Bill Text: IL SB2095 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the annual increase to a Tier 2 retirement annuity shall be calculated at 3% (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1) of the originally granted annuity. Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-02-26 - Referred to Assignments [SB2095 Detail]

Download: Illinois-2021-SB2095-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2095 Introduced 2/26/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.45 new
Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the annual increase to a Tier 2 retirement annuity shall be calculated at 3% (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1) of the originally granted annuity. Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB102 14431 RPS 19783 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB2095 LRB102 14431 RPS 19783 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 6-164 as follows:
(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

SB2095 - 2 - LRB102 14431 RPS 19783 b
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

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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 is entitled to receive an
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. 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

SB2095 - 4 - LRB102 14431 RPS 19783 b
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

SB2095 - 5 - LRB102 14431 RPS 19783 b
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.

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(Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17;
100-539, eff. 11-7-17.)
Section 90. The State Mandates Act is amended by adding
Section 8.45 as follows:
(30 ILCS 805/8.45 new)
Sec. 8.45. 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 102nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.