96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB1041

 

Introduced 02/11/09, by Rep. Donald L. Moffitt - William B. Black

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/4-109.1   from Ch. 108 1/2, par. 4-109.1
30 ILCS 805/8.33 new

    Amends the Downstate Firefighter Article of the Illinois Pension Code. Provides that, in July 2009, the monthly pension of a firefighter who retired before January 1, 1977 shall be recalculated and increased to reflect the amount that the firefighter would have received in July 2009 had the firefighter been receiving a 3% compounded increase for each year he or she received pension payments. In each January thereafter, provides that he or she shall receive an additional increase of 3% of the amount of the pension then being paid. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB096 09316 AMC 19470 b

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

 

 

A BILL FOR

 

HB1041 LRB096 09316 AMC 19470 b

1     AN ACT concerning 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 Section 4-109.1 as follows:
 
6     (40 ILCS 5/4-109.1)  (from Ch. 108 1/2, par. 4-109.1)
7     Sec. 4-109.1. Increase in pension.
8     (a) Except as provided in subsection (e), the monthly
9 pension of a firefighter who retires after July 1, 1971 and
10 prior to January 1, 1986, shall, upon either the first of the
11 month following the first anniversary of the date of retirement
12 if 60 years of age or over at retirement date, or upon the
13 first day of the month following attainment of age 60 if it
14 occurs after the first anniversary of retirement, be increased
15 by 2% of the originally granted monthly pension and by an
16 additional 2% in each January thereafter. Effective January
17 1976, the rate of the annual increase shall be 3% of the
18 originally granted monthly pension.
19     (b) The monthly pension of a firefighter who retired from
20 service with 20 or more years of service, on or before July 1,
21 1971, shall be increased, in January of the year following the
22 year of attaining age 65 or in January 1972, if then over age
23 65, by 2% of the originally granted monthly pension, for each

 

 

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1 year the firefighter received pension payments. In each January
2 thereafter, he or she shall receive an additional increase of
3 2% of the original monthly pension. Effective January 1976, the
4 rate of the annual increase shall be 3%.
5     (c) The monthly pension of a firefighter who is receiving a
6 disability pension under this Article shall be increased, in
7 January of the year following the year the firefighter attains
8 age 60, or in January 1974, if then over age 60, by 2% of the
9 originally granted monthly pension for each year he or she
10 received pension payments. In each January thereafter, the
11 firefighter shall receive an additional increase of 2% of the
12 original monthly pension. Effective January 1976, the rate of
13 the annual increase shall be 3%.
14     (c-1) On January 1, 1998, every child's disability benefit
15 payable on that date under Section 4-110 or 4-110.1 shall be
16 increased by an amount equal to 1/12 of 3% of the amount of the
17 benefit, multiplied by the number of months for which the
18 benefit has been payable. On each January 1 thereafter, every
19 child's disability benefit payable under Section 4-110 or
20 4-110.1 shall be increased by 3% of the amount of the benefit
21 then being paid, including any previous increases received
22 under this Article. These increases are not subject to any
23 limitation on the maximum benefit amount included in Section
24 4-110 or 4-110.1.
25     (c-2) On July 1, 2004, every pension payable to or on
26 behalf of a minor or disabled surviving child that is payable

 

 

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1 on that date under Section 4-114 shall be increased by an
2 amount equal to 1/12 of 3% of the amount of the pension,
3 multiplied by the number of months for which the benefit has
4 been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
5 July 1, 2008, every pension payable to or on behalf of a minor
6 or disabled surviving child that is payable under Section 4-114
7 shall be increased by 3% of the amount of the pension then
8 being paid, including any previous increases received under
9 this Article. These increases are not subject to any limitation
10 on the maximum benefit amount included in Section 4-114.
11     (d) The monthly pension of a firefighter who retires after
12 January 1, 1986, shall, upon either the first of the month
13 following the first anniversary of the date of retirement if 55
14 years of age or over, or upon the first day of the month
15 following attainment of age 55 if it occurs after the first
16 anniversary of retirement, be increased by 1/12 of 3% of the
17 originally granted monthly pension for each full month that has
18 elapsed since the pension began, and by an additional 3% in
19 each January thereafter.
20     The changes made to this subsection (d) by this amendatory
21 Act of the 91st General Assembly apply to all initial increases
22 that become payable under this subsection on or after January
23 1, 1999. All initial increases that became payable under this
24 subsection on or after January 1, 1999 and before the effective
25 date of this amendatory Act shall be recalculated and the
26 additional amount accruing for that period, if any, shall be

 

 

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1 payable to the pensioner in a lump sum.
2     (e) Notwithstanding the provisions of subsection (a), upon
3 the first day of the month following (1) the first anniversary
4 of the date of retirement, or (2) the attainment of age 55, or
5 (3) July 1, 1987, whichever occurs latest, the monthly pension
6 of a firefighter who retired on or after January 1, 1977 and on
7 or before January 1, 1986 and did not receive an increase under
8 subsection (a) before July 1, 1987, shall be increased by 3% of
9 the originally granted monthly pension for each full year that
10 has elapsed since the pension began, and by an additional 3% in
11 each January thereafter. The increases provided under this
12 subsection are in lieu of the increases provided in subsection
13 (a).
14     (f) In July 2009, the monthly pension of a firefighter who
15 retired before July 1, 1977 shall be recalculated and increased
16 to reflect the amount that the firefighter would have received
17 in July 2009 had the firefighter been receiving a 3% compounded
18 increase for each year he or she received pension payments. In
19 each January thereafter, he or she shall receive an additional
20 increase of 3% of the amount of the pension then being paid.
21 The changes made to this Section by this amendatory Act of the
22 96th General Assembly apply without regard to whether the
23 firefighter was in service on or after its effective date.
24 (Source: P.A. 93-689, eff. 7-1-04.)
 
25     Section 90. The State Mandates Act is amended by adding

 

 

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1 Section 8.33 as follows:
 
2     (30 ILCS 805/8.33 new)
3     Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8
4 of this Act, no reimbursement by the State is required for the
5 implementation of any mandate created by this amendatory Act of
6 the 96th General Assembly.
 
7     Section 99. Effective date. This Act takes effect upon
8 becoming law.