Rep. Martin J. Moylan

Filed: 5/16/2023

 

 


 

 


 
10300SB1956ham001LRB103 25834 RPS 62061 a

1
AMENDMENT TO SENATE BILL 1956

2    AMENDMENT NO. ______. Amend Senate Bill 1956 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by adding
5Sections 4-138.15, 5-240, and 6-235 and by changing Section
65-167.1 as follows:
 
7    (40 ILCS 5/4-138.15 new)
8    Sec. 4-138.15. Retirement Systems Reciprocal Act. The
9Retirement Systems Reciprocal Act, Article 20 of this Code, is
10adopted and made a part of this Article, but only with respect
11to a person who, on or after the effective date of this
12amendatory Act of the 103rd General Assembly, is entitled
13under this Article to begin receiving a retirement annuity or
14survivor's annuity (as those terms are defined in Article 20)
15and who elects to proceed under the Retirement Systems
16Reciprocal Act.
 

 

 

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1    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
2    Sec. 5-167.1. Automatic increase in annuity; retirement
3from service after September 1, 1967.
4    (a) A policeman who retires from service after September
51, 1967 with at least 20 years of service credit shall, upon
6either the first of the month following the first anniversary
7of his date of retirement if he is age 55 60 (age 55 if born
8before January 1, 1966) or over on that anniversary date, or
9upon the first of the month following his attainment of age 55
1060 (age 55 if born before January 1, 1966) if it occurs after
11the first anniversary of his retirement date, have his then
12fixed and payable monthly annuity increased by 3% 1 1/2% and
13such first fixed annuity as granted at retirement increased by
14an additional 3% 1 1/2% in January of each year thereafter up
15to a maximum increase of 30%. Beginning January 1, 1983 for
16policemen born before January 1, 1930, and beginning January
171, 1988 for policemen born on or after January 1, 1930 but
18before January 1, 1940, and beginning January 1, 1996 for
19policemen born on or after January 1, 1940 but before January
201, 1945, and beginning January 1, 2000 for policemen born on or
21after January 1, 1945 but before January 1, 1950, and
22beginning January 1, 2005 for policemen born on or after
23January 1, 1950 but before January 1, 1955, and beginning
24January 1, 2017 for policemen born on or after January 1, 1955
25but before January 1, 1966, such increases shall be 3% and such

 

 

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1policemen shall not be subject to the 30% maximum increase.
2    Any policeman born before January 1, 1945 who qualifies
3for a minimum annuity and retires after September 1, 1967 but
4has not received the initial increase under this subsection
5before January 1, 1996 is entitled to receive the initial
6increase under this subsection on (1) January 1, 1996, (2) the
7first anniversary of the date of retirement, or (3) attainment
8of age 55, whichever occurs last. The changes to this Section
9made by Public Act 89-12 apply beginning January 1, 1996 and
10without regard to whether the policeman or annuitant
11terminated service before the effective date of that Act.
12    Any policeman born before January 1, 1950 who qualifies
13for a minimum annuity and retires after September 1, 1967 but
14has not received the initial increase under this subsection
15before January 1, 2000 is entitled to receive the initial
16increase under this subsection on (1) January 1, 2000, (2) the
17first anniversary of the date of retirement, or (3) attainment
18of age 55, whichever occurs last. The changes to this Section
19made by this amendatory Act of the 92nd General Assembly apply
20without regard to whether the policeman or annuitant
21terminated service before the effective date of this
22amendatory Act.
23    Any policeman born before January 1, 1955 who qualifies
24for a minimum annuity and retires after September 1, 1967 but
25has not received the initial increase under this subsection
26before January 1, 2005 is entitled to receive the initial

 

 

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1increase under this subsection on (1) January 1, 2005, (2) the
2first anniversary of the date of retirement, or (3) attainment
3of age 55, whichever occurs last. The changes to this Section
4made by this amendatory Act of the 94th General Assembly apply
5without regard to whether the policeman or annuitant
6terminated service before the effective date of this
7amendatory Act.
8    Any policeman born before January 1, 1966 who qualifies
9for a minimum annuity and retires after September 1, 1967 but
10has not received the initial increase under this subsection
11before January 1, 2017 is entitled to receive an initial
12increase under this subsection on (1) January 1, 2017, (2) the
13first anniversary of the date of retirement, or (3) attainment
14of age 55, whichever occurs last, in an amount equal to 3% for
15each complete year following the date of retirement or
16attainment of age 55, whichever occurs later. The changes to
17this subsection made by this amendatory Act of the 99th
18General Assembly apply without regard to whether the policeman
19or annuitant terminated service before the effective date of
20this amendatory Act.
21    Any policeman born after January 1, 1966 who qualifies for
22a minimum annuity and retires after September 1, 1967 but has
23not received the initial increase under this subsection before
24January 1, 2023 is entitled to receive the initial increase
25under this subsection on (1) January 1, 2023, (2) the first
26anniversary of the date of retirement, or (3) attainment of

 

 

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1age 55, whichever occurs last. The changes to this Section
2made by this amendatory Act of the 103rd General Assembly
3apply without regard to whether the policeman or annuitant
4terminated service before the effective date of this
5amendatory Act of the 103rd General Assembly.
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, 1967, from
10each payment of salary to a policeman, 1/2 of 1% of each salary
11payment concurrently with and in addition to the salary
12deductions otherwise made for annuity purposes.
13    The city, in addition to the contributions otherwise made
14by it for annuity purposes under other provisions of this
15Article, shall make matching contributions concurrently with
16such salary deductions.
17    Each such 1/2 of 1% deduction from salary and each such
18contribution by the city of 1/2 of 1% of salary shall be
19credited to the Automatic Increase Reserve, to be used to
20defray the cost of the annuity increase provided by this
21Section. Any balance in such reserve as of the beginning of
22each calendar year shall be credited with interest at the rate
23of 3% per annum.
24    Such deductions from salary and city contributions shall
25continue while the policeman is in service.
26    The salary deductions provided in this Section are not

 

 

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1subject to refund, except to the policeman himself, in any
2case in which: (i) the policeman withdraws prior to
3qualification for minimum annuity or Tier 2 monthly retirement
4annuity and applies for refund, (ii) the policeman applies for
5an annuity of a type that is not subject to annual increases
6under this Section, or (iii) a term annuity becomes payable.
7In such cases, the total of such salary deductions shall be
8refunded to the policeman, without interest, and charged to
9the Automatic Increase Reserve.
10    (d) Notwithstanding any other provision of this Article,
11the Tier 2 monthly retirement annuity of a person who first
12becomes a policeman under this Article on or after the
13effective date of this amendatory Act of the 97th General
14Assembly shall be increased on the January 1 occurring either
15on or after (i) the attainment of age 60 or (ii) the first
16anniversary of the annuity start date, whichever is later.
17Each annual increase shall be calculated at 3% or one-half the
18annual unadjusted percentage increase (but not less than zero)
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1, whichever is less, of the
21originally granted retirement annuity. If the annual
22unadjusted percentage change in the consumer price index-u for
23a 12-month period ending in September is zero or, when
24compared with the preceding period, decreases, then the
25annuity shall not be increased.
26    For the purposes of this subsection (d), "consumer price

 

 

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1index-u" means the index published by the Bureau of Labor
2Statistics of the United States Department of Labor that
3measures the average change in prices of goods and services
4purchased by all urban consumers, United States city average,
5all items, 1982-84 = 100. The new amount resulting from each
6annual adjustment shall be determined by the Public Pension
7Division of the Department of Insurance and made available to
8the boards of the pension funds by November 1 of each year.
9(Source: P.A. 99-905, eff. 11-29-16.)
 
10    (40 ILCS 5/5-240 new)
11    Sec. 5-240. Retirement Systems Reciprocal Act. The
12Retirement Systems Reciprocal Act, Article 20 of this Code, is
13adopted and made a part of this Article, but only with respect
14to a person who, on or after the effective date of this
15amendatory Act of the 103rd General Assembly, is entitled
16under this Article to begin receiving a retirement annuity or
17survivor's annuity (as those terms are defined in Article 20)
18and who elects to proceed under the Retirement Systems
19Reciprocal Act.
 
20    (40 ILCS 5/6-235 new)
21    Sec. 6-235. Retirement Systems Reciprocal Act. The
22Retirement Systems Reciprocal Act, Article 20 of this Code, is
23adopted and made a part of this Article, but only with respect
24to a person who, on or after the effective date of this

 

 

10300SB1956ham001- 8 -LRB103 25834 RPS 62061 a

1amendatory Act of the 103rd General Assembly, is entitled
2under this Article to begin receiving a retirement annuity or
3survivor's annuity (as those terms are defined in Article 20)
4and who elects to proceed under the Retirement Systems
5Reciprocal Act.
 
6    Section 90. The State Mandates Act is amended by adding
7Section 8.47 as follows:
 
8    (30 ILCS 805/8.47 new)
9    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
108 of this Act, no reimbursement by the State is required for
11the implementation of any mandate created by this amendatory
12Act of the 103rd General Assembly.
 
13    Section 999. Effective date. This Act takes effect upon
14becoming law.".