102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2095

 

Introduced 2/26/2021, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.45 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the annual increase to a Tier 2 retirement annuity shall be calculated at 3% (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1) of the originally granted annuity. Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB102 14431 RPS 19783 b

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

 

 

A BILL FOR

 

SB2095LRB102 14431 RPS 19783 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
5changing Section 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

 

 

SB2095- 2 -LRB102 14431 RPS 19783 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
8a minimum annuity and retires after September 1, 1967 but has
9not received 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
13age 55, whichever occurs last. The changes to this Section
14made by this amendatory Act of 1995 apply beginning January 1,
151996 and apply without regard to whether the fireman or
16annuitant terminated service before the effective date of this
17amendatory Act of 1995.
18    Any fireman born before January 1, 1955 who qualifies for
19a minimum annuity and retires after September 1, 1967 but has
20not received 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
24age 55, whichever occurs last. The changes to this Section
25made by this amendatory Act of the 93rd General Assembly apply
26without regard to whether the fireman or annuitant terminated

 

 

SB2095- 3 -LRB102 14431 RPS 19783 b

1service before the effective date of this amendatory Act.
2    Any fireman born after December 31, 1954 but before
3January 1, 1966 who qualifies for a minimum annuity and
4retires after September 1, 1967 is entitled to receive an
5increase under this subsection on (1) January 1, 2017, (2) the
6first anniversary of the date of retirement, or (3) attainment
7of age 55, whichever occurs last, in an amount equal to an
8increase of 3% of his then fixed and payable monthly annuity
9upon the first of the month following the first anniversary of
10his date of retirement if he is age 55 or over on that
11anniversary date or upon the first of the month following his
12attainment of age 55 if that date occurs after the first
13anniversary of his retirement date and such first fixed
14annuity as granted at retirement shall be increased by an
15additional 3% in January of each year thereafter. In the case
16of a fireman born after December 31, 1954 but before January 1,
171966 who received an increase in any year of 1.5%, that fireman
18shall receive an increase for any such year so that the total
19increase is equal to 3% for each year the fireman would have
20been otherwise eligible had the fireman not received any
21increase. The changes to this subsection made by this
22amendatory Act of the 99th General Assembly apply without
23regard to whether the fireman or annuitant terminated service
24before the effective date of this amendatory Act. The changes
25to this subsection made by this amendatory Act of the 100th
26General Assembly are a declaration of existing law and shall

 

 

SB2095- 4 -LRB102 14431 RPS 19783 b

1not be construed as a new enactment.
2    (b) Subsection (a) of this Section is not applicable to an
3employee receiving a term annuity.
4    (c) To help defray the cost of such increases in annuity,
5there shall be deducted, beginning September 1, 1959, from
6each payment of salary to a fireman, 1/8 of 1% of each such
7salary payment and an additional 1/8 of 1% beginning on
8September 1, 1961, and September 1, 1963, respectively,
9concurrently with and in addition to the salary deductions
10otherwise made for annuity purposes.
11    Each such additional 1/8 of 1% deduction from salary which
12shall, on September 1, 1963, result in a total increase of 3/8
13of 1% of salary, shall be credited to the Automatic Increase
14Reserve, to be used, together with city contributions as
15provided in this Article, to defray the cost of the annuity
16increments specified in this Section. Any balance in such
17reserve as of the beginning of each calendar year shall be
18credited with interest at the rate of 3% per annum.
19    The salary deductions provided in this Section are not
20subject to refund, except to the fireman himself in any case in
21which: (i) the fireman withdraws prior to qualification for
22minimum annuity or Tier 2 monthly retirement annuity and
23applies for refund, (ii) the fireman applies for an annuity of
24a type that is not subject to annual increases under this
25Section, or (iii) a term annuity becomes payable. In such
26cases, the total of such salary deductions shall be refunded

 

 

SB2095- 5 -LRB102 14431 RPS 19783 b

1to the fireman, without interest, and charged to the
2aforementioned reserve.
3    (d) Notwithstanding any other provision of this Article,
4the Tier 2 monthly retirement annuity of a person who first
5becomes a fireman under this Article on or after January 1,
62011 shall be increased on the January 1 occurring either on or
7after (i) the attainment of age 60 or (ii) the first
8anniversary of the annuity start date, whichever is later.
9Each annual increase shall be calculated at 3% or one-half the
10annual unadjusted percentage increase (but not less than zero)
11in the consumer price index-u for the 12 months ending with the
12September preceding each November 1, whichever is less, of the
13originally granted retirement annuity. If the annual
14unadjusted percentage change in the consumer price index-u for
15a 12-month period ending in September is zero or, when
16compared with the preceding period, decreases, then the
17annuity shall not be increased.
18    For the purposes of this subsection (d), "consumer price
19index-u" means the index published by the Bureau of Labor
20Statistics of the United States Department of Labor that
21measures the average change in prices of goods and services
22purchased by all urban consumers, United States city average,
23all items, 1982-84 = 100. The new amount resulting from each
24annual adjustment shall be determined by the Public Pension
25Division of the Department of Insurance and made available to
26the boards of the pension funds by November 1 of each year.

 

 

SB2095- 6 -LRB102 14431 RPS 19783 b

1(Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17;
2100-539, eff. 11-7-17.)
 
3    Section 90. The State Mandates Act is amended by adding
4Section 8.45 as follows:
 
5    (30 ILCS 805/8.45 new)
6    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
78 of this Act, no reimbursement by the State is required for
8the implementation of any mandate created by this amendatory
9Act of the 102nd General Assembly.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.