Bill Text: IL SB1651 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Chicago Police Article of the Illinois Pension Code. Provides that, for policemen born on or after January 1, 1955 but before January 1, 1960, beginning on January 1, 2010, automatic annual increases shall be 3% and such policemen shall not be subject to the 30% maximum increase. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-03-13 - Rule 3-9(a) / Re-referred to Assignments [SB1651 Detail]

Download: Illinois-2009-SB1651-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB1651 Introduced 2/19/2009, by Sen. James A. DeLeo SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
30 ILCS 805/8.33 new
Amends the Chicago Police Article of the Illinois Pension Code. Provides that, for policemen born on or after January 1, 1955 but before January 1, 1960, beginning on January 1, 2010, automatic annual increases shall be 3% and such policemen shall not be subject to the 30% maximum increase. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB096 10051 AMC 20215 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 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 beginning January 1, 2010 for
policemen born on or after January 1, 1955 but before January
1, 1960, 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
this amendatory Act of the 92nd General Assembly apply without

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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.
Any policeman born before January 1, 1960 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, 2010 is entitled to receive the initial increase
under this subsection on (1) January 1, 2010, (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 96th 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

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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
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.
(Source: P.A. 94-719, eff. 1-6-06.)

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Section 90. The State Mandates Act is amended by adding
Section 8.33 as follows:
(30 ILCS 805/8.33 new)
Sec. 8.33. 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 96th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.