99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2821

 

Introduced 2/17/2016, by Sen. John G. Mulroe

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-229

    Amends the Chicago Firefighter Article of the Illinois Pension Code. In a Section relating to a person who first becomes a fireman on or after January 1, 2011: (1) deletes provisions specifying the amount of annuity for a surviving child or parent; (2) provides for payment of a specified survivor's annuity to the surviving spouse of an active fireman with at least 10 years of actual service; and (3) provides for payment of a minimum widow's annuity to every surviving spouse, regardless of whether the deceased fireman was in service or had less than 10 years of actual service. Specifies that the changes relating to the newly defined annuities apply without regard to whether the death of the deceased fireman may have occurred prior to the effective date. Effective immediately.


LRB099 19823 RPS 44222 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2821LRB099 19823 RPS 44222 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
5Section 6-229 as follows:
 
6    (40 ILCS 5/6-229)
7    Sec. 6-229. Provisions applicable to new hires.
8    (a) Notwithstanding any other provision of this Article,
9the provisions of this Section apply to a person who first
10becomes a fireman under this Article on or after January 1,
112011.
12    (b) A fireman age 55 or more who has 10 or more years of
13service in that capacity shall be entitled at his option to
14receive a monthly retirement annuity for his service as a
15fireman computed by multiplying 2.5% for each year of such
16service by his or her final average salary.
17    The retirement annuity of a fireman who is retiring after
18attaining age 50 with 10 or more years of creditable service
19shall be reduced by one-half of 1% for each month that the
20fireman's age is under age 55.
21    The maximum retirement annuity under this subsection (b)
22shall be 75% of final average salary.
23    For the purposes of this subsection (b), "final average

 

 

SB2821- 2 -LRB099 19823 RPS 44222 b

1salary" means the average monthly salary obtained by dividing
2the total salary of the fireman during the 96 consecutive
3months of service within the last 120 months of service in
4which the total salary was the highest by the number of months
5of service in that period.
6    Beginning on January 1, 2011, for all purposes under this
7Code (including without limitation the calculation of benefits
8and employee contributions), the annual salary based on the
9plan year of a member or participant to whom this Section
10applies shall not exceed $106,800; however, that amount shall
11annually thereafter be increased by the lesser of (i) 3% of
12that amount, including all previous adjustments, or (ii)
13one-half the annual unadjusted percentage increase (but not
14less than zero) in the consumer price index-u for the 12 months
15ending with the September preceding each November 1, including
16all previous adjustments.
17    (c) Subject to subsection (d), but notwithstanding
18Notwithstanding any other provision of this Article, for a
19person who first becomes a fireman under this Article on or
20after January 1, 2011, the annuity to which the surviving
21spouse is , children, or parents are entitled under this
22subsection (c) shall be in the amount of 66 2/3% of the
23fireman's retirement annuity earned pension at the date of the
24fireman's death.
25    Notwithstanding any other provision of this Article, the
26monthly annuity of a surviving spouse survivor of a person who

 

 

SB2821- 3 -LRB099 19823 RPS 44222 b

1first becomes a fireman under this Article on or after January
21, 2011 shall be increased on the January 1 after attainment of
3age 60 by the recipient of the survivor's pension and each
4January 1 thereafter by 3% or one-half the annual unadjusted
5percentage increase in the consumer price index-u for the 12
6months ending with September preceding each November 1,
7whichever is less, of the originally granted survivor's
8annuity. If the annual unadjusted percentage change in the
9consumer price index-u for a 12-month period ending in
10September is zero or, when compared with the preceding period,
11decreases, then the annuity shall not be increased.
12    (d) Notwithstanding the provisions of subsection (c) of
13this Section:
14        (1) Any surviving spouse of a deceased fireman shall be
15    paid an amount no less than the amount of the minimum
16    widow's annuity, as provided for in Section 6-128.4.
17        (2) If the deceased fireman was an active fireman at
18    the time of his or her death and had completed at least 10
19    years of creditable service, the surviving spouse shall be
20    entitled to an amount equal to 66 2/3% of the retirement
21    annuity that the deceased fireman would have been eligible
22    to receive under subsection (b) of this Section, based upon
23    the actual service accrued through the day before the
24    fireman's death and as if the fireman had attained age 55
25    on the day before his or her death and retired on that day.
26    Notwithstanding any other provision of this Article, the

 

 

SB2821- 4 -LRB099 19823 RPS 44222 b

1monthly annuity provided for in this subsection (d) of a
2surviving spouse of a person who first becomes a fireman under
3this Article on or after January 1, 2011 shall be increased on
4the January 1 after attainment of age 60 by the recipient of
5the survivor's annuity and on each January 1 thereafter by 3%
6or one-half the annual unadjusted percentage increase in the
7consumer price index-u for the 12 months ending with September
8preceding each November 1, whichever is less, of the originally
9granted survivor's annuity. If the annual unadjusted
10percentage change in the consumer price index-u for a 12-month
11period ending in September is zero or, when compared with the
12preceding period, decreases, then the annuity shall not be
13increased.
14    The provisions of this subsection (d) apply without regard
15to whether the death of the deceased fireman may have occurred
16prior to the effective date of this amendatory Act of the 99th
17General Assembly.
18    (e) For the purposes of Section 1-103.1 of this Code, the
19changes to this Section made by this amendatory Act of the 99th
20General Assembly apply without regard to whether the fireman
21was in service on or after the effective date of this
22amendatory Act.
23(Source: P.A. 96-1495, eff. 1-1-11.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.