Bill Text: IL SB3154 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Chicago Firefighter Article of the Illinois Pension Code. Removes a birthdate restriction on eligibility at age 55 for a 3% automatic annual increase in retirement annuity that is not subject to a maximum increase of 30%. Makes a related change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2019-01-09 - Session Sine Die [SB3154 Detail]
Download: Illinois-2017-SB3154-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Section 6-164 as follows:
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6 | (40 ILCS 5/6-164)
(from Ch. 108 1/2, par. 6-164)
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7 | Sec. 6-164. Automatic annual increase; retirement after | ||||||||||||||||||||||||||
8 | September 1, 1959.
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9 | (a) A fireman qualifying for a minimum annuity who retires | ||||||||||||||||||||||||||
10 | from service
after September 1, 1959 shall, upon either the | ||||||||||||||||||||||||||
11 | first of the month following the
first anniversary of his date | ||||||||||||||||||||||||||
12 | of retirement if he is age 60 ( age 55 if born
before January 1, | ||||||||||||||||||||||||||
13 | 1966) or over on that anniversary date, or upon
the first of | ||||||||||||||||||||||||||
14 | the month following his attainment of age 60 ( age 55 if born
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15 | before January 1, 1966) if that occurs after the first | ||||||||||||||||||||||||||
16 | anniversary
of his retirement date, have his then fixed and | ||||||||||||||||||||||||||
17 | payable monthly annuity
increased by 1 1/2%, and such first | ||||||||||||||||||||||||||
18 | fixed annuity as granted at retirement
increased by an | ||||||||||||||||||||||||||
19 | additional 1 1/2% in January of each year thereafter up to a
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20 | maximum increase of 30%.
Beginning July 1, 1982 for firemen | ||||||||||||||||||||||||||
21 | born before January 1, 1930, and beginning
January 1, 1990 for | ||||||||||||||||||||||||||
22 | firemen born after December 31, 1929 and before January 1,
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23 | 1940, and beginning January 1, 1996 for firemen born after |
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1 | December 31, 1939
but before January 1, 1945, and beginning | ||||||
2 | January 1, 2004, for firemen born
after December 31, 1944 but | ||||||
3 | before January 1, 1955, and beginning January 1, 2017, for | ||||||
4 | firemen born after December 31, 1954 but before January 1, | ||||||
5 | 1966 , such increases shall be
3% and such firemen shall not be | ||||||
6 | subject to the 30% maximum increase.
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7 | Any fireman born before January 1, 1945 who qualifies for a | ||||||
8 | minimum annuity
and retires after September 1, 1967 but has not | ||||||
9 | received the initial increase
under this subsection before | ||||||
10 | January 1, 1996 is entitled to receive the initial
increase | ||||||
11 | under this subsection on (1) January 1, 1996, (2) the first
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12 | anniversary of the date of retirement, or (3) attainment of age | ||||||
13 | 55, whichever
occurs last. The changes to this Section made by | ||||||
14 | this amendatory Act of 1995
apply beginning January 1, 1996 and | ||||||
15 | apply without regard to whether the fireman
or annuitant | ||||||
16 | terminated service before the effective date of this amendatory
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17 | Act of 1995.
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18 | Any fireman born before January 1, 1955 who qualifies for a | ||||||
19 | minimum
annuity and retires after September 1, 1967 but has not | ||||||
20 | received the initial
increase under this subsection before | ||||||
21 | January 1, 2004 is entitled to receive
the initial increase | ||||||
22 | under this subsection on (1) January 1, 2004, (2) the
first | ||||||
23 | anniversary of the date of retirement, or (3) attainment of age | ||||||
24 | 55,
whichever occurs last. The changes to this Section made by | ||||||
25 | this amendatory
Act of the 93rd General Assembly apply without | ||||||
26 | regard to whether the fireman
or annuitant terminated service |
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1 | before the effective date of this amendatory
Act.
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2 | Any fireman born after December 31, 1954 but before January | ||||||
3 | 1, 1966 who qualifies for
a minimum annuity and retires after
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4 | September 1, 1967 is entitled to
receive an increase under this | ||||||
5 | subsection on (1)
January 1, 2017, (2) the first anniversary of | ||||||
6 | the date of
retirement, or (3) attainment of age 55, whichever | ||||||
7 | occurs last, in an amount equal to an increase of 3% of his | ||||||
8 | then fixed and payable monthly annuity upon the first of the | ||||||
9 | month following the first anniversary of his date of retirement | ||||||
10 | if he is age 55 or over on that anniversary date or upon the | ||||||
11 | first of the month following his attainment of age 55 if that | ||||||
12 | date occurs after the first anniversary of his retirement date | ||||||
13 | and such first fixed annuity as granted at retirement shall be | ||||||
14 | increased by an additional 3% in January of each year | ||||||
15 | thereafter. In the case of a fireman born after December 31, | ||||||
16 | 1954 but before January 1, 1966 who received an increase in any | ||||||
17 | year of 1.5%, that fireman shall receive an increase for any | ||||||
18 | such year so that the total increase is equal to 3% for each | ||||||
19 | year the fireman would have been otherwise eligible had the | ||||||
20 | fireman not received any increase. The changes to this | ||||||
21 | subsection made by this amendatory
Act of the 99th General | ||||||
22 | Assembly apply without regard to whether the fireman
or | ||||||
23 | annuitant terminated service before the effective date of this | ||||||
24 | amendatory
Act. The changes to this subsection made by this | ||||||
25 | amendatory Act of the 100th General Assembly are a declaration | ||||||
26 | of existing law and shall not be construed as a new enactment. |
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1 | The changes to this subsection made by this amendatory Act | ||||||
2 | of the 100th General Assembly apply without regard to whether | ||||||
3 | the fireman or annuitant terminated service before the | ||||||
4 | effective date of this amendatory Act of the 100th General | ||||||
5 | Assembly. | ||||||
6 | (b) Subsection (a) of this Section is
not applicable to an | ||||||
7 | employee receiving a term annuity.
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8 | (c) To help defray the cost of such increases in annuity, | ||||||
9 | there
shall be deducted, beginning September 1, 1959, from each | ||||||
10 | payment of salary
to a fireman, 1/8 of 1% of each such salary | ||||||
11 | payment and an additional 1/8
of 1% beginning on September 1, | ||||||
12 | 1961, and September 1, 1963, respectively,
concurrently with | ||||||
13 | and in addition to the salary deductions otherwise made
for | ||||||
14 | annuity purposes.
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15 | Each such additional 1/8 of 1% deduction from salary which | ||||||
16 | shall, on
September 1, 1963, result in a total increase of 3/8 | ||||||
17 | of 1% of salary,
shall be credited to the Automatic Increase | ||||||
18 | Reserve, to be used,
together with city contributions as | ||||||
19 | provided in this Article, to defray
the cost of the annuity | ||||||
20 | increments specified in this Section. Any balance
in such | ||||||
21 | reserve as of the beginning of each calendar year shall be
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22 | credited with interest at the rate of 3% per annum.
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23 | The salary deductions provided in this Section are not | ||||||
24 | subject to
refund, except to the fireman himself in any case in | ||||||
25 | which: (i) the fireman
withdraws prior to qualification for | ||||||
26 | minimum annuity or Tier 2 monthly retirement annuity and |
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1 | applies for
refund, (ii) the fireman applies for an annuity of | ||||||
2 | a type that is not subject to annual increases under this | ||||||
3 | Section, or (iii) a term annuity becomes
payable. In such | ||||||
4 | cases, the total of such salary deductions shall be
refunded to | ||||||
5 | the fireman, without interest, and charged to the
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6 | aforementioned reserve.
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7 | (d) Notwithstanding any other provision of this Article, | ||||||
8 | the Tier 2 monthly retirement annuity of a
person who first | ||||||
9 | becomes a fireman under this Article on or after January 1, | ||||||
10 | 2011 shall be increased on the January 1 occurring either on or | ||||||
11 | after (i) the attainment of age 60 or (ii) the first | ||||||
12 | anniversary of the annuity start date, whichever is later. Each | ||||||
13 | annual increase shall be calculated at 3% or one-half the | ||||||
14 | annual unadjusted percentage increase (but not less than zero) | ||||||
15 | in the consumer price index-u for the 12 months ending with the | ||||||
16 | September preceding each November 1, whichever is less, of the | ||||||
17 | originally granted retirement annuity. If the annual | ||||||
18 | unadjusted percentage change in the consumer price index-u for | ||||||
19 | a 12-month period ending in September is zero or, when compared | ||||||
20 | with the preceding period, decreases, then the annuity shall | ||||||
21 | not be increased. | ||||||
22 | For the purposes of this subsection (d), "consumer price | ||||||
23 | index-u" means the index published by the Bureau of Labor | ||||||
24 | Statistics of the United States Department of Labor that | ||||||
25 | measures the average change in prices of goods and services | ||||||
26 | purchased by all urban consumers, United States city average, |
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1 | all items, 1982-84 = 100. The new amount resulting from each | ||||||
2 | annual adjustment shall be determined by the Public Pension | ||||||
3 | Division of the Department of Insurance and made available to | ||||||
4 | the boards of the pension funds by November 1 of each year. | ||||||
5 | (Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17; | ||||||
6 | 100-539, eff. 11-7-17.)
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7 | Section 90. The State Mandates Act is amended by adding | ||||||
8 | Section 8.42 as follows:
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9 | (30 ILCS 805/8.42 new) | ||||||
10 | Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
11 | of this Act, no reimbursement by the State is required for the | ||||||
12 | implementation of any mandate created by this amendatory Act of | ||||||
13 | the 100th General Assembly.
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
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