100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3154

 

Introduced 2/15/2018, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.42 new

    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.


LRB100 20094 RPS 35377 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB3154LRB100 20094 RPS 35377 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 6-164 as follows:
 
6    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
7    Sec. 6-164. Automatic annual increase; retirement after
8September 1, 1959.
9    (a) A fireman qualifying for a minimum annuity who retires
10from service after September 1, 1959 shall, upon either the
11first of the month following the first anniversary of his date
12of retirement if he is age 60 (age 55 if born before January 1,
131966) or over on that anniversary date, or upon the first of
14the month following his attainment of age 60 (age 55 if born
15before January 1, 1966) if that occurs after the first
16anniversary of his retirement date, have his then fixed and
17payable monthly annuity increased by 1 1/2%, and such first
18fixed annuity as granted at retirement increased by an
19additional 1 1/2% in January of each year thereafter up to a
20maximum increase of 30%. Beginning July 1, 1982 for firemen
21born before January 1, 1930, and beginning January 1, 1990 for
22firemen born after December 31, 1929 and before January 1,
231940, and beginning January 1, 1996 for firemen born after

 

 

SB3154- 2 -LRB100 20094 RPS 35377 b

1December 31, 1939 but before January 1, 1945, and beginning
2January 1, 2004, for firemen born after December 31, 1944 but
3before January 1, 1955, and beginning January 1, 2017, for
4firemen born after December 31, 1954 but before January 1,
51966, such increases shall be 3% and such firemen shall not be
6subject to the 30% maximum increase.
7    Any fireman born before January 1, 1945 who qualifies for a
8minimum annuity and retires after September 1, 1967 but has not
9received the initial increase under this subsection before
10January 1, 1996 is entitled to receive the initial increase
11under this subsection on (1) January 1, 1996, (2) the first
12anniversary of the date of retirement, or (3) attainment of age
1355, whichever occurs last. The changes to this Section made by
14this amendatory Act of 1995 apply beginning January 1, 1996 and
15apply without regard to whether the fireman or annuitant
16terminated service before the effective date of this amendatory
17Act of 1995.
18    Any fireman born before January 1, 1955 who qualifies for a
19minimum annuity and retires after September 1, 1967 but has not
20received the initial increase under this subsection before
21January 1, 2004 is entitled to receive the initial increase
22under this subsection on (1) January 1, 2004, (2) the first
23anniversary of the date of retirement, or (3) attainment of age
2455, whichever occurs last. The changes to this Section made by
25this amendatory Act of the 93rd General Assembly apply without
26regard to whether the fireman or annuitant terminated service

 

 

SB3154- 3 -LRB100 20094 RPS 35377 b

1before the effective date of this amendatory Act.
2    Any fireman born after December 31, 1954 but before January
31, 1966 who qualifies for a minimum annuity and retires after
4September 1, 1967 is entitled to receive an increase under this
5subsection on (1) January 1, 2017, (2) the first anniversary of
6the date of retirement, or (3) attainment of age 55, whichever
7occurs last, in an amount equal to an increase of 3% of his
8then fixed and payable monthly annuity upon the first of the
9month following the first anniversary of his date of retirement
10if he is age 55 or over on that anniversary date or upon the
11first of the month following his attainment of age 55 if that
12date occurs after the first anniversary of his retirement date
13and such first fixed annuity as granted at retirement shall be
14increased by an additional 3% in January of each year
15thereafter. In the case of a fireman born after December 31,
161954 but before January 1, 1966 who received an increase in any
17year of 1.5%, that fireman shall receive an increase for any
18such year so that the total increase is equal to 3% for each
19year the fireman would have been otherwise eligible had the
20fireman not received any increase. The changes to this
21subsection made by this amendatory Act of the 99th General
22Assembly apply without regard to whether the fireman or
23annuitant terminated service before the effective date of this
24amendatory Act. The changes to this subsection made by this
25amendatory Act of the 100th General Assembly are a declaration
26of existing law and shall not be construed as a new enactment.

 

 

SB3154- 4 -LRB100 20094 RPS 35377 b

1    The changes to this subsection made by this amendatory Act
2of the 100th General Assembly apply without regard to whether
3the fireman or annuitant terminated service before the
4effective date of this amendatory Act of the 100th General
5Assembly.
6    (b) Subsection (a) of this Section is not applicable to an
7employee receiving a term annuity.
8    (c) To help defray the cost of such increases in annuity,
9there shall be deducted, beginning September 1, 1959, from each
10payment of salary to a fireman, 1/8 of 1% of each such salary
11payment and an additional 1/8 of 1% beginning on September 1,
121961, and September 1, 1963, respectively, concurrently with
13and in addition to the salary deductions otherwise made for
14annuity purposes.
15    Each such additional 1/8 of 1% deduction from salary which
16shall, on September 1, 1963, result in a total increase of 3/8
17of 1% of salary, shall be credited to the Automatic Increase
18Reserve, to be used, together with city contributions as
19provided in this Article, to defray the cost of the annuity
20increments specified in this Section. Any balance in such
21reserve as of the beginning of each calendar year shall be
22credited with interest at the rate of 3% per annum.
23    The salary deductions provided in this Section are not
24subject to refund, except to the fireman himself in any case in
25which: (i) the fireman withdraws prior to qualification for
26minimum annuity or Tier 2 monthly retirement annuity and

 

 

SB3154- 5 -LRB100 20094 RPS 35377 b

1applies for refund, (ii) the fireman applies for an annuity of
2a type that is not subject to annual increases under this
3Section, or (iii) a term annuity becomes payable. In such
4cases, the total of such salary deductions shall be refunded to
5the fireman, without interest, and charged to the
6aforementioned reserve.
7    (d) Notwithstanding any other provision of this Article,
8the Tier 2 monthly retirement annuity of a person who first
9becomes a fireman under this Article on or after January 1,
102011 shall be increased on the January 1 occurring either on or
11after (i) the attainment of age 60 or (ii) the first
12anniversary of the annuity start date, whichever is later. Each
13annual increase shall be calculated at 3% or one-half the
14annual unadjusted percentage increase (but not less than zero)
15in the consumer price index-u for the 12 months ending with the
16September preceding each November 1, whichever is less, of the
17originally granted retirement annuity. If the annual
18unadjusted percentage change in the consumer price index-u for
19a 12-month period ending in September is zero or, when compared
20with the preceding period, decreases, then the annuity shall
21not be increased.
22    For the purposes of this subsection (d), "consumer price
23index-u" means the index published by the Bureau of Labor
24Statistics of the United States Department of Labor that
25measures the average change in prices of goods and services
26purchased by all urban consumers, United States city average,

 

 

SB3154- 6 -LRB100 20094 RPS 35377 b

1all items, 1982-84 = 100. The new amount resulting from each
2annual adjustment shall be determined by the Public Pension
3Division of the Department of Insurance and made available to
4the 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;
6100-539, eff. 11-7-17.)
 
7    Section 90. The State Mandates Act is amended by adding
8Section 8.42 as follows:
 
9    (30 ILCS 805/8.42 new)
10    Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
11of this Act, no reimbursement by the State is required for the
12implementation of any mandate created by this amendatory Act of
13the 100th General Assembly.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.