SB0419 Enrolled LRB100 05036 AWJ 15046 b
1		AN ACT concerning local government.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Illinois Pension Code is amended by changing
5		Sections 4-108.5 and 6-164 as follows:
6		(40 ILCS 5/4-108.5)
7		Sec. 4-108.5. Service for providing certain fire
8		protection services.
9		(a) A firefighter for a participating municipality who was
10		employed as an active firefighter providing fire protection for
11		a village or incorporated town with a population of greater
12		than 10,000 but less than 11,000 located in a county with a
13		population of greater than 600,000 and less than 700,000, as
14		estimated by the United States Census on July 1, 2004, may
15		elect to establish creditable service for periods of that
16		employment in which the firefighter provided fire protection
17		services for the participating municipality if, by May 1, 2007,
18		the firefighter (i) makes written application to the Board and
19		(ii) pays into the pension fund the amount that the person
20		would have contributed had deductions from salary been made for
21		this purpose at the time the service was rendered, plus
22		interest thereon at 6% per annum compounded annually from the
23		time the service was rendered until the date of payment.

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1		(b) Time spent providing fire protection on a part-time
2		basis for a village or incorporated town with a population of
3		greater than 10,000 but less than 11,000 located in a county
4		with a population of greater than 600,000 and less than
5		700,000, as estimated by the United States Census on July 1,
6		2004, shall be calculated at the rate of one year of creditable
7		service for each 5 years of time spent providing such fire
8		protection, if the firefighter (i) has at least 5 years of
9		creditable service as an active firefighter, (ii) has at least
10		5 years of such service with a qualifying village or
11		incorporated town, (iii) applies for the creditable service
12		within 30 days after the effective date of this amendatory Act
13		of the 94th General Assembly, and (iv) contributes to the Fund
14		an amount representing employee contributions for the number of
15		years of creditable service granted under this subsection (b)
16		based on the salary and contribution rate in effect for the
17		firefighter at the date of entry into the fund, as determined
18		by the Board. The amount of creditable service granted under
19		this subsection (b) may not exceed 3 years.
20		(c) This subsection applies only to a person who was first
21		employed by a municipality in 2008 to provide fire protection
22		services on a full-time basis as a firefighter or fire chief,
23		but was prevented from participating in a pension fund under
24		this Article until 2015 by reason of the employing
25		municipality's delay in establishing a pension fund as required
26		under this Article. Such a person may elect to establish

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1		creditable service for periods of such employment by that
2		municipality during which he or she did not participate, by
3		applying to the board in writing and paying to the pension fund
4		the employee contributions that he or she would have made had
5		deductions from salary been made for employee contributions at
6		the time the service was rendered, together with interest
7		thereon at the rate of 6% per annum, compounded annually, from
8		the time the service was rendered to the date of payment;
9		except that the granting of such creditable service is
10		contingent upon the consent of the governing body of the
11		municipality and payment to the pension fund by the
12		municipality of the corresponding employer contributions, plus
13		interest.
14		For the purposes of Sections 4-109, 4-109.1, and 4-114, and
15		notwithstanding any other provision of this Article, for a
16		person who establishes creditable service under this
17		subsection (c), the date upon which the person first became a
18		participating firefighter under this Article shall be deemed to
19		be no later than the first day of employment for which such
20		creditable service has been granted.
21		(Source: P.A. 97-813, eff. 7-13-12.)
22		(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
23		Sec. 6-164. Automatic annual increase; retirement after
24		September 1, 1959.
25		(a) A fireman qualifying for a minimum annuity who retires

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1		from service after September 1, 1959 shall, upon either the
2		first of the month following the first anniversary of his date
3		of retirement if he is age 60 (age 55 if born before January 1,
4		1966) or over on that anniversary date, or upon the first of
5		the month following his attainment of age 60 (age 55 if born
6		before January 1, 1966) if that occurs after the first
7		anniversary of his retirement date, have his then fixed and
8		payable monthly annuity increased by 1 1/2%, and such first
9		fixed annuity as granted at retirement increased by an
10		additional 1 1/2% in January of each year thereafter up to a
11		maximum increase of 30%. Beginning July 1, 1982 for firemen
12		born before January 1, 1930, and beginning January 1, 1990 for
13		firemen born after December 31, 1929 and before January 1,
14		1940, and beginning January 1, 1996 for firemen born after
15		December 31, 1939 but before January 1, 1945, and beginning
16		January 1, 2004, for firemen born after December 31, 1944 but
17		before January 1, 1955, and beginning January 1, 2017, for
18		firemen born after December 31, 1954 but before January 1,
19		1966, such increases shall be 3% and such firemen shall not be
20		subject to the 30% maximum increase.
21		Any fireman born before January 1, 1945 who qualifies for a
22		minimum annuity and retires after September 1, 1967 but has not
23		received the initial increase under this subsection before
24		January 1, 1996 is entitled to receive the initial increase
25		under this subsection on (1) January 1, 1996, (2) the first
26		anniversary of the date of retirement, or (3) attainment of age

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1		55, whichever occurs last. The changes to this Section made by
2		this amendatory Act of 1995 apply beginning January 1, 1996 and
3		apply without regard to whether the fireman or annuitant
4		terminated service before the effective date of this amendatory
5		Act of 1995.
6		Any fireman born before January 1, 1955 who qualifies for a
7		minimum annuity and retires after September 1, 1967 but has not
8		received the initial increase under this subsection before
9		January 1, 2004 is entitled to receive the initial increase
10		under this subsection on (1) January 1, 2004, (2) the first
11		anniversary of the date of retirement, or (3) attainment of age
12		55, whichever occurs last. The changes to this Section made by
13		this amendatory Act of the 93rd General Assembly apply without
14		regard to whether the fireman or annuitant terminated service
15		before the effective date of this amendatory Act.
16		Any fireman born after December 31, 1954 but before January
17		1, 1966 who qualifies for a minimum annuity and retires after
18		September 1, 1967 but has not received the initial increase
19		under this subsection before January 1, 2017 is entitled to
20		receive an initial increase under this subsection on (1)
21		January 1, 2017, (2) the first anniversary of the date of
22		retirement, or (3) attainment of age 55, whichever occurs last,
23		in an amount equal to an increase of 3% of his then fixed and
24		payable monthly annuity upon the first of the month following
25		the first anniversary of his date of retirement if he is age 55
26		or over on that anniversary date or upon the first of the month

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1		following his attainment of age 55 if that date occurs after
2		the first anniversary of his retirement date and such first
3		fixed annuity as granted at retirement shall be increased by an
4		additional 3% in January of each year thereafter. In the case
5		of a fireman born after December 31, 1954 but before January 1,
6		1966 who received an increase in any year of 1.5%, that fireman
7		shall receive an increase for any such year so that the total
8		increase is equal to 3% for each year the fireman would have
9		been otherwise eligible had the fireman not received any
10		increase for each complete year following the date of
11		retirement or attainment of age 55, whichever occurs later. The
12		changes to this subsection made by this amendatory Act of the
13		99th General Assembly apply without regard to whether the
14		fireman or annuitant terminated service before the effective
15		date of this amendatory Act. The changes to this subsection
16		made by this amendatory Act of the 100th General Assembly are a
17		declaration of existing law and shall not be construed as a new
18		enactment.
19		(b) Subsection (a) of this Section is not applicable to an
20		employee receiving a term annuity.
21		(c) To help defray the cost of such increases in annuity,
22		there shall be deducted, beginning September 1, 1959, from each
23		payment of salary to a fireman, 1/8 of 1% of each such salary
24		payment and an additional 1/8 of 1% beginning on September 1,
25		1961, and September 1, 1963, respectively, concurrently with
26		and in addition to the salary deductions otherwise made for

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1		annuity purposes.
2		Each such additional 1/8 of 1% deduction from salary which
3		shall, on September 1, 1963, result in a total increase of 3/8
4		of 1% of salary, shall be credited to the Automatic Increase
5		Reserve, to be used, together with city contributions as
6		provided in this Article, to defray the cost of the annuity
7		increments specified in this Section. Any balance in such
8		reserve as of the beginning of each calendar year shall be
9		credited with interest at the rate of 3% per annum.
10		The salary deductions provided in this Section are not
11		subject to refund, except to the fireman himself in any case in
12		which: (i) the fireman withdraws prior to qualification for
13		minimum annuity or Tier 2 monthly retirement annuity and
14		applies for refund, (ii) the fireman applies for an annuity of
15		a type that is not subject to annual increases under this
16		Section, or (iii) a term annuity becomes payable. In such
17		cases, the total of such salary deductions shall be refunded to
18		the fireman, without interest, and charged to the
19		aforementioned reserve.
20		(d) Notwithstanding any other provision of this Article,
21		the Tier 2 monthly retirement annuity of a person who first
22		becomes a fireman under this Article on or after January 1,
23		2011 shall be increased on the January 1 occurring either on or
24		after (i) the attainment of age 60 or (ii) the first
25		anniversary of the annuity start date, whichever is later. Each
26		annual increase shall be calculated at 3% or one-half the

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1		annual unadjusted percentage increase (but not less than zero)
2		in the consumer price index-u for the 12 months ending with the
3		September preceding each November 1, whichever is less, of the
4		originally granted retirement annuity. If the annual
5		unadjusted percentage change in the consumer price index-u for
6		a 12-month period ending in September is zero or, when compared
7		with the preceding period, decreases, then the annuity shall
8		not be increased.
9		For the purposes of this subsection (d), "consumer price
10		index-u" means the index published by the Bureau of Labor
11		Statistics of the United States Department of Labor that
12		measures the average change in prices of goods and services
13		purchased by all urban consumers, United States city average,
14		all items, 1982-84 = 100. The new amount resulting from each
15		annual adjustment shall be determined by the Public Pension
16		Division of the Department of Insurance and made available to
17		the boards of the pension funds by November 1 of each year.
18		(Source: P.A. 99-905, eff. 11-29-16.)