Bill Amendment: IL SB2821 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PENCD-CHI FIRE-SURVIVNG SPOUSE

Status: 2016-04-22 - Rule 3-9(a) / Re-referred to Assignments [SB2821 Detail]

Download: Illinois-2015-SB2821-Senate_Amendment_001.html

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Sen. John G. Mulroe

Filed: 4/14/2016

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AMENDMENT TO SENATE BILL 2821
AMENDMENT NO. ______. Amend Senate Bill 2821 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Pension Code is amended by
changing Sections 6-150, 6-152, 6-158, 6-164, 6-166, 6-167, and
6-229 as follows:
(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;

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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 fireman
was in receipt of salary;
(3) receiving duty, occupational disease, or ordinary
disability benefit;
(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

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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
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 5/6-152) (from Ch. 108 1/2, par. 6-152)
Sec. 6-152. Ordinary disability benefits. Any fireman who
is not eligible for minimum annuity or Tier 2 monthly
retirement annuity, and who becomes disabled after the
effective date as the result of any cause other than the
performance of an act or acts of duty, shall have a right to
receive ordinary disability benefit during any period or
periods of such disability, after the first 30 days of
disability. Payment of such benefits shall not exceed, in the
aggregate, throughout the entire service of the fireman, a
period equal to 1/2 of the total service rendered by him prior
to the time he became disabled, but not to exceed 5 years. In
computing such period of service, the time that the fireman
received ordinary disability benefit shall not be included.

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The first payment of the benefit shall be made not later
than one month after the benefit is granted and each subsequent
payment shall be made not later than one month after the time
when the latest payment was made.
When a disabled fireman becomes eligible for minimum
annuity or Tier 2 monthly retirement annuity, the disability
benefit shall cease and he shall thereafter receive such
annuity or annuities as are provided for him in accordance with
other provisions of this Article.
Ordinary disability benefit shall be 50% of the fireman's
salary at the time the disability occurs. Before any payment is
made, a sum ordinarily deducted from the fireman's salary for
annuity purposes during a period of time equal to that for
which such payment of ordinary disability benefit is to be made
shall be deducted from such payment and credited to him as a
deduction from his salary for such period. The sums so credited
shall be regarded, for annuity and refund purposes, as sums
contributed by the fireman.
(Source: P.A. 84-11.)
(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

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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.
(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.)

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(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,
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, 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
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, 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

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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
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.
(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.

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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

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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

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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,

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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".

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(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

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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)

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if: (i) the deceased fireman meets the requirements
specified under subdivision (A) or (B) 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 in the amount
of 66 2/3% of the Tier 2 monthly retirement annuity
that the deceased fireman would have been eligible to
receive under subsection (b) of this Section, based
upon the actual service accrued through the day before

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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) 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
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.
(D) 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

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subdivision (A) or (B) 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
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

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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, 6-152, 6-158, 6-164, 6-166, and 6-167 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
Section and Public Act 96-1495.
(e) The changes 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

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after the effective date of this amendatory Act of the 99th
General Assembly.
(Source: P.A. 96-1495, eff. 1-1-11.)".