HB3518 101ST GENERAL ASSEMBLY

LRB101 10983 RPS 56167 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3518

Introduced , by Rep. Mark Batinick

SYNOPSIS AS INTRODUCED:

40 ILCS 5/1-155 new

Amends the General Provisions Article of the Illinois Pension Code. Provides that a Tier 1 participant of a pension fund or retirement system, except for a pension fund established under the Downstate Police, Downstate Firefighter, Chicago Police, or Chicago Firefighter Article, may irrevocably elect to have increases to his or her retirement annuity or supplemental annuity based on the annual unadjusted percentage increase in the consumer price index-u for a specified 12-month period. Requires each pension fund or retirement system to inform Tier 1 participants that they have the option to make that election. Provides that the changes apply without regard to whether the Tier 1 participant is in active service on or after the effective date of the amendatory Act. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 adding Section 1-155 as follows:

(40 ILCS 5/1-155 new)

Sec. 1-155. Calculation of annual increase in annuity for Tier 1 participants.

(a) As used in 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.

"Tier 1 participant" means a person who first became a participant or member before January 1, 2011 under a pension fund or retirement system established under this Code, except for a pension fund established under Article 3, 4, 5, or 6.

(b) A Tier 1 participant may irrevocably elect to have increases to his or her retirement annuity or supplemental annuity calculated in accordance with subsection (c). A pension fund or retirement system established under this Code, except for a pension fund established under Article 3, 4, 5, or 6, shall inform Tier 1 participants that they have the option to make the election under this subsection.

(c) Notwithstanding any other provision of this Code, the retirement annuity or supplemental annuity for a Tier 1 participant who makes the election under subsection (b) shall be subject to annual increases equal to the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1, except that:

(1) if the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1 is 1% or less, then the annual increase shall be 1%; and

(2) if the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1 is 5% or more, then the annual increase shall be 5%.

(d) Notwithstanding Section 1-103.1, this Section applies without regard to whether the Tier 1 participant is in active service on or after the effective date of this amendatory Act of the 101st General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.