101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5590

 

Introduced , by Rep. Frances Ann Hurley

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-124  from Ch. 108 1/2, par. 6-124
40 ILCS 5/6-124.1
40 ILCS 5/6-158  from Ch. 108 1/2, par. 6-158
30 ILCS 805/8.44 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that when a future entrant who is not subject to the compulsory retirement age withdraws from service and is at least age 63, his or her age and service annuity shall be fixed as of the age he or she withdraws from service. Makes conforming changes. In a provision concerning contribution refunds, removes an age limitation on eligibility for a refund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 19203 RPS 68666 b

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

 

 

A BILL FOR

 

HB5590LRB101 19203 RPS 68666 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
5Sections 6-124, 6-124.1, and 6-158 as follows:
 
6    (40 ILCS 5/6-124)  (from Ch. 108 1/2, par. 6-124)
7    Sec. 6-124. Future entrants; amount entrants-age 63 in
8service-amount of annuity. When a future entrant attains age 63
9in service, except for a fireman who is not subject to the
10compulsory retirement age, his age and service annuity shall be
11fixed as of age 63. The annuity shall be that provided from the
12entire sum accumulated to his credit for age and service
13annuity on the date he attains age 63.
14    When a future entrant who is not subject to the compulsory
15retirement age withdraws from service and is at least age 63,
16his or her age and service annuity shall be fixed as of the age
17he or she withdraws from service. The annuity shall be that
18provided from the entire sum accumulated to his or her credit
19for age and service annuity on the date he or she withdraws
20from service.
21(Source: P.A. 76-1668.)
 
22    (40 ILCS 5/6-124.1)

 

 

HB5590- 2 -LRB101 19203 RPS 68666 b

1    Sec. 6-124.1. Withdrawal from service; amount at
2compulsory retirement age - amount of annuity.
3    (a) In lieu of any annuity provided in the other provisions
4of this Article, a fireman who (1) is required to withdraw from
5service due to attainment of compulsory retirement age, or is
6not subject to compulsory retirement age, withdraws from
7service, and is at least age 63, and (2) has at least 10 but
8less than 20 years of service credit may elect to receive an
9annuity equal to 30% of average salary for the first 10 years
10of service plus 2% of average salary for each completed year of
11service or remaining fraction thereof in excess of 10, but not
12to exceed a maximum of 50% of average salary.
13    (b) For the purpose of this Section, "average salary" means
14the average of the fireman's highest 4 consecutive years of
15salary within the last 10 years of service.
16    (c) For the purpose of qualifying for the annual increases
17provided in Section 6-164, a fireman whose retirement annuity
18is calculated under this Section shall be deemed to qualify for
19a minimum annuity.
20(Source: P.A. 93-654, eff. 1-16-04.)
 
21    (40 ILCS 5/6-158)  (from Ch. 108 1/2, par. 6-158)
22    Sec. 6-158. Refund Refund - General.
23    (a) A fireman who withdraws before age 50 and a fireman
24with less than 10 years of service who withdraws before age 57,
25or any fireman who withdraws and enters the service of another

 

 

HB5590- 3 -LRB101 19203 RPS 68666 b

1department of the city, has a right to a refund of the entire
2amount to his credit as of the date of withdrawal for age and
3service annuity or Tier 2 monthly retirement annuity, for
4automatic annual increase in annuity as provided in Section
56-164, and for widow's annuity or Tier 2 surviving spouse's
6annuity, from deductions from salary.
7    (b) Any such fireman shall be entitled to refund until he
8re-enters service or until his annuity is fixed.
9    (c) A fireman who receives a refund forfeits all rights to
10any annuity or benefit from the fund, for himself and for any
11other person who might benefit through him because of his
12service, provided he shall retain the right to credit for any
13such service, for the purpose of computing his total service if
14he re-enters service before age 57, becomes a beneficiary of
15the fund and makes repayment of the refund with interest.
16    (d) A fireman completing 10 years of service who does not
17receive a refund, may receive an annuity as provided in this
18Article.
19    (e) A fireman completing less than 10 years who does not
20receive a refund has a right to have all amounts to his credit
21for annuity purposes on the date of withdrawal improved by
22interest while he is out of service until age 57 only, for his
23benefit and the benefit of any person who may have any right to
24annuity through him, if he subsequently reenters service and
25attains a right to annuity.
26(Source: P.A. 99-905, eff. 11-29-16.)
 

 

 

HB5590- 4 -LRB101 19203 RPS 68666 b

1    Section 90. The State Mandates Act is amended by adding
2Section 8.44 as follows:
 
3    (30 ILCS 805/8.44 new)
4    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
5of this Act, no reimbursement by the State is required for the
6implementation of any mandate created by this amendatory Act of
7the 101st General Assembly.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.