Bill Text: IL HB2451 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Chicago Firefighter Article of the Illinois Pension Code. Removes a birthdate restriction on eligibility at age 55 for a 3% automatic annual increase in retirement annuity that is not subject to a maximum increase of 30%. Makes a related change. Adds provisions concerning calculations of annual increases in retirement annuities of annuitants who retire after September 1, 1967. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2019-04-10 - Referred to Assignments [HB2451 Detail]

Download: Illinois-2019-HB2451-Engrossed.html



HB2451 EngrossedLRB101 07989 RPS 53046 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5Section 6-164 as follows:
6 (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
7 Sec. 6-164. Automatic annual increase; retirement after
8September 1, 1959.
9 (a) A fireman qualifying for a minimum annuity who retires
10from service after September 1, 1959 shall, upon either the
11first of the month following the first anniversary of his date
12of retirement if he is age 60 (age 55 if born before January 1,
131966) or over on that anniversary date, or upon the first of
14the month following his attainment of age 60 (age 55 if born
15before January 1, 1966) if that occurs after the first
16anniversary of his retirement date, have his then fixed and
17payable monthly annuity increased by 1 1/2%, and such first
18fixed annuity as granted at retirement increased by an
19additional 1 1/2% in January of each year thereafter up to a
20maximum increase of 30%. Beginning July 1, 1982 for firemen
21born before January 1, 1930, and beginning January 1, 1990 for
22firemen born after December 31, 1929 and before January 1,
231940, and beginning January 1, 1996 for firemen born after

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1December 31, 1939 but before January 1, 1945, and beginning
2January 1, 2004, for firemen born after December 31, 1944 but
3before January 1, 1955, and beginning January 1, 2017, for
4firemen born after December 31, 1954 but before January 1,
51966, such increases shall be 3% and such firemen shall not be
6subject to the 30% maximum increase.
7 Any fireman born before January 1, 1945 who qualifies for a
8minimum annuity and retires after September 1, 1967 but has not
9received the initial increase under this subsection before
10January 1, 1996 is entitled to receive the initial increase
11under this subsection on (1) January 1, 1996, (2) the first
12anniversary of the date of retirement, or (3) attainment of age
1355, whichever occurs last. The changes to this Section made by
14this amendatory Act of 1995 apply beginning January 1, 1996 and
15apply without regard to whether the fireman or annuitant
16terminated service before the effective date of this amendatory
17Act of 1995.
18 Any fireman born before January 1, 1955 who qualifies for a
19minimum annuity and retires after September 1, 1967 but has not
20received the initial increase under this subsection before
21January 1, 2004 is entitled to receive the initial increase
22under this subsection on (1) January 1, 2004, (2) the first
23anniversary of the date of retirement, or (3) attainment of age
2455, whichever occurs last. The changes to this Section made by
25this amendatory Act of the 93rd General Assembly apply without
26regard to whether the fireman or annuitant terminated service

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1before the effective date of this amendatory Act.
2 Any fireman born after December 31, 1954 but before January
31, 1966 who qualifies for a minimum annuity and retires after
4September 1, 1967 is entitled to receive an increase under this
5subsection on (1) January 1, 2017, (2) the first anniversary of
6the date of retirement, or (3) attainment of age 55, whichever
7occurs last, in an amount equal to an increase of 3% of his
8then fixed and payable monthly annuity upon the first of the
9month following the first anniversary of his date of retirement
10if he is age 55 or over on that anniversary date or upon the
11first of the month following his attainment of age 55 if that
12date occurs after the first anniversary of his retirement date
13and such first fixed annuity as granted at retirement shall be
14increased by an additional 3% in January of each year
15thereafter. In the case of a fireman born after December 31,
161954 but before January 1, 1966 who received an increase in any
17year of 1.5%, that fireman shall receive an increase for any
18such year so that the total increase is equal to 3% for each
19year the fireman would have been otherwise eligible had the
20fireman not received any increase. The changes to this
21subsection made by this amendatory Act of the 99th General
22Assembly apply without regard to whether the fireman or
23annuitant terminated service before the effective date of this
24amendatory Act. The changes to this subsection made by this
25amendatory Act of the 100th General Assembly are a declaration
26of existing law and shall not be construed as a new enactment.

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1 Any fireman who qualifies for a minimum annuity and retires
2after September 1, 1967 is entitled to receive an increase
3under this subsection on (1) January 1, 2020, (2) the first
4anniversary of the date of retirement, or (3) attainment of age
555, whichever occurs last, in an amount equal to an increase of
63% of his or her then fixed and payable monthly annuity upon
7the first of the month following the first anniversary of his
8or her date of retirement if he or she is age 55 or over on that
9anniversary date or upon the first of the month following his
10or her attainment of age 55 if that date occurs after the first
11anniversary of his or her retirement date and such first fixed
12annuity as granted at retirement shall be increased by an
13additional 3% in January of each year thereafter. In the case
14of a fireman who received an increase in any year of 1.5%, that
15fireman shall receive an increase for any such year so that the
16total increase is equal to 3% for each year the fireman would
17have been otherwise eligible had the fireman not received any
18increase. The changes to this subsection made by this
19amendatory Act of the 101st General Assembly apply without
20regard to whether the fireman or annuitant terminated service
21before the effective date of this amendatory Act of the 101st
22General Assembly.
23 (b) Subsection (a) of this Section is not applicable to an
24employee receiving a term annuity.
25 (c) To help defray the cost of such increases in annuity,
26there shall be deducted, beginning September 1, 1959, from each

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1payment of salary to a fireman, 1/8 of 1% of each such salary
2payment and an additional 1/8 of 1% beginning on September 1,
31961, and September 1, 1963, respectively, concurrently with
4and in addition to the salary deductions otherwise made for
5annuity purposes.
6 Each such additional 1/8 of 1% deduction from salary which
7shall, on September 1, 1963, result in a total increase of 3/8
8of 1% of salary, shall be credited to the Automatic Increase
9Reserve, to be used, together with city contributions as
10provided in this Article, to defray the cost of the annuity
11increments specified in this Section. Any balance in such
12reserve as of the beginning of each calendar year shall be
13credited with interest at the rate of 3% per annum.
14 The salary deductions provided in this Section are not
15subject to refund, except to the fireman himself in any case in
16which: (i) the fireman withdraws prior to qualification for
17minimum annuity or Tier 2 monthly retirement annuity and
18applies for refund, (ii) the fireman applies for an annuity of
19a type that is not subject to annual increases under this
20Section, or (iii) a term annuity becomes payable. In such
21cases, the total of such salary deductions shall be refunded to
22the fireman, without interest, and charged to the
23aforementioned reserve.
24 (d) Notwithstanding any other provision of this Article,
25the Tier 2 monthly retirement annuity of a person who first
26becomes a fireman under this Article on or after January 1,

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12011 shall be increased on the January 1 occurring either on or
2after (i) the attainment of age 60 or (ii) the first
3anniversary of the annuity start date, whichever is later. Each
4annual increase shall be calculated at 3% or one-half the
5annual unadjusted percentage increase (but not less than zero)
6in the consumer price index-u for the 12 months ending with the
7September preceding each November 1, whichever is less, of the
8originally granted retirement annuity. If the annual
9unadjusted percentage change in the consumer price index-u for
10a 12-month period ending in September is zero or, when compared
11with the preceding period, decreases, then the annuity shall
12not be increased.
13 For the purposes of this subsection (d), "consumer price
14index-u" means the index published by the Bureau of Labor
15Statistics of the United States Department of Labor that
16measures the average change in prices of goods and services
17purchased by all urban consumers, United States city average,
18all items, 1982-84 = 100. The new amount resulting from each
19annual adjustment shall be determined by the Public Pension
20Division of the Department of Insurance and made available to
21the boards of the pension funds by November 1 of each year.
22(Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17;
23100-539, eff. 11-7-17.)
24 Section 90. The State Mandates Act is amended by adding
25Section 8.43 as follows:

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1 (30 ILCS 805/8.43 new)
2 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 101st General Assembly.
6 Section 99. Effective date. This Act takes effect upon
7becoming law.
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