Full Text of HB5592 101st General Assembly
HB5592 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB5592 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/4-109.1 | from Ch. 108 1/2, par. 4-109.1 | 30 ILCS 805/8.44 new | |
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Amends the Downstate Firefighters Article of the Illinois Pension Code. Provides that each annual increase for Tier 2 members shall be calculated at 3% of the originally granted pension (rather than the lesser of 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for a 12-month period ending in September preceding each November 1). Provides that the changes shall apply without regard to whether a Tier 2 member is in active service under the Article on or after the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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| 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 changing | 5 | | Section 4-109.1 as follows: | 6 | | (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
| 7 | | Sec. 4-109.1. Increase in pension.
| 8 | | (a) Except as provided in subsection (e), the monthly | 9 | | pension of a
firefighter who retires after July 1, 1971 and | 10 | | prior to January 1, 1986, shall,
upon either the first of the | 11 | | month following the first anniversary of the date
of retirement | 12 | | if 60 years of age or over at retirement date, or upon the | 13 | | first
day of the month following attainment of age 60 if it | 14 | | occurs after the first
anniversary of retirement, be increased | 15 | | by 2% of the originally granted monthly
pension and by an | 16 | | additional 2% in each January thereafter. Effective January
| 17 | | 1976, the rate of the annual increase shall be 3% of the | 18 | | originally granted
monthly pension.
| 19 | | (b) The monthly pension of a firefighter who retired
from | 20 | | service with 20 or more years of service, on or before
July 1, | 21 | | 1971, shall be increased, in January of the year
following the | 22 | | year of attaining age 65 or in January
1972, if then over age | 23 | | 65, by 2% of the originally granted monthly
pension, for each |
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| 1 | | year the firefighter received pension payments.
In each January | 2 | | thereafter, he or she shall receive an additional
increase of | 3 | | 2% of the original monthly pension. Effective
January 1976, the | 4 | | rate of the annual increase shall be 3%.
| 5 | | (c) The monthly pension of a firefighter who is receiving
a | 6 | | disability pension under this Article shall be increased, in
| 7 | | January of the year following the year the firefighter attains
| 8 | | age 60, or in January 1974, if then over age 60, by 2% of the
| 9 | | originally granted monthly pension for each
year he or she | 10 | | received pension payments.
In each January thereafter, the | 11 | | firefighter shall receive an additional
increase of 2% of the | 12 | | original monthly pension. Effective January 1976,
the rate of | 13 | | the annual increase shall be 3%.
| 14 | | (c-1) On January 1, 1998, every child's disability benefit | 15 | | payable on that
date under Section 4-110 or 4-110.1 shall be | 16 | | increased by an amount equal to
1/12 of 3% of the amount of the | 17 | | benefit, multiplied by the number of months for
which the | 18 | | benefit has been payable. On each January 1 thereafter, every
| 19 | | child's disability benefit payable under Section 4-110 or | 20 | | 4-110.1 shall be
increased by 3% of the amount of the benefit | 21 | | then being paid, including any
previous increases received | 22 | | under this Article. These increases are not
subject to any | 23 | | limitation on the maximum benefit amount included in Section
| 24 | | 4-110 or 4-110.1.
| 25 | | (c-2) On July 1, 2004, every pension payable to or on | 26 | | behalf of a minor
or disabled surviving child that is payable |
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| 1 | | on that date under Section 4-114
shall be increased by an | 2 | | amount equal to 1/12 of 3% of the amount of the
pension, | 3 | | multiplied by the number of months for which the benefit has | 4 | | been
payable. On July 1, 2005, July 1, 2006, July 1, 2007, and | 5 | | July 1, 2008, every pension payable to or on behalf
of a minor | 6 | | or disabled surviving child that is payable under Section 4-114
| 7 | | shall be increased by 3% of the amount of the pension then | 8 | | being paid,
including any previous increases received under | 9 | | this Article. These increases
are not subject to any limitation | 10 | | on the maximum benefit amount included in
Section 4-114.
| 11 | | (d) The monthly pension of a firefighter who retires after | 12 | | January 1,
1986, shall, upon either the first of the month | 13 | | following the first
anniversary of the date of retirement if 55 | 14 | | years of age or over, or
upon the first day of the month | 15 | | following attainment of
age 55 if it occurs after the first | 16 | | anniversary of retirement, be increased
by 1/12 of 3% of the | 17 | | originally granted monthly pension for each full
month that has | 18 | | elapsed since the pension began, and by an
additional 3% in | 19 | | each January thereafter.
| 20 | | The changes made to this subsection (d) by this amendatory | 21 | | Act of the 91st
General Assembly apply to all initial increases | 22 | | that become payable under this
subsection on or after January | 23 | | 1, 1999. All initial increases that became
payable under this | 24 | | subsection on or after January 1, 1999 and before the
effective | 25 | | date of this amendatory Act shall be recalculated and the | 26 | | additional
amount accruing for that period, if any, shall be |
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| 1 | | payable to the pensioner in a
lump sum.
| 2 | | (e) Notwithstanding the provisions of subsection (a), upon | 3 | | the
first day of the month following (1) the first anniversary | 4 | | of the date of
retirement, or (2) the attainment of age 55, or | 5 | | (3) July 1, 1987, whichever
occurs latest, the monthly pension | 6 | | of a firefighter who retired on or after
January 1, 1977 and on | 7 | | or before January 1, 1986 and did not receive an
increase under | 8 | | subsection (a) before July 1, 1987,
shall be increased by 3% of | 9 | | the originally granted monthly pension for
each full year that | 10 | | has elapsed since the pension began, and by an
additional 3% in | 11 | | each January thereafter. The increases provided under
this | 12 | | subsection are in lieu of the increases provided in subsection | 13 | | (a).
| 14 | | (f) In July 2009, the monthly pension of a
firefighter who | 15 | | retired before July 1, 1977 shall be recalculated and increased | 16 | | to reflect the amount that the firefighter would have received | 17 | | in July 2009 had the firefighter been receiving a 3% compounded | 18 | | increase for each year he or she received pension payments | 19 | | after January 1, 1986, plus any increases in pension received | 20 | | for each year prior to January 1, 1986. In each January | 21 | | thereafter, he or she shall receive an additional
increase of | 22 | | 3% of the amount of the pension then being paid. The changes | 23 | | made to this Section by this amendatory Act of the 96th General | 24 | | Assembly apply without regard to whether the firefighter was in | 25 | | service on or after its effective date. | 26 | | (g) Notwithstanding any other provision of this Article, |
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| 1 | | the monthly pension of a
person who first becomes a firefighter | 2 | | under this Article on or after January 1, 2011 shall be | 3 | | increased on the January 1 occurring either on or after the | 4 | | attainment of age 60 or the first anniversary of the pension | 5 | | start date, whichever is later. Each annual increase shall be | 6 | | calculated at 3% or one-half the annual unadjusted percentage | 7 | | increase (but not less than zero) in the consumer price index-u | 8 | | for the 12 months ending with the September preceding each | 9 | | November 1, whichever is less, of the originally granted | 10 | | pension. If the annual unadjusted percentage change in the | 11 | | consumer price index-u for a 12-month period ending in | 12 | | September is zero or, when compared with the preceding period, | 13 | | decreases, then the pension shall not be increased. | 14 | | For the purposes of this subsection (g), "consumer price | 15 | | index-u" means the index published by the Bureau of Labor | 16 | | Statistics of the United States Department of Labor that | 17 | | measures the average change in prices of goods and services | 18 | | purchased by all urban consumers, United States city average, | 19 | | all items, 1982-84 = 100. The new amount resulting from each | 20 | | annual adjustment shall be determined by the Public Pension | 21 | | Division of the Department of Insurance and made available to | 22 | | the boards of the pension funds. | 23 | | Notwithstanding Section 1-103.1, the changes made by this | 24 | | amendatory Act of the 101st General Assembly apply without | 25 | | regard to whether the person who first became a firefighter | 26 | | under this Article on or after January 1, 2011 is in active |
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| 1 | | service under this Article on or after the effective date of | 2 | | this amendatory Act of the 101st General Assembly. | 3 | | (Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
| 4 | | Section 90. The State Mandates Act is amended by adding | 5 | | Section 8.44 as follows: | 6 | | (30 ILCS 805/8.44 new) | 7 | | Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8 | 8 | | of this Act, no reimbursement by the State is required for the | 9 | | implementation of any mandate created by this amendatory Act of | 10 | | the 101st General Assembly.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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