Full Text of HB5557 095th General Assembly
HB5557 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB5557
Introduced , by Rep. Joseph M. Lyons SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/11-134.3 |
from Ch. 108 1/2, par. 11-134.3 |
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Amends the Chicago Laborer Article of the Illinois Pension Code. Provides that, when all annuitants receiving certain post-retirement increases have died, any balance remaining in the Supplementary Payment Reserve must be transferred to the Prior Service Reserve. Effective immediately.
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| PENSION IMPACT NOTE ACT MAY APPLY | |
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A BILL FOR
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HB5557 |
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LRB095 19138 AMC 45351 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 11-134.3 as follows:
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| (40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
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| Sec. 11-134.3. Automatic increases in annuity for certain | 8 |
| heretofore retired
participants. A retired employee who (a) is | 9 |
| receiving annuity based on a
service credit of 20 or more years | 10 |
| regardless of age at retirement or based on
a service credit of | 11 |
| 15 or more years with retirement at age 55 or over, and
(b) | 12 |
| does not qualify for the automatic increases in annuity | 13 |
| provided for in
Section 11-134.1 of this Article, and (c) | 14 |
| elects to make a contribution to the
Fund at a time and manner | 15 |
| prescribed by the Retirement Board, of a sum
equal to 1% of the | 16 |
| amount of final monthly salary times the number of full
years | 17 |
| of service on which the annuity was based in those cases where | 18 |
| the
annuity was computed on the money purchase formula, and in | 19 |
| those cases in
which the annuity was computed under the minimum | 20 |
| annuity formula provisions
of this Article a sum equal to 1% of | 21 |
| the average monthly salary on which
the annuity was based times | 22 |
| such number of full years of service, shall
have his original | 23 |
| fixed and payable monthly amount of annuity increased in
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HB5557 |
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LRB095 19138 AMC 45351 b |
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| January of the year following the year in which he attains the | 2 |
| age of 65
years, if such age of 65 years is attained in the year | 3 |
| 1969 or later, by an
amount equal to 1 1/2%, and by an equal | 4 |
| additional 1 1/2% in January of
each year thereafter. Beginning | 5 |
| with January of the year 1972, such
increases shall be at the | 6 |
| rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning | 7 |
| January, 1984, such increases shall be at the rate of 3%.
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| Beginning in January of 1999, such increases shall be at the | 9 |
| rate of
3% of the currently payable monthly annuity, including | 10 |
| any increases previously
granted under this Article.
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| In those cases in which the retired employee receiving | 12 |
| annuity has
attained the age of 66 or more years in the year | 13 |
| 1969, he shall have such
annuity increased in January of the | 14 |
| year 1970 by an amount equal to 1 1/2%
multiplied by the number | 15 |
| equal to the number of months of January elapsing
from and | 16 |
| including January of the year immediately following the year he
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| attained the age of 65 years if retired at or prior to age 65, | 18 |
| or from and
including January of the year immediately following | 19 |
| the year of retirement
if retired at an age greater than 65 | 20 |
| years, to and including January of the
year 1970, and by an | 21 |
| equal additional 1 1/2% in January of each year
thereafter. | 22 |
| Beginning with January of the year 1972, such increases shall
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| be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. | 24 |
| Beginning
January, 1984, such increases shall be at the rate of | 25 |
| 3%.
Beginning in January of 1999, such increases shall be at | 26 |
| the rate of
3% of the currently payable monthly annuity, |
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HB5557 |
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LRB095 19138 AMC 45351 b |
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| including any increases previously
granted under this Article.
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| To defray the annual cost of such increases, the annual | 3 |
| interest income
of the Fund, accruing from investments held by | 4 |
| the Fund, exclusive of gains
or losses on sales or exchanges of | 5 |
| assets during the year, over and above
4% a year, shall be used | 6 |
| to the extent necessary and available to finance
the cost of | 7 |
| such increases for the following year, and such amount shall be
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| transferred as of the end of each year, beginning with the year | 9 |
| 1969, to a
Fund account designated as the Supplementary Payment | 10 |
| Reserve from the
Investment and Interest Reserve set forth in | 11 |
| Sec. 11-210. The sums
contributed by annuitants as provided for | 12 |
| in this Section shall also be
placed in the aforesaid | 13 |
| Supplementary Payment Reserve and shall be applied
for and used | 14 |
| for the purposes of such Fund account, together with the
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| aforesaid interest.
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| In the event the monies in the Supplementary Payment | 17 |
| Reserve in any year
arising from: (1) the available interest | 18 |
| income as defined hereinbefore and
accruing in the preceding | 19 |
| year above 4% a year and (2) the contributions by
retired | 20 |
| persons, as set forth hereinbefore, are insufficient to make | 21 |
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total payments to all persons estimated to be entitled to | 22 |
| the annuity
increases specified hereinbefore, then (3) any | 23 |
| interest earnings over 4% a
year beginning with the year 1969 | 24 |
| which were not previously used to finance
such increases and | 25 |
| which were transferred to the Prior Service Annuity
Reserve may | 26 |
| be used to the extent necessary and available to provide
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HB5557 |
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LRB095 19138 AMC 45351 b |
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| sufficient funds to finance such increases for the current | 2 |
| year, and such
sums shall be transferred from the Prior Service | 3 |
| Annuity Reserve.
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| In the event the total monies available in the | 5 |
| Supplementary Payment
Reserve from the preceding indicated | 6 |
| sources are insufficient to make the
total payments to all | 7 |
| persons entitled to such increases for the year, a
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| proportionate amount computed as the ratio of the monies | 9 |
| available to the
total of the total payments for that year | 10 |
| shall be paid to each person for
that year.
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| The Fund shall be obligated for the payment of the | 12 |
| increases in annuity
as provided for in this Section only to | 13 |
| the extent that the assets for such
purpose, as specified | 14 |
| herein, are available.
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| When all annuitants receiving post-retirement increases | 16 |
| under this Section have died, any balance remaining in the | 17 |
| Supplementary Payment Reserve must be transferred to the Prior | 18 |
| Service Reserve. | 19 |
| (Source: P.A. 90-766, eff. 8-14-98.)
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| Section 99. Effective date. This Act takes effect upon | 21 |
| becoming law.
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