Full Text of SB1573 102nd General Assembly
SB1573 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB1573 Introduced 2/26/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/5-167.1 | from Ch. 108 1/2, par. 5-167.1 | 30 ILCS 805/8.45 new | |
|
Amends the Chicago Police Article 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%. Makes a related change. Specifies the timing of an initial increase in retirement annuity for persons who have not received the initial increase before January 1, 2021. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
|
| | | SB1573 | | LRB102 12568 RPS 17906 b |
|
| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 5-167.1 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 | 8 | | from service
after September 1, 1967. | 9 | | (a) A policeman who retires from service after September | 10 | | 1, 1967
with at least 20 years of service credit shall, upon | 11 | | either the first
of the month following the first anniversary | 12 | | of his date of retirement
if he is age 55 60 (age 55 if born | 13 | | before January 1, 1966)
or over on that anniversary date, or | 14 | | upon the first of the month following
his attainment of age 55 | 15 | | 60 (age 55 if born before January 1, 1966)
if it occurs after | 16 | | the first anniversary of his retirement date, have his
then | 17 | | fixed and payable monthly annuity increased by 3% 1 1/2% and | 18 | | such first
fixed annuity as granted at retirement increased by | 19 | | an additional 3% 1 1/2% in
January of each year thereafter up | 20 | | to a maximum increase of 30%. Beginning
January 1, 1983 for | 21 | | policemen born before January 1, 1930, and beginning
January | 22 | | 1, 1988 for policemen born on or after January 1, 1930 but | 23 | | before
January 1, 1940, and beginning January 1, 1996 for |
| | | SB1573 | - 2 - | LRB102 12568 RPS 17906 b |
|
| 1 | | policemen born on or after
January 1, 1940 but before January | 2 | | 1, 1945, and beginning January 1, 2000
for policemen born on or | 3 | | after January 1, 1945 but before January 1, 1950, and | 4 | | beginning January 1, 2005
for policemen born on or after | 5 | | January 1, 1950 but before January 1, 1955, and beginning | 6 | | January 1, 2017
for policemen born on or after January 1, 1955 | 7 | | but before January 1, 1966,
such increases shall be 3% and such | 8 | | policemen shall not be subject to the
30% maximum increase .
| 9 | | Any policeman born before January 1, 1945 who qualifies | 10 | | for a minimum
annuity and retires after September 1, 1967 but | 11 | | has not received the initial
increase under this subsection | 12 | | before January 1, 1996 is entitled to receive
the initial | 13 | | increase under this subsection on (1) January 1, 1996, (2) the
| 14 | | first anniversary of the date of retirement, or (3) attainment | 15 | | of age 55,
whichever occurs last. The changes to this Section | 16 | | made by Public Act
89-12 apply beginning January 1, 1996 and
| 17 | | without regard to whether the policeman or annuitant | 18 | | terminated service before
the effective date of that Act.
| 19 | | Any policeman born before January 1, 1950 who qualifies | 20 | | for a minimum
annuity and retires after September 1, 1967 but | 21 | | has not received the initial
increase under this subsection | 22 | | before January 1, 2000 is entitled to receive
the initial | 23 | | increase under this subsection on (1) January 1, 2000, (2) the
| 24 | | first anniversary of the date of retirement, or (3) attainment | 25 | | of age 55,
whichever occurs last. The changes to this Section | 26 | | made by this amendatory
Act of the 92nd General Assembly apply |
| | | SB1573 | - 3 - | LRB102 12568 RPS 17906 b |
|
| 1 | | without regard to whether the policeman
or annuitant | 2 | | terminated service before the effective date of this | 3 | | amendatory
Act.
| 4 | | Any policeman born before January 1, 1955 who qualifies | 5 | | for a minimum
annuity and retires after September 1, 1967 but | 6 | | has not received the initial
increase under this subsection | 7 | | before January 1, 2005 is entitled to receive
the initial | 8 | | increase under this subsection on (1) January 1, 2005, (2) the
| 9 | | first anniversary of the date of retirement, or (3) attainment | 10 | | of age 55,
whichever occurs last. The changes to this Section | 11 | | made by this amendatory
Act of the 94th General Assembly apply | 12 | | without regard to whether the policeman
or annuitant | 13 | | terminated service before the effective date of this | 14 | | amendatory
Act.
| 15 | | Any policeman born before January 1, 1966 who qualifies | 16 | | for
a minimum annuity and retires after
September 1, 1967 but | 17 | | has not received the initial increase
under this subsection | 18 | | before January 1, 2017 is entitled to
receive an initial | 19 | | increase under this subsection on (1)
January 1, 2017, (2) the | 20 | | first anniversary of the date of
retirement, or (3) attainment | 21 | | of age 55, whichever occurs last, in an amount equal to 3% for | 22 | | each complete year following the date of retirement or | 23 | | attainment of age 55, whichever occurs later. The changes to | 24 | | this subsection made by this amendatory
Act of the 99th | 25 | | General Assembly apply without regard to whether the policeman
| 26 | | or annuitant terminated service before the effective date of |
| | | SB1573 | - 4 - | LRB102 12568 RPS 17906 b |
|
| 1 | | this amendatory
Act. | 2 | | Any policeman born after January 1, 1966 who qualifies for | 3 | | a minimum annuity and retires after September 1, 1967 but has | 4 | | not received the initial increase under this subsection before | 5 | | January 1, 2021 is entitled to receive the initial increase | 6 | | under this subsection on (1) January 1, 2021, (2) the first | 7 | | anniversary of the date of retirement, or (3) attainment of | 8 | | age 55, whichever occurs last. The changes to this Section | 9 | | made by this amendatory Act of the 102nd General Assembly | 10 | | apply without regard to whether the policeman or annuitant | 11 | | terminated service before the effective date of this | 12 | | amendatory Act. | 13 | | (b) Subsection (a) of this Section is
not applicable to an | 14 | | employee receiving a term annuity.
| 15 | | (c) To help defray the cost of such increases in annuity, | 16 | | there shall
be deducted, beginning September 1, 1967, from | 17 | | each payment of salary to a
policeman, 1/2 of 1% of each salary | 18 | | payment concurrently with and in addition
to the salary | 19 | | deductions otherwise made for annuity purposes.
| 20 | | The city, in addition to the contributions otherwise made | 21 | | by it for
annuity purposes under other provisions of this | 22 | | Article, shall make
matching contributions concurrently with | 23 | | such salary deductions.
| 24 | | Each such 1/2 of 1% deduction from salary and each such | 25 | | contribution
by the city of 1/2 of 1% of salary shall be | 26 | | credited to the Automatic
Increase Reserve, to be used to |
| | | SB1573 | - 5 - | LRB102 12568 RPS 17906 b |
|
| 1 | | defray the cost of the annuity
increase provided by this | 2 | | Section. Any balance in such reserve as of the
beginning of | 3 | | each calendar year shall be credited with interest at the
rate | 4 | | of 3% per annum.
| 5 | | Such deductions from salary and city contributions shall | 6 | | continue
while the policeman is in service.
| 7 | | The salary deductions provided in this Section are not | 8 | | subject to
refund, except to the policeman himself, in any | 9 | | case in which: (i) the
policeman withdraws prior to | 10 | | qualification for minimum annuity or Tier 2 monthly retirement | 11 | | annuity and
applies for refund, (ii) the policeman applies for | 12 | | an annuity of a type that is not subject to annual increases | 13 | | under this Section, or (iii) a term annuity
becomes payable. | 14 | | In such cases, the total of such salary deductions
shall be | 15 | | refunded to the policeman, without interest, and charged to | 16 | | the
Automatic Increase Reserve.
| 17 | | (d) Notwithstanding any other provision of this Article, | 18 | | the Tier 2 monthly retirement annuity of a
person who first | 19 | | becomes a policeman under this Article on or after the | 20 | | effective date of this amendatory Act of the 97th General | 21 | | Assembly shall be increased on the January 1 occurring either | 22 | | on or after (i) the attainment of age 60 or (ii) the first | 23 | | anniversary of the annuity start date, whichever is later. | 24 | | Each annual increase shall be calculated at 3% or one-half the | 25 | | annual unadjusted percentage increase (but not less than zero) | 26 | | in the consumer price index-u for the 12 months ending with the |
| | | SB1573 | - 6 - | LRB102 12568 RPS 17906 b |
|
| 1 | | September preceding each November 1, whichever is less, of the | 2 | | originally granted retirement annuity. If the annual | 3 | | unadjusted percentage change in the consumer price index-u for | 4 | | a 12-month period ending in September is zero or, when | 5 | | compared with the preceding period, decreases, then the | 6 | | annuity shall not be increased. | 7 | | For the purposes of this subsection (d), "consumer price | 8 | | index-u" means the index published by the Bureau of Labor | 9 | | Statistics of the United States Department of Labor that | 10 | | measures the average change in prices of goods and services | 11 | | purchased by all urban consumers, United States city average, | 12 | | all items, 1982-84 = 100. The new amount resulting from each | 13 | | annual adjustment shall be determined by the Public Pension | 14 | | Division of the Department of Insurance and made available to | 15 | | the boards of the pension funds by November 1 of each year. | 16 | | (Source: P.A. 99-905, eff. 11-29-16.)
| 17 | | Section 90. The State Mandates Act is amended by adding | 18 | | Section 8.45 as follows: | 19 | | (30 ILCS 805/8.45 new) | 20 | | Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and | 21 | | 8 of this Act, no reimbursement by the State is required for | 22 | | the implementation of any mandate created by this amendatory | 23 | | Act of the 102nd General Assembly.
| 24 | | Section 99. Effective date. This Act takes effect upon |
| | | SB1573 | - 7 - | LRB102 12568 RPS 17906 b |
|
| 1 | | becoming law.
|
|