Illinois General Assembly - Full Text of SB3603
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Full Text of SB3603  101st General Assembly

SB3603 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3603

 

Introduced 2/14/2020___________, by

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-167.1  from Ch. 108 1/2, par. 5-167.1
30 ILCS 805/8.44 new

    Amends the Chicago Police Article of the Illinois Pension Code. Provides that for a policeman who retires from service after September 1, 1967 with at least 20 years of service credit and attains age 70 on or after the effective date of the amendatory Act, one-half of any 3% automatic increase in annuity shall be compounded beginning with the increase following attainment of age 70. Specifies that for a policeman who attained age 70 before the effective date of the amendatory Act, one-half of any 3% automatic increase in annuity following the effective date of the amendatory Act shall be compounded. Provides that the changes made by the amendatory Act apply without regard to whether the policeman or annuitant terminated service before the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.


LRB101 19730 RPS 69233 b

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

 

 

A BILL FOR

 

SB3603LRB101 19730 RPS 69233 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 5-167.1 as follows:
 
6    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
7    Sec. 5-167.1. Automatic increase in annuity; retirement
8from service after September 1, 1967.
9    (a) A policeman who retires from service after September 1,
101967 with at least 20 years of service credit shall, upon
11either the first of the month following the first anniversary
12of his date of retirement if he is age 60 (age 55 if born before
13January 1, 1966) or over on that anniversary date, or upon the
14first of the month following his attainment of age 60 (age 55
15if born before January 1, 1966) if it occurs after the first
16anniversary of his retirement date, have his then fixed and
17payable monthly annuity increased by 1 1/2% and such first
18fixed annuity as granted at retirement increased by an
19additional 1 1/2% in January of each year thereafter up to a
20maximum increase of 30%. Beginning January 1, 1983 for
21policemen born before January 1, 1930, and beginning January 1,
221988 for policemen born on or after January 1, 1930 but before
23January 1, 1940, and beginning January 1, 1996 for policemen

 

 

SB3603- 2 -LRB101 19730 RPS 69233 b

1born on or after January 1, 1940 but before January 1, 1945,
2and beginning January 1, 2000 for policemen born on or after
3January 1, 1945 but before January 1, 1950, and beginning
4January 1, 2005 for policemen born on or after January 1, 1950
5but before January 1, 1955, and beginning January 1, 2017 for
6policemen born on or after January 1, 1955 but before January
71, 1966, such increases shall be 3% and such policemen shall
8not be subject to the 30% maximum increase.
9    Notwithstanding any other provision of this subsection,
10for a policeman who retires from service after September 1,
111967 with at least 20 years of service credit and attains age
1270 on or after the effective date of this amendatory Act of the
13101st General Assembly, one-half of any 3% increase under this
14subsection shall be compounded beginning with the 3% increase
15following attainment of age 70. For a policeman who attained
16age 70 before the effective date of this amendatory Act of the
17101st General Assembly, one-half of any 3% increase following
18the effective date of this amendatory Act of the 101st General
19Assembly shall be compounded. The changes to this Section made
20by this amendatory Act of the 101st General Assembly apply
21without regard to whether the policeman or annuitant terminated
22service before the effective date of this amendatory Act of the
23101st General Assembly.
24    Any policeman born before January 1, 1945 who qualifies for
25a minimum annuity and retires after September 1, 1967 but has
26not received the initial increase under this subsection before

 

 

SB3603- 3 -LRB101 19730 RPS 69233 b

1January 1, 1996 is entitled to receive the initial increase
2under this subsection on (1) January 1, 1996, (2) the first
3anniversary of the date of retirement, or (3) attainment of age
455, whichever occurs last. The changes to this Section made by
5Public Act 89-12 apply beginning January 1, 1996 and without
6regard to whether the policeman or annuitant terminated service
7before the effective date of that Act.
8    Any policeman born before January 1, 1950 who qualifies for
9a minimum annuity and retires after September 1, 1967 but has
10not received the initial increase under this subsection before
11January 1, 2000 is entitled to receive the initial increase
12under this subsection on (1) January 1, 2000, (2) the first
13anniversary of the date of retirement, or (3) attainment of age
1455, whichever occurs last. The changes to this Section made by
15this amendatory Act of the 92nd General Assembly apply without
16regard to whether the policeman or annuitant terminated service
17before the effective date of this amendatory Act.
18    Any policeman born before January 1, 1955 who qualifies for
19a minimum annuity and retires after September 1, 1967 but has
20not received the initial increase under this subsection before
21January 1, 2005 is entitled to receive the initial increase
22under this subsection on (1) January 1, 2005, (2) the first
23anniversary of the date of retirement, or (3) attainment of age
2455, whichever occurs last. The changes to this Section made by
25this amendatory Act of the 94th General Assembly apply without
26regard to whether the policeman or annuitant terminated service

 

 

SB3603- 4 -LRB101 19730 RPS 69233 b

1before the effective date of this amendatory Act.
2    Any policeman born before January 1, 1966 who qualifies for
3a minimum annuity and retires after September 1, 1967 but has
4not received the initial increase under this subsection before
5January 1, 2017 is entitled to receive an initial increase
6under this subsection on (1) January 1, 2017, (2) the first
7anniversary of the date of retirement, or (3) attainment of age
855, whichever occurs last, in an amount equal to 3% for each
9complete year following the date of retirement or attainment of
10age 55, whichever occurs later. The changes to this subsection
11made by this amendatory Act of the 99th General Assembly apply
12without regard to whether the policeman or annuitant terminated
13service before the effective date of this amendatory Act.
14    (b) Subsection (a) of this Section is not applicable to an
15employee receiving a term annuity.
16    (c) To help defray the cost of such increases in annuity,
17there shall be deducted, beginning September 1, 1967, from each
18payment of salary to a policeman, 1/2 of 1% of each salary
19payment concurrently with and in addition to the salary
20deductions otherwise made for annuity purposes.
21    The city, in addition to the contributions otherwise made
22by it for annuity purposes under other provisions of this
23Article, shall make matching contributions concurrently with
24such salary deductions.
25    Each such 1/2 of 1% deduction from salary and each such
26contribution by the city of 1/2 of 1% of salary shall be

 

 

SB3603- 5 -LRB101 19730 RPS 69233 b

1credited to the Automatic Increase Reserve, to be used to
2defray the cost of the annuity increase provided by this
3Section. Any balance in such reserve as of the beginning of
4each calendar year shall be credited with interest at the rate
5of 3% per annum.
6    Such deductions from salary and city contributions shall
7continue while the policeman is in service.
8    The salary deductions provided in this Section are not
9subject to refund, except to the policeman himself, in any case
10in which: (i) the policeman withdraws prior to qualification
11for minimum annuity or Tier 2 monthly retirement annuity and
12applies for refund, (ii) the policeman applies for an annuity
13of a type that is not subject to annual increases under this
14Section, or (iii) a term annuity becomes payable. In such
15cases, the total of such salary deductions shall be refunded to
16the policeman, without interest, and charged to the Automatic
17Increase Reserve.
18    (d) Notwithstanding any other provision of this Article,
19the Tier 2 monthly retirement annuity of a person who first
20becomes a policeman under this Article on or after the
21effective date of this amendatory Act of the 97th General
22Assembly shall be increased on the January 1 occurring either
23on or after (i) the attainment of age 60 or (ii) the first
24anniversary of the annuity start date, whichever is later. Each
25annual increase shall be calculated at 3% or one-half the
26annual unadjusted percentage increase (but not less than zero)

 

 

SB3603- 6 -LRB101 19730 RPS 69233 b

1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, whichever is less, of the
3originally granted retirement annuity. If the annual
4unadjusted percentage change in the consumer price index-u for
5a 12-month period ending in September is zero or, when compared
6with the preceding period, decreases, then the annuity shall
7not be increased.
8    For the purposes of this subsection (d), "consumer price
9index-u" means the index published by the Bureau of Labor
10Statistics of the United States Department of Labor that
11measures the average change in prices of goods and services
12purchased by all urban consumers, United States city average,
13all items, 1982-84 = 100. The new amount resulting from each
14annual adjustment shall be determined by the Public Pension
15Division of the Department of Insurance and made available to
16the boards of the pension funds by November 1 of each year.
17(Source: P.A. 99-905, eff. 11-29-16.)
 
18    Section 90. The State Mandates Act is amended by adding
19Section 8.44 as follows:
 
20    (30 ILCS 805/8.44 new)
21    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
22of this Act, no reimbursement by the State is required for the
23implementation of any mandate created by this amendatory Act of
24the 101st General Assembly.
 

 

 

SB3603- 7 -LRB101 19730 RPS 69233 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.