Rep. Justin Slaughter

Filed: 11/1/2023

 

 


 

 


 
10300SB1956ham003LRB103 25834 RPS 64809 a

1
AMENDMENT TO SENATE BILL 1956

2    AMENDMENT NO. ______. Amend Senate Bill 1956, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Section 5-167.1 as follows:
 
7    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
8    Sec. 5-167.1. Automatic increase in annuity; retirement
9from service after September 1, 1967.
10    (a) A policeman who retires from service after September
111, 1967 with at least 20 years of service credit shall, upon
12either the first of the month following the first anniversary
13of his date of retirement if he is age 55 60 (age 55 if born
14before January 1, 1966) or over on that anniversary date, or
15upon the first of the month following his attainment of age 55
1660 (age 55 if born before January 1, 1966) if it occurs after

 

 

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1the first anniversary of his retirement date, have his then
2fixed and payable monthly annuity increased by 3% 1 1/2% and
3such first fixed annuity as granted at retirement increased by
4an additional 3% 1 1/2% in January of each year thereafter up
5to a maximum increase of 30%. Beginning January 1, 1983 for
6policemen born before January 1, 1930, and beginning January
71, 1988 for policemen born on or after January 1, 1930 but
8before January 1, 1940, and beginning January 1, 1996 for
9policemen born on or after January 1, 1940 but before January
101, 1945, and beginning January 1, 2000 for policemen born on or
11after January 1, 1945 but before January 1, 1950, and
12beginning January 1, 2005 for policemen born on or after
13January 1, 1950 but before January 1, 1955, and beginning
14January 1, 2017 for policemen born on or after January 1, 1955
15but before January 1, 1966, such increases shall be 3% and such
16policemen shall not be subject to the 30% maximum increase.
17    Any policeman born before January 1, 1945 who qualifies
18for a minimum annuity and retires after September 1, 1967 but
19has not received the initial increase under this subsection
20before January 1, 1996 is entitled to receive the initial
21increase under this subsection on (1) January 1, 1996, (2) the
22first anniversary of the date of retirement, or (3) attainment
23of age 55, whichever occurs last. The changes to this Section
24made by Public Act 89-12 apply beginning January 1, 1996 and
25without regard to whether the policeman or annuitant
26terminated service before the effective date of that Act.

 

 

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1    Any policeman born before January 1, 1950 who qualifies
2for a minimum annuity and retires after September 1, 1967 but
3has not received the initial increase under this subsection
4before January 1, 2000 is entitled to receive the initial
5increase under this subsection on (1) January 1, 2000, (2) the
6first anniversary of the date of retirement, or (3) attainment
7of age 55, whichever occurs last. The changes to this Section
8made by this amendatory Act of the 92nd General Assembly apply
9without regard to whether the policeman or annuitant
10terminated service before the effective date of this
11amendatory Act.
12    Any policeman born before January 1, 1955 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, 2005 is entitled to receive the initial
16increase under this subsection on (1) January 1, 2005, (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 94th 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, 1966 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, 2017 is entitled to receive an initial

 

 

10300SB1956ham003- 4 -LRB103 25834 RPS 64809 a

1increase under this subsection on (1) January 1, 2017, (2) the
2first anniversary of the date of retirement, or (3) attainment
3of age 55, whichever occurs last, in an amount equal to 3% for
4each complete year following the date of retirement or
5attainment of age 55, whichever occurs later. The changes to
6this subsection made by this amendatory Act of the 99th
7General Assembly apply without regard to whether the policeman
8or annuitant terminated service before the effective date of
9this amendatory Act.
10    Any policeman born on or after January 1, 1966 who
11qualifies for a minimum annuity and retires after September 1,
121967 but has not received the initial increase under this
13subsection before January 1, 2023 is entitled to receive the
14initial increase under this subsection on (1) January 1, 2023,
15(2) the first anniversary of the date of retirement, or (3)
16attainment of age 55, whichever occurs last. The changes to
17this Section made by this amendatory Act of the 103rd General
18Assembly apply without regard to whether the policeman or
19annuitant terminated service before the effective date of this
20amendatory Act of the 103rd General Assembly.
21    (b) Subsection (a) of this Section is not applicable to an
22employee receiving a term annuity.
23    (c) To help defray the cost of such increases in annuity,
24there shall be deducted, beginning September 1, 1967, from
25each payment of salary to a policeman, 1/2 of 1% of each salary
26payment concurrently with and in addition to the salary

 

 

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1deductions otherwise made for annuity purposes.
2    The city, in addition to the contributions otherwise made
3by it for annuity purposes under other provisions of this
4Article, shall make matching contributions concurrently with
5such salary deductions.
6    Each such 1/2 of 1% deduction from salary and each such
7contribution by the city of 1/2 of 1% of salary shall be
8credited to the Automatic Increase Reserve, to be used to
9defray the cost of the annuity increase provided by this
10Section. Any balance in such reserve as of the beginning of
11each calendar year shall be credited with interest at the rate
12of 3% per annum.
13    Such deductions from salary and city contributions shall
14continue while the policeman is in service.
15    The salary deductions provided in this Section are not
16subject to refund, except to the policeman himself, in any
17case in which: (i) the policeman withdraws prior to
18qualification for minimum annuity or Tier 2 monthly retirement
19annuity and applies for refund, (ii) the policeman applies for
20an annuity of a type that is not subject to annual increases
21under this Section, or (iii) a term annuity becomes payable.
22In such cases, the total of such salary deductions shall be
23refunded to the policeman, without interest, and charged to
24the Automatic Increase Reserve.
25    (d) Notwithstanding any other provision of this Article,
26the Tier 2 monthly retirement annuity of a person who first

 

 

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1becomes a policeman under this Article on or after the
2effective date of this amendatory Act of the 97th General
3Assembly shall be increased on the January 1 occurring either
4on or after (i) the attainment of age 60 or (ii) the first
5anniversary of the annuity start date, whichever is later.
6Each annual increase shall be calculated at 3% or one-half the
7annual unadjusted percentage increase (but not less than zero)
8in the consumer price index-u for the 12 months ending with the
9September preceding each November 1, whichever is less, of the
10originally granted retirement annuity. If the annual
11unadjusted percentage change in the consumer price index-u for
12a 12-month period ending in September is zero or, when
13compared with the preceding period, decreases, then the
14annuity shall not be increased.
15    For the purposes of this subsection (d), "consumer price
16index-u" means the index published by the Bureau of Labor
17Statistics of the United States Department of Labor that
18measures the average change in prices of goods and services
19purchased by all urban consumers, United States city average,
20all items, 1982-84 = 100. The new amount resulting from each
21annual adjustment shall be determined by the Public Pension
22Division of the Department of Insurance and made available to
23the boards of the pension funds by November 1 of each year.
24(Source: P.A. 99-905, eff. 11-29-16.)
 
25    Section 90. The State Mandates Act is amended by adding

 

 

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1Section 8.47 as follows:
 
2    (30 ILCS 805/8.47 new)
3    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
48 of this Act, no reimbursement by the State is required for
5the implementation of any mandate created by this amendatory
6Act of the 103rd General Assembly.
 
7    Section 999. Effective date. This Act takes effect upon
8becoming law.".