually thereafter be increased by the lesser of (i) 3% of
8that amount, including all previous adjustments, or (ii)
9one-half the annual unadjusted percentage increase (but not
10less than zero) in the consumer price index-u for the 12 months
11ending with the September preceding each November 1, including
12all previous adjustments.
13    Nothing in this amendatory Act of the 101st General
14Assembly shall cause or otherwise result in any retroactive
15adjustment of any employee contributions.
16    (b-5) For the purposes of this Section, "consumer price
17index-u" means the index published by the Bureau of Labor
18Statistics of the United States Department of Labor that
19measures the average change in prices of goods and services
20purchased by all urban consumers, United States city average,
21all items, 1982-84 = 100. The new amount resulting from each
22annual adjustment shall be determined by the Public Pension
23Division of the Department of Insurance and made available to
24the boards of the retirement systems and pension funds by
25November 1 of each year.
26    (c) Notwithstanding any other provision of this Article,

 

 

SB3612- 25 -LRB101 19205 RPS 68668 b

1for a person who first becomes a fireman under this Article on
2or after January 1, 2011, eligibility for and the amount of the
3annuity to which the qualified surviving spouse, children, and
4parents of the fireman are entitled under this subsection (c)
5shall be determined as follows:
6        (1) The surviving spouse of a deceased fireman to whom
7    this Section applies shall be deemed qualified to receive a
8    Tier 2 surviving spouse's annuity under this paragraph (1)
9    if: (i) the deceased fireman meets the requirements
10    specified under subdivision (A), (B), (C), or (D) of this
11    paragraph (1); and (ii) the surviving spouse would not
12    otherwise be excluded from receiving a widow's annuity
13    under the eligibility requirements for a widow's annuity
14    set forth in Section 6-142. The Tier 2 surviving spouse's
15    annuity is in lieu of the widow's annuity determined under
16    any other Section of this Article and is subject to the
17    requirements of Section 6-143.2.
18        As used in this subsection (c), "earned pension" means
19    a Tier 2 monthly retirement annuity determined under
20    subsection (b) of this Section, including any increases the
21    fireman had received pursuant to Section 6-164.
22            (A) If the deceased fireman was receiving an earned
23        pension at the date of his or her death, the Tier 2
24        surviving spouse's annuity under this paragraph (1)
25        shall be in the amount of 66 2/3% of the fireman's
26        earned pension at the date of death.

 

 

SB3612- 26 -LRB101 19205 RPS 68668 b

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

 

 

SB3612- 27 -LRB101 19205 RPS 68668 b

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

 

 

SB3612- 28 -LRB101 19205 RPS 68668 b

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

 

 

SB3612- 29 -LRB101 19205 RPS 68668 b

1        lieu of a benefit under paragraph (2) of this
2        subsection (c) but does not apply if the beneficiary is
3        entitled to receive a greater benefit under paragraph
4        (2) of this subsection (c).
5            (D) Notwithstanding subdivisions (A), (B), and (C)
6        of this paragraph (1), if the performance of an act or
7        acts of duty results directly in the death of a fireman
8        subject to this Section, or prevents him from
9        subsequently resuming active service in the fire
10        department, then a surviving spouse who would
11        otherwise meet the eligibility requirements for a
12        death in the line of duty widow's annuity granted under
13        Section 6-140 shall be deemed to be qualified for a
14        Tier 2 surviving spouse's annuity under this
15        subdivision (D); except that no such annuity shall be
16        paid to the surviving spouse of a fireman who dies
17        while in receipt of disability benefits when the
18        fireman's death was caused by an intervening illness or
19        injury unrelated to the illness or injury that had
20        prevented him from subsequently resuming active
21        service in the fire department. The Tier 2 surviving
22        spouse's annuity calculated under this subdivision (D)
23        shall be in lieu of, but in the same amount and paid in
24        the same manner as, the widow's annuity provided under
25        Section 6-140; except that the salary used for
26        computing a Tier 2 surviving spouse's annuity under

 

 

SB3612- 30 -LRB101 19205 RPS 68668 b

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

 

 

SB3612- 31 -LRB101 19205 RPS 68668 b

1        established from time to time under Section 6-128.4.
2        (2) Surviving children of a deceased fireman subject to
3    this Section who would otherwise meet the eligibility
4    requirements for a child's annuity set forth in Sections
5    6-147 and 6-148 shall be deemed qualified to receive a Tier
6    2 child's annuity under this subsection (c), which shall be
7    in lieu of, but in the same amount and paid in the same
8    manner as, the child's annuity provided under those
9    Sections; except that any salary used for computing a Tier
10    2 child's annuity shall be subject to the Tier 2 salary cap
11    provided under subsection (b) of this Section. For purposes
12    of determining any pro rata reduction in child's annuities
13    under this subsection (c), references in Section 6-148 to
14    the combined annuities of the family shall be deemed to
15    refer to the combined Tier 2 surviving spouse's annuity, if
16    any, and the Tier 2 child's annuities payable under this
17    subsection (c).
18        (3) Surviving parents of a deceased fireman subject to
19    this Section who would otherwise meet the eligibility
20    requirements for a parent's annuity set forth in Section
21    6-149 shall be deemed qualified to receive a Tier 2
22    parent's annuity under this subsection (c), which shall be
23    in lieu of, but in the same amount and paid in the same
24    manner as, the parent's annuity provided under Section
25    6-149; except that any salary used for computing a Tier 2
26    parent's annuity shall be subject to the Tier 2 salary cap

 

 

SB3612- 32 -LRB101 19205 RPS 68668 b

1    provided under subsection (b) of this Section. For the
2    purposes of this Section, a reference to "annuity" in
3    Section 6-149 includes: (i) in the context of a widow, a
4    Tier 2 surviving spouse's annuity and (ii) in the context
5    of a child, a Tier 2 child's annuity.
6    Notwithstanding Section 1-103.1, the changes made to this
7subsection by this amendatory Act of the 101st General Assembly
8apply without regard to whether the deceased fireman was in
9service on or after the effective date of this amendatory Act
10of the 101st General Assembly. The changes made by this
11amendatory Act of the 101st General Assembly shall not diminish
12the survivor's benefits described in this Section.
13    (d) The General Assembly finds and declares that the
14provisions of this Section, as enacted by Public Act 96-1495,
15require clarification relating to necessary eligibility
16standards and the manner of determining and paying the intended
17Tier 2 benefits and contributions in order to enable the Fund
18to unambiguously implement and administer benefits for Tier 2
19members. The changes to this Section and the conforming changes
20to Sections 6-150, 6-158, 6-164 (except for the changes to
21subsection (a) of that Section), 6-166, and 6-167 made by this
22amendatory Act of the 99th General Assembly are enacted to
23clarify the provisions of this Section as enacted by Public Act
2496-1495, and are hereby declared to represent and be consistent
25with the original and continuing intent of this Section and
26Public Act 96-1495.

 

 

SB3612- 33 -LRB101 19205 RPS 68668 b

1    (e) The changes to Sections 6-150, 6-158, 6-164 (except for
2the changes to subsection (a) of that Section), 6-166, and
36-167 made by this amendatory Act of the 99th General Assembly
4are intended to be retroactive to January 1, 2011 (the
5effective date of Public Act 96-1495) and, for the purposes of
6Section 1-103.1 of this Code, they apply without regard to
7whether the relevant fireman was in service on or after the
8effective date of this amendatory Act of the 99th General
9Assembly.
10(Source: P.A. 99-905, eff. 11-29-16.)
 
11    Section 90. The State Mandates Act is amended by adding
12Section 8.44 as follows:
 
13    (30 ILCS 805/8.44 new)
14    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
15of this Act, no reimbursement by the State is required for the
16implementation of any mandate created by this amendatory Act of
17the 101st General Assembly.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.

 

 

SB3612- 34 -LRB101 19205 RPS 68668 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/5-167.1from Ch. 108 1/2, par. 5-167.1
4    40 ILCS 5/5-238
5    40 ILCS 5/6-164from Ch. 108 1/2, par. 6-164
6    40 ILCS 5/6-229
7    30 ILCS 805/8.44 new