Illinois General Assembly - Full Text of SB2097
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Full Text of SB2097  102nd General Assembly

SB2097 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2097

 

Introduced 2/26/2021, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-229
30 ILCS 805/8.45 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u) for the 12 months ending with the September preceding each November 1, including all previous adjustments. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB102 14430 RPS 19782 b

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

 

 

A BILL FOR

 

SB2097LRB102 14430 RPS 19782 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 6-229 as follows:
 
6    (40 ILCS 5/6-229)
7    Sec. 6-229. Provisions applicable to new hires; Tier 2.
8    (a) Notwithstanding any other provision of this Article,
9the provisions of this Section apply to a person who first
10becomes a fireman under this Article on or after January 1,
112011, and to certain qualified survivors of such a fireman.
12Such persons, and the benefits and restrictions that apply
13specifically to them under this Article, may be referred to as
14"Tier 2".
15    (b) A fireman who has withdrawn from service, has attained
16age 50 or more, and has 10 or more years of service in that
17capacity shall be entitled, upon proper application being
18received by the Fund, to receive a Tier 2 monthly retirement
19annuity for his service as a fireman. The Tier 2 monthly
20retirement annuity shall be computed by multiplying 2.5% for
21each year of such service by his or her final average salary,
22subject to an annuity reduction factor of one-half of 1% for
23each month that the fireman's age at retirement is under age

 

 

SB2097- 2 -LRB102 14430 RPS 19782 b

155. The Tier 2 monthly retirement annuity is in lieu of any age
2and service annuity or other form of retirement annuity under
3this Article.
4    The maximum retirement annuity under this subsection (b)
5shall be 75% of final average salary.
6    For the purposes of this subsection (b), "final average
7salary" means the average monthly salary obtained by dividing
8the total salary of the fireman during the 96 consecutive
9months of service within the last 120 months of service in
10which the total salary was the highest by the number of months
11of service in that period.
12    Beginning on January 1, 2011, for all purposes under this
13Code (including without limitation the calculation of benefits
14and employee contributions), the annual salary based on the
15plan year of a member or participant to whom this Section
16applies shall not exceed $106,800; however, until 2021, that
17amount shall annually thereafter be increased by the lesser of
18(i) 3% of that amount, including all previous adjustments, or
19(ii) one-half the annual unadjusted percentage increase (but
20not less than zero) in the consumer price index-u for the 12
21months ending with the September preceding each November 1,
22including all previous adjustments; however, beginning in
232022, that amount shall annually thereafter be increased by
24the annual unadjusted percentage increase (but not less than
25zero) in the consumer price index-u for the 12 months ending
26with the September preceding each November 1, including all

 

 

SB2097- 3 -LRB102 14430 RPS 19782 b

1previous adjustments.
2    (b-5) For the purposes of this Section, "consumer price
3index-u" means the index published by the Bureau of Labor
4Statistics of the United States Department of Labor that
5measures the average change in prices of goods and services
6purchased by all urban consumers, United States city average,
7all items, 1982-84 = 100. The new amount resulting from each
8annual adjustment shall be determined by the Public Pension
9Division of the Department of Insurance and made available to
10the boards of the retirement systems and pension funds by
11November 1 of each year.
12    (c) Notwithstanding any other provision of this Article,
13for a person who first becomes a fireman under this Article on
14or after January 1, 2011, eligibility for and the amount of the
15annuity to which the qualified surviving spouse, children, and
16parents of the fireman are entitled under this subsection (c)
17shall be determined as follows:
18        (1) The surviving spouse of a deceased fireman to whom
19    this Section applies shall be deemed qualified to receive
20    a Tier 2 surviving spouse's annuity under this paragraph
21    (1) if: (i) the deceased fireman meets the requirements
22    specified under subdivision (A), (B), (C), or (D) of this
23    paragraph (1); and (ii) the surviving spouse would not
24    otherwise be excluded from receiving a widow's annuity
25    under the eligibility requirements for a widow's annuity
26    set forth in Section 6-142. The Tier 2 surviving spouse's

 

 

SB2097- 4 -LRB102 14430 RPS 19782 b

1    annuity is in lieu of the widow's annuity determined under
2    any other Section of this Article and is subject to the
3    requirements of Section 6-143.2.
4        As used in this subsection (c), "earned pension" means
5    a Tier 2 monthly retirement annuity determined under
6    subsection (b) of this Section, including any increases
7    the fireman had received pursuant to Section 6-164.
8            (A) If the deceased fireman was receiving an
9        earned pension at the date of his or her death, the
10        Tier 2 surviving spouse's annuity under this paragraph
11        (1) shall be in the amount of 66 2/3% of the fireman's
12        earned pension at the date of death.
13            (B) If the deceased fireman was not receiving an
14        earned pension but had at least 10 years of service at
15        the time of death, the Tier 2 surviving spouse's
16        annuity under this paragraph (1) shall be the greater
17        of: (i) 30% of the salary attached to the rank of first
18        class firefighter in the classified career service at
19        the time of the fireman's death; or (ii) 66 2/3% of the
20        Tier 2 monthly retirement annuity that the deceased
21        fireman would have been eligible to receive under
22        subsection (b) of this Section, based upon the actual
23        service accrued through the day before the fireman's
24        death, but determined as though the fireman was at
25        least age 55 on the day before his or her death and
26        retired on that day.

 

 

SB2097- 5 -LRB102 14430 RPS 19782 b

1            (C) If the deceased fireman was an active fireman
2        with at least 1 1/2 but less than 10 years of service
3        at the time of death, the Tier 2 surviving spouse's
4        annuity under this paragraph (1) shall be in the
5        amount of 30% of the salary attached to the rank of
6        first class firefighter in the classified career
7        service at the time of the fireman's death.
8            (D) Notwithstanding subdivisions (A), (B), and (C)
9        of this paragraph (1), if the performance of an act or
10        acts of duty results directly in the death of a fireman
11        subject to this Section, or prevents him from
12        subsequently resuming active service in the fire
13        department, then a surviving spouse who would
14        otherwise meet the eligibility requirements for a
15        death in the line of duty widow's annuity granted
16        under Section 6-140 shall be deemed to be qualified
17        for a Tier 2 surviving spouse's annuity under this
18        subdivision (D); except that no such annuity shall be
19        paid to the surviving spouse of a fireman who dies
20        while in receipt of disability benefits when the
21        fireman's death was caused by an intervening illness
22        or injury unrelated to the illness or injury that had
23        prevented him from subsequently resuming active
24        service in the fire department. The Tier 2 surviving
25        spouse's annuity calculated under this subdivision (D)
26        shall be in lieu of, but in the same amount and paid in

 

 

SB2097- 6 -LRB102 14430 RPS 19782 b

1        the same manner as, the widow's annuity provided under
2        Section 6-140; except that the salary used for
3        computing a Tier 2 surviving spouse's annuity under
4        this subdivision (D) shall be subject to the Tier 2
5        salary cap provided under subsection (b) of this
6        Section.
7            (E) Notwithstanding any other provision of this
8        Article, the monthly Tier 2 surviving spouse's annuity
9        under subdivision (A) or (B) of this paragraph (1)
10        shall be increased on the January 1 next occurring
11        after (i) attainment of age 60 by the recipient of the
12        Tier 2 surviving spouse's annuity or (ii) the first
13        anniversary of the Tier 2 surviving spouse's annuity
14        start date, whichever is later, and on each January 1
15        thereafter, by 3% or one-half the annual unadjusted
16        percentage increase in the consumer price index-u for
17        the 12 months ending with September preceding each
18        November 1, whichever is less, of the originally
19        granted Tier 2 surviving spouse's annuity. If the
20        annual unadjusted percentage change in the consumer
21        price index-u for a 12-month period ending in
22        September is zero or, when compared with the preceding
23        period, decreases, then the annuity shall not be
24        increased.
25            (F) Notwithstanding the other provisions of this
26        paragraph (1), for a qualified surviving spouse who is

 

 

SB2097- 7 -LRB102 14430 RPS 19782 b

1        entitled to a Tier 2 surviving spouse's annuity under
2        subdivision (A), (B), (C), or (D) of this paragraph
3        (1), that Tier 2 surviving spouse's annuity shall not
4        be less than the amount of the minimum widow's annuity
5        established from time to time under Section 6-128.4.
6        (2) Surviving children of a deceased fireman subject
7    to this Section who would otherwise meet the eligibility
8    requirements for a child's annuity set forth in Sections
9    6-147 and 6-148 shall be deemed qualified to receive a
10    Tier 2 child's annuity under this subsection (c), which
11    shall be in lieu of, but in the same amount and paid in the
12    same manner as, the child's annuity provided under those
13    Sections; except that any salary used for computing a Tier
14    2 child's annuity shall be subject to the Tier 2 salary cap
15    provided under subsection (b) of this Section. For
16    purposes of determining any pro rata reduction in child's
17    annuities under this subsection (c), references in Section
18    6-148 to the combined annuities of the family shall be
19    deemed to refer to the combined Tier 2 surviving spouse's
20    annuity, if any, and the Tier 2 child's annuities payable
21    under this subsection (c).
22        (3) Surviving parents of a deceased fireman subject to
23    this Section who would otherwise meet the eligibility
24    requirements for a parent's annuity set forth in Section
25    6-149 shall be deemed qualified to receive a Tier 2
26    parent's annuity under this subsection (c), which shall be

 

 

SB2097- 8 -LRB102 14430 RPS 19782 b

1    in lieu of, but in the same amount and paid in the same
2    manner as, the parent's annuity provided under Section
3    6-149; except that any salary used for computing a Tier 2
4    parent's annuity shall be subject to the Tier 2 salary cap
5    provided under subsection (b) of this Section. For the
6    purposes of this Section, a reference to "annuity" in
7    Section 6-149 includes: (i) in the context of a widow, a
8    Tier 2 surviving spouse's annuity and (ii) in the context
9    of a child, a Tier 2 child's annuity.
10    (d) The General Assembly finds and declares that the
11provisions of this Section, as enacted by Public Act 96-1495,
12require clarification relating to necessary eligibility
13standards and the manner of determining and paying the
14intended Tier 2 benefits and contributions in order to enable
15the Fund to unambiguously implement and administer benefits
16for Tier 2 members. The changes to this Section and the
17conforming changes to Sections 6-150, 6-158, 6-164 (except for
18the changes to subsection (a) of that Section), 6-166, and
196-167 made by this amendatory Act of the 99th General Assembly
20are enacted to clarify the provisions of this Section as
21enacted by Public Act 96-1495, and are hereby declared to
22represent and be consistent with the original and continuing
23intent of this Section and Public Act 96-1495.
24    (e) The changes to Sections 6-150, 6-158, 6-164 (except
25for the changes to subsection (a) of that Section), 6-166, and
266-167 made by this amendatory Act of the 99th General Assembly

 

 

SB2097- 9 -LRB102 14430 RPS 19782 b

1are intended to be retroactive to January 1, 2011 (the
2effective date of Public Act 96-1495) and, for the purposes of
3Section 1-103.1 of this Code, they apply without regard to
4whether the relevant fireman was in service on or after the
5effective date of this amendatory Act of the 99th General
6Assembly.
7(Source: P.A. 99-905, eff. 11-29-16.)
 
8    Section 90. The State Mandates Act is amended by adding
9Section 8.45 as follows:
 
10    (30 ILCS 805/8.45 new)
11    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
128 of this Act, no reimbursement by the State is required for
13the implementation of any mandate created by this amendatory
14Act of the 102nd General Assembly.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.