Bill Amendment: IL SB0440 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PEN CD-CHICAGO FIRE-TIER 2

Status: 2016-11-30 - Public Act . . . . . . . . . 99-0905 [SB0440 Detail]

Download: Illinois-2015-SB0440-House_Amendment_001.html

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Rep. Daniel J. Burke

Filed: 5/19/2016

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AMENDMENT TO SENATE BILL 440
AMENDMENT NO. ______. Amend Senate Bill 440 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Pension Code is amended by
changing Sections 5-153, 5-155, 5-163, 5-167.1, 5-167.4,
5-169, 5-170, 5-238, 6-128.4, 6-150, 6-158, 6-164, 6-166,
6-167, and 6-229 as follows:
(40 ILCS 5/5-153) (from Ch. 108 1/2, par. 5-153)
Sec. 5-153. Death benefit.
(a) Effective January 1, 1962, an ordinary death benefit is
payable on account of any policeman in service and in receipt
of salary on or after such date, which benefit is in addition
to all other annuities and benefits herein provided. This
benefit is payable upon death of a policeman:
(1) occurring in active service while in receipt of
salary;

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(2) on an authorized and approved leave of absence,
without salary, beginning on or after January 1, 1962, if
the death occurs within 60 days from the date the employee
was in receipt of salary; or otherwise in the service and
not separated by resignation or discharge beginning
January 1, 1962 if death occurs before his resignation or
discharge from the service;
(3) receiving duty disability or ordinary disability
benefit;
(4) occurring within 60 days from the date of
termination of duty disability or ordinary disability
benefit payments if re-entry into service had not occurred;
or
(5) occurring on retirement and while in receipt of an
age and service annuity, Tier 2 monthly retirement annuity,
or prior service annuity; provided (a) retirement on such
annuity occurred on or after January 1, 1962, and (b) such
separation from service was effective on or after the
policeman's attainment of age 50, and (c) application for
such annuity was made within 60 days after separation from
service.
(b) The ordinary death benefit is payable to such
beneficiary or beneficiaries as the policeman has nominated by
written direction duly signed and acknowledged before an
officer authorized to take acknowledgments, and filed with the
board. If no such written direction has been filed or if the

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designated beneficiaries do not survive the policeman, payment
of the benefit shall be made to his estate.
(c) Until December 31, 1977, if death occurs prior to
retirement on annuity and before the policeman's attainment of
age 50, the amount of the benefit payable is $6,000. If death
occurs prior to retirement, at age 50 or over, the benefit of
$6,000 shall be reduced $400 for each year (commencing on the
policeman's attainment of age 50, and thereafter on each
succeeding birthdate) that the policeman's age, at date of
death, is more than age 50, but in no event below the amount of
$2,000. However, if death results from injury incurred in the
performance of an act or acts of duty, prior to retirement on
annuity, the amount of the benefit payable is $6,000
notwithstanding the age attained.
Until December 31, 1977, if the policeman's death occurs
while he is in receipt of an annuity, the benefit is $2,000 if
retirement was effective upon attainment of age 55 or greater.
If the policeman retired at age 50 or over and before age 55,
the benefit of $2,000 shall be reduced $100 for each year or
fraction of a year that the policeman's age at retirement was
less than age 55 to a minimum payment of $1,500.
After December 31, 1977, and on or before January 1, 1986,
if death occurs prior to retirement on annuity and before the
policeman's attainment of age 50, the amount of the benefit
payable is $7,000. If death occurs prior to retirement, at age
50 or over, the benefit of $7,000 shall be reduced $400 for

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each year (commencing on the policeman's attainment of age 50,
and thereafter on each succeeding birthdate) that the
policeman's age, at date of death, is more than age 50, but in
no event below the amount of $3,000. However, if death results
from injury incurred in the performance of an act or acts of
duty, prior to retirement on annuity, the amount of the benefit
payable is $7,000 notwithstanding the age attained.
After December 31, 1977, and on or before January 1, 1986,
if the policeman's death occurs while he is in receipt of an
annuity, the benefit is $2,250 if retirement was effective upon
attainment of age 55 or greater. If the policeman retired at
age 50 or over and before age 55, the benefit of $2,250 shall
be reduced $100 for each year or fraction of a year that the
policeman's age at retirement was less than age 55 to a minimum
payment of $1,750.
After January 1, 1986, if death occurs prior to retirement
on annuity and before the policeman's attainment of age 50, the
amount of benefit payable is $12,000. If death occurs prior to
retirement, at age 50 or over, the benefit of $12,000 shall be
reduced $400 for each year (commencing on the policeman's
attainment of age 50, and thereafter on each succeeding
birthdate) that the policeman's age, at date of death, is more
than age 50, but in no event below the amount of $6,000.
However, if death results from injury in the performance of an
act or acts of duty, prior to retirement on annuity, the amount
of benefit payable is $12,000 notwithstanding the age attained.

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After January 1, 1986, if the policeman's death occurs
while he is in receipt of an annuity, the benefit is $6,000.
(Source: P.A. 84-1104.)
(40 ILCS 5/5-155) (from Ch. 108 1/2, par. 5-155)
Sec. 5-155. Ordinary disability benefit. A policeman less
than age 63 who becomes disabled after the effective date as
the result of any cause other than injury incurred in the
performance of an act of duty, shall receive ordinary
disability benefit during any period or periods of disability
exceeding 30 days, for which he does not have a right to
receive any part of his salary. Payment of such benefit shall
not exceed, in the aggregate, throughout the total service of
the policeman, a period equal to one-fourth of the service
rendered to the city prior to the time he became disabled, nor
more than 5 years. In computing such period of service, the
time that the policeman received ordinary disability benefit
shall not be included.
When a disabled policeman becomes age 63 or would have been
retired by operation of law, whichever is later, the disability
benefit shall cease. The policeman, if still disabled, shall
thereafter receive such annuity as is provided in accordance
with other provisions of this Article.
Ordinary disability benefit shall be 50% of the policeman's
salary, as salary is defined in this Article (including the
limitation in Section 5-238 if applicable), at the time

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disability occurs. Until September 1, 1969, before any payment,
an amount equal to the sum ordinarily deducted from the
policeman's salary for all annuity purposes for the period for
which payment of ordinary disability benefit is made shall be
deducted from such payment and credited as a deduction from
salary for such period. Beginning September 1, 1969, the city
shall also contribute all amounts ordinarily contributed by it
for annuity purposes for the policeman as if he were in active
discharge of his duties. Such sums so credited shall be
regarded, for annuity and refund purposes, as sums contributed
by the policeman.
(Source: P.A. 86-272.)
(40 ILCS 5/5-163) (from Ch. 108 1/2, par. 5-163)
Sec. 5-163. Refund - General. (a) A policeman, without
regard to his period of service, who withdraws before age 50,
and a policeman with less than 10 years of service who
withdraws before age 57, is entitled to a refund of the amount
deducted from his salary for age and service annuity or Tier 2
monthly retirement annuity, for automatic annual increase in
annuity as provided in Section 5-167.1, and for widow's annuity
or Tier 2 surviving spouse's annuity, together with interest at
1-1/2% per year on each deduction from the date of each
deduction until the date of his withdrawal from the service.
(b) A policeman may receive a refund until the annuity to
which he is entitled has been fixed. Thereafter, he shall have

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no such right of refund.
(c) A policeman who withdraws the amount credited to him
surrenders and forfeits all rights to any annuity or other
benefit from the fund, for himself and for any other person or
persons who might otherwise have benefited through him. The
rights so forfeited shall be restored to him, his wife or widow
and his children upon full repayment as provided in Section
5-164.
If the policeman subsequently re-enters service before age
57, and has not so repaid in full the amounts refunded the
rights forfeited shall not be restored, but the policeman shall
retain the right (which is also secured to the widow) to have
the period of service represented by the refunds counted in the
compensation of length of service, except as otherwise provided
in Section 5-164.
(d) A policeman who has served less than 10 years who has
not received a refund shall have all amounts to his credit for
purposes on the date of his withdrawal improved by interest
while he is out of service until he attains age 57, if he
subsequently re-enters the service and attains a right to
annuity.
(e) If a policeman elects to make additional contribution
for past service as provided in Section 5-174 and fails to pay
such contributions in full within the time specified in said
section, a refund of the amount so paid, with interest at
1-1/2% per year, compounded annually, shall be refunded as

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provided in said section.
(f) If a policeman makes contributions in accordance with
the provisions of Section 5-174(b) and subsequently returns to
the position he holds by certification and appointment as the
result of competitive civil service examination, he shall
receive a refund of such contributions, upon application
therefor, together with interest at 1-1/2% per year on each
such deduction from the date it was made to the date of refund.
Application for refund must be made before the annuity to which
he has a right has been fixed.
(Source: P.A. 81-1536.)
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
Sec. 5-167.1. Automatic increase in annuity; retirement
from service after September 1, 1967.
(a) A policeman who retires from service after September 1,
1967 with at least 20 years of service credit shall, upon
either the first of the month following the first anniversary
of his date of retirement if he is age 60 (age 55 if born before
January 1, 1966 1955) or over on that anniversary date, or upon
the first of the month following his attainment of age 60 (age
55 if born before January 1, 1966 1955) if it occurs after the
first anniversary of his retirement date, have his then fixed
and payable monthly annuity increased by 1 1/2% and such first
fixed annuity as granted at retirement increased by an
additional 1 1/2% in January of each year thereafter up to a

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maximum increase of 30%. Beginning January 1, 1983 for
policemen born before January 1, 1930, and beginning January 1,
1988 for policemen born on or after January 1, 1930 but before
January 1, 1940, and beginning January 1, 1996 for policemen
born on or after January 1, 1940 but before January 1, 1945,
and beginning January 1, 2000 for policemen born on or after
January 1, 1945 but before January 1, 1950, and beginning
January 1, 2005 for policemen born on or after January 1, 1950
but before January 1, 1955, and beginning January 1, 2017 for
policemen born on or after January 1, 1955 but before January
1, 1966, such increases shall be 3% and such policemen shall
not be subject to the 30% maximum increase.
Any policeman born before January 1, 1945 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of age
55, whichever occurs last. The changes to this Section made by
Public Act 89-12 apply beginning January 1, 1996 and without
regard to whether the policeman or annuitant terminated service
before the effective date of that Act.
Any policeman born before January 1, 1950 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2000 is entitled to receive the initial increase

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under this subsection on (1) January 1, 2000, (2) the first
anniversary of the date of retirement, or (3) attainment of age
55, whichever occurs last. The changes to this Section made by
this amendatory Act of the 92nd General Assembly apply without
regard to whether the policeman or annuitant terminated service
before the effective date of this amendatory Act.
Any policeman born before January 1, 1955 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2005 is entitled to receive the initial increase
under this subsection on (1) January 1, 2005, (2) the first
anniversary of the date of retirement, or (3) attainment of age
55, whichever occurs last. The changes to this Section made by
this amendatory Act of the 94th General Assembly apply without
regard to whether the policeman or annuitant terminated service
before the effective date of this amendatory Act.
Any policeman born before January 1, 1966 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2017 is entitled to receive an initial increase
under this subsection on (1) January 1, 2017, (2) the first
anniversary of the date of retirement, or (3) attainment of age
55, whichever occurs last, in an amount equal to 3% for each
complete year following the date of retirement or attainment of
age 55, whichever occurs later. The changes to this subsection
made by this amendatory Act of the 99th General Assembly apply

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without regard to whether the policeman or annuitant terminated
service before the effective date of this amendatory Act.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1967, from each
payment of salary to a policeman, 1/2 of 1% of each salary
payment concurrently with and in addition to the salary
deductions otherwise made for annuity purposes.
The city, in addition to the contributions otherwise made
by it for annuity purposes under other provisions of this
Article, shall make matching contributions concurrently with
such salary deductions.
Each such 1/2 of 1% deduction from salary and each such
contribution by the city of 1/2 of 1% of salary shall be
credited to the Automatic Increase Reserve, to be used to
defray the cost of the 1 1/2% annuity increase provided by this
Section. Any balance in such reserve as of the beginning of
each calendar year shall be credited with interest at the rate
of 3% per annum.
Such deductions from salary and city contributions shall
continue while the policeman is in service.
The salary deductions provided in this Section are not
subject to refund, except to the policeman himself, in any case
in which: (i) the a policeman withdraws prior to qualification
for minimum annuity or Tier 2 monthly retirement annuity and

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applies for refund, (ii) the policeman or applies for an
annuity of a type that is not subject to annual increases under
this Section, or (iii) , and also where a term annuity becomes
payable. In such cases, the total of such salary deductions
shall be refunded to the policeman, without interest, and
charged to the Automatic Increase Reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a policeman under this Article on or after the
effective date of this amendatory Act of the 97th General
Assembly shall be increased on the January 1 occurring either
on or after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later. Each
annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when compared
with the preceding period, decreases, then the annuity shall
not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services

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purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
(Source: P.A. 96-1495, eff. 1-1-11; 97-344, eff. 8-12-11.)
(40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
Sec. 5-167.4. Widow annuitant minimum annuity.
(a) Notwithstanding any other provision of this Article,
beginning January 1, 1996, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $700 per month, without
regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1995.
Notwithstanding any other provision of this Article,
beginning January 1, 1999, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $800 per month, without
regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1998.
Notwithstanding any other provision of this Article,
beginning January 1, 2004, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $900 per month, without
regard to whether the deceased policeman is in service on or

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after the effective date of this amendatory Act of the 93rd
General Assembly.
Notwithstanding any other provision of this Article,
beginning January 1, 2005, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $1,000 per month, without
regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of the 93rd
General Assembly.
(b) Effective January 1, 1994, the minimum amount of
widow's annuity shall be $700 per month for the following
classes of widows, without regard to whether the deceased
policeman is in service on or after the effective date of this
amendatory Act of 1993: (1) the widow of a policeman who dies
in service with at least 10 years of service credit, or who
dies in service after June 30, 1981; and (2) the widow of a
policeman who withdraws from service with 20 or more years of
service credit and does not withdraw a refund, provided that
the widow is married to the policeman before he withdraws from
service.
(b-5) Notwithstanding any other provision of this Article,
beginning January 1, 2017, the minimum widow's annuity under
this Article shall be no less than 125% of the Federal Poverty
Level for all persons receiving widow's annuities on or after
that date, without regard to whether the deceased policeman is
in service on or after the effective date of this amendatory

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Act of the 99th General Assembly. For purposes of this Section,
"Federal Poverty Level" means the poverty guidelines
applicable to an individual in a single-person household
located in Illinois, as updated periodically in the Federal
Register by the United States Department of Health and Human
Services under the authority of 42 U.S.C. 9902(2).
(c) The city, in addition to the contributions otherwise
made by it under the other provisions of this Article, shall
make such contributions as are necessary for the minimum
widow's annuities provided under this Section in the manner
prescribed in Section 5-175.
(Source: P.A. 93-654, eff. 1-16-04.)
(40 ILCS 5/5-169) (from Ch. 108 1/2, par. 5-169)
Sec. 5-169. Contributions for age and service annuities or
Tier 2 monthly retirement annuities for present employees and
future entrants.
(a) Beginning on the effective date and before January 1,
1954, 3 1/2% per annum (except that beginning July 1, 1939 and
before January 1, 1954 for a future entrant, 4%) and beginning
January 1, 1954 and before August 1, 1957, 6%, and beginning
August 1, 1957, 7% of each payment of the salary of each
present employee and future entrant shall be deducted and
contributed to the fund for age and service annuity or Tier 2
monthly retirement annuity. The deductions shall be made from
each payment of salary and shall continue while the employee is

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in service.
Any policeman whose employment has been transferred to the
police service of the city as a result of "An Act in relation
to or exchange of certain functions, property and personnel
among cities, and park districts having co-extensive
geographic areas and populations in excess of 500,000",
approved July 5, 1957, as now and hereafter amended, shall also
contribute a sum equal to 2% of the total salary received by
him in his employment between August 1, 1957 to July 17, 1959,
with the park district from which he has been transferred
together with interest on the unpaid contributions of 4% per
annum from July 17, 1959 to the date such payments are made.
Such additional sum may be paid at any time before the time
such policeman enters into age and service annuity.
Concurrently with each such deduction, beginning on the
effective date and prior to January 1, 1954, 8 1/2% (except for
a future entrant beginning on July 1, 1939, 9 5/7%) and
beginning January 1, 1954, 9 5/7% of each payment of salary
shall be contributed by the city, but in the case of a future
entrant who attains age 63 prior to January 1, 1988 while still
in service, no contributions shall be made for the period
between the date the employee attains age 63 and January 1,
1988.
(b) Each deduction from salary made prior to the date the
age and service annuity for the employee is fixed, and each
contribution by the city, shall be credited to the employee and

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be improved by interest for a present employee during the time
he is in service until age and service annuity is fixed, and,
for a future entrant, during the time he is in service. The sum
accumulated shall be used to provide age and service annuity
for the employee.
Beginning September 1, 1967, the deductions from salary
provided in Section 5-167.1 shall also be made.
(Source: P.A. 86-272.)
(40 ILCS 5/5-170) (from Ch. 108 1/2, par. 5-170)
Sec. 5-170. Contributions for widow's annuities and Tier 2
surviving spouse's annuity for present employees and future
entrants. Beginning on the effective date 1%, and beginning
January 1, 1976, 1-1/2% of the salary of each male present
employee and future entrant shall be deducted and contributed
to the fund for widow's annuity or Tier 2 surviving spouse's
annuity; however, in the case of a future entrant who attains
age 63 prior to January 1, 1988 while still in service, no
deductions shall be made for the period between the date the
employee attains age 63 and January 1, 1988. The deductions
shall be made from each payment of salary and shall continue
during the employee's service.
An employee in the service and over age 57 on the effective
date of this amendatory Act of 1969 shall have the option of
contributing 1% of salary together with the effective rate of
interest for service rendered by him subsequent to his

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attainment of age 57 and prior to such effective date. If such
retroactive contributions are made the wife or widow shall be
entitled to the widow's annuity provided in Section 5-136.
Concurrently with each such deduction, the city shall
contribute 2% of each such payment of salary.
Each deduction from salary and contribution by the city
shall be allocated to the account of and credited to the
employee. The amount so credited shall be improved at the
applicable rate of interest; except that in the case of an
employee who attains age 63 prior to January 1, 1988 while
still in service, no interest shall be credited between the
date the employee attains age 63 and January 1, 1988.
(Source: P.A. 86-272.)
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011, and to certain qualified survivors of such a policeman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A policeman who has withdrawn from service, has
attained age 50 55 or more, and who has 10 or more years of
service in that capacity shall be entitled, upon proper

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application being received by the Fund, at his option to
receive a Tier 2 monthly retirement annuity for his service as
a police officer. The Tier 2 monthly retirement annuity shall
be computed by multiplying 2.5% for each year of such service
by his or her final average salary, subject to an annuity
reduction factor of . The retirement annuity of a policeman who
is retiring after attaining age 50 with 10 or more years of
creditable service shall be reduced by one-half of 1% for each
month that the police officer's age at retirement is under age
55. The Tier 2 monthly retirement annuity is in lieu of any age
and service annuity or other form of retirement annuity under
this Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the average monthly salary obtained by dividing
the total salary of the policeman during the 96 consecutive
months of service within the last 120 months of service in
which the total salary was the highest by the number of months
of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of

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that amount, including all previous adjustments, or (ii)
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a policeman under this Article
on or after January 1, 2011, eligibility for and the amount of
the annuity to which the qualified surviving spouse, children,
and or parents are entitled under this subsection (c) shall be
determined as follows:
(1) The surviving spouse of a deceased policeman to
whom this Section applies shall be deemed qualified to
receive a Tier 2 surviving spouse's annuity under this
paragraph (1) if: (i) the deceased policeman meets the
requirements specified under subdivision (A), (B), (C), or
(D) of this paragraph (1); and (ii) the surviving spouse
would not otherwise be excluded from receiving a widow's
annuity under the eligibility requirements for a widow's
annuity set forth in Section 5-146. The Tier 2 surviving
spouse's annuity is in lieu of the widow's annuity
determined under any other Section of this Article and is
subject to the requirements of Section 5-147.1.
As used in this subsection (c), "earned annuity" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases the

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policeman had received pursuant to Section 5-167.1.
(A) If the deceased policeman was receiving an
earned annuity at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the
policeman's earned annuity at the date of death.
(B) If the deceased policeman was not receiving an
earned annuity but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the annual maximum salary attached to
the classified civil service position of a first class
patrolman at the time of his death; or (ii) 66 2/3% of
the Tier 2 monthly retirement annuity that the deceased
policeman would have been eligible to receive under
subsection (b) of this Section, based upon the actual
service accrued through the day before the policeman's
death, but determined as though the policeman was at
least age 55 on the day before his or her death and
retired on that day.
(C) If the deceased policeman was an active
policeman with at least 1 1/2 but less than 10 years of
service at the time of death, the Tier 2 surviving
spouse's annuity under this paragraph (1) shall be in
the amount of 30% of the annual maximum salary attached
to the classified civil service position of a first

09900SB0440ham001 - 22 - LRB099 03101 EFG 48636 a
class patrolman at the time of his death.
(D) If the performance of an act or acts of duty
results directly in the death of a policeman subject to
this Section, or prevents him from subsequently
resuming active service in the police department, and
if the policeman's Tier 2 surviving spouse would
otherwise meet the eligibility requirements for a
compensation annuity or supplemental annuity granted
under Section 5-144, then in addition to the Tier 2
surviving spouse's annuity provided under subdivision
(A), (B), or (C) of this paragraph (1), whichever
applies, the Tier 2 surviving spouse shall be qualified
to receive compensation annuity or supplemental
annuity, as would be provided under Section 5-144, in
order to bring the total benefit up to the applicable
75% salary limitation provided in that Section, but
subject to the Tier 2 salary cap provided under
subsection (b) of this Section; except that no such
annuity shall be paid to the surviving spouse of a
policeman who dies while in receipt of disability
benefits when the policeman's death was caused by an
intervening illness or injury unrelated to the illness
or injury that had prevented him from subsequently
resuming active service in the police department.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity

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under subdivision (A) or (B) of this paragraph (1) of a
survivor of a person who first becomes a policeman
under this Article on or after January 1, 2011 shall be
increased on the January 1 next occurring after (i)
attainment of age 60 by the recipient of the Tier 2
surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, survivor's annuity and
on each January 1 thereafter, by 3% or one-half the
annual unadjusted percentage increase (but not less
than zero) in the consumer price index-u for the 12
months ending with the September preceding each
November 1, whichever is less, of the originally
granted Tier 2 surviving spouse's survivor's annuity.
If the unadjusted percentage change in the consumer
price index-u for a 12-month period ending in September
is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of
Labor Statistics of the United States Department of
Labor that measures the average change in prices of
goods and services purchased by all urban consumers,
United States city average, all items, 1982-84 = 100.
The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of

09900SB0440ham001 - 24 - LRB099 03101 EFG 48636 a
the Department of Insurance and made available to the
boards of the pension funds.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 5-167.4.
(2) Surviving children of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
5-151 and 5-152 shall be deemed qualified to receive a Tier
2 child's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For purposes
of determining any pro rata reduction in child's annuities
under this subsection (c), references in Section 5-152 to
the combined annuities of the family shall be deemed to
refer to the combined Tier 2 surviving spouse's annuity, if
any, and the Tier 2 child's annuities payable under this
subsection (c).
(3) Surviving parents of a deceased policeman subject

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to this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
5-152 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
5-152.1; except that any salary used for computing a Tier 2
parent's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 5-152.1 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the intended
Tier 2 benefits and contributions in order to enable the Fund
to unambiguously implement and administer benefits for Tier 2
members. The changes to this Section and the conforming changes
to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the
changes to subsection (a) of that Section), 5-169, and 5-170
made by this amendatory Act of the 99th General Assembly are
enacted to clarify the provisions of this Section as enacted by
Public Act 96-1495, and are hereby declared to represent and be
consistent with the original and continuing intent of this

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Section and Public Act 96-1495.
(e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are intended to be retroactive to January 1,
2011 (the effective date of Public Act 96-1495) and, for the
purposes of Section 1-103.1 of this Code, they apply without
regard to whether the relevant policeman was in service on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
Sec. 6-128.4. Minimum widow's annuities.
(a) Notwithstanding any other provision of this Article,
beginning January 1, 1996, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $700 per month, without
regard to whether the deceased fireman is in service on or
after the effective date of this amendatory Act of 1995.
(b) Notwithstanding Section 6-128.3, beginning January 1,
1994, the minimum widow's annuity under this Article shall be
$700 per month for (1) all persons receiving widow's annuities
on that date who are survivors of employees who retired at age
50 or over with at least 20 years of service, and (2) persons
who become eligible for widow's annuities and are survivors of

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employees who retired at age 50 or over with at least 20 years
of service.
(c) Notwithstanding Section 6-128.3, beginning January 1,
1999, the minimum widow's annuity under this Article shall be
$800 per month for (1) all persons receiving widow's annuities
on that date who are survivors of employees who retired at age
50 or over with at least 20 years of service, and (2) persons
who become eligible for widow's annuities and are survivors of
employees who retired at age 50 or over with at least 20 years
of service.
(d) Notwithstanding Section 6-128.3, beginning January 1,
2004, the minimum widow's annuity under this Article shall be
$900 per month for all persons receiving widow's annuities on
or after that date, without regard to whether the deceased
fireman is in service on or after the effective date of this
amendatory Act of the 93rd General Assembly.
(e) Notwithstanding Section 6-128.3, beginning January 1,
2005, the minimum widow's annuity under this Article shall be
$1,000 per month for all persons receiving widow's annuities on
or after that date, without regard to whether the deceased
fireman is in service on or after the effective date of this
amendatory Act of the 93rd General Assembly.
(f) Notwithstanding Section 6-128.3, beginning January 1,
2017, the minimum widow's annuity under this Article shall be
no less than 125% of the Federal Poverty Level for all persons
receiving widow's annuities on or after that date, without

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regard to whether the deceased fireman is in service on or
after the effective date of this amendatory Act of the 99th
General Assembly. For purposes of this Section, "Federal
Poverty Level" means the poverty guidelines applicable to an
individual in a single-person household located in Illinois, as
updated periodically in the Federal Register by the United
States Department of Health and Human Services under the
authority of 42 U.S.C. 9902(2).
(Source: P.A. 93-654, eff. 1-16-04.)
(40 ILCS 5/6-150) (from Ch. 108 1/2, par. 6-150)
Sec. 6-150. Death benefit.
(a) Effective January 1, 1962, an ordinary death benefit
shall be payable on account of any fireman in service and in
receipt of salary on or after such date, which benefit shall be
in addition to all other annuities and benefits herein
provided. This benefit shall be payable upon death of a
fireman:
(1) occurring in active service while in receipt of
salary;
(2) on an authorized and approved leave of absence,
without salary, beginning on or after January 1, 1962, if
the death occurs within 60 days from the date the fireman
was in receipt of salary;
(3) receiving duty, occupational disease, or ordinary
disability benefit;

09900SB0440ham001 - 29 - LRB099 03101 EFG 48636 a
(4) occurring within 60 days from the date of
termination of duty disability, occupational disease
disability or ordinary disability benefit payments if
re-entry into service had not occurred; or
(5) occurring on retirement and while in receipt of an
age and service annuity, prior service annuity, Tier 2
monthly retirement annuity, or minimum annuity; provided
(a) retirement on such annuity occurred on or after January
1, 1962, and (b) such separation from service was effective
on or after the fireman's attainment of age 50, and (c)
application for such annuity was made within 60 days after
separation from service.
(b) The ordinary death benefit shall be payable to such
beneficiary or beneficiaries as the fireman has nominated by
written direction duly signed and acknowledged before an
officer authorized to take acknowledgments, and filed with the
board. If no such written direction has been filed or if the
designated beneficiaries do not survive the fireman, payment of
the benefit shall be made to his estate.
(c) Beginning July 1, 1983, if death occurs prior to
retirement on annuity and before the fireman's attainment of
age 50, the amount of the benefit payable shall be $12,000.
Beginning July 1, 1983, if death occurs prior to retirement, at
age 50 or over, the benefit of $12,000 shall be reduced $400
for each year (commencing on the fireman's attainment of age 50
and thereafter on each succeeding birth date) that the

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fireman's age, at date of death, is more than age 49, but in no
event below the amount of $6,000.
Beginning July 1, 1983, if the fireman's death occurs while
he is in receipt of an annuity, the benefit shall be $6,000.
(Source: P.A. 83-152.)
(40 ILCS 5/6-158) (from Ch. 108 1/2, par. 6-158)
Sec. 6-158. Refund - General.
(a) A fireman who withdraws before age 50 and a fireman
with less than 10 years of service who withdraws before age 57,
or any fireman who withdraws and enters the service of another
department of the city, has a right to a refund of the entire
amount to his credit as of the date of withdrawal for age and
service annuity or Tier 2 monthly retirement annuity, for
automatic annual increase in annuity as provided in Section
6-164, and for widow's annuity or Tier 2 surviving spouse's
annuity, from deductions from salary.
(b) Any such fireman shall be entitled to refund until he
re-enters service or until his annuity is fixed.
(c) A fireman who receives a refund forfeits all rights to
any annuity or benefit from the fund, for himself and for any
other person who might benefit through him because of his
service, provided he shall retain the right to credit for any
such service, for the purpose of computing his total service if
he re-enters service before age 57, becomes a beneficiary of
the fund and makes repayment of the refund with interest.

09900SB0440ham001 - 31 - LRB099 03101 EFG 48636 a
(d) A fireman completing 10 years of service who does not
receive a refund, may receive an annuity as provided in this
Article.
(e) A fireman completing less than 10 years who does not
receive a refund has a right to have all amounts to his credit
for annuity purposes on the date of withdrawal improved by
interest while he is out of service until age 57 only, for his
benefit and the benefit of any person who may have any right to
annuity through him, if he subsequently reenters service and
attains a right to annuity.
(Source: Laws 1965, p. 2464.)
(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after
September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires
from service after September 1, 1959 shall, upon either the
first of the month following the first anniversary of his date
of retirement if he is age 60 (age 55 if born before January 1,
1966 1955) or over on that anniversary date, or upon the first
of the month following his attainment of age 60 (age 55 if born
before January 1, 1966 1955) if that occurs after the first
anniversary of his retirement date, have his then fixed and
payable monthly annuity increased by 1 1/2%, and such first
fixed annuity as granted at retirement increased by an
additional 1 1/2% in January of each year thereafter up to a

09900SB0440ham001 - 32 - LRB099 03101 EFG 48636 a
maximum increase of 30%. Beginning July 1, 1982 for firemen
born before January 1, 1930, and beginning January 1, 1990 for
firemen born after December 31, 1929 and before January 1,
1940, and beginning January 1, 1996 for firemen born after
December 31, 1939 but before January 1, 1945, and beginning
January 1, 2004, for firemen born after December 31, 1944 but
before January 1, 1955, and beginning January 1, 2017, for
firemen born after December 31, 1954 but before January 1,
1966, such increases shall be 3% and such firemen shall not be
subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for a
minimum annuity and retires after September 1, 1967 but has not
received the initial increase under this subsection before
January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of age
55, whichever occurs last. The changes to this Section made by
this amendatory Act of 1995 apply beginning January 1, 1996 and
apply without regard to whether the fireman or annuitant
terminated service before the effective date of this amendatory
Act of 1995.
Any fireman born before January 1, 1955 who qualifies for a
minimum annuity and retires after September 1, 1967 but has not
received the initial increase under this subsection before
January 1, 2004 is entitled to receive the initial increase
under this subsection on (1) January 1, 2004, (2) the first

09900SB0440ham001 - 33 - LRB099 03101 EFG 48636 a
anniversary of the date of retirement, or (3) attainment of age
55, whichever occurs last. The changes to this Section made by
this amendatory Act of the 93rd General Assembly apply without
regard to whether the fireman or annuitant terminated service
before the effective date of this amendatory Act.
Any fireman born before January 1, 1966 who qualifies for a
minimum annuity and retires after September 1, 1967 but has not
received the initial increase under this subsection before
January 1, 2017 is entitled to receive an initial increase
under this subsection on (1) January 1, 2017, (2) the first
anniversary of the date of retirement, or (3) attainment of age
55, whichever occurs last, in an amount equal to 3% for each
complete year following the date of retirement or attainment of
age 55, whichever occurs later. The changes to this subsection
made by this amendatory Act of the 99th General Assembly apply
without regard to whether the fireman or annuitant terminated
service before the effective date of this amendatory Act.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1959, from each
payment of salary to a fireman, 1/8 of 1% of each such salary
payment and an additional 1/8 of 1% beginning on September 1,
1961, and September 1, 1963, respectively, concurrently with
and in addition to the salary deductions otherwise made for
annuity purposes.

09900SB0440ham001 - 34 - LRB099 03101 EFG 48636 a
Each such additional 1/8 of 1% deduction from salary which
shall, on September 1, 1963, result in a total increase of 3/8
of 1% of salary, shall be credited to the Automatic Increase
Reserve, to be used, together with city contributions as
provided in this Article, to defray the cost of the 1 1/2%
annuity increments herein specified in this Section. Any
balance in such reserve as of the beginning of each calendar
year shall be credited with interest at the rate of 3% per
annum.
The salary deductions provided in this Section are not
subject to refund, except to the fireman himself, in any case
in which: (i) the a fireman withdraws prior to qualification
for minimum annuity or Tier 2 monthly retirement annuity and
applies for refund, (ii) the fireman or applies for an annuity
of a type that is not subject to annual increases under this
Section, or (iii) , and also where a term annuity becomes
payable. In such cases, the total of such salary deductions
shall be refunded to the fireman, without interest, and charged
to the aforementioned reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a fireman under this Article on or after January 1,
2011 shall be increased on the January 1 occurring either on or
after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later. Each
annual increase shall be calculated at 3% or one-half the

09900SB0440ham001 - 35 - LRB099 03101 EFG 48636 a
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when compared
with the preceding period, decreases, then the annuity shall
not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/6-166) (from Ch. 108 1/2, par. 6-166)
Sec. 6-166. Contributions for age and service annuities or
Tier 2 monthly retirement annuities for present employees and
future entrants.
(a) After the effective date and prior to July 1, 1953, 3
1/2%, and after June 30, 1953, and prior to September 1, 1959,
6%, and beginning September 1, 1959, 7 1/8% of each payment of

09900SB0440ham001 - 36 - LRB099 03101 EFG 48636 a
the salary of each present employee and future entrant shall be
deducted and contributed to the fund for age and service
annuity or Tier 2 monthly retirement annuity. The deductions
shall be made at the time payments of salary are payable and
shall continue while the employee is in service.
Concurrently with each such contribution, the city shall
contribute 8 1/2% of each payment of salary, but the city
contributions shall cease for all employees upon their
attainment of age 63.
(b) Each contribution by the employee and the city shall be
allocated to the account of and credited to the employee, and
shall be improved by interest at the applicable rate during the
time he is in service until the age and service annuity is
fixed. Any accretion, by way of interest or otherwise, upon
such sum or any deduction from salary made after the annuity is
fixed for a present employee or after attainment of age 63 by a
future entrant who first becomes a fireman under this Article
before January 1, 2011 shall not be credited to the employee
for age and service annuity.
(Source: P.A. 76-1668.)
(40 ILCS 5/6-167) (from Ch. 108 1/2, par. 6-167)
Sec. 6-167. Contributions for widow's annuity and Tier 2
surviving spouse's annuity. Beginning on the effective date and
prior to September 1, 1957, 1% of each payment of salary of not
more than $3,000 of each employee and beginning September 1,

09900SB0440ham001 - 37 - LRB099 03101 EFG 48636 a
1957, 1% of each payment of salary of not more than $6,000 of
each present employee and future entrant shall be deducted and
contributed to the fund for widow's annuity. After September 1,
1967 and prior to January 1, 1976, 1%, and beginning January 1,
1976, 1 1/2% of salary without limitation shall be deducted
from the pay of each present employee and future entrant and
contributed to the fund for widow's annuity or Tier 2 surviving
spouse's annuity. The deduction shall be made at the time the
payments of salary are payable and shall continue during the
service of the employee.
Concurrently with each contribution, the city shall
contribute 2% of each payment of salary.
Each contribution by the employee and the city shall be
allocated to the accounts of and credited to the employee for
widow's annuity or Tier 2 surviving spouse's annuity.
(Source: P.A. 79-633.)
(40 ILCS 5/6-229)
Sec. 6-229. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a fireman under this Article on or after January 1,
2011, and to certain qualified survivors of such a fireman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".

09900SB0440ham001 - 38 - LRB099 03101 EFG 48636 a
(b) A fireman who has withdrawn from service, has attained
age 50 55 or more, and who has 10 or more years of service in
that capacity shall be entitled, upon proper application being
received by the Fund, at his option to receive a Tier 2 monthly
retirement annuity for his service as a fireman. The Tier 2
monthly retirement annuity shall be computed by multiplying
2.5% for each year of such service by his or her final average
salary, subject to an annuity reduction factor of . The
retirement annuity of a fireman who is retiring after attaining
age 50 with 10 or more years of creditable service shall be
reduced by one-half of 1% for each month that the fireman's age
at retirement is under age 55. The Tier 2 monthly retirement
annuity is in lieu of any age and service annuity or other form
of retirement annuity under this Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the average monthly salary obtained by dividing
the total salary of the fireman during the 96 consecutive
months of service within the last 120 months of service in
which the total salary was the highest by the number of months
of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section

09900SB0440ham001 - 39 - LRB099 03101 EFG 48636 a
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
(b-5) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the retirement systems and pension funds by
November 1 of each year.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a fireman under this Article on
or after January 1, 2011, eligibility for and the amount of the
annuity to which the qualified surviving spouse, children, and
or parents of the fireman are entitled under this subsection
(c) shall be determined as follows:
(1) The surviving spouse of a deceased fireman to whom
this Section applies shall be deemed qualified to receive a
Tier 2 surviving spouse's annuity under this paragraph (1)

09900SB0440ham001 - 40 - LRB099 03101 EFG 48636 a
if: (i) the deceased fireman meets the requirements
specified under subdivision (A), (B), (C), or (D) of this
paragraph (1); and (ii) the surviving spouse would not
otherwise be excluded from receiving a widow's annuity
under the eligibility requirements for a widow's annuity
set forth in Section 6-142. The Tier 2 surviving spouse's
annuity is in lieu of the widow's annuity determined under
any other Section of this Article and is subject to the
requirements of Section 6-143.2.
As used in this subsection (c), "earned pension" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases the
fireman had received pursuant to Section 6-164.
(A) If the deceased fireman was receiving an earned
pension at the date of his or her death, the Tier 2
surviving spouse's annuity under this paragraph (1)
shall be in the amount of 66 2/3% of the fireman's
earned pension at the date of death.
(B) If the deceased fireman was not receiving an
earned pension but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death; or (ii) 66 2/3% of the
Tier 2 monthly retirement annuity that the deceased

09900SB0440ham001 - 41 - LRB099 03101 EFG 48636 a
fireman would have been eligible to receive under
subsection (b) of this Section, based upon the actual
service accrued through the day before the fireman's
death, but determined as though the fireman was at
least age 55 on the day before his or her death and
retired on that day.
(C) If the deceased fireman was an active fireman
with at least 1 1/2 but less than 10 years of service
at the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be in the amount
of 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death.
(D) Notwithstanding subdivisions (A), (B), and (C)
of this paragraph (1), if the performance of an act or
acts of duty results directly in the death of a fireman
subject to this Section, or prevents him from
subsequently resuming active service in the fire
department, then a surviving spouse who would
otherwise meet the eligibility requirements for a
death in the line of duty widow's annuity granted under
Section 6-140 shall be deemed to be qualified for a
Tier 2 surviving spouse's annuity under this
subdivision (D); except that no such annuity shall be
paid to the surviving spouse of a fireman who dies
while in receipt of disability benefits when the

09900SB0440ham001 - 42 - LRB099 03101 EFG 48636 a
fireman's death was caused by an intervening illness or
injury unrelated to the illness or injury that had
prevented him from subsequently resuming active
service in the fire department. The Tier 2 surviving
spouse's annuity calculated under this subdivision (D)
shall be in lieu of, but in the same amount and paid in
the same manner as, the widow's annuity provided under
Section 6-140; except that the salary used for
computing a Tier 2 surviving spouse's annuity under
this subdivision (D) shall be subject to the Tier 2
salary cap provided under subsection (b) of this
Section.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1) of a
survivor of a person who first becomes a fireman under
this Article on or after January 1, 2011 shall be
increased on the January 1 next occurring after (i)
attainment of age 60 by the recipient of the Tier 2
surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, survivor's pension and
on each January 1 thereafter, by 3% or one-half the
annual unadjusted percentage increase in the consumer
price index-u for the 12 months ending with September
preceding each November 1, whichever is less, of the

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originally granted Tier 2 surviving spouse's
survivor's annuity. If the annual unadjusted
percentage change in the consumer price index-u for a
12-month period ending in September is zero or, when
compared with the preceding period, decreases, then
the annuity shall not be increased.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 6-128.4.
(2) Surviving children of a deceased fireman subject to
this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
6-147 and 6-148 shall be deemed qualified to receive a Tier
2 child's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For purposes
of determining any pro rata reduction in child's annuities
under this subsection (c), references in Section 6-148 to
the combined annuities of the family shall be deemed to

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refer to the combined Tier 2 surviving spouse's annuity, if
any, and the Tier 2 child's annuities payable under this
subsection (c).
(3) Surviving parents of a deceased fireman subject to
this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
6-149 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
6-149; except that any salary used for computing a Tier 2
parent's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 6-149 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the intended
Tier 2 benefits and contributions in order to enable the Fund
to unambiguously implement and administer benefits for Tier 2
members. The changes to this Section and the conforming changes
to Sections 6-150, 6-158, 6-164 (except for the changes to
subsection (a) of that Section), 6-166, and 6-167 made by this

09900SB0440ham001 - 45 - LRB099 03101 EFG 48636 a
amendatory Act of the 99th General Assembly are enacted to
clarify the provisions of this Section as enacted by Public Act
96-1495, and are hereby declared to represent and be consistent
with the original and continuing intent of this Section and
Public Act 96-1495.
(e) The changes to Sections 6-150, 6-158, 6-164 (except for
the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly
are intended to be retroactive to January 1, 2011 (the
effective date of Public Act 96-1495) and, for the purposes of
Section 1-103.1 of this Code, they apply without regard to
whether the relevant fireman was in service on or after the
effective date of this amendatory Act of the 99th General
Assembly.
(Source: P.A. 96-1495, eff. 1-1-11.)
Section 90. The State Mandates Act is amended by adding
Section 8.40 as follows:
(30 ILCS 805/8.40 new)
Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 99th General Assembly.
Section 99. Effective date. This Act takes effect upon

09900SB0440ham001 - 46 - LRB099 03101 EFG 48636 a
becoming law.".