Illinois General Assembly - Full Text of SB1956
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Full Text of SB1956  103rd General Assembly

SB1956enr 103RD GENERAL ASSEMBLY

 


 
SB1956 EnrolledLRB103 25834 RPS 52185 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
5changing Section 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
101, 1967 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 55 60 (age 55 if born
13before January 1, 1966) or over on that anniversary date, or
14upon the first of the month following his attainment of age 55
1560 (age 55 if born before January 1, 1966) if it occurs after
16the first anniversary of his retirement date, have his then
17fixed and payable monthly annuity increased by 3% 1 1/2% and
18such first fixed annuity as granted at retirement increased by
19an additional 3% 1 1/2% in January of each year thereafter up
20to a maximum increase of 30%. Beginning January 1, 1983 for
21policemen born before January 1, 1930, and beginning January
221, 1988 for policemen born on or after January 1, 1930 but
23before January 1, 1940, and beginning January 1, 1996 for

 

 

SB1956 Enrolled- 2 -LRB103 25834 RPS 52185 b

1policemen born on or after January 1, 1940 but before January
21, 1945, and beginning January 1, 2000 for policemen born on or
3after January 1, 1945 but before January 1, 1950, and
4beginning January 1, 2005 for policemen born on or after
5January 1, 1950 but before January 1, 1955, and beginning
6January 1, 2017 for policemen born on or after January 1, 1955
7but before January 1, 1966, such increases shall be 3% and such
8policemen shall not be subject to the 30% maximum increase.
9    Any policeman born before January 1, 1945 who qualifies
10for a minimum annuity and retires after September 1, 1967 but
11has not received the initial increase under this subsection
12before January 1, 1996 is entitled to receive the initial
13increase under this subsection on (1) January 1, 1996, (2) the
14first anniversary of the date of retirement, or (3) attainment
15of age 55, whichever occurs last. The changes to this Section
16made by Public Act 89-12 apply beginning January 1, 1996 and
17without regard to whether the policeman or annuitant
18terminated service before the effective date of that Act.
19    Any policeman born before January 1, 1950 who qualifies
20for a minimum annuity and retires after September 1, 1967 but
21has not received the initial increase under this subsection
22before January 1, 2000 is entitled to receive the initial
23increase under this subsection on (1) January 1, 2000, (2) the
24first anniversary of the date of retirement, or (3) attainment
25of age 55, whichever occurs last. The changes to this Section
26made by this amendatory Act of the 92nd General Assembly apply

 

 

SB1956 Enrolled- 3 -LRB103 25834 RPS 52185 b

1without regard to whether the policeman or annuitant
2terminated service before the effective date of this
3amendatory Act.
4    Any policeman born before January 1, 1955 who qualifies
5for a minimum annuity and retires after September 1, 1967 but
6has not received the initial increase under this subsection
7before January 1, 2005 is entitled to receive the initial
8increase under this subsection on (1) January 1, 2005, (2) the
9first anniversary of the date of retirement, or (3) attainment
10of age 55, whichever occurs last. The changes to this Section
11made by this amendatory Act of the 94th General Assembly apply
12without regard to whether the policeman or annuitant
13terminated service before the effective date of this
14amendatory Act.
15    Any policeman born before January 1, 1966 who qualifies
16for a minimum annuity and retires after September 1, 1967 but
17has not received the initial increase under this subsection
18before January 1, 2017 is entitled to receive an initial
19increase under this subsection on (1) January 1, 2017, (2) the
20first anniversary of the date of retirement, or (3) attainment
21of age 55, whichever occurs last, in an amount equal to 3% for
22each complete year following the date of retirement or
23attainment of age 55, whichever occurs later. The changes to
24this subsection made by this amendatory Act of the 99th
25General Assembly apply without regard to whether the policeman
26or annuitant terminated service before the effective date of

 

 

SB1956 Enrolled- 4 -LRB103 25834 RPS 52185 b

1this amendatory Act.
2    Any policeman born on or after January 1, 1966 who
3qualifies for a minimum annuity and retires after September 1,
41967 but has not received the initial increase under this
5subsection before January 1, 2023 is entitled to receive the
6initial increase under this subsection on (1) January 1, 2023,
7(2) the first anniversary of the date of retirement, or (3)
8attainment of age 55, whichever occurs last. The changes to
9this Section made by this amendatory Act of the 103rd General
10Assembly apply without regard to whether the policeman or
11annuitant terminated service before the effective date of this
12amendatory Act of the 103rd General Assembly.
13    (b) Subsection (a) of this Section is not applicable to an
14employee receiving a term annuity.
15    (c) To help defray the cost of such increases in annuity,
16there shall be deducted, beginning September 1, 1967, from
17each payment of salary to a policeman, 1/2 of 1% of each salary
18payment concurrently with and in addition to the salary
19deductions otherwise made for annuity purposes.
20    The city, in addition to the contributions otherwise made
21by it for annuity purposes under other provisions of this
22Article, shall make matching contributions concurrently with
23such salary deductions.
24    Each such 1/2 of 1% deduction from salary and each such
25contribution by the city of 1/2 of 1% of salary shall be
26credited to the Automatic Increase Reserve, to be used to

 

 

SB1956 Enrolled- 5 -LRB103 25834 RPS 52185 b

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

 

 

SB1956 Enrolled- 6 -LRB103 25834 RPS 52185 b

1September preceding each November 1, whichever is less, of the
2originally granted retirement annuity. If the annual
3unadjusted percentage change in the consumer price index-u for
4a 12-month period ending in September is zero or, when
5compared with the preceding period, decreases, then the
6annuity shall not be increased.
7    For the purposes of this subsection (d), "consumer price
8index-u" means the index published by the Bureau of Labor
9Statistics of the United States Department of Labor that
10measures the average change in prices of goods and services
11purchased by all urban consumers, United States city average,
12all items, 1982-84 = 100. The new amount resulting from each
13annual adjustment shall be determined by the Public Pension
14Division of the Department of Insurance and made available to
15the boards of the pension funds by November 1 of each year.
16(Source: P.A. 99-905, eff. 11-29-16.)
 
17    Section 90. The State Mandates Act is amended by adding
18Section 8.47 as follows:
 
19    (30 ILCS 805/8.47 new)
20    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
218 of this Act, no reimbursement by the State is required for
22the implementation of any mandate created by this amendatory
23Act of the 103rd General Assembly.
 
24    Section 999. Effective date. This Act takes effect upon

 

 

SB1956 Enrolled- 7 -LRB103 25834 RPS 52185 b

1becoming law.