093_HB2143

 
                                     LRB093 07674 EFG 07855 b

 1        AN ACT in relation to 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 Sections 5-167.1 and 5-167.2 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 60 (age 55 if born
13    before January 1, 1950) or over on that anniversary date,  or
14    upon  the  first of the month following his attainment of age
15    60 (age 55 if born before January 1, 1950) if it occurs after
16    the first anniversary of his retirement date, have  his  then
17    fixed  and  payable  monthly  annuity increased by 1 1/2% and
18    such first fixed annuity as granted at  retirement  increased
19    by an additional 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
24    policemen born on or after January 1, 1940 but before January
25    1,  1945, and beginning January 1, 2000 for policemen born on
26    or after January 1, 1945 but before  January  1,  1950,  such
27    increases shall be 3% and such policemen shall not be subject
28    to the 30% maximum increase.
29        Beginning  January 1, 2004, regardless of the policeman's
30    date of birth, all annual  increases  under  this  subsection
31    shall  be  at  the  rate  of  3% of the current amount of the
 
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 1    annuity, including any previous increases granted under  this
 2    Article, and the 30% maximum no longer applies.
 3        Notwithstanding  the other provisions of this subsection,
 4    any policeman who qualifies for a minimum annuity and retires
 5    after September 1, 1967 but  has  not  received  the  initial
 6    increase  under  this  subsection  before  January 1, 2004 is
 7    entitled  to  receive  the  initial   increase   under   this
 8    subsection  on (1) January 1, 2004, (2) the first anniversary
 9    of the date of retirement,  or  (3)  attainment  of  age  55,
10    whichever  occurs  last.  The changes to this Section made by
11    this amendatory  Act  of  the  93rd  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, 1945 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,  1996  is entitled to receive the initial
19    increase under this subsection on (1) January  1,  1996,  (2)
20    the  first  anniversary  of  the  date  of retirement, or (3)
21    attainment of age 55, whichever occurs last.  The changes  to
22    this Section made by Public Act 89-12 apply beginning January
23    1,  1996  and  without  regard  to  whether  the policeman or
24    annuitant terminated service before  the  effective  date  of
25    that Act.
26        Any  policeman  born before January 1, 1950 who qualifies
27    for a minimum annuity and retires after September 1, 1967 but
28    has not received the initial increase under  this  subsection
29    before  January  1,  2000  is entitled to receive the initial
30    increase under this subsection on (1) January  1,  2000,  (2)
31    the  first  anniversary  of  the  date  of retirement, or (3)
32    attainment of age 55, whichever occurs last.  The changes  to
33    this  Section made by this amendatory Act of the 92nd General
34    Assembly apply without regard to  whether  the  policeman  or
 
                            -3-      LRB093 07674 EFG 07855 b
 1    annuitant  terminated  service  before  the effective date of
 2    this amendatory Act.
 3        (b)  Subsection (a) of this Section is not applicable  to
 4    an employee receiving a term annuity.
 5        (c)  To  help  defray  the  cost  of  such  increases  in
 6    annuity,  there  shall  be  deducted,  beginning September 1,
 7    1967, from each payment of salary to a policeman, 1/2  of  1%
 8    of  each  salary payment concurrently with and in addition to
 9    the salary deductions otherwise made for annuity purposes.
10        The city, in addition to the contributions otherwise made
11    by it for annuity purposes under  other  provisions  of  this
12    Article,  shall make matching contributions concurrently with
13    such salary deductions.
14        Each such 1/2 of 1% deduction from salary and  each  such
15    contribution  by  the  city  of  1/2 of 1% of salary shall be
16    credited to the Automatic Increase Reserve,  to  be  used  to
17    defray  the  cost  of the 1 1/2% annuity increase provided by
18    this  Section.   Any  balance  in  such  reserve  as  of  the
19    beginning of  each  calendar  year  shall  be  credited  with
20    interest at the rate of 3% per annum.
21        Such  deductions from salary and city contributions shall
22    continue while the policeman is in service.
23        The salary deductions provided in this  Section  are  not
24    subject  to  refund,  except to the policeman himself, in any
25    case in which a policeman withdraws  prior  to  qualification
26    for  minimum  annuity  and  applies for refund or applies for
27    annuity, and also where a term annuity  becomes  payable.  In
28    such  cases,  the  total  of  such salary deductions shall be
29    refunded to the policeman, without interest, and  charged  to
30    the Automatic Increase Reserve.
31    (Source: P.A. 92-52, eff. 7-12-01.)

32        (40 ILCS 5/5-167.2) (from Ch. 108 1/2, par. 5-167.2)
33        Sec.  5-167.2.  Retirement  before  September 1, 1967.  A
 
                            -4-      LRB093 07674 EFG 07855 b
 1    retired policeman, qualifying  for  minimum  annuity  or  who
 2    retired from service with 20 or more years of service, before
 3    September  1,  1967,  shall, in January of the year following
 4    the year he attains the age of 65, or in January of the  year
 5    1970,  if then more than 65 years of age, have his then fixed
 6    and payable monthly annuity increased by an amount  equal  to
 7    2%  of  the  original  grant  of  annuity,  for each year the
 8    policeman was in receipt of annuity payments after  the  year
 9    in  which  he  attains,  or  did  attain  the  age of 63.  An
10    additional  2%  increase  in  such  then  fixed  and  payable
11    original  granted  annuity  shall  accrue  in  each   January
12    thereafter.    Beginning  January  1,  1986, the rate of such
13    increase shall be 3% instead of  2%.   Beginning  January  1,
14    2004,  all  annual increases under this paragraph shall be at
15    the rate  of  3%  of  the  current  amount  of  the  annuity,
16    including  any previous increases granted under this Article.
17    The change made to this Section by this amendatory Act of the
18    93rd General Assembly is not limited to persons in service on
19    or after its effective date.
20        The provisions of the preceding paragraph of this Section
21    apply only to a retired policeman eligible for such increases
22    in his annuity who contributes to the Fund a sum equal to  $5
23    for each full year of credited service upon which his annuity
24    was computed.  All such sums contributed shall be placed in a
25    Supplementary  Payment  Reserve  and  shall  be  used for the
26    purposes of such Fund account.
27        Beginning with the monthly annuity payment due  in  July,
28    1982,  the  fixed and granted monthly annuity payment for any
29    policeman who retired from the service, before  September  1,
30    1976,  at age 50 or over with 20 or more years of service and
31    entitled to an annuity on January 1, 1974, shall be not  less
32    than $400.  It is the intent of the General Assembly that the
33    change  made  in  this Section by this amendatory Act of 1982
34    shall apply retroactively to July 1, 1982.
 
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 1        Beginning with the monthly annuity payment due on January
 2    1, 1986, the fixed and granted monthly  annuity  payment  for
 3    any  policeman who retired from the service before January 1,
 4    1986, at age 50 or over with 20 or more years of service,  or
 5    any  policeman who retired from service due to termination of
 6    disability and who is entitled to an annuity  on  January  1,
 7    1986, shall be not less than $475.
 8        Beginning with the monthly annuity payment due on January
 9    1,  1992,  the  fixed and granted monthly annuity payment for
10    any policeman who retired from the service before January  1,
11    1992, at age 50 or over with 20 or more years of service, and
12    for any policeman who retired from service due to termination
13    of disability and who is entitled to an annuity on January 1,
14    1992, shall be not less than $650.
15        Beginning with the monthly annuity payment due on January
16    1,  1993,  the  fixed and granted monthly annuity payment for
17    any policeman who retired from the service before January  1,
18    1993, at age 50 or over with 20 or more years of service, and
19    for any policeman who retired from service due to termination
20    of disability and who is entitled to an annuity on January 1,
21    1993, shall be not less than $750.
22        Beginning with the monthly annuity payment due on January
23    1,  1994,  the  fixed and granted monthly annuity payment for
24    any policeman who retired from the service before January  1,
25    1994, at age 50 or over with 20 or more years of service, and
26    for any policeman who retired from service due to termination
27    of disability and who is entitled to an annuity on January 1,
28    1994, shall be not less than $850.
29        The  difference  in amount between the original fixed and
30    granted monthly annuity of any such policeman on the date  of
31    his  retirement  from  the  service  and  the monthly annuity
32    provided for in the immediately preceding paragraph shall  be
33    paid  as  a  supplement  in  the  manner  set  forth  in  the
34    immediately following paragraph.
 
                            -6-      LRB093 07674 EFG 07855 b
 1        To  defray  the annual cost of the increases indicated in
 2    the preceding part of   this  Section,  the  annual  interest
 3    income accruing from investments held by this Fund, exclusive
 4    of gains or losses on sales or exchanges of assets during the
 5    year,  over  and  above 4% a year shall be used to the extent
 6    necessary and available to finance the cost of such increases
 7    for the following year and such amount shall  be  transferred
 8    as  of the end of each year beginning with the year 1969 to a
 9    Fund account designated as the Supplementary Payment  Reserve
10    from the Interest and Investment Reserve set forth in Section
11    5-207.
12        In  the  event  the  funds  in  the Supplementary Payment
13    Reserve in any year arising from:  (1)  the  interest  income
14    accruing  in  the preceding  year above 4% a year and (2) the
15    contributions by retired persons are insufficient to make the
16    total  payments  to  all  persons  entitled  to  the  annuity
17    specified in this Section and (3) any interest earnings  over
18    4%  a  year  beginning  with  the  year  1969  which were not
19    previously used to finance  such  increases  and  which  were
20    transferred to the Prior Service Annuity Reserve, may be used
21    to  the  extent necessary and available to provide sufficient
22    funds to finance such increases for the current year and such
23    sums shall be transferred  from  the  Prior  Service  Annuity
24    Reserve.   In  the  event  the  total  money available in the
25    Supplementary  Payment  Reserve   from   such   sources   are
26    insufficient  to  make  the  total  payments  to  all persons
27    entitled to such increases  for  the  year,  a  proportionate
28    amount  computed  as  the ratio of the money available to the
29    total of the total payments specified for that year shall  be
30    paid to each person for that year.
31        The  Fund  shall  be  obligated  for  the  payment of the
32    increases in  annuity as provided for in this Section only to
33    the extent that the assets for such purpose are available.
34    (Source: P.A. 91-357, eff. 7-29-99.)
 
                            -7-      LRB093 07674 EFG 07855 b
 1        Section 90.  The State Mandates Act is amended by  adding
 2    Section 8.27 as follows:

 3        (30 ILCS 805/8.27 new)
 4        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
 5    and 8 of this Act, no reimbursement by the State is  required
 6    for  the  implementation  of  any  mandate  created  by  this
 7    amendatory Act of the 93rd General Assembly.

 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.