Bill Text: IL HB3052 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Chicago Police Article of the Illinois Pension Code. Provides that, beginning on January 1, 2012, policemen who do not receive 3% annual increases may irrevocably elect to receive annual increases at that rate by contributing an additional 1% of salary to the fund. Makes changes concerning annual increases to the monthly annuities of persons who first become policemen on or after the effective date of the amendatory Act. Deletes repetitive language concerning annual increases in survivor's annuities for new hires. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3052 Detail]

Download: Illinois-2011-HB3052-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3052 Introduced , by Rep. Joseph M. Lyons SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
40 ILCS 5/5-169.1 new
30 ILCS 805/8.35 new
Amends the Chicago Police Article of the Illinois Pension Code. Provides that, beginning on January 1, 2012, policemen who do not receive 3% annual increases may irrevocably elect to receive annual increases at that rate by contributing an additional 1% of salary to the fund. Makes changes concerning annual increases to the monthly annuities of persons who first become policemen on or after the effective date of the amendatory Act. Deletes repetitive language concerning annual increases in survivor's annuities for new hires. Amends the State Mandates Act to require implementation without reimbursement.
LRB097 09735 JDS 49872 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Section 5-167.1 and by adding Section 5-169.1 as follows:
(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, 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 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
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

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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, for a policeman who makes an
irrevocable election under Section 5-169.1, beginning on the
January 1 immediately following that election and each January
1 thereafter, 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
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

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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.
(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

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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 a policeman withdraws prior to qualification for
minimum annuity and applies for refund or applies for annuity,
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 monthly 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 the attainment of
age 60 or 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

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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.
Notwithstanding any other provision of this Article, for a
person who first becomes a policeman under this Article on or
after January 1, 2011, the annuity to which the survivor is
entitled under this subsection (d) shall be in the amount of 66
2/3% of the policeman's earned annuity at the date of death.
Nothing in this subsection (d) shall act to diminish the
survivor's benefits described in this Section.
Notwithstanding any other provision of this Article, the
monthly annuity 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 after attainment of age 60 by the
recipient of the survivor's annuity and 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
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

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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.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-169.1 new)
Sec. 5-169.1. Contributions for persons electing to
receive 3% annual increases. Beginning January 1, 2012, each
present employee who is not entitled to 3% annual increases
under Section 5-167.1 may make an irrevocable election to have
an additional 1% of each payment of his or her salary deducted
and contributed to the fund in exchange for the 3% annual
increase under subsection (a) of Section 5-167.1. These
deductions shall be made from each payment of salary and shall
continue while the employee is in service. The fund may, by
rule, establish any procedures and forms that are necessary to
implement this Section.
Section 90. The State Mandates Act is amended by adding
Section 8.35 as follows:
(30 ILCS 805/8.35 new)

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Sec. 8.35. 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 97th General Assembly.