Bill Text: IL HB2453 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Chicago Police 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. Specifies the timing of an initial increase in retirement annuity for persons who have not received the initial increase before January 1, 2020. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2453 Detail]

Download: Illinois-2019-HB2453-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2453

Introduced , by Rep. Robert Martwick

SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
30 ILCS 805/8.43 new

Amends the Chicago Police 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. Specifies the timing of an initial increase in retirement annuity for persons who have not received the initial increase before January 1, 2020. Effective immediately.
LRB101 08099 RPS 53162 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB2453LRB101 08099 RPS 53162 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 5-167.1 as follows:
6 (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
7 Sec. 5-167.1. Automatic increase in annuity; retirement
8from service after September 1, 1967.
9 (a) A policeman who retires from service after September 1,
101967 with at least 20 years of service credit shall, upon
11either the first of the month following the first anniversary
12of his date of retirement if he is age 55 60 (age 55 if born
13before January 1, 1966) or over on that anniversary date, or
14upon the first of the month following his attainment of age 55
1560 (age 55 if born before January 1, 1966) if it occurs after
16the first anniversary of his retirement date, have his then
17fixed and payable monthly annuity increased by 3% 1 1/2% and
18such first fixed annuity as granted at retirement increased by
19an additional 3% 1 1/2% in January of each year thereafter up
20to a maximum increase of 30%. Beginning January 1, 1983 for
21policemen born before January 1, 1930, and beginning January 1,
221988 for policemen born on or after January 1, 1930 but before
23January 1, 1940, and beginning January 1, 1996 for policemen

HB2453- 2 -LRB101 08099 RPS 53162 b
1born on or after January 1, 1940 but before January 1, 1945,
2and beginning January 1, 2000 for policemen born on or after
3January 1, 1945 but before January 1, 1950, and beginning
4January 1, 2005 for policemen born on or after January 1, 1950
5but before January 1, 1955, and beginning January 1, 2017 for
6policemen born on or after January 1, 1955 but before January
71, 1966, such increases shall be 3% and such policemen shall
8not be subject to the 30% maximum increase.
9 Any policeman born before January 1, 1945 who qualifies for
10a minimum annuity and retires after September 1, 1967 but has
11not received the initial increase under this subsection before
12January 1, 1996 is entitled to receive the initial increase
13under this subsection on (1) January 1, 1996, (2) the first
14anniversary of the date of retirement, or (3) attainment of age
1555, whichever occurs last. The changes to this Section made by
16Public Act 89-12 apply beginning January 1, 1996 and without
17regard to whether the policeman or annuitant terminated service
18before the effective date of that Act.
19 Any policeman born before January 1, 1950 who qualifies for
20a minimum annuity and retires after September 1, 1967 but has
21not received the initial increase under this subsection before
22January 1, 2000 is entitled to receive the initial increase
23under this subsection on (1) January 1, 2000, (2) the first
24anniversary of the date of retirement, or (3) attainment of age
2555, whichever occurs last. The changes to this Section made by
26this amendatory Act of the 92nd General Assembly apply without

HB2453- 3 -LRB101 08099 RPS 53162 b
1regard to whether the policeman or annuitant terminated service
2before the effective date of this amendatory Act.
3 Any policeman born before January 1, 1955 who qualifies for
4a minimum annuity and retires after September 1, 1967 but has
5not received the initial increase under this subsection before
6January 1, 2005 is entitled to receive the initial increase
7under this subsection on (1) January 1, 2005, (2) the first
8anniversary of the date of retirement, or (3) attainment of age
955, whichever occurs last. The changes to this Section made by
10this amendatory Act of the 94th General Assembly apply without
11regard to whether the policeman or annuitant terminated service
12before the effective date of this amendatory Act.
13 Any policeman born before January 1, 1966 who qualifies for
14a minimum annuity and retires after September 1, 1967 but has
15not received the initial increase under this subsection before
16January 1, 2017 is entitled to receive an initial increase
17under this subsection on (1) January 1, 2017, (2) the first
18anniversary of the date of retirement, or (3) attainment of age
1955, whichever occurs last, in an amount equal to 3% for each
20complete year following the date of retirement or attainment of
21age 55, whichever occurs later. The changes to this subsection
22made by this amendatory Act of the 99th General Assembly apply
23without regard to whether the policeman or annuitant terminated
24service before the effective date of this amendatory Act.
25 Any policeman born after January 1, 1966 who qualifies for
26a minimum annuity and retires after September 1, 1967 but has

HB2453- 4 -LRB101 08099 RPS 53162 b
1not received the initial increase under this subsection before
2January 1, 2020 is entitled to receive the initial 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. The changes to this Section made by
6this amendatory Act of the 101st General Assembly apply without
7regard to whether the policeman or annuitant terminated service
8before the effective date of this amendatory Act.
9 (b) Subsection (a) of this Section is not applicable to an
10employee receiving a term annuity.
11 (c) To help defray the cost of such increases in annuity,
12there shall be deducted, beginning September 1, 1967, from each
13payment of salary to a policeman, 1/2 of 1% of each salary
14payment concurrently with and in addition to the salary
15deductions otherwise made for annuity purposes.
16 The city, in addition to the contributions otherwise made
17by it for annuity purposes under other provisions of this
18Article, shall make matching contributions concurrently with
19such salary deductions.
20 Each such 1/2 of 1% deduction from salary and each such
21contribution by the city of 1/2 of 1% of salary shall be
22credited to the Automatic Increase Reserve, to be used to
23defray the cost of the annuity increase provided by this
24Section. Any balance in such reserve as of the beginning of
25each calendar year shall be credited with interest at the rate
26of 3% per annum.

HB2453- 5 -LRB101 08099 RPS 53162 b
1 Such deductions from salary and city contributions shall
2continue while the policeman is in service.
3 The salary deductions provided in this Section are not
4subject to refund, except to the policeman himself, in any case
5in which: (i) the policeman withdraws prior to qualification
6for minimum annuity or Tier 2 monthly retirement annuity and
7applies for refund, (ii) the policeman applies for an annuity
8of a type that is not subject to annual increases under this
9Section, or (iii) a term annuity becomes payable. In such
10cases, the total of such salary deductions shall be refunded to
11the policeman, without interest, and charged to the Automatic
12Increase Reserve.
13 (d) Notwithstanding any other provision of this Article,
14the Tier 2 monthly retirement annuity of a person who first
15becomes a policeman under this Article on or after the
16effective date of this amendatory Act of the 97th General
17Assembly shall be increased on the January 1 occurring either
18on or after (i) the attainment of age 60 or (ii) the first
19anniversary of the annuity start date, whichever is later. Each
20annual increase shall be calculated at 3% or one-half the
21annual unadjusted percentage increase (but not less than zero)
22in the consumer price index-u for the 12 months ending with the
23September preceding each November 1, whichever is less, of the
24originally granted retirement annuity. If the annual
25unadjusted percentage change in the consumer price index-u for
26a 12-month period ending in September is zero or, when compared

HB2453- 6 -LRB101 08099 RPS 53162 b
1with the preceding period, decreases, then the annuity shall
2not be increased.
3 For the purposes of this subsection (d), "consumer price
4index-u" means the index published by the Bureau of Labor
5Statistics of the United States Department of Labor that
6measures the average change in prices of goods and services
7purchased by all urban consumers, United States city average,
8all items, 1982-84 = 100. The new amount resulting from each
9annual adjustment shall be determined by the Public Pension
10Division of the Department of Insurance and made available to
11the boards of the pension funds by November 1 of each year.
12(Source: P.A. 99-905, eff. 11-29-16.)
13 Section 90. The State Mandates Act is amended by adding
14Section 8.43 as follows:
15 (30 ILCS 805/8.43 new)
16 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
17of this Act, no reimbursement by the State is required for the
18implementation of any mandate created by this amendatory Act of
19the 101st General Assembly.
20 Section 99. Effective date. This Act takes effect upon
21becoming law.
feedback