Bill Text: IL SB1632 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Chicago Police Article of the Illinois Pension Code. Provides that for Tier 2 policemen, "final average salary" is the greater of: (i) the average monthly salary obtained by dividing the total salary of the policeman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest; or (ii) the average monthly salary obtained by dividing the total salary of the policeman during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest. Provides that the limit on salary for all purposes under the Code for Tier 2 policemen shall annually be increased by the lesser of 3% or the annual (instead of one-half of the annual) unadjusted percentage increase in the consumer price index-u, including all previous adjustments. Provides that the surviving spouse's annuity for certain Tier 2 policemen shall be 54% of the policeman's monthly salary at the time of the policeman's death. Provides that if the deceased policeman was a parent of a child or children and there is a surviving spouse, 12% of the policeman's monthly salary at the date of death, or 12% of the policeman's earned pension, shall be granted to the guardian of any such minor child or children. Provides that upon the death of the surviving spouse leaving one or more children under the age of 18, or upon the death of a policeman leaving one or more children but no surviving spouse, a monthly pension of 20% of the policeman's monthly salary at the date of death or 20% of the policeman's earned pension at the date of death shall be granted to the guardian of each such child until the child reaches age 18. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-02-08 - Referred to Assignments [SB1632 Detail]

Download: Illinois-2023-SB1632-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1632 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
See Index
Amends the Chicago Police Article of the Illinois Pension Code. Provides that for Tier 2 policemen, "final average salary" is the greater of: (i) the average monthly salary obtained by dividing the total salary of the policeman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest; or (ii) the average monthly salary obtained by dividing the total salary of the policeman during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest. Provides that the limit on salary for all purposes under the Code for Tier 2 policemen shall annually be increased by the lesser of 3% or the annual (instead of one-half of the annual) unadjusted percentage increase in the consumer price index-u, including all previous adjustments. Provides that the surviving spouse's annuity for certain Tier 2 policemen shall be 54% of the policeman's monthly salary at the time of the policeman's death. Provides that if the deceased policeman was a parent of a child or children and there is a surviving spouse, 12% of the policeman's monthly salary at the date of death, or 12% of the policeman's earned pension, shall be granted to the guardian of any such minor child or children. Provides that upon the death of the surviving spouse leaving one or more children under the age of 18, or upon the death of a policeman leaving one or more children but no surviving spouse, a monthly pension of 20% of the policeman's monthly salary at the date of death or 20% of the policeman's earned pension at the date of death shall be granted to the guardian of each such child until the child reaches age 18. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB103 27796 RPS 54174 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
SB1632 LRB103 27796 RPS 54174 b
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 5-238 as follows:
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011, and to certain qualified survivors of such a policeman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A policeman who has withdrawn from service, has
attained age 50 or more, and has 10 or more years of service in
that capacity shall be entitled, upon proper application being
received by the Fund, to receive a Tier 2 monthly retirement
annuity for his service as a police officer. The Tier 2 monthly
retirement annuity shall be computed by multiplying 2.5% for
each year of such service by his or her final average salary,
subject to an annuity reduction factor of one-half of 1% for
each month that the police officer's age at retirement is

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under age 55. The Tier 2 monthly retirement annuity is in lieu
of any age and service annuity or other form of retirement
annuity under this Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the policeman during
the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the policeman during the 48 consecutive months of service
within the last 60 months of service in which the total salary
was the highest by the number of months of service in that
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
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, including

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all previous adjustments.
Nothing in this amendatory Act of the 103rd General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a policeman under this Article
on or after January 1, 2011, eligibility for and the amount of
the annuity to which the qualified surviving spouse, children,
and parents are entitled under this subsection (c) shall be
determined as follows:
(1) The surviving spouse of a deceased policeman to
whom this Section applies shall be deemed qualified to
receive a Tier 2 surviving spouse's annuity under this
paragraph (1) if: (i) the deceased policeman meets the
requirements specified under subdivision (A), (B), (C), or
(D) of this paragraph (1); and (ii) the surviving spouse
would not otherwise be excluded from receiving a widow's
annuity under the eligibility requirements for a widow's
annuity set forth in Section 5-146. The Tier 2 surviving
spouse's annuity is in lieu of the widow's annuity
determined under any other Section of this Article and is
subject to the requirements of Section 5-147.1.
As used in this subsection (c), "earned annuity" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the policeman had received pursuant to Section 5-167.1.

SB1632 - 4 - LRB103 27796 RPS 54174 b
(A) If the deceased policeman was receiving an
earned annuity at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the
policeman's earned annuity at the date of death.
If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's earned annuity at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(B) If the deceased policeman was not receiving an
earned annuity but had at least 10 years of service at

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the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the annual maximum salary attached to
the classified civil service position of a first class
patrolman at the time of his death; (ii) 54% of the
policeman's monthly salary at the time of the
policeman's death; or (iii) (ii) 66 2/3% of the Tier 2
monthly retirement annuity that the deceased policeman
would have been eligible to receive under subsection
(b) of this Section, based upon the actual service
accrued through the day before the policeman's death,
but determined as though the policeman was at least
age 55 on the day before his or her death and retired
on that day.
If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's monthly salary at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to

SB1632 - 6 - LRB103 27796 RPS 54174 b
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(C) If the deceased policeman was an active
policeman with at least 1 1/2 but less than 10 years of
service at the time of death, the Tier 2 surviving
spouse's annuity under this paragraph (1) shall be the
greater of: (i) in the amount of 30% of the annual
maximum salary attached to the classified civil
service position of a first class patrolman at the
time of his death; or (ii) 54% of the policeman's
monthly salary at the time of the policeman's death.
If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's monthly salary at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving

SB1632 - 7 - LRB103 27796 RPS 54174 b
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(D) If the performance of an act or acts of duty
results directly in the death of a policeman subject
to this Section, or prevents him from subsequently
resuming active service in the police department, and
if the policeman's Tier 2 surviving spouse would
otherwise meet the eligibility requirements for a
compensation annuity or supplemental annuity granted
under Section 5-144, then in addition to the Tier 2
surviving spouse's annuity provided under subdivision
(A), (B), or (C) of this paragraph (1), whichever
applies, the Tier 2 surviving spouse shall be
qualified to receive compensation annuity or
supplemental annuity, as would be provided under
Section 5-144, in order to bring the total benefit up
to the applicable 75% salary limitation provided in
that Section, but subject to the Tier 2 salary cap
provided under subsection (b) of this Section; except

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that no such annuity shall be paid to the surviving
spouse of a policeman who dies while in receipt of
disability benefits when the policeman's death was
caused by an intervening illness or injury unrelated
to the illness or injury that had prevented him from
subsequently resuming active service in the police
department.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on 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 Tier 2 surviving
spouse's annuity. If the 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 Section, "consumer price

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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.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 5-167.4.
(2) Surviving children of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
5-151 and 5-152 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For

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purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section
5-152 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable
under this subsection (c).
(3) Surviving parents of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
5-152 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
5-152.1; except that any salary used for computing a Tier
2 parent's annuity shall be subject to the Tier 2 salary
cap provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 5-152.1 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
Notwithstanding Section 1-103.1, the changes made to this
subsection by this amendatory Act of the 103rd General
Assembly apply without regard to whether the deceased
policeman was in service on or after the effective date of this
amendatory Act of the 103rd General Assembly. The changes made
by this amendatory Act of the 103rd General Assembly shall not

SB1632 - 11 - LRB103 27796 RPS 54174 b
diminish the survivor's benefits described in this Section.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are enacted to clarify the provisions of this
Section as enacted by Public Act 96-1495, and are hereby
declared to represent and be consistent with the original and
continuing intent of this Section and Public Act 96-1495.
(e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are intended to be retroactive to January 1,
2011 (the effective date of Public Act 96-1495) and, for the
purposes of Section 1-103.1 of this Code, they apply without
regard to whether the relevant policeman was in service on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(Source: P.A. 99-905, eff. 11-29-16.)

SB1632 - 12 - LRB103 27796 RPS 54174 b
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. 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 103rd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
SB1632 - 13 - LRB103 27796 RPS 54174 b
INDEX
Statutes amended in order of appearance