Bill Text: IL HB2907 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u) for the 12 months ending with the September preceding each November 1, including all previous adjustments. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2907 Detail]

Download: Illinois-2019-HB2907-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2907

Introduced , by Rep. Robert Martwick

SYNOPSIS AS INTRODUCED:
40 ILCS 5/6-229
30 ILCS 805/8.43 new

Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u) for the 12 months ending with the September preceding each November 1, including all previous adjustments. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB101 09101 RPS 54194 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB2907LRB101 09101 RPS 54194 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 6-229 as follows:
6 (40 ILCS 5/6-229)
7 Sec. 6-229. Provisions applicable to new hires; Tier 2.
8 (a) Notwithstanding any other provision of this Article,
9the provisions of this Section apply to a person who first
10becomes a fireman under this Article on or after January 1,
112011, and to certain qualified survivors of such a fireman.
12Such persons, and the benefits and restrictions that apply
13specifically to them under this Article, may be referred to as
14"Tier 2".
15 (b) A fireman who has withdrawn from service, has attained
16age 50 or more, and has 10 or more years of service in that
17capacity shall be entitled, upon proper application being
18received by the Fund, to receive a Tier 2 monthly retirement
19annuity for his service as a fireman. The Tier 2 monthly
20retirement annuity shall be computed by multiplying 2.5% for
21each year of such service by his or her final average salary,
22subject to an annuity reduction factor of one-half of 1% for
23each month that the fireman's age at retirement is under age

HB2907- 2 -LRB101 09101 RPS 54194 b
155. The Tier 2 monthly retirement annuity is in lieu of any age
2and service annuity or other form of retirement annuity under
3this Article.
4 The maximum retirement annuity under this subsection (b)
5shall be 75% of final average salary.
6 For the purposes of this subsection (b), "final average
7salary" means the average monthly salary obtained by dividing
8the total salary of the fireman during the 96 consecutive
9months of service within the last 120 months of service in
10which the total salary was the highest by the number of months
11of service in that period.
12 Beginning on January 1, 2011, for all purposes under this
13Code (including without limitation the calculation of benefits
14and employee contributions), the annual salary based on the
15plan year of a member or participant to whom this Section
16applies shall not exceed $106,800; however, until 2020, that
17amount shall annually thereafter be increased by the lesser of
18(i) 3% of that amount, including all previous adjustments, or
19(ii) one-half the annual unadjusted percentage increase (but
20not less than zero) in the consumer price index-u for the 12
21months ending with the September preceding each November 1,
22including all previous adjustments; however, beginning in
232021, that amount shall annually thereafter be increased by the
24annual unadjusted percentage increase (but not less than zero)
25in the consumer price index-u for the 12 months ending with the
26September preceding each November 1, including all previous

HB2907- 3 -LRB101 09101 RPS 54194 b
1adjustments.
2 (b-5) For the purposes of this Section, "consumer price
3index-u" means the index published by the Bureau of Labor
4Statistics of the United States Department of Labor that
5measures the average change in prices of goods and services
6purchased by all urban consumers, United States city average,
7all items, 1982-84 = 100. The new amount resulting from each
8annual adjustment shall be determined by the Public Pension
9Division of the Department of Insurance and made available to
10the boards of the retirement systems and pension funds by
11November 1 of each year.
12 (c) Notwithstanding any other provision of this Article,
13for a person who first becomes a fireman under this Article on
14or after January 1, 2011, eligibility for and the amount of the
15annuity to which the qualified surviving spouse, children, and
16parents of the fireman are entitled under this subsection (c)
17shall be determined as follows:
18 (1) The surviving spouse of a deceased fireman to whom
19 this Section applies shall be deemed qualified to receive a
20 Tier 2 surviving spouse's annuity under this paragraph (1)
21 if: (i) the deceased fireman meets the requirements
22 specified under subdivision (A), (B), (C), or (D) of this
23 paragraph (1); and (ii) the surviving spouse would not
24 otherwise be excluded from receiving a widow's annuity
25 under the eligibility requirements for a widow's annuity
26 set forth in Section 6-142. The Tier 2 surviving spouse's

HB2907- 4 -LRB101 09101 RPS 54194 b
1 annuity is in lieu of the widow's annuity determined under
2 any other Section of this Article and is subject to the
3 requirements of Section 6-143.2.
4 As used in this subsection (c), "earned pension" means
5 a Tier 2 monthly retirement annuity determined under
6 subsection (b) of this Section, including any increases the
7 fireman had received pursuant to Section 6-164.
8 (A) If the deceased fireman was receiving an earned
9 pension at the date of his or her death, the Tier 2
10 surviving spouse's annuity under this paragraph (1)
11 shall be in the amount of 66 2/3% of the fireman's
12 earned pension at the date of death.
13 (B) If the deceased fireman was not receiving an
14 earned pension but had at least 10 years of service at
15 the time of death, the Tier 2 surviving spouse's
16 annuity under this paragraph (1) shall be the greater
17 of: (i) 30% of the salary attached to the rank of first
18 class firefighter in the classified career service at
19 the time of the fireman's death; or (ii) 66 2/3% of the
20 Tier 2 monthly retirement annuity that the deceased
21 fireman would have been eligible to receive under
22 subsection (b) of this Section, based upon the actual
23 service accrued through the day before the fireman's
24 death, but determined as though the fireman was at
25 least age 55 on the day before his or her death and
26 retired on that day.

HB2907- 5 -LRB101 09101 RPS 54194 b
1 (C) If the deceased fireman was an active fireman
2 with at least 1 1/2 but less than 10 years of service
3 at the time of death, the Tier 2 surviving spouse's
4 annuity under this paragraph (1) shall be in the amount
5 of 30% of the salary attached to the rank of first
6 class firefighter in the classified career service at
7 the time of the fireman's death.
8 (D) Notwithstanding subdivisions (A), (B), and (C)
9 of this paragraph (1), if the performance of an act or
10 acts of duty results directly in the death of a fireman
11 subject to this Section, or prevents him from
12 subsequently resuming active service in the fire
13 department, then a surviving spouse who would
14 otherwise meet the eligibility requirements for a
15 death in the line of duty widow's annuity granted under
16 Section 6-140 shall be deemed to be qualified for a
17 Tier 2 surviving spouse's annuity under this
18 subdivision (D); except that no such annuity shall be
19 paid to the surviving spouse of a fireman who dies
20 while in receipt of disability benefits when the
21 fireman's death was caused by an intervening illness or
22 injury unrelated to the illness or injury that had
23 prevented him from subsequently resuming active
24 service in the fire department. The Tier 2 surviving
25 spouse's annuity calculated under this subdivision (D)
26 shall be in lieu of, but in the same amount and paid in

HB2907- 6 -LRB101 09101 RPS 54194 b
1 the same manner as, the widow's annuity provided under
2 Section 6-140; except that the salary used for
3 computing a Tier 2 surviving spouse's annuity under
4 this subdivision (D) shall be subject to the Tier 2
5 salary cap provided under subsection (b) of this
6 Section.
7 (E) Notwithstanding any other provision of this
8 Article, the monthly Tier 2 surviving spouse's annuity
9 under subdivision (A) or (B) of this paragraph (1)
10 shall be increased on the January 1 next occurring
11 after (i) attainment of age 60 by the recipient of the
12 Tier 2 surviving spouse's annuity or (ii) the first
13 anniversary of the Tier 2 surviving spouse's annuity
14 start date, whichever is later, and on each January 1
15 thereafter, by 3% or one-half the annual unadjusted
16 percentage increase in the consumer price index-u for
17 the 12 months ending with September preceding each
18 November 1, whichever is less, of the originally
19 granted Tier 2 surviving spouse's annuity. If the
20 annual unadjusted percentage change in the consumer
21 price index-u for a 12-month period ending in September
22 is zero or, when compared with the preceding period,
23 decreases, then the annuity shall not be increased.
24 (F) Notwithstanding the other provisions of this
25 paragraph (1), for a qualified surviving spouse who is
26 entitled to a Tier 2 surviving spouse's annuity under

HB2907- 7 -LRB101 09101 RPS 54194 b
1 subdivision (A), (B), (C), or (D) of this paragraph
2 (1), that Tier 2 surviving spouse's annuity shall not
3 be less than the amount of the minimum widow's annuity
4 established from time to time under Section 6-128.4.
5 (2) Surviving children of a deceased fireman subject to
6 this Section who would otherwise meet the eligibility
7 requirements for a child's annuity set forth in Sections
8 6-147 and 6-148 shall be deemed qualified to receive a Tier
9 2 child's annuity under this subsection (c), which shall be
10 in lieu of, but in the same amount and paid in the same
11 manner as, the child's annuity provided under those
12 Sections; except that any salary used for computing a Tier
13 2 child's annuity shall be subject to the Tier 2 salary cap
14 provided under subsection (b) of this Section. For purposes
15 of determining any pro rata reduction in child's annuities
16 under this subsection (c), references in Section 6-148 to
17 the combined annuities of the family shall be deemed to
18 refer to the combined Tier 2 surviving spouse's annuity, if
19 any, and the Tier 2 child's annuities payable under this
20 subsection (c).
21 (3) Surviving parents of a deceased fireman subject to
22 this Section who would otherwise meet the eligibility
23 requirements for a parent's annuity set forth in Section
24 6-149 shall be deemed qualified to receive a Tier 2
25 parent's annuity under this subsection (c), which shall be
26 in lieu of, but in the same amount and paid in the same

HB2907- 8 -LRB101 09101 RPS 54194 b
1 manner as, the parent's annuity provided under Section
2 6-149; except that any salary used for computing a Tier 2
3 parent's annuity shall be subject to the Tier 2 salary cap
4 provided under subsection (b) of this Section. For the
5 purposes of this Section, a reference to "annuity" in
6 Section 6-149 includes: (i) in the context of a widow, a
7 Tier 2 surviving spouse's annuity and (ii) in the context
8 of a child, a Tier 2 child's annuity.
9 (d) The General Assembly finds and declares that the
10provisions of this Section, as enacted by Public Act 96-1495,
11require clarification relating to necessary eligibility
12standards and the manner of determining and paying the intended
13Tier 2 benefits and contributions in order to enable the Fund
14to unambiguously implement and administer benefits for Tier 2
15members. The changes to this Section and the conforming changes
16to Sections 6-150, 6-158, 6-164 (except for the changes to
17subsection (a) of that Section), 6-166, and 6-167 made by this
18amendatory Act of the 99th General Assembly are enacted to
19clarify the provisions of this Section as enacted by Public Act
2096-1495, and are hereby declared to represent and be consistent
21with the original and continuing intent of this Section and
22Public Act 96-1495.
23 (e) The changes to Sections 6-150, 6-158, 6-164 (except for
24the changes to subsection (a) of that Section), 6-166, and
256-167 made by this amendatory Act of the 99th General Assembly
26are intended to be retroactive to January 1, 2011 (the

HB2907- 9 -LRB101 09101 RPS 54194 b
1effective date of Public Act 96-1495) and, for the purposes of
2Section 1-103.1 of this Code, they apply without regard to
3whether the relevant fireman was in service on or after the
4effective date of this amendatory Act of the 99th General
5Assembly.
6(Source: P.A. 99-905, eff. 11-29-16.)
7 Section 90. The State Mandates Act is amended by adding
8Section 8.43 as follows:
9 (30 ILCS 805/8.43 new)
10 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
11of this Act, no reimbursement by the State is required for the
12implementation of any mandate created by this amendatory Act of
13the 101st General Assembly.
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
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