SB0440 EnrolledLRB099 03101 RPS 23109 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 changing
5Sections 5-153, 5-155, 5-163, 5-167.1, 5-167.4, 5-169, 5-170,
65-238, 6-128.4, 6-150, 6-158, 6-164, 6-166, 6-167, and 6-229 as
7follows:
 
8    (40 ILCS 5/5-153)  (from Ch. 108 1/2, par. 5-153)
9    Sec. 5-153. Death benefit.
10    (a) Effective January 1, 1962, an ordinary death benefit is
11payable on account of any policeman in service and in receipt
12of salary on or after such date, which benefit is in addition
13to all other annuities and benefits herein provided. This
14benefit is payable upon death of a policeman:
15        (1) occurring in active service while in receipt of
16    salary;
17        (2) on an authorized and approved leave of absence,
18    without salary, beginning on or after January 1, 1962, if
19    the death occurs within 60 days from the date the employee
20    was in receipt of salary; or otherwise in the service and
21    not separated by resignation or discharge beginning
22    January 1, 1962 if death occurs before his resignation or
23    discharge from the service;

 

 

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1        (3) receiving duty disability or ordinary disability
2    benefit;
3        (4) occurring within 60 days from the date of
4    termination of duty disability or ordinary disability
5    benefit payments if re-entry into service had not occurred;
6    or
7        (5) occurring on retirement and while in receipt of an
8    age and service annuity, Tier 2 monthly retirement annuity,
9    or prior service annuity; provided (a) retirement on such
10    annuity occurred on or after January 1, 1962, and (b) such
11    separation from service was effective on or after the
12    policeman's attainment of age 50, and (c) application for
13    such annuity was made within 60 days after separation from
14    service.
15    (b) The ordinary death benefit is payable to such
16beneficiary or beneficiaries as the policeman has nominated by
17written direction duly signed and acknowledged before an
18officer authorized to take acknowledgments, and filed with the
19board. If no such written direction has been filed or if the
20designated beneficiaries do not survive the policeman, payment
21of the benefit shall be made to his estate.
22    (c) Until December 31, 1977, if death occurs prior to
23retirement on annuity and before the policeman's attainment of
24age 50, the amount of the benefit payable is $6,000. If death
25occurs prior to retirement, at age 50 or over, the benefit of
26$6,000 shall be reduced $400 for each year (commencing on the

 

 

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1policeman's attainment of age 50, and thereafter on each
2succeeding birthdate) that the policeman's age, at date of
3death, is more than age 50, but in no event below the amount of
4$2,000. However, if death results from injury incurred in the
5performance of an act or acts of duty, prior to retirement on
6annuity, the amount of the benefit payable is $6,000
7notwithstanding the age attained.
8    Until December 31, 1977, if the policeman's death occurs
9while he is in receipt of an annuity, the benefit is $2,000 if
10retirement was effective upon attainment of age 55 or greater.
11If the policeman retired at age 50 or over and before age 55,
12the benefit of $2,000 shall be reduced $100 for each year or
13fraction of a year that the policeman's age at retirement was
14less than age 55 to a minimum payment of $1,500.
15    After December 31, 1977, and on or before January 1, 1986,
16if death occurs prior to retirement on annuity and before the
17policeman's attainment of age 50, the amount of the benefit
18payable is $7,000. If death occurs prior to retirement, at age
1950 or over, the benefit of $7,000 shall be reduced $400 for
20each year (commencing on the policeman's attainment of age 50,
21and thereafter on each succeeding birthdate) that the
22policeman's age, at date of death, is more than age 50, but in
23no event below the amount of $3,000. However, if death results
24from injury incurred in the performance of an act or acts of
25duty, prior to retirement on annuity, the amount of the benefit
26payable is $7,000 notwithstanding the age attained.

 

 

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1    After December 31, 1977, and on or before January 1, 1986,
2if the policeman's death occurs while he is in receipt of an
3annuity, the benefit is $2,250 if retirement was effective upon
4attainment of age 55 or greater. If the policeman retired at
5age 50 or over and before age 55, the benefit of $2,250 shall
6be reduced $100 for each year or fraction of a year that the
7policeman's age at retirement was less than age 55 to a minimum
8payment of $1,750.
9    After January 1, 1986, if death occurs prior to retirement
10on annuity and before the policeman's attainment of age 50, the
11amount of benefit payable is $12,000. If death occurs prior to
12retirement, at age 50 or over, the benefit of $12,000 shall be
13reduced $400 for each year (commencing on the policeman's
14attainment of age 50, and thereafter on each succeeding
15birthdate) that the policeman's age, at date of death, is more
16than age 50, but in no event below the amount of $6,000.
17However, if death results from injury in the performance of an
18act or acts of duty, prior to retirement on annuity, the amount
19of benefit payable is $12,000 notwithstanding the age attained.
20    After January 1, 1986, if the policeman's death occurs
21while he is in receipt of an annuity, the benefit is $6,000.
22(Source: P.A. 84-1104.)
 
23    (40 ILCS 5/5-155)  (from Ch. 108 1/2, par. 5-155)
24    Sec. 5-155. Ordinary disability benefit. A policeman less
25than age 63 who becomes disabled after the effective date as

 

 

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1the result of any cause other than injury incurred in the
2performance of an act of duty, shall receive ordinary
3disability benefit during any period or periods of disability
4exceeding 30 days, for which he does not have a right to
5receive any part of his salary. Payment of such benefit shall
6not exceed, in the aggregate, throughout the total service of
7the policeman, a period equal to one-fourth of the service
8rendered to the city prior to the time he became disabled, nor
9more than 5 years. In computing such period of service, the
10time that the policeman received ordinary disability benefit
11shall not be included.
12    When a disabled policeman becomes age 63 or would have been
13retired by operation of law, whichever is later, the disability
14benefit shall cease. The policeman, if still disabled, shall
15thereafter receive such annuity as is provided in accordance
16with other provisions of this Article.
17    Ordinary disability benefit shall be 50% of the policeman's
18salary, as salary is defined in this Article (including the
19limitation in Section 5-238 if applicable), at the time
20disability occurs. Until September 1, 1969, before any payment,
21an amount equal to the sum ordinarily deducted from the
22policeman's salary for all annuity purposes for the period for
23which payment of ordinary disability benefit is made shall be
24deducted from such payment and credited as a deduction from
25salary for such period. Beginning September 1, 1969, the city
26shall also contribute all amounts ordinarily contributed by it

 

 

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1for annuity purposes for the policeman as if he were in active
2discharge of his duties. Such sums so credited shall be
3regarded, for annuity and refund purposes, as sums contributed
4by the policeman.
5(Source: P.A. 86-272.)
 
6    (40 ILCS 5/5-163)  (from Ch. 108 1/2, par. 5-163)
7    Sec. 5-163. Refund - General. (a) A policeman, without
8regard to his period of service, who withdraws before age 50,
9and a policeman with less than 10 years of service who
10withdraws before age 57, is entitled to a refund of the amount
11deducted from his salary for age and service annuity or Tier 2
12monthly retirement annuity, for automatic annual increase in
13annuity as provided in Section 5-167.1, and for widow's annuity
14or Tier 2 surviving spouse's annuity, together with interest at
151-1/2% per year on each deduction from the date of each
16deduction until the date of his withdrawal from the service.
17    (b) A policeman may receive a refund until the annuity to
18which he is entitled has been fixed. Thereafter, he shall have
19no such right of refund.
20    (c) A policeman who withdraws the amount credited to him
21surrenders and forfeits all rights to any annuity or other
22benefit from the fund, for himself and for any other person or
23persons who might otherwise have benefited through him. The
24rights so forfeited shall be restored to him, his wife or widow
25and his children upon full repayment as provided in Section

 

 

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15-164.
2    If the policeman subsequently re-enters service before age
357, and has not so repaid in full the amounts refunded the
4rights forfeited shall not be restored, but the policeman shall
5retain the right (which is also secured to the widow) to have
6the period of service represented by the refunds counted in the
7compensation of length of service, except as otherwise provided
8in Section 5-164.
9    (d) A policeman who has served less than 10 years who has
10not received a refund shall have all amounts to his credit for
11purposes on the date of his withdrawal improved by interest
12while he is out of service until he attains age 57, if he
13subsequently re-enters the service and attains a right to
14annuity.
15    (e) If a policeman elects to make additional contribution
16for past service as provided in Section 5-174 and fails to pay
17such contributions in full within the time specified in said
18section, a refund of the amount so paid, with interest at
191-1/2% per year, compounded annually, shall be refunded as
20provided in said section.
21    (f) If a policeman makes contributions in accordance with
22the provisions of Section 5-174(b) and subsequently returns to
23the position he holds by certification and appointment as the
24result of competitive civil service examination, he shall
25receive a refund of such contributions, upon application
26therefor, together with interest at 1-1/2% per year on each

 

 

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1such deduction from the date it was made to the date of refund.
2Application for refund must be made before the annuity to which
3he has a right has been fixed.
4(Source: P.A. 81-1536.)
 
5    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
6    Sec. 5-167.1. Automatic increase in annuity; retirement
7from service after September 1, 1967.
8    (a) A policeman who retires from service after September 1,
91967 with at least 20 years of service credit shall, upon
10either the first of the month following the first anniversary
11of his date of retirement if he is age 60 (age 55 if born before
12January 1, 1966 1955) or over on that anniversary date, or upon
13the first of the month following his attainment of age 60 (age
1455 if born before January 1, 1966 1955) if it occurs after the
15first anniversary of his retirement date, have his then fixed
16and payable monthly annuity increased by 1 1/2% and such first
17fixed annuity as granted at retirement increased by an
18additional 1 1/2% in January of each year thereafter up to a
19maximum increase of 30%. Beginning January 1, 1983 for
20policemen born before January 1, 1930, and beginning January 1,
211988 for policemen born on or after January 1, 1930 but before
22January 1, 1940, and beginning January 1, 1996 for policemen
23born on or after January 1, 1940 but before January 1, 1945,
24and beginning January 1, 2000 for policemen born on or after
25January 1, 1945 but before January 1, 1950, and beginning

 

 

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1January 1, 2005 for policemen born on or after January 1, 1950
2but before January 1, 1955, and beginning January 1, 2017 for
3policemen born on or after January 1, 1955 but before January
41, 1966, such increases shall be 3% and such policemen shall
5not be subject to the 30% maximum increase.
6    Any policeman born before January 1, 1945 who qualifies for
7a minimum annuity and retires after September 1, 1967 but has
8not received the initial increase under this subsection before
9January 1, 1996 is entitled to receive the initial increase
10under this subsection on (1) January 1, 1996, (2) the first
11anniversary of the date of retirement, or (3) attainment of age
1255, whichever occurs last. The changes to this Section made by
13Public Act 89-12 apply beginning January 1, 1996 and without
14regard to whether the policeman or annuitant terminated service
15before the effective date of that Act.
16    Any policeman born before January 1, 1950 who qualifies for
17a minimum annuity and retires after September 1, 1967 but has
18not received the initial increase under this subsection before
19January 1, 2000 is entitled to receive the initial increase
20under this subsection on (1) January 1, 2000, (2) the first
21anniversary of the date of retirement, or (3) attainment of age
2255, whichever occurs last. The changes to this Section made by
23this amendatory Act of the 92nd General Assembly apply without
24regard to whether the policeman or annuitant terminated service
25before the effective date of this amendatory Act.
26    Any policeman born before January 1, 1955 who qualifies for

 

 

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1a minimum annuity and retires after September 1, 1967 but has
2not received the initial increase under this subsection before
3January 1, 2005 is entitled to receive the initial increase
4under this subsection on (1) January 1, 2005, (2) the first
5anniversary of the date of retirement, or (3) attainment of age
655, whichever occurs last. The changes to this Section made by
7this amendatory Act of the 94th General Assembly apply without
8regard to whether the policeman or annuitant terminated service
9before the effective date of this amendatory Act.
10    Any policeman born before January 1, 1966 who qualifies for
11a minimum annuity and retires after September 1, 1967 but has
12not received the initial increase under this subsection before
13January 1, 2017 is entitled to receive an initial increase
14under this subsection on (1) January 1, 2017, (2) the first
15anniversary of the date of retirement, or (3) attainment of age
1655, whichever occurs last, in an amount equal to 3% for each
17complete year following the date of retirement or attainment of
18age 55, whichever occurs later. The changes to this subsection
19made by this amendatory Act of the 99th General Assembly apply
20without regard to whether the policeman or annuitant terminated
21service before the effective date of this amendatory Act.
22    (b) Subsection (a) of this Section is not applicable to an
23employee receiving a term annuity.
24    (c) To help defray the cost of such increases in annuity,
25there shall be deducted, beginning September 1, 1967, from each
26payment of salary to a policeman, 1/2 of 1% of each salary

 

 

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

 

 

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1the Tier 2 monthly retirement annuity of a person who first
2becomes a policeman under this Article on or after the
3effective date of this amendatory Act of the 97th General
4Assembly shall be increased on the January 1 occurring either
5on or after (i) the attainment of age 60 or (ii) the first
6anniversary of the annuity start date, whichever is later. Each
7annual increase shall be calculated at 3% or one-half the
8annual unadjusted percentage increase (but not less than zero)
9in the consumer price index-u for the 12 months ending with the
10September preceding each November 1, whichever is less, of the
11originally granted retirement annuity. If the annual
12unadjusted percentage change in the consumer price index-u for
13a 12-month period ending in September is zero or, when compared
14with the preceding period, decreases, then the annuity shall
15not be increased.
16    For the purposes of this subsection (d), "consumer price
17index-u" means the index published by the Bureau of Labor
18Statistics of the United States Department of Labor that
19measures the average change in prices of goods and services
20purchased by all urban consumers, United States city average,
21all items, 1982-84 = 100. The new amount resulting from each
22annual adjustment shall be determined by the Public Pension
23Division of the Department of Insurance and made available to
24the boards of the pension funds by November 1 of each year.
25(Source: P.A. 96-1495, eff. 1-1-11; 97-344, eff. 8-12-11.)
 

 

 

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1    (40 ILCS 5/5-167.4)   (from Ch. 108 1/2, par. 5-167.4)
2    Sec. 5-167.4. Widow annuitant minimum annuity.
3    (a) Notwithstanding any other provision of this Article,
4beginning January 1, 1996, the minimum amount of widow's
5annuity payable to any person who is entitled to receive a
6widow's annuity under this Article is $700 per month, without
7regard to whether the deceased policeman is in service on or
8after the effective date of this amendatory Act of 1995.
9    Notwithstanding any other provision of this Article,
10beginning January 1, 1999, the minimum amount of widow's
11annuity payable to any person who is entitled to receive a
12widow's annuity under this Article is $800 per month, without
13regard to whether the deceased policeman is in service on or
14after the effective date of this amendatory Act of 1998.
15    Notwithstanding any other provision of this Article,
16beginning January 1, 2004, the minimum amount of widow's
17annuity payable to any person who is entitled to receive a
18widow's annuity under this Article is $900 per month, without
19regard to whether the deceased policeman is in service on or
20after the effective date of this amendatory Act of the 93rd
21General Assembly.
22    Notwithstanding any other provision of this Article,
23beginning January 1, 2005, the minimum amount of widow's
24annuity payable to any person who is entitled to receive a
25widow's annuity under this Article is $1,000 per month, without
26regard to whether the deceased policeman is in service on or

 

 

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1after the effective date of this amendatory Act of the 93rd
2General Assembly.
3    (b) Effective January 1, 1994, the minimum amount of
4widow's annuity shall be $700 per month for the following
5classes of widows, without regard to whether the deceased
6policeman is in service on or after the effective date of this
7amendatory Act of 1993: (1) the widow of a policeman who dies
8in service with at least 10 years of service credit, or who
9dies in service after June 30, 1981; and (2) the widow of a
10policeman who withdraws from service with 20 or more years of
11service credit and does not withdraw a refund, provided that
12the widow is married to the policeman before he withdraws from
13service.
14    (b-5) Notwithstanding any other provision of this Article,
15beginning January 1, 2017, the minimum widow's annuity under
16this Article shall be no less than 125% of the Federal Poverty
17Level for all persons receiving widow's annuities on or after
18that date, without regard to whether the deceased policeman is
19in service on or after the effective date of this amendatory
20Act of the 99th General Assembly. For purposes of this Section,
21"Federal Poverty Level" means the poverty guidelines
22applicable to an individual in a single-person household
23located in Illinois, as updated periodically in the Federal
24Register by the United States Department of Health and Human
25Services under the authority of 42 U.S.C. 9902(2).
26    (c) The city, in addition to the contributions otherwise

 

 

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1made by it under the other provisions of this Article, shall
2make such contributions as are necessary for the minimum
3widow's annuities provided under this Section in the manner
4prescribed in Section 5-175.
5(Source: P.A. 93-654, eff. 1-16-04.)
 
6    (40 ILCS 5/5-169)  (from Ch. 108 1/2, par. 5-169)
7    Sec. 5-169. Contributions for age and service annuities or
8Tier 2 monthly retirement annuities for present employees and
9future entrants.
10    (a) Beginning on the effective date and before January 1,
111954, 3 1/2% per annum (except that beginning July 1, 1939 and
12before January 1, 1954 for a future entrant, 4%) and beginning
13January 1, 1954 and before August 1, 1957, 6%, and beginning
14August 1, 1957, 7% of each payment of the salary of each
15present employee and future entrant shall be deducted and
16contributed to the fund for age and service annuity or Tier 2
17monthly retirement annuity. The deductions shall be made from
18each payment of salary and shall continue while the employee is
19in service.
20    Any policeman whose employment has been transferred to the
21police service of the city as a result of "An Act in relation
22to or exchange of certain functions, property and personnel
23among cities, and park districts having co-extensive
24geographic areas and populations in excess of 500,000",
25approved July 5, 1957, as now and hereafter amended, shall also

 

 

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1contribute a sum equal to 2% of the total salary received by
2him in his employment between August 1, 1957 to July 17, 1959,
3with the park district from which he has been transferred
4together with interest on the unpaid contributions of 4% per
5annum from July 17, 1959 to the date such payments are made.
6Such additional sum may be paid at any time before the time
7such policeman enters into age and service annuity.
8    Concurrently with each such deduction, beginning on the
9effective date and prior to January 1, 1954, 8 1/2% (except for
10a future entrant beginning on July 1, 1939, 9 5/7%) and
11beginning January 1, 1954, 9 5/7% of each payment of salary
12shall be contributed by the city, but in the case of a future
13entrant who attains age 63 prior to January 1, 1988 while still
14in service, no contributions shall be made for the period
15between the date the employee attains age 63 and January 1,
161988.
17    (b) Each deduction from salary made prior to the date the
18age and service annuity for the employee is fixed, and each
19contribution by the city, shall be credited to the employee and
20be improved by interest for a present employee during the time
21he is in service until age and service annuity is fixed, and,
22for a future entrant, during the time he is in service. The sum
23accumulated shall be used to provide age and service annuity
24for the employee.
25    Beginning September 1, 1967, the deductions from salary
26provided in Section 5-167.1 shall also be made.

 

 

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1(Source: P.A. 86-272.)
 
2    (40 ILCS 5/5-170)  (from Ch. 108 1/2, par. 5-170)
3    Sec. 5-170. Contributions for widow's annuities and Tier 2
4surviving spouse's annuity for present employees and future
5entrants. Beginning on the effective date 1%, and beginning
6January 1, 1976, 1-1/2% of the salary of each male present
7employee and future entrant shall be deducted and contributed
8to the fund for widow's annuity or Tier 2 surviving spouse's
9annuity; however, in the case of a future entrant who attains
10age 63 prior to January 1, 1988 while still in service, no
11deductions shall be made for the period between the date the
12employee attains age 63 and January 1, 1988. The deductions
13shall be made from each payment of salary and shall continue
14during the employee's service.
15    An employee in the service and over age 57 on the effective
16date of this amendatory Act of 1969 shall have the option of
17contributing 1% of salary together with the effective rate of
18interest for service rendered by him subsequent to his
19attainment of age 57 and prior to such effective date. If such
20retroactive contributions are made the wife or widow shall be
21entitled to the widow's annuity provided in Section 5-136.
22    Concurrently with each such deduction, the city shall
23contribute 2% of each such payment of salary.
24    Each deduction from salary and contribution by the city
25shall be allocated to the account of and credited to the

 

 

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1employee. The amount so credited shall be improved at the
2applicable rate of interest; except that in the case of an
3employee who attains age 63 prior to January 1, 1988 while
4still in service, no interest shall be credited between the
5date the employee attains age 63 and January 1, 1988.
6(Source: P.A. 86-272.)
 
7    (40 ILCS 5/5-238)
8    Sec. 5-238. Provisions applicable to new hires; Tier 2.
9    (a) Notwithstanding any other provision of this Article,
10the provisions of this Section apply to a person who first
11becomes a policeman under this Article on or after January 1,
122011, and to certain qualified survivors of such a policeman.
13Such persons, and the benefits and restrictions that apply
14specifically to them under this Article, may be referred to as
15"Tier 2".
16    (b) A policeman who has withdrawn from service, has
17attained age 50 55 or more, and who has 10 or more years of
18service in that capacity shall be entitled, upon proper
19application being received by the Fund, at his option to
20receive a Tier 2 monthly retirement annuity for his service as
21a police officer. The Tier 2 monthly retirement annuity shall
22be computed by multiplying 2.5% for each year of such service
23by his or her final average salary, subject to an annuity
24reduction factor of . The retirement annuity of a policeman who
25is retiring after attaining age 50 with 10 or more years of

 

 

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1creditable service shall be reduced by one-half of 1% for each
2month that the police officer's age at retirement is under age
355. The Tier 2 monthly retirement annuity is in lieu of any age
4and service annuity or other form of retirement annuity under
5this Article.
6    The maximum retirement annuity under this subsection (b)
7shall be 75% of final average salary.
8    For the purposes of this subsection (b), "final average
9salary" means the average monthly salary obtained by dividing
10the total salary of the policeman during the 96 consecutive
11months of service within the last 120 months of service in
12which the total salary was the highest by the number of months
13of service in that period.
14    Beginning on January 1, 2011, for all purposes under this
15Code (including without limitation the calculation of benefits
16and employee contributions), the annual salary based on the
17plan year of a member or participant to whom this Section
18applies shall not exceed $106,800; however, that amount shall
19annually thereafter be increased by the lesser of (i) 3% of
20that amount, including all previous adjustments, or (ii)
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1, including
24all previous adjustments.
25    (c) Notwithstanding any other provision of this Article,
26for a person who first becomes a policeman under this Article

 

 

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1on or after January 1, 2011, eligibility for and the amount of
2the annuity to which the qualified surviving spouse, children,
3and or parents are entitled under this subsection (c) shall be
4determined as follows:
5        (1) The surviving spouse of a deceased policeman to
6    whom this Section applies shall be deemed qualified to
7    receive a Tier 2 surviving spouse's annuity under this
8    paragraph (1) if: (i) the deceased policeman meets the
9    requirements specified under subdivision (A), (B), (C), or
10    (D) of this paragraph (1); and (ii) the surviving spouse
11    would not otherwise be excluded from receiving a widow's
12    annuity under the eligibility requirements for a widow's
13    annuity set forth in Section 5-146. The Tier 2 surviving
14    spouse's annuity is in lieu of the widow's annuity
15    determined under any other Section of this Article and is
16    subject to the requirements of Section 5-147.1.
17        As used in this subsection (c), "earned annuity" means
18    a Tier 2 monthly retirement annuity determined under
19    subsection (b) of this Section, including any increases the
20    policeman had received pursuant to Section 5-167.1.
21            (A) If the deceased policeman was receiving an
22        earned annuity at the date of his or her death, the
23        Tier 2 surviving spouse's annuity under this paragraph
24        (1) shall be in the amount of 66 2/3% of the
25        policeman's earned annuity at the date of death.
26            (B) If the deceased policeman was not receiving an

 

 

SB0440 Enrolled- 21 -LRB099 03101 RPS 23109 b

1        earned annuity but had at least 10 years of service at
2        the time of death, the Tier 2 surviving spouse's
3        annuity under this paragraph (1) shall be the greater
4        of: (i) 30% of the annual maximum salary attached to
5        the classified civil service position of a first class
6        patrolman at the time of his death; or (ii) 66 2/3% of
7        the Tier 2 monthly retirement annuity that the deceased
8        policeman would have been eligible to receive under
9        subsection (b) of this Section, based upon the actual
10        service accrued through the day before the policeman's
11        death, but determined as though the policeman was at
12        least age 55 on the day before his or her death and
13        retired on that day.
14            (C) If the deceased policeman was an active
15        policeman with at least 1 1/2 but less than 10 years of
16        service at the time of death, the Tier 2 surviving
17        spouse's annuity under this paragraph (1) shall be in
18        the amount of 30% of the annual maximum salary attached
19        to the classified civil service position of a first
20        class patrolman at the time of his death.
21            (D) If the performance of an act or acts of duty
22        results directly in the death of a policeman subject to
23        this Section, or prevents him from subsequently
24        resuming active service in the police department, and
25        if the policeman's Tier 2 surviving spouse would
26        otherwise meet the eligibility requirements for a

 

 

SB0440 Enrolled- 22 -LRB099 03101 RPS 23109 b

1        compensation annuity or supplemental annuity granted
2        under Section 5-144, then in addition to the Tier 2
3        surviving spouse's annuity provided under subdivision
4        (A), (B), or (C) of this paragraph (1), whichever
5        applies, the Tier 2 surviving spouse shall be qualified
6        to receive compensation annuity or supplemental
7        annuity, as would be provided under Section 5-144, in
8        order to bring the total benefit up to the applicable
9        75% salary limitation provided in that Section, but
10        subject to the Tier 2 salary cap provided under
11        subsection (b) of this Section; except that no such
12        annuity shall be paid to the surviving spouse of a
13        policeman who dies while in receipt of disability
14        benefits when the policeman's death was caused by an
15        intervening illness or injury unrelated to the illness
16        or injury that had prevented him from subsequently
17        resuming active service in the police department.
18            (E) Notwithstanding any other provision of this
19        Article, the monthly Tier 2 surviving spouse's annuity
20        under subdivision (A) or (B) of this paragraph (1) of a
21        survivor of a person who first becomes a policeman
22        under this Article on or after January 1, 2011 shall be
23        increased on the January 1 next occurring after (i)
24        attainment of age 60 by the recipient of the Tier 2
25        surviving spouse's annuity or (ii) the first
26        anniversary of the Tier 2 surviving spouse's annuity

 

 

SB0440 Enrolled- 23 -LRB099 03101 RPS 23109 b

1        start date, whichever is later, survivor's annuity and
2        on each January 1 thereafter, by 3% or one-half the
3        annual unadjusted percentage increase (but not less
4        than zero) in the consumer price index-u for the 12
5        months ending with the September preceding each
6        November 1, whichever is less, of the originally
7        granted Tier 2 surviving spouse's survivor's annuity.
8        If the unadjusted percentage change in the consumer
9        price index-u for a 12-month period ending in September
10        is zero or, when compared with the preceding period,
11        decreases, then the annuity shall not be increased.
12            For the purposes of this Section, "consumer price
13        index-u" means the index published by the Bureau of
14        Labor Statistics of the United States Department of
15        Labor that measures the average change in prices of
16        goods and services purchased by all urban consumers,
17        United States city average, all items, 1982-84 = 100.
18        The new amount resulting from each annual adjustment
19        shall be determined by the Public Pension Division of
20        the Department of Insurance and made available to the
21        boards of the pension funds.
22            (F) Notwithstanding the other provisions of this
23        paragraph (1), for a qualified surviving spouse who is
24        entitled to a Tier 2 surviving spouse's annuity under
25        subdivision (A), (B), (C), or (D) of this paragraph
26        (1), that Tier 2 surviving spouse's annuity shall not

 

 

SB0440 Enrolled- 24 -LRB099 03101 RPS 23109 b

1        be less than the amount of the minimum widow's annuity
2        established from time to time under Section 5-167.4.
3        (2) Surviving children of a deceased policeman subject
4    to this Section who would otherwise meet the eligibility
5    requirements for a child's annuity set forth in Sections
6    5-151 and 5-152 shall be deemed qualified to receive a Tier
7    2 child's annuity under this subsection (c), which shall be
8    in lieu of, but in the same amount and paid in the same
9    manner as, the child's annuity provided under those
10    Sections; except that any salary used for computing a Tier
11    2 child's annuity shall be subject to the Tier 2 salary cap
12    provided under subsection (b) of this Section. For purposes
13    of determining any pro rata reduction in child's annuities
14    under this subsection (c), references in Section 5-152 to
15    the combined annuities of the family shall be deemed to
16    refer to the combined Tier 2 surviving spouse's annuity, if
17    any, and the Tier 2 child's annuities payable under this
18    subsection (c).
19        (3) Surviving parents of a deceased policeman subject
20    to this Section who would otherwise meet the eligibility
21    requirements for a parent's annuity set forth in Section
22    5-152 shall be deemed qualified to receive a Tier 2
23    parent's annuity under this subsection (c), which shall be
24    in lieu of, but in the same amount and paid in the same
25    manner as, the parent's annuity provided under Section
26    5-152.1; except that any salary used for computing a Tier 2

 

 

SB0440 Enrolled- 25 -LRB099 03101 RPS 23109 b

1    parent's annuity shall be subject to the Tier 2 salary cap
2    provided under subsection (b) of this Section. For the
3    purposes of this Section, a reference to "annuity" in
4    Section 5-152.1 includes: (i) in the context of a widow, a
5    Tier 2 surviving spouse's annuity and (ii) in the context
6    of a child, a Tier 2 child's annuity.
7    (d) The General Assembly finds and declares that the
8provisions of this Section, as enacted by Public Act 96-1495,
9require clarification relating to necessary eligibility
10standards and the manner of determining and paying the intended
11Tier 2 benefits and contributions in order to enable the Fund
12to unambiguously implement and administer benefits for Tier 2
13members. The changes to this Section and the conforming changes
14to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the
15changes to subsection (a) of that Section), 5-169, and 5-170
16made by this amendatory Act of the 99th General Assembly are
17enacted to clarify the provisions of this Section as enacted by
18Public Act 96-1495, and are hereby declared to represent and be
19consistent with the original and continuing intent of this
20Section and Public Act 96-1495.
21    (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
22(except for the changes to subsection (a) of that Section),
235-169, and 5-170 made by this amendatory Act of the 99th
24General Assembly are intended to be retroactive to January 1,
252011 (the effective date of Public Act 96-1495) and, for the
26purposes of Section 1-103.1 of this Code, they apply without

 

 

SB0440 Enrolled- 26 -LRB099 03101 RPS 23109 b

1regard to whether the relevant policeman was in service on or
2after the effective date of this amendatory Act of the 99th
3General Assembly.
4(Source: P.A. 96-1495, eff. 1-1-11.)
 
5    (40 ILCS 5/6-128.4)   (from Ch. 108 1/2, par. 6-128.4)
6    Sec. 6-128.4. Minimum widow's annuities.
7    (a) Notwithstanding any other provision of this Article,
8beginning January 1, 1996, the minimum amount of widow's
9annuity payable to any person who is entitled to receive a
10widow's annuity under this Article is $700 per month, without
11regard to whether the deceased fireman is in service on or
12after the effective date of this amendatory Act of 1995.
13    (b) Notwithstanding Section 6-128.3, beginning January 1,
141994, the minimum widow's annuity under this Article shall be
15$700 per month for (1) all persons receiving widow's annuities
16on that date who are survivors of employees who retired at age
1750 or over with at least 20 years of service, and (2) persons
18who become eligible for widow's annuities and are survivors of
19employees who retired at age 50 or over with at least 20 years
20of service.
21    (c) Notwithstanding Section 6-128.3, beginning January 1,
221999, the minimum widow's annuity under this Article shall be
23$800 per month for (1) all persons receiving widow's annuities
24on that date who are survivors of employees who retired at age
2550 or over with at least 20 years of service, and (2) persons

 

 

SB0440 Enrolled- 27 -LRB099 03101 RPS 23109 b

1who become eligible for widow's annuities and are survivors of
2employees who retired at age 50 or over with at least 20 years
3of service.
4    (d) Notwithstanding Section 6-128.3, beginning January 1,
52004, the minimum widow's annuity under this Article shall be
6$900 per month for all persons receiving widow's annuities on
7or after that date, without regard to whether the deceased
8fireman is in service on or after the effective date of this
9amendatory Act of the 93rd General Assembly.
10    (e) Notwithstanding Section 6-128.3, beginning January 1,
112005, the minimum widow's annuity under this Article shall be
12$1,000 per month for all persons receiving widow's annuities on
13or after that date, without regard to whether the deceased
14fireman is in service on or after the effective date of this
15amendatory Act of the 93rd General Assembly.
16    (f) Notwithstanding Section 6-128.3, beginning January 1,
172017, the minimum widow's annuity under this Article shall be
18no less than 125% of the Federal Poverty Level for all persons
19receiving widow's annuities on or after that date, without
20regard to whether the deceased fireman is in service on or
21after the effective date of this amendatory Act of the 99th
22General Assembly. For purposes of this Section, "Federal
23Poverty Level" means the poverty guidelines applicable to an
24individual in a single-person household located in Illinois, as
25updated periodically in the Federal Register by the United
26States Department of Health and Human Services under the

 

 

SB0440 Enrolled- 28 -LRB099 03101 RPS 23109 b

1authority of 42 U.S.C. 9902(2).
2(Source: P.A. 93-654, eff. 1-16-04.)
 
3    (40 ILCS 5/6-150)  (from Ch. 108 1/2, par. 6-150)
4    Sec. 6-150. Death benefit.
5    (a) Effective January 1, 1962, an ordinary death benefit
6shall be payable on account of any fireman in service and in
7receipt of salary on or after such date, which benefit shall be
8in addition to all other annuities and benefits herein
9provided. This benefit shall be payable upon death of a
10fireman:
11        (1) occurring in active service while in receipt of
12    salary;
13        (2) on an authorized and approved leave of absence,
14    without salary, beginning on or after January 1, 1962, if
15    the death occurs within 60 days from the date the fireman
16    was in receipt of salary;
17        (3) receiving duty, occupational disease, or ordinary
18    disability benefit;
19        (4) occurring within 60 days from the date of
20    termination of duty disability, occupational disease
21    disability or ordinary disability benefit payments if
22    re-entry into service had not occurred; or
23        (5) occurring on retirement and while in receipt of an
24    age and service annuity, prior service annuity, Tier 2
25    monthly retirement annuity, or minimum annuity; provided

 

 

SB0440 Enrolled- 29 -LRB099 03101 RPS 23109 b

1    (a) retirement on such annuity occurred on or after January
2    1, 1962, and (b) such separation from service was effective
3    on or after the fireman's attainment of age 50, and (c)
4    application for such annuity was made within 60 days after
5    separation from service.
6    (b) The ordinary death benefit shall be payable to such
7beneficiary or beneficiaries as the fireman has nominated by
8written direction duly signed and acknowledged before an
9officer authorized to take acknowledgments, and filed with the
10board. If no such written direction has been filed or if the
11designated beneficiaries do not survive the fireman, payment of
12the benefit shall be made to his estate.
13    (c) Beginning July 1, 1983, if death occurs prior to
14retirement on annuity and before the fireman's attainment of
15age 50, the amount of the benefit payable shall be $12,000.
16Beginning July 1, 1983, if death occurs prior to retirement, at
17age 50 or over, the benefit of $12,000 shall be reduced $400
18for each year (commencing on the fireman's attainment of age 50
19and thereafter on each succeeding birth date) that the
20fireman's age, at date of death, is more than age 49, but in no
21event below the amount of $6,000.
22    Beginning July 1, 1983, if the fireman's death occurs while
23he is in receipt of an annuity, the benefit shall be $6,000.
24(Source: P.A. 83-152.)
 
25    (40 ILCS 5/6-158)  (from Ch. 108 1/2, par. 6-158)

 

 

SB0440 Enrolled- 30 -LRB099 03101 RPS 23109 b

1    Sec. 6-158. Refund - General.
2    (a) A fireman who withdraws before age 50 and a fireman
3with less than 10 years of service who withdraws before age 57,
4or any fireman who withdraws and enters the service of another
5department of the city, has a right to a refund of the entire
6amount to his credit as of the date of withdrawal for age and
7service annuity or Tier 2 monthly retirement annuity, for
8automatic annual increase in annuity as provided in Section
96-164, and for widow's annuity or Tier 2 surviving spouse's
10annuity, from deductions from salary.
11    (b) Any such fireman shall be entitled to refund until he
12re-enters service or until his annuity is fixed.
13    (c) A fireman who receives a refund forfeits all rights to
14any annuity or benefit from the fund, for himself and for any
15other person who might benefit through him because of his
16service, provided he shall retain the right to credit for any
17such service, for the purpose of computing his total service if
18he re-enters service before age 57, becomes a beneficiary of
19the fund and makes repayment of the refund with interest.
20    (d) A fireman completing 10 years of service who does not
21receive a refund, may receive an annuity as provided in this
22Article.
23    (e) A fireman completing less than 10 years who does not
24receive a refund has a right to have all amounts to his credit
25for annuity purposes on the date of withdrawal improved by
26interest while he is out of service until age 57 only, for his

 

 

SB0440 Enrolled- 31 -LRB099 03101 RPS 23109 b

1benefit and the benefit of any person who may have any right to
2annuity through him, if he subsequently reenters service and
3attains a right to annuity.
4(Source: Laws 1965, p. 2464.)
 
5    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
6    Sec. 6-164. Automatic annual increase; retirement after
7September 1, 1959.
8    (a) A fireman qualifying for a minimum annuity who retires
9from service after September 1, 1959 shall, upon either the
10first of the month following the first anniversary of his date
11of retirement if he is age 60 (age 55 if born before January 1,
121966 1955) or over on that anniversary date, or upon the first
13of the month following his attainment of age 60 (age 55 if born
14before January 1, 1966 1955) if that occurs after the first
15anniversary of his retirement date, have his then fixed and
16payable monthly annuity increased by 1 1/2%, and such first
17fixed annuity as granted at retirement increased by an
18additional 1 1/2% in January of each year thereafter up to a
19maximum increase of 30%. Beginning July 1, 1982 for firemen
20born before January 1, 1930, and beginning January 1, 1990 for
21firemen born after December 31, 1929 and before January 1,
221940, and beginning January 1, 1996 for firemen born after
23December 31, 1939 but before January 1, 1945, and beginning
24January 1, 2004, for firemen born after December 31, 1944 but
25before January 1, 1955, and beginning January 1, 2017, for

 

 

SB0440 Enrolled- 32 -LRB099 03101 RPS 23109 b

1firemen born after December 31, 1954 but before January 1,
21966, such increases shall be 3% and such firemen shall not be
3subject to the 30% maximum increase.
4    Any fireman born before January 1, 1945 who qualifies for a
5minimum annuity and retires after September 1, 1967 but has not
6received the initial increase under this subsection before
7January 1, 1996 is entitled to receive the initial increase
8under this subsection on (1) January 1, 1996, (2) the first
9anniversary of the date of retirement, or (3) attainment of age
1055, whichever occurs last. The changes to this Section made by
11this amendatory Act of 1995 apply beginning January 1, 1996 and
12apply without regard to whether the fireman or annuitant
13terminated service before the effective date of this amendatory
14Act of 1995.
15    Any fireman born before January 1, 1955 who qualifies for a
16minimum annuity and retires after September 1, 1967 but has not
17received the initial increase under this subsection before
18January 1, 2004 is entitled to receive the initial increase
19under this subsection on (1) January 1, 2004, (2) the first
20anniversary of the date of retirement, or (3) attainment of age
2155, whichever occurs last. The changes to this Section made by
22this amendatory Act of the 93rd General Assembly apply without
23regard to whether the fireman or annuitant terminated service
24before the effective date of this amendatory Act.
25    Any fireman born before January 1, 1966 who qualifies for a
26minimum annuity and retires after September 1, 1967 but has not

 

 

SB0440 Enrolled- 33 -LRB099 03101 RPS 23109 b

1received the initial increase under this subsection before
2January 1, 2017 is entitled to receive an initial increase
3under this subsection on (1) January 1, 2017, (2) the first
4anniversary of the date of retirement, or (3) attainment of age
555, whichever occurs last, in an amount equal to 3% for each
6complete year following the date of retirement or attainment of
7age 55, whichever occurs later. The changes to this subsection
8made by this amendatory Act of the 99th General Assembly apply
9without regard to whether the fireman or annuitant terminated
10service before the effective date of this amendatory Act.
11    (b) Subsection (a) of this Section is not applicable to an
12employee receiving a term annuity.
13    (c) To help defray the cost of such increases in annuity,
14there shall be deducted, beginning September 1, 1959, from each
15payment of salary to a fireman, 1/8 of 1% of each such salary
16payment and an additional 1/8 of 1% beginning on September 1,
171961, and September 1, 1963, respectively, concurrently with
18and in addition to the salary deductions otherwise made for
19annuity purposes.
20    Each such additional 1/8 of 1% deduction from salary which
21shall, on September 1, 1963, result in a total increase of 3/8
22of 1% of salary, shall be credited to the Automatic Increase
23Reserve, to be used, together with city contributions as
24provided in this Article, to defray the cost of the 1 1/2%
25annuity increments herein specified in this Section. Any
26balance in such reserve as of the beginning of each calendar

 

 

SB0440 Enrolled- 34 -LRB099 03101 RPS 23109 b

1year shall be credited with interest at the rate of 3% per
2annum.
3    The salary deductions provided in this Section are not
4subject to refund, except to the fireman himself, in any case
5in which: (i) the a fireman withdraws prior to qualification
6for minimum annuity or Tier 2 monthly retirement annuity and
7applies for refund, (ii) the fireman or applies for an annuity
8of a type that is not subject to annual increases under this
9Section, or (iii) , and also where a term annuity becomes
10payable. In such cases, the total of such salary deductions
11shall be refunded to the fireman, without interest, and charged
12to the aforementioned reserve.
13    (d) Notwithstanding any other provision of this Article,
14the Tier 2 monthly retirement annuity of a person who first
15becomes a fireman under this Article on or after January 1,
162011 shall be increased on the January 1 occurring either on or
17after (i) the attainment of age 60 or (ii) the first
18anniversary of the annuity start date, whichever is later. Each
19annual increase shall be calculated at 3% or one-half the
20annual unadjusted percentage increase (but not less than zero)
21in the consumer price index-u for the 12 months ending with the
22September preceding each November 1, whichever is less, of the
23originally granted retirement annuity. If the annual
24unadjusted percentage change in the consumer price index-u for
25a 12-month period ending in September is zero or, when compared
26with the preceding period, decreases, then the annuity shall

 

 

SB0440 Enrolled- 35 -LRB099 03101 RPS 23109 b

1not be increased.
2    For the purposes of this subsection (d), "consumer price
3index-u" means the index published by the Bureau of Labor
4Statistics of the United States Department of Labor that
5measures the average change in prices of goods and services
6purchased by all urban consumers, United States city average,
7all items, 1982-84 = 100. The new amount resulting from each
8annual adjustment shall be determined by the Public Pension
9Division of the Department of Insurance and made available to
10the boards of the pension funds by November 1 of each year.
11(Source: P.A. 96-1495, eff. 1-1-11.)
 
12    (40 ILCS 5/6-166)  (from Ch. 108 1/2, par. 6-166)
13    Sec. 6-166. Contributions for age and service annuities or
14Tier 2 monthly retirement annuities for present employees and
15future entrants.
16    (a) After the effective date and prior to July 1, 1953, 3
171/2%, and after June 30, 1953, and prior to September 1, 1959,
186%, and beginning September 1, 1959, 7 1/8% of each payment of
19the salary of each present employee and future entrant shall be
20deducted and contributed to the fund for age and service
21annuity or Tier 2 monthly retirement annuity. The deductions
22shall be made at the time payments of salary are payable and
23shall continue while the employee is in service.
24    Concurrently with each such contribution, the city shall
25contribute 8 1/2% of each payment of salary, but the city

 

 

SB0440 Enrolled- 36 -LRB099 03101 RPS 23109 b

1contributions shall cease for all employees upon their
2attainment of age 63.
3    (b) Each contribution by the employee and the city shall be
4allocated to the account of and credited to the employee, and
5shall be improved by interest at the applicable rate during the
6time he is in service until the age and service annuity is
7fixed. Any accretion, by way of interest or otherwise, upon
8such sum or any deduction from salary made after the annuity is
9fixed for a present employee or after attainment of age 63 by a
10future entrant who first becomes a fireman under this Article
11before January 1, 2011 shall not be credited to the employee
12for age and service annuity.
13(Source: P.A. 76-1668.)
 
14    (40 ILCS 5/6-167)  (from Ch. 108 1/2, par. 6-167)
15    Sec. 6-167. Contributions for widow's annuity and Tier 2
16surviving spouse's annuity. Beginning on the effective date and
17prior to September 1, 1957, 1% of each payment of salary of not
18more than $3,000 of each employee and beginning September 1,
191957, 1% of each payment of salary of not more than $6,000 of
20each present employee and future entrant shall be deducted and
21contributed to the fund for widow's annuity. After September 1,
221967 and prior to January 1, 1976, 1%, and beginning January 1,
231976, 1 1/2% of salary without limitation shall be deducted
24from the pay of each present employee and future entrant and
25contributed to the fund for widow's annuity or Tier 2 surviving

 

 

SB0440 Enrolled- 37 -LRB099 03101 RPS 23109 b

1spouse's annuity. The deduction shall be made at the time the
2payments of salary are payable and shall continue during the
3service of the employee.
4    Concurrently with each contribution, the city shall
5contribute 2% of each payment of salary.
6    Each contribution by the employee and the city shall be
7allocated to the accounts of and credited to the employee for
8widow's annuity or Tier 2 surviving spouse's annuity.
9(Source: P.A. 79-633.)
 
10    (40 ILCS 5/6-229)
11    Sec. 6-229. Provisions applicable to new hires; Tier 2.
12    (a) Notwithstanding any other provision of this Article,
13the provisions of this Section apply to a person who first
14becomes a fireman under this Article on or after January 1,
152011, and to certain qualified survivors of such a fireman.
16Such persons, and the benefits and restrictions that apply
17specifically to them under this Article, may be referred to as
18"Tier 2".
19    (b) A fireman who has withdrawn from service, has attained
20age 50 55 or more, and who has 10 or more years of service in
21that capacity shall be entitled, upon proper application being
22received by the Fund, at his option to receive a Tier 2 monthly
23retirement annuity for his service as a fireman. The Tier 2
24monthly retirement annuity shall be computed by multiplying
252.5% for each year of such service by his or her final average

 

 

SB0440 Enrolled- 38 -LRB099 03101 RPS 23109 b

1salary, subject to an annuity reduction factor of . The
2retirement annuity of a fireman who is retiring after attaining
3age 50 with 10 or more years of creditable service shall be
4reduced by one-half of 1% for each month that the fireman's age
5at retirement is under age 55. The Tier 2 monthly retirement
6annuity is in lieu of any age and service annuity or other form
7of retirement annuity under this Article.
8    The maximum retirement annuity under this subsection (b)
9shall be 75% of final average salary.
10    For the purposes of this subsection (b), "final average
11salary" means the average monthly salary obtained by dividing
12the total salary of the fireman during the 96 consecutive
13months of service within the last 120 months of service in
14which the total salary was the highest by the number of months
15of service in that period.
16    Beginning on January 1, 2011, for all purposes under this
17Code (including without limitation the calculation of benefits
18and employee contributions), the annual salary based on the
19plan year of a member or participant to whom this Section
20applies shall not exceed $106,800; however, that amount shall
21annually thereafter be increased by the lesser of (i) 3% of
22that amount, including all previous adjustments, or (ii)
23one-half the annual unadjusted percentage increase (but not
24less than zero) in the consumer price index-u for the 12 months
25ending with the September preceding each November 1, including
26all previous adjustments.

 

 

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1    (b-5) For the purposes of this Section, "consumer price
2index-u" means the index published by the Bureau of Labor
3Statistics of the United States Department of Labor that
4measures the average change in prices of goods and services
5purchased by all urban consumers, United States city average,
6all items, 1982-84 = 100. The new amount resulting from each
7annual adjustment shall be determined by the Public Pension
8Division of the Department of Insurance and made available to
9the boards of the retirement systems and pension funds by
10November 1 of each year.
11    (c) Notwithstanding any other provision of this Article,
12for a person who first becomes a fireman under this Article on
13or after January 1, 2011, eligibility for and the amount of the
14annuity to which the qualified surviving spouse, children, and
15or parents of the fireman are entitled under this subsection
16(c) shall be determined as follows:
17        (1) The surviving spouse of a deceased fireman to whom
18    this Section applies shall be deemed qualified to receive a
19    Tier 2 surviving spouse's annuity under this paragraph (1)
20    if: (i) the deceased fireman meets the requirements
21    specified under subdivision (A), (B), (C), or (D) of this
22    paragraph (1); and (ii) the surviving spouse would not
23    otherwise be excluded from receiving a widow's annuity
24    under the eligibility requirements for a widow's annuity
25    set forth in Section 6-142. The Tier 2 surviving spouse's
26    annuity is in lieu of the widow's annuity determined under

 

 

SB0440 Enrolled- 40 -LRB099 03101 RPS 23109 b

1    any other Section of this Article and is subject to the
2    requirements of Section 6-143.2.
3        As used in this subsection (c), "earned pension" means
4    a Tier 2 monthly retirement annuity determined under
5    subsection (b) of this Section, including any increases the
6    fireman had received pursuant to Section 6-164.
7            (A) If the deceased fireman was receiving an earned
8        pension at the date of his or her death, the Tier 2
9        surviving spouse's annuity under this paragraph (1)
10        shall be in the amount of 66 2/3% of the fireman's
11        earned pension at the date of death.
12            (B) If the deceased fireman was not receiving an
13        earned pension but had at least 10 years of service at
14        the time of death, the Tier 2 surviving spouse's
15        annuity under this paragraph (1) shall be the greater
16        of: (i) 30% of the salary attached to the rank of first
17        class firefighter in the classified career service at
18        the time of the fireman's death; or (ii) 66 2/3% of the
19        Tier 2 monthly retirement annuity that the deceased
20        fireman would have been eligible to receive under
21        subsection (b) of this Section, based upon the actual
22        service accrued through the day before the fireman's
23        death, but determined as though the fireman was at
24        least age 55 on the day before his or her death and
25        retired on that day.
26            (C) If the deceased fireman was an active fireman

 

 

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1        with at least 1 1/2 but less than 10 years of service
2        at the time of death, the Tier 2 surviving spouse's
3        annuity under this paragraph (1) shall be in the amount
4        of 30% of the salary attached to the rank of first
5        class firefighter in the classified career service at
6        the time of the fireman's death.
7            (D) Notwithstanding subdivisions (A), (B), and (C)
8        of this paragraph (1), if the performance of an act or
9        acts of duty results directly in the death of a fireman
10        subject to this Section, or prevents him from
11        subsequently resuming active service in the fire
12        department, then a surviving spouse who would
13        otherwise meet the eligibility requirements for a
14        death in the line of duty widow's annuity granted under
15        Section 6-140 shall be deemed to be qualified for a
16        Tier 2 surviving spouse's annuity under this
17        subdivision (D); except that no such annuity shall be
18        paid to the surviving spouse of a fireman who dies
19        while in receipt of disability benefits when the
20        fireman's death was caused by an intervening illness or
21        injury unrelated to the illness or injury that had
22        prevented him from subsequently resuming active
23        service in the fire department. The Tier 2 surviving
24        spouse's annuity calculated under this subdivision (D)
25        shall be in lieu of, but in the same amount and paid in
26        the same manner as, the widow's annuity provided under

 

 

SB0440 Enrolled- 42 -LRB099 03101 RPS 23109 b

1        Section 6-140; except that the salary used for
2        computing a Tier 2 surviving spouse's annuity under
3        this subdivision (D) shall be subject to the Tier 2
4        salary cap provided under subsection (b) of this
5        Section.
6            (E) Notwithstanding any other provision of this
7        Article, the monthly Tier 2 surviving spouse's annuity
8        under subdivision (A) or (B) of this paragraph (1) of a
9        survivor of a person who first becomes a fireman under
10        this Article on or after January 1, 2011 shall be
11        increased on the January 1 next occurring after (i)
12        attainment of age 60 by the recipient of the Tier 2
13        surviving spouse's annuity or (ii) the first
14        anniversary of the Tier 2 surviving spouse's annuity
15        start date, whichever is later, survivor's pension and
16        on each January 1 thereafter, by 3% or one-half the
17        annual unadjusted percentage increase in the consumer
18        price index-u for the 12 months ending with September
19        preceding each November 1, whichever is less, of the
20        originally granted Tier 2 surviving spouse's
21        survivor's annuity. If the annual unadjusted
22        percentage change in the consumer price index-u for a
23        12-month period ending in September is zero or, when
24        compared with the preceding period, decreases, then
25        the annuity shall not be increased.
26            (F) Notwithstanding the other provisions of this

 

 

SB0440 Enrolled- 43 -LRB099 03101 RPS 23109 b

1        paragraph (1), for a qualified surviving spouse who is
2        entitled to a Tier 2 surviving spouse's annuity under
3        subdivision (A), (B), (C), or (D) of this paragraph
4        (1), that Tier 2 surviving spouse's annuity shall not
5        be less than the amount of the minimum widow's annuity
6        established from time to time under Section 6-128.4.
7        (2) Surviving children of a deceased fireman subject to
8    this Section who would otherwise meet the eligibility
9    requirements for a child's annuity set forth in Sections
10    6-147 and 6-148 shall be deemed qualified to receive a Tier
11    2 child's annuity under this subsection (c), which shall be
12    in lieu of, but in the same amount and paid in the same
13    manner as, the child's annuity provided under those
14    Sections; except that any salary used for computing a Tier
15    2 child's annuity shall be subject to the Tier 2 salary cap
16    provided under subsection (b) of this Section. For purposes
17    of determining any pro rata reduction in child's annuities
18    under this subsection (c), references in Section 6-148 to
19    the combined annuities of the family shall be deemed to
20    refer to the combined Tier 2 surviving spouse's annuity, if
21    any, and the Tier 2 child's annuities payable under this
22    subsection (c).
23        (3) Surviving parents of a deceased fireman subject to
24    this Section who would otherwise meet the eligibility
25    requirements for a parent's annuity set forth in Section
26    6-149 shall be deemed qualified to receive a Tier 2

 

 

SB0440 Enrolled- 44 -LRB099 03101 RPS 23109 b

1    parent's annuity under this subsection (c), which shall be
2    in lieu of, but in the same amount and paid in the same
3    manner as, the parent's annuity provided under Section
4    6-149; except that any salary used for computing a Tier 2
5    parent's annuity shall be subject to the Tier 2 salary cap
6    provided under subsection (b) of this Section. For the
7    purposes of this Section, a reference to "annuity" in
8    Section 6-149 includes: (i) in the context of a widow, a
9    Tier 2 surviving spouse's annuity and (ii) in the context
10    of a child, a Tier 2 child's annuity.
11    (d) The General Assembly finds and declares that the
12provisions of this Section, as enacted by Public Act 96-1495,
13require clarification relating to necessary eligibility
14standards and the manner of determining and paying the intended
15Tier 2 benefits and contributions in order to enable the Fund
16to unambiguously implement and administer benefits for Tier 2
17members. The changes to this Section and the conforming changes
18to Sections 6-150, 6-158, 6-164 (except for the changes to
19subsection (a) of that Section), 6-166, and 6-167 made by this
20amendatory Act of the 99th General Assembly are enacted to
21clarify the provisions of this Section as enacted by Public Act
2296-1495, and are hereby declared to represent and be consistent
23with the original and continuing intent of this Section and
24Public Act 96-1495.
25    (e) The changes to Sections 6-150, 6-158, 6-164 (except for
26the changes to subsection (a) of that Section), 6-166, and

 

 

SB0440 Enrolled- 45 -LRB099 03101 RPS 23109 b

16-167 made by this amendatory Act of the 99th General Assembly
2are intended to be retroactive to January 1, 2011 (the
3effective date of Public Act 96-1495) and, for the purposes of
4Section 1-103.1 of this Code, they apply without regard to
5whether the relevant fireman was in service on or after the
6effective date of this amendatory Act of the 99th General
7Assembly.
8(Source: P.A. 96-1495, eff. 1-1-11.)
 
9    Section 90. The State Mandates Act is amended by adding
10Section 8.40 as follows:
 
11    (30 ILCS 805/8.40 new)
12    Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8
13of this Act, no reimbursement by the State is required for the
14implementation of any mandate created by this amendatory Act of
15the 99th General Assembly.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.