94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2624

 

Introduced 1/20/2006, by Sen. James A. DeLeo

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-132  from Ch. 108 1/2, par. 5-132
40 ILCS 5/5-148   from Ch. 108 1/2, par. 5-148
30 ILCS 805/8.30 new

    Amends the Chicago Police Article of the Illinois Pension Code to provide an increase in the retirement benefit formula. Changes the maximum annuity from 75% to 80% of average salary. Provides for 2.5% (rather than 2%) of average salary for each year of service beyond 20. Applies to persons withdrawing from service after the effective date. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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

 

 

A BILL FOR

 

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1     AN ACT in relation to public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Sections 5-132 and 5-148 as follows:
 
6     (40 ILCS 5/5-132)   (from Ch. 108 1/2, par. 5-132)
7     Sec. 5-132. Minimum annuity.
8     (1) Any policeman who withdraws on or after July 8, 1957,
9 or any policeman transferred to the police service of the city
10 under the Exchange of Functions Act of 1957 who withdraws on or
11 after July 17, 1959, after completing at least 20 years of
12 service, for whom the annuity otherwise provided in this
13 Article is less than that stated in this Section has a right to
14 receive annuity as follows:
15         (a) If he is age 55 or more on withdrawal, his annuity
16     after such withdrawal, shall be equal to 2% of the average
17     salary for 4 consecutive years of highest salaries within
18     the last 10 years of service before withdrawal, for each
19     year of service, together with 1/6 of 1% of such average
20     salary for each complete month of service of each
21     fractional year, but not in excess of 75% of the average
22     annual salary.
23         (b) If he is age 50 or more but less than age 55 on
24     withdrawal, his annuity shall be equal to 2% of the average
25     salary for the 4 highest consecutive years of the last 10
26     years of service for each year of service, together with
27     1/16 of 1% of such average salary for each month of each
28     fractional year of service, reduced by 1/2 of 1% for each
29     month that he is less than age 55.
30         (c) If he is less than age 50 on withdrawal, he may,
31     upon attainment of age 50 or over, become entitled to the
32     annuity provided in this Section or, he may, upon

 

 

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1     application before age 50, receive a refund of the
2     deductions from salary, plus interest at 1 1/2% per annum
3     if he is entitled to refund under Section 5-163.
4         (d) In lieu of the annuity provided in the foregoing
5     provisions of this Section 5-132 any policeman who
6     withdraws from the service after December 31, 1973, after
7     having attained age 53 in the service with 23 or more years
8     of service credit shall be entitled to an annuity computed
9     as follows if such annuity is greater than that provided in
10     the foregoing paragraphs of this Section 5-132: An annuity
11     equal to 50% of the average salary for the 4 highest
12     consecutive years of the last 10 years of service plus
13     additional annuity equal to 2% of such average salary for
14     each completed year of service or fraction thereof rendered
15     after his attainment of age 53 and the completion of 23
16     years of service.
17         Any policeman who has completed 23 years of service
18     prior to his attainment of age 53 in the service and
19     continues in the service until his attainment of age 53
20     shall have added to his annuity, computed as provided in
21     the immediately preceding paragraph, an additional annuity
22     equal to 1% of such average salary for each completed year
23     of service or fraction thereof in excess of 23 years up to
24     age 53.
25         (e) In lieu of the annuity provided in the foregoing
26     provisions of this Section any policeman who withdraws from
27     the service either (i) after December 31, 1983 with at
28     least 22 years of service credit and having attained age 52
29     in the service, or (ii) after December 31, 1984 with at
30     least 21 years of service credit and having attained age 51
31     in the service, or (iii) after December 31, 1985 with at
32     least 20 years of service credit and having attained age 50
33     in the service, or (iv) after December 31, 1990, with at
34     least 20 years of service credit regardless of age, shall
35     be entitled to an annuity to begin not earlier than upon
36     attainment of age 50 if under such age at withdrawal,

 

 

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1     computed as follows: an annuity equal to 50% of the average
2     salary for the 4 highest consecutive years of the last 10
3     years of service, plus additional annuity equal to 2% of
4     such average salary for each completed year of service or
5     fraction thereof rendered after his completion of the
6     minimum number of years of service required for him to be
7     eligible under this subsection (e). In lieu of any annuity
8     provided in the foregoing provisions of this Section, any
9     policeman who withdraws from the service after December 31,
10     2003, with at least 20 years of service credit regardless
11     of age, shall be entitled to an annuity to begin not
12     earlier than upon attainment of age 50, if under that age
13     at withdrawal, equal to 2.5% of the average salary for the
14     4 highest consecutive years of the last 10 years of service
15     for each completed year of service or fraction thereof.
16     However, the annuity provided under this subsection (e) may
17     not exceed 75% of such average salary.
18         (f) In lieu of the annuity provided in the foregoing
19     provisions of this Section, a policeman who withdraws from
20     service after the effective date of this amendatory Act of
21     the 94th General Assembly with at least 20 years of service
22     credit may elect to receive an annuity, to begin not
23     earlier than upon attainment of age 50 if under that age at
24     withdrawal, equal to 50% of average salary plus 2.5% of
25     average salary for each completed year of service or
26     fraction thereof in excess of 20, but not to exceed a
27     maximum of 80% of average salary.
28     (2) A policeman withdrawing after September 1, 1969, may,
29 in addition, be entitled to the benefits provided by Section
30 5-167.1 of this Article if he so qualifies under that Section.
31     (3) If, on withdrawal, total service is less than 20 years,
32 the policeman shall not be entitled to an annuity under this
33 Section but may receive an annuity under the other provisions
34 of this Article or, if entitled thereto under Section 5--163, a
35 refund of the deductions from salary, including, in the case of
36 policemen transferred to the police service of the city under

 

 

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1 the Exchange of Functions Act of 1957, the additional
2 contribution paid on salary received from August 1, 1957, to
3 July 17, 1959, as provided in the Park Policemen's Annuity Act,
4 together with interest at 1 1/2% per annum.
5     Moneys voluntarily contributed under the Policemen's
6 Annuity and Benefit Fund Act of the Illinois Municipal Code, or
7 the Park Policemen's Annuity Act, shall be refunded to the
8 contributing policemen who were in service on January 1, 1954,
9 or in the case of policemen transferred to the police service
10 of the city under the Exchange of Functions Act of 1957, who
11 were in service on July 17, 1959.
12     The age and service annuity formula in this Section shall
13 not apply to any policeman who, having retired before July 8,
14 1957, or before July 17, 1959, in the case of a policeman
15 transferred under the provisions of the Exchange of Functions
16 Act of 1957, re-enters the police service after such dates,
17 whichever are applicable.
18     (4) For the purpose of this Section and Section 5-148,
19 "average salary" means the average of the highest 4 consecutive
20 years of salary within the last 10 years of service.
21 (Source: P.A. 93-654, eff. 1-16-04.)
 
22     (40 ILCS 5/5-148)  (from Ch. 108 1/2, par. 5-148)
23     Sec. 5-148. Maximum annuities. No annuity in excess of 75%
24 of the highest salary considered for annuity purposes in
25 accordance with this Article (80% of average salary in the case
26 of a policeman whose annuity is calculated under subdivision
27 (1)(f) of Section 5-132) shall be payable to a policeman, or to
28 the widow of a policeman whose death results from injury
29 incurred in the performance of an act of duty. No amount of
30 annuity in excess of $500 per month shall be payable to the
31 widow of a policeman whose death results from any cause other
32 than injury incurred in the performance of an act of duty,
33 except as provided in Section 5-136.1.
34     If, when a policeman's annuity is fixed, there is to his
35 credit, for such annuity, an amount in excess of that necessary

 

 

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1 to provide an annuity of 75% of his highest salary (80% of
2 average salary in the case of a policeman whose annuity is
3 calculated under subdivision (1)(f) of Section 5-132), 7/24 of
4 such excess shall be refunded if the policeman is a future
5 entrant; and if he is a present employee, there shall be
6 refunded, a part of such excess amount proportionately equal to
7 that part of the entire amount to his credit for such annuity
8 purposes, which the sum that has resulted from salary
9 deductions bears to such entire amount.
10     Until January 1, 1986, if, when a widow's annuity is fixed,
11 there is to the policeman's credit, for widow's annuity, an
12 amount in excess of that necessary to provide an annuity of
13 $500 per month, 1/3 of such excess shall be refunded to the
14 policeman if he is a future entrant; and, if he is a present
15 employee, there shall be refunded a part of such excess amount
16 proportionately equal to that part of the entire amount to his
17 credit for such annuity purposes which the sum that has
18 resulted from employee contributions bears to such entire
19 amount. If the widow's annuity is fixed on or after January 1,
20 1986, no refund of excess contributions shall be made under
21 this paragraph.
22     Until January 1, 1986, if at the time of the death of a
23 policeman resulting from injury incurred in the performance of
24 an act of duty, there is to his credit, for widow's annuity, an
25 amount in excess of that necessary to provide an annuity of 75%
26 of his highest salary, or $500 per month if death results from
27 any other cause, 1/3 of such excess shall be refunded to his
28 widow if he was a future entrant; and, if he was a present
29 employee, there shall be refunded to his widow a part of such
30 excess amount proportionately equal to that part of the entire
31 amount to his credit for such annuity purposes which the sum
32 that has resulted from employee's contributions bears to such
33 entire amount. If employee dies in service on or after January
34 1, 1986, no refund of excess contributions shall be made under
35 this paragraph.
36     This amendatory Act of 1972 does not increase the amount of

 

 

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1 any widow's annuity which is fixed before the effective date of
2 this amendatory Act of 1972.
3 (Source: P.A. 84-1104.)
 
4     Section 90. The State Mandates Act is amended by adding
5 Section 8.30 as follows:
 
6     (30 ILCS 805/8.30 new)
7     Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8
8 of this Act, no reimbursement by the State is required for the
9 implementation of any mandate created by this amendatory Act of
10 the 94th General Assembly.
 
11     Section 99. Effective date. This Act takes effect upon
12 becoming law.