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| Public Act 103-0582
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| SB1956 Enrolled | LRB103 25834 RPS 52185 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by |
changing Section 5-167.1 as follows:
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(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 55 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 55 |
60 (age 55 if born before January 1, 1966) if it occurs after |
the first anniversary of his retirement date, have his then |
fixed and payable monthly annuity increased by 3% 1 1/2% and |
such first fixed annuity as granted at retirement increased by |
an additional 3% 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 |
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policemen 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, 2017 for policemen born on or after January 1, 1955 |
but before January 1, 1966, 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 |
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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. |
Any policeman born 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 3% 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 policeman |
or annuitant terminated service before the effective date of |
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this amendatory Act. |
Any policeman born on or after 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, 2023 is entitled to receive the |
initial increase under this subsection on (1) January 1, 2023, |
(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 103rd General |
Assembly apply without regard to whether the policeman or |
annuitant terminated service before the effective date of this |
amendatory Act of the 103rd General Assembly. |
(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 |
credited to the Automatic Increase Reserve, to be used to |
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defray the cost of the 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: (i) the policeman withdraws prior to |
qualification for minimum annuity or Tier 2 monthly retirement |
annuity and applies for refund, (ii) the policeman 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 policeman, without interest, and charged to |
the Automatic Increase Reserve. |
(d) Notwithstanding any other provision of this Article, |
the Tier 2 monthly retirement 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 (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 |
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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.)
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Section 90. The State Mandates Act is amended by adding |
Section 8.47 as follows:
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(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.
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