Full Text of SB1956 103rd General Assembly
SB1956ham001 103RD GENERAL ASSEMBLY | Rep. Martin J. Moylan Filed: 5/16/2023
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| 1 | | AMENDMENT TO SENATE BILL 1956
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1956 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by adding | 5 | | Sections 4-138.15, 5-240, and 6-235 and by changing Section | 6 | | 5-167.1 as follows: | 7 | | (40 ILCS 5/4-138.15 new) | 8 | | Sec. 4-138.15. Retirement Systems Reciprocal Act. The | 9 | | Retirement Systems Reciprocal Act, Article 20 of this Code, is | 10 | | adopted and made a part of this Article, but only with respect | 11 | | to a person who, on or after the effective date of this | 12 | | amendatory Act of the 103rd General Assembly, is entitled | 13 | | under this Article to begin receiving a retirement annuity or | 14 | | survivor's annuity (as those terms are defined in Article 20) | 15 | | and who elects to proceed under the Retirement Systems | 16 | | Reciprocal Act.
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| 1 | | (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
| 2 | | Sec. 5-167.1. Automatic increase in annuity; retirement | 3 | | from service
after September 1, 1967. | 4 | | (a) A policeman who retires from service after September | 5 | | 1, 1967
with at least 20 years of service credit shall, upon | 6 | | either the first
of the month following the first anniversary | 7 | | of his date of retirement
if he is age 55 60 (age 55 if born | 8 | | before January 1, 1966)
or over on that anniversary date, or | 9 | | upon the first of the month following
his attainment of age 55 | 10 | | 60 (age 55 if born before January 1, 1966)
if it occurs after | 11 | | the first anniversary of his retirement date, have his
then | 12 | | fixed and payable monthly annuity increased by 3% 1 1/2% and | 13 | | such first
fixed annuity as granted at retirement increased by | 14 | | an additional 3% 1 1/2% in
January of each year thereafter up | 15 | | to a maximum increase of 30%. Beginning
January 1, 1983 for | 16 | | policemen born before January 1, 1930, and beginning
January | 17 | | 1, 1988 for policemen born on or after January 1, 1930 but | 18 | | before
January 1, 1940, and beginning January 1, 1996 for | 19 | | policemen born on or after
January 1, 1940 but before January | 20 | | 1, 1945, and beginning January 1, 2000
for policemen born on or | 21 | | after January 1, 1945 but before January 1, 1950, and | 22 | | beginning January 1, 2005
for policemen born on or after | 23 | | January 1, 1950 but before January 1, 1955, and beginning | 24 | | January 1, 2017
for policemen born on or after January 1, 1955 | 25 | | but before January 1, 1966,
such increases shall be 3% and such |
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| 1 | | policemen shall not be subject to the
30% maximum increase .
| 2 | | Any policeman born before January 1, 1945 who qualifies | 3 | | for a minimum
annuity and retires after September 1, 1967 but | 4 | | has not received the initial
increase under this subsection | 5 | | before January 1, 1996 is entitled to receive
the initial | 6 | | increase under this subsection on (1) January 1, 1996, (2) the
| 7 | | first anniversary of the date of retirement, or (3) attainment | 8 | | of age 55,
whichever occurs last. The changes to this Section | 9 | | made by Public Act
89-12 apply beginning January 1, 1996 and
| 10 | | without regard to whether the policeman or annuitant | 11 | | terminated service before
the effective date of that Act.
| 12 | | Any policeman born before January 1, 1950 who qualifies | 13 | | for a minimum
annuity and retires after September 1, 1967 but | 14 | | has not received the initial
increase under this subsection | 15 | | before January 1, 2000 is entitled to receive
the initial | 16 | | increase under this subsection on (1) January 1, 2000, (2) the
| 17 | | first anniversary of the date of retirement, or (3) attainment | 18 | | of age 55,
whichever occurs last. The changes to this Section | 19 | | made by this amendatory
Act of the 92nd General Assembly apply | 20 | | without regard to whether the policeman
or annuitant | 21 | | terminated service before the effective date of this | 22 | | amendatory
Act.
| 23 | | Any policeman born before January 1, 1955 who qualifies | 24 | | for a minimum
annuity and retires after September 1, 1967 but | 25 | | has not received the initial
increase under this subsection | 26 | | before January 1, 2005 is entitled to receive
the initial |
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| 1 | | increase under this subsection on (1) January 1, 2005, (2) the
| 2 | | first anniversary of the date of retirement, or (3) attainment | 3 | | of age 55,
whichever occurs last. The changes to this Section | 4 | | made by this amendatory
Act of the 94th General Assembly apply | 5 | | without regard to whether the policeman
or annuitant | 6 | | terminated service before the effective date of this | 7 | | amendatory
Act.
| 8 | | Any policeman born before January 1, 1966 who qualifies | 9 | | for
a minimum annuity and retires after
September 1, 1967 but | 10 | | has not received the initial increase
under this subsection | 11 | | before January 1, 2017 is entitled to
receive an initial | 12 | | increase under this subsection on (1)
January 1, 2017, (2) the | 13 | | first anniversary of the date of
retirement, or (3) attainment | 14 | | of age 55, whichever occurs last, in an amount equal to 3% for | 15 | | each complete year following the date of retirement or | 16 | | attainment of age 55, whichever occurs later. The changes to | 17 | | this subsection made by this amendatory
Act of the 99th | 18 | | General Assembly apply without regard to whether the policeman
| 19 | | or annuitant terminated service before the effective date of | 20 | | this amendatory
Act. | 21 | | Any policeman born after January 1, 1966 who qualifies for | 22 | | a minimum annuity and retires after September 1, 1967 but has | 23 | | not received the initial increase under this subsection before | 24 | | January 1, 2023 is entitled to receive the initial increase | 25 | | under this subsection on (1) January 1, 2023, (2) the first | 26 | | anniversary of the date of retirement, or (3) attainment of |
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| 1 | | age 55, whichever occurs last. The changes to this Section | 2 | | made by this amendatory Act of the 103rd General Assembly | 3 | | apply without regard to whether the policeman or annuitant | 4 | | terminated service before the effective date of this | 5 | | amendatory Act of the 103rd General Assembly. | 6 | | (b) Subsection (a) of this Section is
not applicable to an | 7 | | employee receiving a term annuity.
| 8 | | (c) To help defray the cost of such increases in annuity, | 9 | | there shall
be deducted, beginning September 1, 1967, from | 10 | | each payment of salary to a
policeman, 1/2 of 1% of each salary | 11 | | payment concurrently with and in addition
to the salary | 12 | | deductions otherwise made for annuity purposes.
| 13 | | The city, in addition to the contributions otherwise made | 14 | | by it for
annuity purposes under other provisions of this | 15 | | Article, shall make
matching contributions concurrently with | 16 | | such salary deductions.
| 17 | | Each such 1/2 of 1% deduction from salary and each such | 18 | | contribution
by the city of 1/2 of 1% of salary shall be | 19 | | credited to the Automatic
Increase Reserve, to be used to | 20 | | defray the cost of the annuity
increase provided by this | 21 | | Section. Any balance in such reserve as of the
beginning of | 22 | | each calendar year shall be credited with interest at the
rate | 23 | | of 3% per annum.
| 24 | | Such deductions from salary and city contributions shall | 25 | | continue
while the policeman is in service.
| 26 | | The salary deductions provided in this Section are not |
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| 1 | | subject to
refund, except to the policeman himself, in any | 2 | | case in which: (i) the
policeman withdraws prior to | 3 | | qualification for minimum annuity or Tier 2 monthly retirement | 4 | | annuity and
applies for refund, (ii) the policeman applies for | 5 | | an annuity of a type that is not subject to annual increases | 6 | | under this Section, or (iii) a term annuity
becomes payable. | 7 | | In such cases, the total of such salary deductions
shall be | 8 | | refunded to the policeman, without interest, and charged to | 9 | | the
Automatic Increase Reserve.
| 10 | | (d) Notwithstanding any other provision of this Article, | 11 | | the Tier 2 monthly retirement annuity of a
person who first | 12 | | becomes a policeman under this Article on or after the | 13 | | effective date of this amendatory Act of the 97th General | 14 | | Assembly shall be increased on the January 1 occurring either | 15 | | on or after (i) the attainment of age 60 or (ii) the first | 16 | | anniversary of the annuity start date, whichever is later. | 17 | | Each annual increase shall be calculated at 3% or one-half the | 18 | | annual unadjusted percentage increase (but not less than zero) | 19 | | in the consumer price index-u for the 12 months ending with the | 20 | | September preceding each November 1, whichever is less, of the | 21 | | originally granted retirement annuity. If the annual | 22 | | unadjusted percentage change in the consumer price index-u for | 23 | | a 12-month period ending in September is zero or, when | 24 | | compared with the preceding period, decreases, then the | 25 | | annuity shall not be increased. | 26 | | For the purposes of this subsection (d), "consumer price |
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| 1 | | index-u" means the index published by the Bureau of Labor | 2 | | Statistics of the United States Department of Labor that | 3 | | measures the average change in prices of goods and services | 4 | | purchased by all urban consumers, United States city average, | 5 | | all items, 1982-84 = 100. The new amount resulting from each | 6 | | annual adjustment shall be determined by the Public Pension | 7 | | Division of the Department of Insurance and made available to | 8 | | the boards of the pension funds by November 1 of each year. | 9 | | (Source: P.A. 99-905, eff. 11-29-16.)
| 10 | | (40 ILCS 5/5-240 new) | 11 | | Sec. 5-240. Retirement Systems Reciprocal Act. The | 12 | | Retirement Systems Reciprocal Act, Article 20 of this Code, is | 13 | | adopted and made a part of this Article, but only with respect | 14 | | to a person who, on or after the effective date of this | 15 | | amendatory Act of the 103rd General Assembly, is entitled | 16 | | under this Article to begin receiving a retirement annuity or | 17 | | survivor's annuity (as those terms are defined in Article 20) | 18 | | and who elects to proceed under the Retirement Systems | 19 | | Reciprocal Act. | 20 | | (40 ILCS 5/6-235 new) | 21 | | Sec. 6-235. Retirement Systems Reciprocal Act. The | 22 | | Retirement Systems Reciprocal Act, Article 20 of this Code, is | 23 | | adopted and made a part of this Article, but only with respect | 24 | | to a person who, on or after the effective date of this |
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| 1 | | amendatory Act of the 103rd General Assembly, is entitled | 2 | | under this Article to begin receiving a retirement annuity or | 3 | | survivor's annuity (as those terms are defined in Article 20) | 4 | | and who elects to proceed under the Retirement Systems | 5 | | Reciprocal Act. | 6 | | Section 90. The State Mandates Act is amended by adding | 7 | | Section 8.47 as follows: | 8 | | (30 ILCS 805/8.47 new) | 9 | | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | 10 | | 8 of this Act, no reimbursement by the State is required for | 11 | | the implementation of any mandate created by this amendatory | 12 | | Act of the 103rd General Assembly.
| 13 | | Section 999. Effective date. This Act takes effect upon | 14 | | becoming law.".
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