Bill Text: IL SB3175 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the greater of (rather than the lesser of) 3%, including all previous adjustments, 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, including all previous adjustments. 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 [SB3175 Detail]

Download: Illinois-2017-SB3175-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB3175 Introduced 2/15/2018, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
40 ILCS 5/6-229
30 ILCS 805/8.42 new
Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the greater of (rather than the lesser of) 3%, including all previous adjustments, 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, including all previous adjustments. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB100 19069 RPS 34325 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB3175 LRB100 19069 RPS 34325 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 6-229 as follows:
(40 ILCS 5/6-229)
Sec. 6-229. 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 fireman under this Article on or after January 1,
2011, and to certain qualified survivors of such a fireman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A fireman 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 fireman. 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 fireman's age at retirement is under age

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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 average monthly salary obtained by dividing
the total salary of the fireman 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.
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, until 2019, 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 all previous adjustments; however, beginning in
2019, that amount shall annually thereafter be increased by the
greater 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

SB3175 - 3 - LRB100 19069 RPS 34325 b
for the 12 months ending with the September preceding each
November 1, including all previous adjustments.
(b-5) For the purposes of this Section, "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 retirement systems and pension funds by
November 1 of each year.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a fireman 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 of the fireman are entitled under this subsection (c)
shall be determined as follows:
(1) The surviving spouse of a deceased fireman 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 fireman 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

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set forth in Section 6-142. 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 6-143.2.
As used in this subsection (c), "earned pension" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases the
fireman had received pursuant to Section 6-164.
(A) If the deceased fireman was receiving an earned
pension 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 fireman's
earned pension at the date of death.
(B) If the deceased fireman was not receiving an
earned pension but had at least 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) 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death; or (ii) 66 2/3% of the
Tier 2 monthly retirement annuity that the deceased
fireman would have been eligible to receive under
subsection (b) of this Section, based upon the actual
service accrued through the day before the fireman's
death, but determined as though the fireman was at
least age 55 on the day before his or her death and

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retired on that day.
(C) If the deceased fireman was an active fireman
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 in the amount
of 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death.
(D) Notwithstanding subdivisions (A), (B), and (C)
of this paragraph (1), if the performance of an act or
acts of duty results directly in the death of a fireman
subject to this Section, or prevents him from
subsequently resuming active service in the fire
department, then a surviving spouse who would
otherwise meet the eligibility requirements for a
death in the line of duty widow's annuity granted under
Section 6-140 shall be deemed to be qualified for a
Tier 2 surviving spouse's annuity under this
subdivision (D); except that no such annuity shall be
paid to the surviving spouse of a fireman who dies
while in receipt of disability benefits when the
fireman'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 fire department. The Tier 2 surviving
spouse's annuity calculated under this subdivision (D)

SB3175 - 6 - LRB100 19069 RPS 34325 b
shall be in lieu of, but in the same amount and paid in
the same manner as, the widow's annuity provided under
Section 6-140; except that the salary used for
computing a Tier 2 surviving spouse's annuity under
this subdivision (D) shall be subject to the Tier 2
salary cap provided under subsection (b) of this
Section.
(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 in the consumer price index-u for
the 12 months ending with September preceding each
November 1, whichever is less, of the originally
granted Tier 2 surviving spouse's 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.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is

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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 6-128.4.
(2) Surviving children of a deceased fireman subject to
this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
6-147 and 6-148 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 purposes
of determining any pro rata reduction in child's annuities
under this subsection (c), references in Section 6-148 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 fireman subject to
this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
6-149 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be

SB3175 - 8 - LRB100 19069 RPS 34325 b
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
6-149; 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 6-149 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.
(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 6-150, 6-158, 6-164 (except for the changes to
subsection (a) of that Section), 6-166, and 6-167 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 6-150, 6-158, 6-164 (except for
the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly

SB3175 - 9 - LRB100 19069 RPS 34325 b
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 fireman 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.)
Section 90. The State Mandates Act is amended by adding
Section 8.42 as follows:
(30 ILCS 805/8.42 new)
Sec. 8.42. 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 100th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.