Public Act 100-0539

SB0419 Enrolled LRB100 05036 AWJ 15046 b

AN ACT concerning local government.

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

Sections 4-108.5 and 6-164 as follows:

(40 ILCS 5/4-108.5)

Sec. 4-108.5. Service for providing certain fire

protection services.

(a) A firefighter for a participating municipality who was

employed as an active firefighter providing fire protection for

a village or incorporated town with a population of greater

than 10,000 but less than 11,000 located in a county with a

population of greater than 600,000 and less than 700,000, as

estimated by the United States Census on July 1, 2004, may

elect to establish creditable service for periods of that

employment in which the firefighter provided fire protection

services for the participating municipality if, by May 1, 2007,

the firefighter (i) makes written application to the Board and

(ii) pays into the pension fund the amount that the person

would have contributed had deductions from salary been made for

this purpose at the time the service was rendered, plus

interest thereon at 6% per annum compounded annually from the

time the service was rendered until the date of payment.

(b) Time spent providing fire protection on a part-time

basis for a village or incorporated town with a population of

greater than 10,000 but less than 11,000 located in a county

with a population of greater than 600,000 and less than

700,000, as estimated by the United States Census on July 1,

2004, shall be calculated at the rate of one year of creditable

service for each 5 years of time spent providing such fire

protection, if the firefighter (i) has at least 5 years of

creditable service as an active firefighter, (ii) has at least

5 years of such service with a qualifying village or

incorporated town, (iii) applies for the creditable service

within 30 days after the effective date of this amendatory Act

of the 94th General Assembly, and (iv) contributes to the Fund

an amount representing employee contributions for the number of

years of creditable service granted under this subsection (b)

based on the salary and contribution rate in effect for the

firefighter at the date of entry into the fund, as determined

by the Board. The amount of creditable service granted under

this subsection (b) may not exceed 3 years.

(c) This subsection applies only to a person who was first

employed by a municipality in 2008 to provide fire protection

services on a full-time basis as a firefighter or fire chief,

but was prevented from participating in a pension fund under

this Article until 2015 by reason of the employing

municipality's delay in establishing a pension fund as required

under this Article. Such a person may elect to establish

creditable service for periods of such employment by that

municipality during which he or she did not participate, by

applying to the board in writing and paying to the pension fund

the employee contributions that he or she would have made had

deductions from salary been made for employee contributions at

the time the service was rendered, together with interest

thereon at the rate of 6% per annum, compounded annually, from

the time the service was rendered to the date of payment;

except that the granting of such creditable service is

contingent upon the consent of the governing body of the

municipality and payment to the pension fund by the

municipality of the corresponding employer contributions, plus

interest.

For the purposes of Sections 4-109, 4-109.1, and 4-114, and

notwithstanding any other provision of this Article, for a

person who establishes creditable service under this

subsection (c), the date upon which the person first became a

participating firefighter under this Article shall be deemed to

be no later than the first day of employment for which such

creditable service has been granted.

(Source: P.A. 97-813, eff. 7-13-12.)

(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)

Sec. 6-164. Automatic annual increase; retirement after

September 1, 1959.

(a) A fireman qualifying for a minimum annuity who retires

from service after September 1, 1959 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,

1966) 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, 1966) if that 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 July 1, 1982 for firemen

born before January 1, 1930, and beginning January 1, 1990 for

firemen born after December 31, 1929 and before January 1,

1940, and beginning January 1, 1996 for firemen born after

December 31, 1939 but before January 1, 1945, and beginning

January 1, 2004, for firemen born after December 31, 1944 but

before January 1, 1955, and beginning January 1, 2017, for

firemen born after December 31, 1954 but before January 1,

1966, such increases shall be 3% and such firemen shall not be

subject to the 30% maximum increase.

Any fireman 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

this amendatory Act of 1995 apply beginning January 1, 1996 and

apply without regard to whether the fireman or annuitant

terminated service before the effective date of this amendatory

Act of 1995.

Any fireman 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, 2004 is entitled to receive the initial increase

under this subsection on (1) January 1, 2004, (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 93rd General Assembly apply without

regard to whether the fireman or annuitant terminated service

before the effective date of this amendatory Act.

Any fireman born after December 31, 1954 but before January

1, 1966 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, 2017 is entitled to

receive an initial increase under this subsection on (1)

January 1, 2017, (2) the first anniversary of the date of

retirement, or (3) attainment of age 55, whichever occurs last,

in an amount equal to an increase of 3% of his then fixed and

payable monthly annuity upon the first of the month following

the first anniversary of his date of retirement if he is age 55

or over on that anniversary date or upon the first of the month

following his attainment of age 55 if that date occurs after

the first anniversary of his retirement date and such first

fixed annuity as granted at retirement shall be increased by an

additional 3% in January of each year thereafter. In the case

of a fireman born after December 31, 1954 but before January 1,

1966 who received an increase in any year of 1.5%, that fireman

shall receive an increase for any such year so that the total

increase is equal to 3% for each year the fireman would have

been otherwise eligible had the fireman not received any

increase for each complete year following the date of

retirement or attainment of age 55, whichever occurs later. The

changes to this subsection made by this amendatory Act of the

99th General Assembly apply without regard to whether the

fireman or annuitant terminated service before the effective

date of this amendatory Act. The changes to this subsection

made by this amendatory Act of the 100th General Assembly are a

declaration of existing law and shall not be construed as a new

enactment.

(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, 1959, from each

payment of salary to a fireman, 1/8 of 1% of each such salary

payment and an additional 1/8 of 1% beginning on September 1,

1961, and September 1, 1963, respectively, concurrently with

and in addition to the salary deductions otherwise made for

annuity purposes.

Each such additional 1/8 of 1% deduction from salary which

shall, on September 1, 1963, result in a total increase of 3/8

of 1% of salary, shall be credited to the Automatic Increase

Reserve, to be used, together with city contributions as

provided in this Article, to defray the cost of the annuity

increments specified in 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.

The salary deductions provided in this Section are not

subject to refund, except to the fireman himself in any case in

which: (i) the fireman withdraws prior to qualification for

minimum annuity or Tier 2 monthly retirement annuity and

applies for refund, (ii) the fireman applies for an annuity of

a type that is not subject to annual increases under this

Section, or (iii) a term annuity becomes payable. In such

cases, the total of such salary deductions shall be refunded to

the fireman, without interest, and charged to the

aforementioned reserve.

(d) Notwithstanding any other provision of this Article,

the Tier 2 monthly retirement annuity of a person who first

becomes a fireman under this Article on or after January 1,

2011 shall be increased on the January 1 occurring either on or

after (i) the attainment of age 60 or (ii) 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 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

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 by November 1 of each year.

(Source: P.A. 99-905, eff. 11-29-16.)