Illinois General Assembly - Full Text of HB1438
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Full Text of HB1438  102nd General Assembly

HB1438 102ND GENERAL ASSEMBLY


 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1438

 

Introduced 2/17/2021, by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/4-109  from Ch. 108 1/2, par. 4-109

    Amends the Downstate Firefighter Article of the Illinois Pension Code. Makes a technical change in a Section concerning retirement pensions.


LRB102 03454 RPS 13467 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1438LRB102 03454 RPS 13467 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
5changing Section 4-109 as follows:
 
6    (40 ILCS 5/4-109)  (from Ch. 108 1/2, par. 4-109)
7    Sec. 4-109. Pension.
8    (a) A firefighter age 50 or more with 20 or more years of
9creditable service, who is no longer in service as a
10firefighter, shall receive a monthly pension of 1/2 the the
11monthly salary attached to the rank held by him or her in the
12fire service at the date of retirement.
13    The monthly pension shall be increased by 1/12 of 2.5% of
14such monthly salary for each additional month over 20 years of
15service through 30 years of service, to a maximum of 75% of
16such monthly salary.
17    The changes made to this subsection (a) by this amendatory
18Act of the 91st General Assembly apply to all pensions that
19become payable under this subsection on or after January 1,
201999. All pensions payable under this subsection that began on
21or after January 1, 1999 and before the effective date of this
22amendatory Act shall be recalculated, and the amount of the
23increase accruing for that period shall be payable to the

 

 

HB1438- 2 -LRB102 03454 RPS 13467 b

1pensioner in a lump sum.
2    (b) A firefighter who retires or is separated from service
3having at least 10 but less than 20 years of creditable
4service, who is not entitled to receive a disability pension,
5and who did not apply for a refund of contributions at his or
6her last separation from service shall receive a monthly
7pension upon attainment of age 60 based on the monthly salary
8attached to his or her rank in the fire service on the date of
9retirement or separation from service according to the
10following schedule:
11    For 10 years of service, 15% of salary;
12    For 11 years of service, 17.6% of salary;
13    For 12 years of service, 20.4% of salary;
14    For 13 years of service, 23.4% of salary;
15    For 14 years of service, 26.6% of salary;
16    For 15 years of service, 30% of salary;
17    For 16 years of service, 33.6% of salary;
18    For 17 years of service, 37.4% of salary;
19    For 18 years of service, 41.4% of salary;
20    For 19 years of service, 45.6% of salary.
21    (c) Notwithstanding any other provision of this Article,
22the provisions of this subsection (c) apply to a person who
23first becomes a firefighter under this Article on or after
24January 1, 2011.
25    A firefighter age 55 or more who has 10 or more years of
26service in that capacity shall be entitled at his option to

 

 

HB1438- 3 -LRB102 03454 RPS 13467 b

1receive a monthly pension for his service as a firefighter
2computed by multiplying 2.5% for each year of such service by
3his or her final average salary.
4    The pension of a firefighter who is retiring after
5attaining age 50 with 10 or more years of creditable service
6shall be reduced by one-half of 1% for each month that the
7firefighter's age is under age 55.
8    The maximum pension under this subsection (c) shall be 75%
9of final average salary.
10    For the purposes of this subsection (c), "final average
11salary" means the greater of: (i) the average monthly salary
12obtained by dividing the total salary of the firefighter
13during the 48 consecutive months of service within the last 60
14months of service in which the total salary was the highest by
15the number of months of service in that period; or (ii) the
16average monthly salary obtained by dividing the total salary
17of the firefighter during the 96 consecutive months of service
18within the last 120 months of service in which the total salary
19was the highest by the number of months of service in that
20period.
21    Beginning on January 1, 2011, for all purposes under this
22Code (including without limitation the calculation of benefits
23and employee contributions), the annual salary based on the
24plan year of a member or participant to whom this Section
25applies shall not exceed $106,800; however, that amount shall
26annually thereafter be increased by the lesser of (i) 3% of

 

 

HB1438- 4 -LRB102 03454 RPS 13467 b

1that amount, including all previous adjustments, or (ii) the
2annual unadjusted percentage increase (but not less than zero)
3in the consumer price index-u for the 12 months ending with the
4September preceding each November 1, including all previous
5adjustments.
6    Nothing in this amendatory Act of the 101st General
7Assembly shall cause or otherwise result in any retroactive
8adjustment of any employee contributions.
9(Source: P.A. 101-610, eff. 1-1-20.)