99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2350

 

Introduced 1/28/2016, by Sen. John G. Mulroe

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-128.2  from Ch. 108 1/2, par. 6-128.2
40 ILCS 5/6-128.4  from Ch. 108 1/2, par. 6-128.4
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.40 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that any fireman born after December 31, 1954 but before January 1, 1966 shall be entitled to receive 3% automatic annual increases to his or her annuity. Provides that the automatic annual increase is not subject to the 30% maximum. Provides that the initial increase shall be in an amount equal to 3% for each complete year following the date of retirement or attainment of age 55, whichever occurs later. Provides that beginning January 1, 2017, the minimum widow's annuity and minimum retirement annuity payable to any person who has retired from service at age 50 or over with 20 or more years of service and is entitled to receive a retirement annuity under this Article on that date, or who retires from service at age 50 or over with 20 or more years of service after that date, shall be no less than 125% of the Federal Poverty Level. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB099 20113 RPS 44541 b

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

 

 

A BILL FOR

 

SB2350LRB099 20113 RPS 44541 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 6-128.2, 6-128.4, and 6-164 as follows:
 
6    (40 ILCS 5/6-128.2)   (from Ch. 108 1/2, par. 6-128.2)
7    Sec. 6-128.2. Minimum retirement annuities.
8    (a) Beginning with the monthly payment due in January,
91988, the monthly annuity payment for any person who is
10entitled to receive a retirement annuity under this Article in
11January, 1990 and has retired from service at age 50 or over
12with 20 or more years of service, and for any person who
13retires from service on or after January 24, 1990 at age 50 or
14over with 20 or more years of service, shall not be less than
15$475 per month. The $475 minimum annuity is exclusive of any
16automatic annual increases provided by Sections 6-164 and
176-164.1, but not exclusive of previous raises in the minimum
18annuity as provided by any Section of this Article.
19    Beginning January 1, 1992, the minimum retirement annuity
20payable to any person who has retired from service at age 50 or
21over with 20 or more years of service and is entitled to
22receive a retirement annuity under this Article on that date,
23or who retires from service at age 50 or over with 20 or more

 

 

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1years of service after that date, shall be $650 per month.
2    Beginning January 1, 1993, the minimum retirement annuity
3payable to any person who has retired from service at age 50 or
4over with 20 or more years of service and is entitled to
5receive a retirement annuity under this Article on that date,
6or who retires from service at age 50 or over with 20 or more
7years of service after that date, shall be $750 per month.
8    Beginning January 1, 1994, the minimum retirement annuity
9payable to any person who has retired from service at age 50 or
10over with 20 or more years of service and is entitled to
11receive a retirement annuity under this Article on that date,
12or who retires from service at age 50 or over with 20 or more
13years of service after that date, shall be $850 per month.
14    Beginning January 1, 2004, the minimum retirement annuity
15payable to any person who has retired from service at age 50 or
16over with 20 or more years of service and is entitled to
17receive a retirement annuity under this Article on that date,
18or who retires from service at age 50 or over with 20 or more
19years of service after that date, shall be $950 per month.
20    Beginning January 1, 2005, the minimum retirement annuity
21payable to any person who has retired from service at age 50 or
22over with 20 or more years of service and is entitled to
23receive a retirement annuity under this Article on that date,
24or who retires from service at age 50 or over with 20 or more
25years of service after that date, shall be $1,050 per month.
26    Beginning January 1, 2017, the minimum retirement annuity

 

 

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1payable to any person who has retired from service at age 50 or
2over with 20 or more years of service and is entitled to
3receive a retirement annuity under this Article on that date,
4or who retires from service at age 50 or over with 20 or more
5years of service after that date, shall be no less than 125% of
6the Federal Poverty Level. For purposes of this Section, the
7"Federal Poverty Level" shall be determined pursuant to the
8poverty guidelines updated periodically in the Federal
9Register by the United States Department of Health and Human
10Services under the authority of 42 U.S.C. 9902(2).
11    The minimum annuities established by this subsection (a) do
12include previous raises in the minimum annuity as provided by
13any Section of this Article, but do not include any sums which
14have been added or will be added to annuity payments by the
15automatic annual increases provided by Sections 6-164 and
166-164.1. Such annual increases shall be paid in addition to the
17minimum amounts specified in this subsection.
18    (b) Notwithstanding any other provision of this Article,
19beginning January 1, 1990, the minimum retirement annuity
20payable to any person who is entitled to receive a retirement
21annuity under this Article on that date shall be $475 per
22month.
23    (c) The changes made to this Section by this amendatory Act
24of the 93rd General Assembly apply to all persons receiving a
25retirement annuity under this Article, without regard to
26whether the retirement of the fireman occurred prior to the

 

 

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1effective date of this amendatory Act.
2    For the purposes of Section 1-103.1, the changes made to
3this Section by this amendatory Act of the 99th General
4Assembly apply without regard to whether the retirement of the
5fireman occurred prior to the effective date of this amendatory
6Act.
7(Source: P.A. 93-654, eff. 1-16-04.)
 
8    (40 ILCS 5/6-128.4)   (from Ch. 108 1/2, par. 6-128.4)
9    Sec. 6-128.4. Minimum widow's annuities.
10    (a) Notwithstanding any other provision of this Article,
11beginning January 1, 1996, the minimum amount of widow's
12annuity payable to any person who is entitled to receive a
13widow's annuity under this Article is $700 per month, without
14regard to whether the deceased fireman is in service on or
15after the effective date of this amendatory Act of 1995.
16    (b) Notwithstanding Section 6-128.3, beginning January 1,
171994, the minimum widow's annuity under this Article shall be
18$700 per month for (1) all persons receiving widow's annuities
19on that date who are survivors of employees who retired at age
2050 or over with at least 20 years of service, and (2) persons
21who become eligible for widow's annuities and are survivors of
22employees who retired at age 50 or over with at least 20 years
23of service.
24    (c) Notwithstanding Section 6-128.3, beginning January 1,
251999, the minimum widow's annuity under this Article shall be

 

 

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1$800 per month for (1) all persons receiving widow's annuities
2on that date who are survivors of employees who retired at age
350 or over with at least 20 years of service, and (2) persons
4who become eligible for widow's annuities and are survivors of
5employees who retired at age 50 or over with at least 20 years
6of service.
7    (d) Notwithstanding Section 6-128.3, beginning January 1,
82004, the minimum widow's annuity under this Article shall be
9$900 per month for all persons receiving widow's annuities on
10or after that date, without regard to whether the deceased
11fireman is in service on or after the effective date of this
12amendatory Act of the 93rd General Assembly.
13    (e) Notwithstanding Section 6-128.3, beginning January 1,
142005, the minimum widow's annuity under this Article shall be
15$1,000 per month for all persons receiving widow's annuities on
16or after that date, without regard to whether the deceased
17fireman is in service on or after the effective date of this
18amendatory Act of the 93rd General Assembly.
19    (f) Notwithstanding Section 6-128.3, beginning January 1,
202017, the minimum widow's annuity under this Article shall be
21no less than 125% of the Federal Poverty Level for all persons
22receiving widow's annuities on or after that date, without
23regard to whether the deceased fireman is in service on or
24after the effective date of this amendatory Act of the 99th
25General Assembly. For purposes of this Section, the "Federal
26Poverty Level" shall be determined pursuant to the poverty

 

 

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1guideline updated periodically in the Federal Register by the
2United States Department of Health and Human Services under the
3authority of 42 U.S.C. 9902(2).
4(Source: P.A. 93-654, eff. 1-16-04.)
 
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

 

 

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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

 

 

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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 Section
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. Any balance in such
26reserve as of the beginning of each calendar year shall be

 

 

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1credited with interest at the rate of 3% per annum.
2    The salary deductions provided in this Section are not
3subject to refund, except to the fireman himself, in any case
4in which a fireman withdraws prior to qualification for minimum
5annuity and applies for refund, or applies for annuity, and
6also where a term annuity becomes payable. In such cases, the
7total of such salary deductions shall be refunded to the
8fireman, without interest, and charged to the aforementioned
9reserve.
10    (d) Notwithstanding any other provision of this Article,
11the monthly annuity of a person who first becomes a fireman
12under this Article on or after January 1, 2011 shall be
13increased on the January 1 occurring either on or after the
14attainment of age 60 or the first anniversary of the annuity
15start date, whichever is later. Each annual increase shall be
16calculated at 3% or one-half the annual unadjusted percentage
17increase (but not less than zero) in the consumer price index-u
18for the 12 months ending with the September preceding each
19November 1, whichever is less, of the originally granted
20retirement annuity. If the annual unadjusted percentage change
21in the consumer price index-u for a 12-month period ending in
22September is zero or, when compared with the preceding period,
23decreases, then the annuity shall not be increased.
24    For the purposes of this subsection (d), "consumer price
25index-u" means the index published by the Bureau of Labor
26Statistics of the United States Department of Labor that

 

 

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1measures the average change in prices of goods and services
2purchased by all urban consumers, United States city average,
3all items, 1982-84 = 100. The new amount resulting from each
4annual adjustment shall be determined by the Public Pension
5Division of the Department of Insurance and made available to
6the boards of the pension funds.
7(Source: P.A. 96-1495, eff. 1-1-11.)
 
8    Section 90. The State Mandates Act is amended by adding
9Section 8.40 as follows:
 
10    (30 ILCS 805/8.40 new)
11    Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8
12of this Act, no reimbursement by the State is required for the
13implementation of any mandate created by this amendatory Act of
14the 99th General Assembly.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.