97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5461

 

Introduced 2/15/2012, by Rep. Joseph M. Lyons

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.36 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that beginning January 1, 2012 for firemen born on or after January 1, 1955, the automatic annual increases in retirement annuity shall be 3% and shall not be subject to the 30% maximum increase restriction. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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

 

 

A BILL FOR

 

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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 6-164 as follows:
 
6    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
7    Sec. 6-164. Automatic annual increase; retirement after
8September 1, 1959.
9    (a) A fireman qualifying for a minimum annuity who retires
10from service after September 1, 1959 shall, upon either the
11first of the month following the first anniversary of his date
12of retirement if he is age 60 (age 55 if born before January 1,
131955) or over on that anniversary date, or upon the first of
14the month following his attainment of age 60 (age 55 if born
15before January 1, 1955) if that occurs after the first
16anniversary of his retirement date, have his then fixed and
17payable monthly annuity increased by 1 1/2%, and such first
18fixed annuity as granted at retirement increased by an
19additional 1 1/2% in January of each year thereafter up to a
20maximum increase of 30%. Beginning July 1, 1982 for firemen
21born before January 1, 1930, and beginning January 1, 1990 for
22firemen born after December 31, 1929 and before January 1,
231940, and beginning January 1, 1996 for firemen born after

 

 

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1December 31, 1939 but before January 1, 1945, and beginning
2January 1, 2004, for firemen born after December 31, 1944 but
3before January 1, 1955, and beginning January 1, 2012 for
4firemen born on or after January 1, 1955, such increases shall
5be 3% and such firemen shall not be subject to the 30% maximum
6increase.
7    Any fireman born before January 1, 1945 who qualifies for a
8minimum annuity and retires after September 1, 1967 but has not
9received the initial increase under this subsection before
10January 1, 1996 is entitled to receive the initial increase
11under this subsection on (1) January 1, 1996, (2) the first
12anniversary of the date of retirement, or (3) attainment of age
1355, whichever occurs last. The changes to this Section made by
14this amendatory Act of 1995 apply beginning January 1, 1996 and
15apply without regard to whether the fireman or annuitant
16terminated service before the effective date of this amendatory
17Act of 1995.
18    Any fireman born before January 1, 1955 who qualifies for a
19minimum annuity and retires after September 1, 1967 but has not
20received the initial increase under this subsection before
21January 1, 2004 is entitled to receive the initial increase
22under this subsection on (1) January 1, 2004, (2) the first
23anniversary of the date of retirement, or (3) attainment of age
2455, whichever occurs last. The changes to this Section made by
25this amendatory Act of the 93rd General Assembly apply without
26regard to whether the fireman or annuitant terminated service

 

 

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1before the effective date of this amendatory Act.
2    Any fireman born on or after January 1, 1955 who qualifies
3for a minimum annuity and retires after September 1, 1967 but
4has not received the initial increase under this subsection
5before January 1, 2012 is entitled to receive the initial
6increase under this subsection on (1) January 1, 2012, (2) the
7first anniversary of the date of retirement, or (3) attainment
8of age 55, whichever occurs last. The changes to this Section
9made by this amendatory Act of the 97th General Assembly apply
10without regard to whether the fireman or annuitant terminated
11service before the effective date of this amendatory Act.
12    (b) Subsection (a) of this Section is not applicable to an
13employee receiving a term annuity.
14    (c) To help defray the cost of such increases in annuity,
15there shall be deducted, beginning September 1, 1959, from each
16payment of salary to a fireman, 1/8 of 1% of each such salary
17payment and an additional 1/8 of 1% beginning on September 1,
181961, and September 1, 1963, respectively, concurrently with
19and in addition to the salary deductions otherwise made for
20annuity purposes.
21    Each such additional 1/8 of 1% deduction from salary which
22shall, on September 1, 1963, result in a total increase of 3/8
23of 1% of salary, shall be credited to the Automatic Increase
24Reserve, to be used, together with city contributions as
25provided in this Article, to defray the cost of the 1 1/2%
26annuity increments herein specified. Any balance in such

 

 

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1reserve as of the beginning of each calendar year shall be
2credited with interest at the rate of 3% per annum.
3    The salary deductions provided in this Section are not
4subject to refund, except to the fireman himself, in any case
5in which a fireman withdraws prior to qualification for minimum
6annuity and applies for refund, or applies for annuity, and
7also where a term annuity becomes payable. In such cases, the
8total of such salary deductions shall be refunded to the
9fireman, without interest, and charged to the aforementioned
10reserve.
11    (d) Notwithstanding any other provision of this Article,
12the monthly annuity of a person who first becomes a fireman
13under this Article on or after January 1, 2011 shall be
14increased on the January 1 occurring either on or after the
15attainment of age 60 or the first anniversary of the annuity
16start date, whichever is later. Each annual increase shall be
17calculated at 3% or one-half the annual unadjusted percentage
18increase (but not less than zero) in the consumer price index-u
19for the 12 months ending with the September preceding each
20November 1, whichever is less, of the originally granted
21retirement annuity. If the annual unadjusted percentage change
22in the consumer price index-u for a 12-month period ending in
23September is zero or, when compared with the preceding period,
24decreases, then the annuity shall not be increased.
25    For the purposes of this subsection (d), "consumer price
26index-u" means the index published by the Bureau of Labor

 

 

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1Statistics of the United States Department of Labor that
2measures the average change in prices of goods and services
3purchased by all urban consumers, United States city average,
4all items, 1982-84 = 100. The new amount resulting from each
5annual adjustment shall be determined by the Public Pension
6Division of the Department of Insurance and made available to
7the boards of the pension funds.
8(Source: P.A. 96-1495, eff. 1-1-11.)
 
9    Section 90. The State Mandates Act is amended by adding
10Section 8.36 as follows:
 
11    (30 ILCS 805/8.36 new)
12    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
13of this Act, no reimbursement by the State is required for the
14implementation of any mandate created by this amendatory Act of
15the 97th General Assembly.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.