99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2142

 

Introduced 5/30/2015, by Sen. John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-167.1  from Ch. 108 1/2, par. 5-167.1
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.39 new

    Amends the Chicago Police and Chicago Firefighter Articles of the Illinois Pension Code. Provides that any policeman or fireman born after December 31, 1954 but before January 1, 1970 shall be entitled to receive a 3% automatic annual increase to the originally granted annuity. Provides that the automatic annual increase is not subject to the 30% maximum increase. Provides that the initial increase shall be in an amount equal to 3% for each year following the date of retirement or attainment of age 55, whichever occurs later. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB099 12687 RPS 36442 b

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

 

 

A BILL FOR

 

SB2142LRB099 12687 RPS 36442 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 and 6-164 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 60 (age 55 if born before
13January 1, 1955) or over on that anniversary date, or upon the
14first of the month following his attainment of age 60 (age 55
15if born before January 1, 1955) if it 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 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

 

 

SB2142- 2 -LRB099 12687 RPS 36442 b

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, 2016 for
6policemen born on or after January 1, 1955 but before January
71, 1970, 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

 

 

SB2142- 3 -LRB099 12687 RPS 36442 b

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, 1970 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, 2016 is entitled to receive the initial increase
17under this subsection on (1) January 1, 2016, (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
20year following the date of retirement or attainment of age 55,
21whichever occurs later. The changes to this Section made by
22this amendatory Act of the 99th General Assembly apply without
23regard to whether the policeman or annuitant terminated service
24before the effective date of this amendatory Act.
25    (b) Subsection (a) of this Section is not applicable to an
26employee receiving a term annuity.

 

 

SB2142- 4 -LRB099 12687 RPS 36442 b

1    (c) To help defray the cost of such increases in annuity,
2there shall be deducted, beginning September 1, 1967, from each
3payment of salary to a policeman, 1/2 of 1% of each salary
4payment concurrently with and in addition to the salary
5deductions otherwise made for annuity purposes.
6    The city, in addition to the contributions otherwise made
7by it for annuity purposes under other provisions of this
8Article, shall make matching contributions concurrently with
9such salary deductions.
10    Each such 1/2 of 1% deduction from salary and each such
11contribution by the city of 1/2 of 1% of salary shall be
12credited to the Automatic Increase Reserve, to be used to
13defray the cost of the 1 1/2% annuity increase provided by this
14Section. Any balance in such reserve as of the beginning of
15each calendar year shall be credited with interest at the rate
16of 3% per annum.
17    Such deductions from salary and city contributions shall
18continue while the policeman is in service.
19    The salary deductions provided in this Section are not
20subject to refund, except to the policeman himself, in any case
21in which a policeman withdraws prior to qualification for
22minimum annuity and applies for refund or applies for annuity,
23and also where a term annuity becomes payable. In such cases,
24the total of such salary deductions shall be refunded to the
25policeman, without interest, and charged to the Automatic
26Increase Reserve.

 

 

SB2142- 5 -LRB099 12687 RPS 36442 b

1    (d) Notwithstanding any other provision of this Article,
2the monthly annuity of a person who first becomes a policeman
3under this Article on or after August 12, 2011 (the effective
4date of Public Act 97-344) this amendatory Act of the 97th
5General Assembly shall be increased on the January 1 occurring
6either on or after the attainment of age 60 or the first
7anniversary of the annuity start date, whichever is later. Each
8annual increase shall be calculated at 3% or one-half the
9annual unadjusted percentage increase (but not less than zero)
10in the consumer price index-u for the 12 months ending with the
11September preceding each November 1, whichever is less, of the
12originally granted retirement annuity. If the annual
13unadjusted percentage change in the consumer price index-u for
14a 12-month period ending in September is zero or, when compared
15with the preceding period, decreases, then the annuity shall
16not be increased.
17    For the purposes of this subsection (d), "consumer price
18index-u" means the index published by the Bureau of Labor
19Statistics of the United States Department of Labor that
20measures the average change in prices of goods and services
21purchased by all urban consumers, United States city average,
22all items, 1982-84 = 100. The new amount resulting from each
23annual adjustment shall be determined by the Public Pension
24Division of the Department of Insurance and made available to
25the boards of the pension funds.
26(Source: P.A. 96-1495, eff. 1-1-11; 97-344, eff. 8-12-11.)
 

 

 

SB2142- 6 -LRB099 12687 RPS 36442 b

1    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
2    Sec. 6-164. Automatic annual increase; retirement after
3September 1, 1959.
4    (a) A fireman qualifying for a minimum annuity who retires
5from service after September 1, 1959 shall, upon either the
6first of the month following the first anniversary of his date
7of retirement if he is age 55 60 (age 55 if born before January
81, 1955) or over on that anniversary date, or upon the first of
9the month following his attainment of age 55 60 (age 55 if born
10before January 1, 1955) if that occurs after the first
11anniversary of his retirement date, have his then fixed and
12payable monthly annuity increased by 1 1/2%, and such first
13fixed annuity as granted at retirement increased by an
14additional 1 1/2% in January of each year thereafter up to a
15maximum increase of 30%. Beginning July 1, 1982 for firemen
16born before January 1, 1930, and beginning January 1, 1990 for
17firemen born after December 31, 1929 and before January 1,
181940, and beginning January 1, 1996 for firemen born after
19December 31, 1939 but before January 1, 1945, and beginning
20January 1, 2004, for firemen born after December 31, 1944 but
21before January 1, 1955, and beginning January 1, 2016, for
22firemen born after December 31, 1954 but before January 1,
231970, such increases shall be 3% and such firemen shall not be
24subject to the 30% maximum increase.
25    Any fireman born before January 1, 1945 who qualifies for a

 

 

SB2142- 7 -LRB099 12687 RPS 36442 b

1minimum annuity and retires after September 1, 1967 but has not
2received the initial increase under this subsection before
3January 1, 1996 is entitled to receive the initial increase
4under this subsection on (1) January 1, 1996, (2) the first
5anniversary of the date of retirement, or (3) attainment of age
655, whichever occurs last. The changes to this Section made by
7this amendatory Act of 1995 apply beginning January 1, 1996 and
8apply without regard to whether the fireman or annuitant
9terminated service before the effective date of this amendatory
10Act of 1995.
11    Any fireman born before January 1, 1955 who qualifies for a
12minimum annuity and retires after September 1, 1967 but has not
13received the initial increase under this subsection before
14January 1, 2004 is entitled to receive the initial increase
15under this subsection on (1) January 1, 2004, (2) the first
16anniversary of the date of retirement, or (3) attainment of age
1755, whichever occurs last. The changes to this Section made by
18this amendatory Act of the 93rd General Assembly apply without
19regard to whether the fireman or annuitant terminated service
20before the effective date of this amendatory Act.
21    Any fireman born before January 1, 1970 who qualifies for a
22minimum annuity and retires after September 1, 1967 but has not
23received the initial increase under this subsection before
24January 1, 2016 is entitled to receive an initial increase
25under this subsection on (1) January 1, 2016, (2) the first
26anniversary of the date of retirement, or (3) attainment of age

 

 

SB2142- 8 -LRB099 12687 RPS 36442 b

155, whichever occurs last, in an amount equal to 3% for each
2year following the date of retirement or attainment of age 55,
3whichever occurs later. The changes to this Section made by
4this amendatory Act of the 99th General Assembly apply without
5regard to whether the fireman or annuitant terminated service
6before the effective date of this amendatory Act.
7    (b) Subsection (a) of this Section is not applicable to an
8employee receiving a term annuity.
9    (c) To help defray the cost of such increases in annuity,
10there shall be deducted, beginning September 1, 1959, from each
11payment of salary to a fireman, 1/8 of 1% of each such salary
12payment and an additional 1/8 of 1% beginning on September 1,
131961, and September 1, 1963, respectively, concurrently with
14and in addition to the salary deductions otherwise made for
15annuity purposes.
16    Each such additional 1/8 of 1% deduction from salary which
17shall, on September 1, 1963, result in a total increase of 3/8
18of 1% of salary, shall be credited to the Automatic Increase
19Reserve, to be used, together with city contributions as
20provided in this Article, to defray the cost of the 1 1/2%
21annuity increments herein specified. Any balance in such
22reserve as of the beginning of each calendar year shall be
23credited with interest at the rate of 3% per annum.
24    The salary deductions provided in this Section are not
25subject to refund, except to the fireman himself, in any case
26in which a fireman withdraws prior to qualification for minimum

 

 

SB2142- 9 -LRB099 12687 RPS 36442 b

1annuity and applies for refund, or applies for annuity, and
2also where a term annuity becomes payable. In such cases, the
3total of such salary deductions shall be refunded to the
4fireman, without interest, and charged to the aforementioned
5reserve.
6    (d) Notwithstanding any other provision of this Article,
7the monthly annuity of a person who first becomes a fireman
8under this Article on or after January 1, 2011 shall be
9increased on the January 1 occurring either on or after the
10attainment of age 60 or the first anniversary of the annuity
11start date, whichever is later. Each annual increase shall be
12calculated at 3% or one-half the annual unadjusted percentage
13increase (but not less than zero) in the consumer price index-u
14for the 12 months ending with the September preceding each
15November 1, whichever is less, of the originally granted
16retirement annuity. If the annual unadjusted percentage change
17in the consumer price index-u for a 12-month period ending in
18September is zero or, when compared with the preceding period,
19decreases, then the annuity shall not be increased.
20    For the purposes of this subsection (d), "consumer price
21index-u" means the index published by the Bureau of Labor
22Statistics of the United States Department of Labor that
23measures the average change in prices of goods and services
24purchased by all urban consumers, United States city average,
25all items, 1982-84 = 100. The new amount resulting from each
26annual adjustment shall be determined by the Public Pension

 

 

SB2142- 10 -LRB099 12687 RPS 36442 b

1Division of the Department of Insurance and made available to
2the boards of the pension funds.
3(Source: P.A. 96-1495, eff. 1-1-11.)
 
4    Section 90. The State Mandates Act is amended by adding
5Section 8.39 as follows:
 
6    (30 ILCS 805/8.39 new)
7    Sec. 8.39. 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 99th General Assembly.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.