| ||||
Public Act 099-0905 | ||||
| ||||
| ||||
AN ACT concerning public employee benefits.
| ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Pension Code is amended by changing | ||||
Sections 5-153, 5-155, 5-163, 5-167.1, 5-167.4, 5-169, 5-170, | ||||
5-238, 6-128.4, 6-150, 6-158, 6-164, 6-166, 6-167, and 6-229 as | ||||
follows:
| ||||
(40 ILCS 5/5-153) (from Ch. 108 1/2, par. 5-153)
| ||||
Sec. 5-153. Death benefit. | ||||
(a) Effective January 1, 1962, an ordinary death benefit is | ||||
payable
on account of any policeman in service and in receipt | ||||
of salary on or
after such date, which benefit is in addition | ||||
to all other annuities and
benefits herein provided. This | ||||
benefit is payable upon death of a
policeman:
| ||||
(1) occurring in active service while in receipt of | ||||
salary;
| ||||
(2) on an authorized and approved leave of absence, | ||||
without salary,
beginning on or after January 1, 1962, if | ||||
the death occurs within 60
days from the date the employee | ||||
was in receipt of salary; or otherwise
in the service and | ||||
not separated by resignation or discharge beginning
| ||||
January 1, 1962 if death occurs before his resignation or | ||||
discharge from
the service;
|
(3) receiving duty disability or ordinary disability | ||
benefit;
| ||
(4) occurring within 60 days from the date of | ||
termination of duty
disability or ordinary disability | ||
benefit payments if re-entry into
service had not occurred; | ||
or
| ||
(5) occurring on retirement and while in receipt of an | ||
age and
service annuity, Tier 2 monthly retirement annuity, | ||
or prior service annuity; provided (a) retirement on such
| ||
annuity occurred on or after January 1, 1962, and (b) such | ||
separation
from service was effective on or after the | ||
policeman's attainment of age
50, and (c) application for | ||
such annuity was made within 60 days after
separation from | ||
service.
| ||
(b) The ordinary death benefit is payable to such | ||
beneficiary or
beneficiaries as the policeman has nominated by | ||
written direction duly
signed and acknowledged before an | ||
officer authorized to take
acknowledgments, and filed with the | ||
board. If no such written direction
has been filed or if the | ||
designated beneficiaries do not survive the
policeman, payment | ||
of the benefit shall be made to his estate.
| ||
(c) Until December 31, 1977, if death occurs prior to | ||
retirement on annuity
and before the
policeman's attainment of | ||
age 50, the amount of the benefit payable is
$6,000. If death | ||
occurs prior to retirement, at age 50 or over, the
benefit of | ||
$6,000 shall be reduced $400 for each year (commencing on the
|
policeman's attainment of age 50, and thereafter on each | ||
succeeding
birthdate) that the policeman's age, at date of | ||
death, is more than age
50, but in no event below the amount of | ||
$2,000. However, if death
results from injury incurred in the | ||
performance of an act or acts of
duty, prior to retirement on | ||
annuity, the amount of the benefit payable
is $6,000 | ||
notwithstanding the age attained.
| ||
Until December 31, 1977, if the policeman's death occurs | ||
while he is in
receipt of an annuity,
the benefit is $2,000 if | ||
retirement was effective upon attainment of age
55 or greater. | ||
If the policeman retired at age 50 or over and before age
55, | ||
the benefit of $2,000 shall be reduced $100 for each year or
| ||
fraction of a year that the policeman's age at retirement was | ||
less than
age 55 to a minimum payment of $1,500.
| ||
After December 31, 1977, and on or before January 1, 1986, | ||
if death
occurs prior to retirement on annuity
and before the | ||
policeman's attainment of age 50, the amount of the benefit
| ||
payable is $7,000. If death occurs prior to retirement, at age | ||
50 or over,
the benefit of $7,000 shall be reduced $400 for | ||
each year (commencing on
the policeman's attainment of age 50, | ||
and thereafter on each succeeding
birthdate) that the | ||
policeman's age, at date of death, is more than age
50, but in | ||
no event below the amount of $3,000. However, if death results
| ||
from injury incurred in the performance of an act or acts of | ||
duty, prior
to retirement on annuity, the amount of the benefit | ||
payable is $7,000 notwithstanding
the age attained.
|
After December 31, 1977, and on or before January 1, 1986, | ||
if the
policeman's death occurs while he is in
receipt of an | ||
annuity, the benefit is $2,250 if retirement was effective
upon | ||
attainment of age 55 or greater. If the policeman retired at | ||
age 50
or over and before age 55, the benefit of $2,250 shall | ||
be reduced $100 for
each year or fraction of a year that the | ||
policeman's age at retirement was
less than age 55 to a minimum | ||
payment of $1,750.
| ||
After January 1, 1986, if death occurs prior to retirement | ||
on annuity and
before the policeman's attainment of age 50, the | ||
amount of benefit payable
is $12,000. If death occurs prior to | ||
retirement, at age 50 or over, the
benefit of $12,000 shall be | ||
reduced $400 for each year (commencing on the
policeman's | ||
attainment of age 50, and thereafter on each succeeding
| ||
birthdate) that the policeman's age, at date of death, is more | ||
than age 50,
but in no event below the amount of $6,000. | ||
However, if death results from
injury in the performance of an | ||
act or acts of duty, prior to retirement on
annuity, the amount | ||
of benefit payable is $12,000 notwithstanding the age attained.
| ||
After January 1, 1986, if the policeman's death occurs | ||
while he is in
receipt of an annuity, the benefit is $6,000.
| ||
(Source: P.A. 84-1104.)
| ||
(40 ILCS 5/5-155) (from Ch. 108 1/2, par. 5-155)
| ||
Sec. 5-155. Ordinary disability benefit. A policeman less | ||
than age 63 who becomes disabled after the
effective date as |
the result of any cause other than injury incurred in
the | ||
performance of an act of duty, shall receive ordinary | ||
disability
benefit during any period or periods of disability | ||
exceeding 30 days,
for which he does not have a right to | ||
receive any part of his salary.
Payment of such benefit shall | ||
not exceed, in the aggregate, throughout the
total service of | ||
the policeman, a period equal to one-fourth of the
service | ||
rendered to the city prior to the time he became disabled, nor
| ||
more than 5 years. In computing such period of service, the | ||
time that
the policeman received ordinary disability benefit | ||
shall not be
included.
| ||
When a disabled policeman becomes age 63 or would have been | ||
retired by
operation of law, whichever is later, the disability | ||
benefit
shall cease. The policeman, if still disabled, shall | ||
thereafter receive
such annuity as is provided in accordance | ||
with other provisions of this
Article.
| ||
Ordinary disability benefit shall be 50% of the policeman's | ||
salary,
as salary is defined in this Article (including the | ||
limitation in Section 5-238 if applicable) , at the time | ||
disability occurs.
Until September 1, 1969, before any payment, | ||
an amount equal to the sum
ordinarily deducted from the | ||
policeman's salary for all annuity purposes
for the period for | ||
which payment of ordinary disability benefit is made
shall be | ||
deducted from such payment and credited as a deduction from
| ||
salary for such period. Beginning September 1, 1969, the city | ||
shall also
contribute all amounts ordinarily contributed by it |
for annuity purposes
for the policeman as if he were in active | ||
discharge of his duties. Such
sums so credited shall be | ||
regarded, for annuity and refund purposes, as
sums contributed | ||
by the policeman.
| ||
(Source: P.A. 86-272.)
| ||
(40 ILCS 5/5-163) (from Ch. 108 1/2, par. 5-163)
| ||
Sec. 5-163. Refund - General. (a) A policeman, without | ||
regard to his period of service, who
withdraws before age 50, | ||
and a policeman with less than 10 years of
service who | ||
withdraws before age 57, is entitled to a refund of the
amount | ||
deducted from his salary
for age and service annuity or Tier 2 | ||
monthly retirement annuity, for automatic annual increase in | ||
annuity as provided in Section 5-167.1, and for widow's
annuity | ||
or Tier 2 surviving spouse's annuity , together with interest at | ||
1-1/2% per year on each
deduction from the date of each | ||
deduction
until the date of his
withdrawal from the service.
| ||
(b) A policeman may receive a refund until the annuity to | ||
which he
is entitled has been fixed. Thereafter, he shall have | ||
no such right of
refund.
| ||
(c) A policeman who withdraws the amount credited to him | ||
surrenders
and forfeits all rights to any annuity or other | ||
benefit from the fund,
for himself and for any other person or | ||
persons who might otherwise have
benefited through him. The | ||
rights so forfeited shall be restored to him,
his wife or widow | ||
and his children upon full repayment as provided in
Section |
5-164.
| ||
If the policeman subsequently re-enters service before age | ||
57, and
has not so repaid in full the amounts refunded the | ||
rights forfeited
shall not be restored, but the policeman shall | ||
retain the right (which
is also secured to the widow) to have | ||
the period of service represented
by the refunds counted in the | ||
compensation of length of service, except
as otherwise provided | ||
in Section 5-164.
| ||
(d) A policeman who has served less than 10 years who has | ||
not
received a refund shall have all amounts to his credit for | ||
purposes on
the date of his withdrawal improved by interest | ||
while he is out of
service until he attains age 57, if he | ||
subsequently re-enters the
service and attains a right to | ||
annuity.
| ||
(e) If a policeman elects to make additional contribution | ||
for past
service as provided in Section 5-174 and fails to pay | ||
such contributions
in full within the time specified in said | ||
section, a refund of the
amount so paid, with interest at | ||
1-1/2% per year, compounded annually,
shall be refunded as | ||
provided in said section.
| ||
(f) If a policeman makes contributions in accordance with | ||
the
provisions of Section 5-174(b) and subsequently returns to | ||
the position
he holds by certification and appointment as the | ||
result of competitive
civil service examination, he shall | ||
receive a refund of such
contributions, upon application | ||
therefor, together with interest at
1-1/2% per year on each |
such deduction from the date
it was made to the
date of refund. | ||
Application for refund must be made before the annuity
to which | ||
he has a right has been fixed.
| ||
(Source: P.A. 81-1536.)
| ||
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
| ||
Sec. 5-167.1. Automatic increase in annuity; retirement | ||
from service
after September 1, 1967. | ||
(a) A policeman who retires from service after September 1, | ||
1967
with at least 20 years of service credit shall, upon | ||
either the first
of the month following the first anniversary | ||
of his date of retirement
if he is age 60 (age 55 if born before | ||
January 1, 1966 1955 )
or over on that anniversary date, or upon | ||
the first of the month following
his attainment of age 60 (age | ||
55 if born before January 1, 1966 1955 )
if it occurs after the | ||
first anniversary of his retirement date, have his
then fixed | ||
and payable monthly annuity increased by 1 1/2% and such first
| ||
fixed annuity as granted at retirement increased by an | ||
additional 1 1/2% in
January of each year thereafter up to a | ||
maximum increase of 30%. Beginning
January 1, 1983 for | ||
policemen born before January 1, 1930, and beginning
January 1, | ||
1988 for policemen born on or after January 1, 1930 but before
| ||
January 1, 1940, and beginning January 1, 1996 for policemen | ||
born on or after
January 1, 1940 but before January 1, 1945, | ||
and beginning January 1, 2000
for policemen born on or after | ||
January 1, 1945 but before January 1, 1950, and beginning |
January 1, 2005
for policemen born on or after January 1, 1950 | ||
but before January 1, 1955, and beginning January 1, 2017
for | ||
policemen born on or after January 1, 1955 but before January | ||
1, 1966,
such increases shall be 3% and such policemen shall | ||
not be subject to the
30% maximum increase.
| ||
Any policeman born before January 1, 1945 who qualifies for | ||
a minimum
annuity and retires after September 1, 1967 but has | ||
not received the initial
increase under this subsection before | ||
January 1, 1996 is entitled to receive
the initial increase | ||
under this subsection on (1) January 1, 1996, (2) the
first | ||
anniversary of the date of retirement, or (3) attainment of age | ||
55,
whichever occurs last. The changes to this Section made by | ||
Public Act
89-12 apply beginning January 1, 1996 and
without | ||
regard to whether the policeman or annuitant terminated service | ||
before
the effective date of that Act.
| ||
Any policeman born before January 1, 1950 who qualifies for | ||
a minimum
annuity and retires after September 1, 1967 but has | ||
not received the initial
increase under this subsection before | ||
January 1, 2000 is entitled to receive
the initial increase | ||
under this subsection on (1) January 1, 2000, (2) the
first | ||
anniversary of the date of retirement, or (3) attainment of age | ||
55,
whichever occurs last. The changes to this Section made by | ||
this amendatory
Act of the 92nd General Assembly apply without | ||
regard to whether the policeman
or annuitant terminated service | ||
before the effective date of this amendatory
Act.
| ||
Any policeman born before January 1, 1955 who qualifies for |
a minimum
annuity and retires after September 1, 1967 but has | ||
not received the initial
increase under this subsection before | ||
January 1, 2005 is entitled to receive
the initial increase | ||
under this subsection on (1) January 1, 2005, (2) the
first | ||
anniversary of the date of retirement, or (3) attainment of age | ||
55,
whichever occurs last. The changes to this Section made by | ||
this amendatory
Act of the 94th General Assembly apply without | ||
regard to whether the policeman
or annuitant terminated service | ||
before the effective date of this amendatory
Act.
| ||
Any policeman born before January 1, 1966 who qualifies for
| ||
a minimum annuity and retires after
September 1, 1967 but has | ||
not received the initial increase
under this subsection before | ||
January 1, 2017 is entitled to
receive an initial increase | ||
under this subsection on (1)
January 1, 2017, (2) the first | ||
anniversary of the date of
retirement, or (3) attainment of age | ||
55, whichever occurs last, in an amount equal to 3% for each | ||
complete year following the date of retirement or attainment of | ||
age 55, whichever occurs later. The changes to this subsection | ||
made by this amendatory
Act of the 99th General Assembly apply | ||
without regard to whether the policeman
or annuitant terminated | ||
service before the effective date of this amendatory
Act. | ||
(b) Subsection (a) of this Section is
not applicable to an | ||
employee receiving a term annuity.
| ||
(c) To help defray the cost of such increases in annuity, | ||
there shall
be deducted, beginning September 1, 1967, from each | ||
payment of salary to a
policeman, 1/2 of 1% of each salary |
payment concurrently with and in addition
to the salary | ||
deductions otherwise made for annuity purposes.
| ||
The city, in addition to the contributions otherwise made | ||
by it for
annuity purposes under other provisions of this | ||
Article, shall make
matching contributions concurrently with | ||
such salary deductions.
| ||
Each such 1/2 of 1% deduction from salary and each such | ||
contribution
by the city of 1/2 of 1% of salary shall be | ||
credited to the Automatic
Increase Reserve, to be used to | ||
defray the cost of the 1 1/2% annuity
increase provided by this | ||
Section. Any balance in such reserve as of the
beginning of | ||
each calendar year shall be credited with interest at the
rate | ||
of 3% per annum.
| ||
Such deductions from salary and city contributions shall | ||
continue
while the policeman is in service.
| ||
The salary deductions provided in this Section are not | ||
subject to
refund, except to the policeman himself, in any case | ||
in which : (i) the a
policeman withdraws prior to qualification | ||
for minimum annuity or Tier 2 monthly retirement annuity and
| ||
applies for refund , (ii) the policeman or applies for an | ||
annuity of a type that is not subject to annual increases under | ||
this Section, or (iii) , and also where a term annuity
becomes | ||
payable. In such cases, the total of such salary deductions
| ||
shall be refunded to the policeman, without interest, and | ||
charged to the
Automatic Increase Reserve.
| ||
(d) Notwithstanding any other provision of this Article, |
the Tier 2 monthly retirement annuity of a
person who first | ||
becomes a policeman under this Article on or after the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly shall be increased on the January 1 occurring either | ||
on or after (i) the attainment of age 60 or (ii) the first | ||
anniversary of the annuity start date, whichever is later. Each | ||
annual increase shall be calculated at 3% or one-half the | ||
annual unadjusted percentage increase (but not less than zero) | ||
in the consumer price index-u for the 12 months ending with the | ||
September preceding each November 1, whichever is less, of the | ||
originally granted retirement annuity. If the annual | ||
unadjusted percentage change in the consumer price index-u for | ||
a 12-month period ending in September is zero or, when compared | ||
with the preceding period, decreases, then the annuity shall | ||
not be increased. | ||
For the purposes of this subsection (d), "consumer price | ||
index-u" means the index published by the Bureau of Labor | ||
Statistics of the United States Department of Labor that | ||
measures the average change in prices of goods and services | ||
purchased by all urban consumers, United States city average, | ||
all items, 1982-84 = 100. The new amount resulting from each | ||
annual adjustment shall be determined by the Public Pension | ||
Division of the Department of Insurance and made available to | ||
the boards of the pension funds by November 1 of each year . | ||
(Source: P.A. 96-1495, eff. 1-1-11; 97-344, eff. 8-12-11.)
|
(40 ILCS 5/5-167.4)
(from Ch. 108 1/2, par. 5-167.4)
| ||
Sec. 5-167.4. Widow annuitant minimum annuity.
| ||
(a) Notwithstanding any other provision of this Article, | ||
beginning
January 1, 1996, the minimum amount of widow's | ||
annuity payable to any person
who is entitled to receive a | ||
widow's annuity under this Article is $700 per
month, without | ||
regard to whether the deceased policeman is in service on or
| ||
after the effective date of this amendatory Act of 1995.
| ||
Notwithstanding any other provision of this Article, | ||
beginning
January 1, 1999, the minimum amount of widow's | ||
annuity payable to any person
who is entitled to receive a | ||
widow's annuity under this Article is $800 per
month, without | ||
regard to whether the deceased policeman is in service on or
| ||
after the effective date of this amendatory Act of 1998.
| ||
Notwithstanding any other provision of this Article, | ||
beginning
January 1, 2004, the minimum amount of widow's | ||
annuity payable to any person
who is entitled to receive a | ||
widow's annuity under this Article is $900 per
month, without | ||
regard to whether the deceased policeman is in service on or
| ||
after the effective date of this amendatory Act of the 93rd | ||
General Assembly.
| ||
Notwithstanding any other provision of this Article, | ||
beginning
January 1, 2005, the minimum amount of widow's | ||
annuity payable to any person
who is entitled to receive a | ||
widow's annuity under this Article is $1,000 per
month, without | ||
regard to whether the deceased policeman is in service on or
|
after the effective date of this amendatory Act of the 93rd | ||
General Assembly.
| ||
(b) Effective January 1, 1994, the minimum amount of | ||
widow's annuity
shall be $700 per month for the following | ||
classes of widows, without regard to
whether the deceased | ||
policeman is in service on or after the effective date of
this | ||
amendatory Act of 1993: (1) the widow of a policeman who dies | ||
in service
with at least 10 years of service credit, or who | ||
dies in service after June 30,
1981; and (2) the widow of a | ||
policeman who withdraws from service with 20 or
more years of | ||
service credit and does not withdraw a refund, provided that | ||
the
widow is married to the policeman before he withdraws from | ||
service.
| ||
(b-5) Notwithstanding any other provision of this Article, | ||
beginning January 1, 2017, the minimum widow's annuity under | ||
this Article shall be no less than 125% of the Federal Poverty | ||
Level for all persons receiving widow's annuities on or after | ||
that date, without regard to whether the deceased policeman is | ||
in service on or after the effective date of this amendatory | ||
Act of the 99th General Assembly. For purposes of this Section, | ||
"Federal Poverty Level" means the poverty guidelines | ||
applicable to an individual in a single-person household | ||
located in Illinois, as updated periodically in the Federal | ||
Register by the United States Department of Health and Human | ||
Services under the authority of 42 U.S.C. 9902(2). | ||
(c) The city, in addition to the contributions otherwise |
made by it
under the other provisions of this Article, shall | ||
make such contributions
as are necessary for the minimum | ||
widow's annuities provided under
this Section in the manner | ||
prescribed in Section 5-175.
| ||
(Source: P.A. 93-654, eff. 1-16-04.)
| ||
(40 ILCS 5/5-169) (from Ch. 108 1/2, par. 5-169)
| ||
Sec. 5-169. Contributions for age and service annuities or | ||
Tier 2 monthly retirement annuities for present employees and
| ||
future entrants. | ||
(a) Beginning on the effective date and before January 1, | ||
1954, 3 1/2% per
annum (except that beginning July 1, 1939 and | ||
before January 1, 1954 for a
future entrant, 4%) and beginning | ||
January 1, 1954 and before August 1,
1957, 6%, and beginning | ||
August 1, 1957, 7% of each payment of the salary of
each | ||
present employee and future entrant shall be deducted and | ||
contributed
to the fund for age and service annuity or Tier 2 | ||
monthly retirement annuity . The deductions shall be made from
| ||
each payment of salary and shall continue while the employee is | ||
in service.
| ||
Any policeman whose employment has been transferred to the | ||
police
service of the city as a result of "An Act in relation | ||
to or exchange of
certain functions, property and personnel | ||
among cities, and park districts
having co-extensive | ||
geographic areas and populations in excess of 500,000",
| ||
approved July 5, 1957, as now and hereafter amended, shall also |
contribute
a sum equal to 2% of the total salary received by | ||
him in his employment
between August 1, 1957 to July 17, 1959, | ||
with the park district from which
he has been transferred | ||
together with interest on the unpaid contributions
of 4% per | ||
annum from July 17, 1959 to the date such payments are made. | ||
Such
additional sum may be paid at any time before the time | ||
such policeman
enters into age and service annuity.
| ||
Concurrently with each such deduction, beginning on the | ||
effective date
and prior to January 1, 1954, 8 1/2% (except for | ||
a future entrant beginning
on July 1, 1939, 9 5/7%) and | ||
beginning January 1, 1954, 9 5/7% of each
payment of salary | ||
shall be contributed by the city, but
in the case of a future | ||
entrant who attains age 63 prior to January 1,
1988 while still | ||
in service, no contributions shall be made for the period
| ||
between the date the employee attains age 63 and January 1, | ||
1988.
| ||
(b) Each deduction from salary made prior to the date the | ||
age and service
annuity for the employee is fixed, and each | ||
contribution by the city, shall
be credited to the employee and | ||
be improved by interest for a present
employee during the time | ||
he is in service until age and service annuity is
fixed, and, | ||
for a future entrant, during the time he is in service. The
sum | ||
accumulated shall be used to provide age and
service annuity | ||
for the employee.
| ||
Beginning September 1, 1967, the deductions from salary | ||
provided in
Section 5-167.1 shall also be made.
|
(Source: P.A. 86-272.)
| ||
(40 ILCS 5/5-170) (from Ch. 108 1/2, par. 5-170)
| ||
Sec. 5-170. Contributions for widow's annuities and Tier 2 | ||
surviving spouse's annuity for present
employees and future | ||
entrants . Beginning on the effective date 1%, and
beginning | ||
January 1, 1976, 1-1/2% of
the salary of each male present | ||
employee and future entrant shall be deducted
and contributed | ||
to the fund for
widow's annuity or Tier 2 surviving spouse's | ||
annuity ; however,
in the case of a future entrant who attains | ||
age 63 prior to January 1,
1988 while still in service, no | ||
deductions shall be made for the period
between the date the | ||
employee attains age 63 and January 1, 1988.
The deductions | ||
shall be made from each payment of
salary and shall continue | ||
during the employee's service.
| ||
An employee in the service and over age 57 on the effective | ||
date
of this amendatory Act of 1969 shall have the option of | ||
contributing
1% of salary together with the
effective rate of | ||
interest for service rendered by him subsequent to
his | ||
attainment of age 57 and prior to such effective date. If such
| ||
retroactive contributions are made the wife or widow shall be | ||
entitled
to the widow's annuity provided in Section 5-136.
| ||
Concurrently with each such deduction, the city shall | ||
contribute
2% of each such payment of salary.
| ||
Each deduction from salary and contribution by the city | ||
shall be
allocated to the account of and credited to the |
employee. The amount
so credited shall be improved at the | ||
applicable rate of interest; except
that in the case of an | ||
employee who attains age 63 prior to January 1, 1988
while | ||
still in service, no interest shall be credited between the | ||
date the
employee attains age 63 and January 1, 1988.
| ||
(Source: P.A. 86-272.)
| ||
(40 ILCS 5/5-238) | ||
Sec. 5-238. Provisions applicable to new hires ; Tier 2 . | ||
(a) Notwithstanding any other provision of this Article,
| ||
the provisions of this Section apply to a person who first
| ||
becomes a policeman under this Article on or after January 1, | ||
2011 , and to certain qualified survivors of such a policeman. | ||
Such persons, and the benefits and restrictions that apply | ||
specifically to them under this Article, may be referred to as | ||
"Tier 2" . | ||
(b) A policeman who has withdrawn from service, has | ||
attained age 50 55 or more , and who has 10 or more years of | ||
service in that capacity shall be entitled , upon proper | ||
application being received by the Fund, at his option to | ||
receive a Tier 2 monthly retirement annuity for his service as | ||
a police officer . The Tier 2 monthly retirement annuity shall | ||
be computed by multiplying 2.5% for each year of such service | ||
by his or her final average salary , subject to an annuity | ||
reduction factor of . The retirement annuity of a policeman who | ||
is retiring after attaining age 50 with 10 or more years of |
creditable service shall be reduced by one-half of 1% for each | ||
month that the police officer's age at retirement is under age | ||
55. The Tier 2 monthly retirement annuity is in lieu of any age | ||
and service annuity or other form of retirement annuity under | ||
this Article. | ||
The maximum retirement annuity under this subsection (b) | ||
shall be 75%
of final average salary. | ||
For the purposes of this subsection (b), "final average | ||
salary" means the average monthly salary obtained by dividing | ||
the total salary of the policeman during the 96 consecutive | ||
months of service within the last 120 months of service in | ||
which the total salary was the highest by the number of months | ||
of service in that period. | ||
Beginning on January 1, 2011, for all purposes under
this | ||
Code (including without limitation the calculation of
benefits | ||
and employee contributions), the annual salary
based on the | ||
plan year of a member or participant to whom this Section | ||
applies shall not exceed $106,800; however, that amount shall | ||
annually thereafter be increased by the lesser of (i) 3% of | ||
that amount, including all previous adjustments, or (ii) | ||
one-half the annual unadjusted percentage increase (but not | ||
less than zero) in the consumer price index-u for the 12 months | ||
ending with the September preceding each November 1, including | ||
all previous adjustments. | ||
(c) Notwithstanding any other provision of this Article, | ||
for a person who first becomes a policeman under this Article |
on or after January 1, 2011, eligibility for and the amount of | ||
the annuity to which the qualified surviving spouse, children, | ||
and or parents are entitled under this subsection (c) shall be | ||
determined as follows: | ||
(1) The surviving spouse of a deceased policeman to | ||
whom this Section applies shall be deemed qualified to | ||
receive a Tier 2 surviving spouse's annuity under this | ||
paragraph (1) if: (i) the deceased policeman meets the | ||
requirements specified under subdivision (A), (B), (C), or | ||
(D) of this paragraph (1); and (ii) the surviving spouse | ||
would not otherwise be excluded from receiving a widow's | ||
annuity under the eligibility requirements for a widow's | ||
annuity set forth in Section 5-146. The Tier 2 surviving | ||
spouse's annuity is in lieu of the widow's annuity | ||
determined under any other Section of this Article and is | ||
subject to the requirements of Section 5-147.1. | ||
As used in this subsection (c), "earned annuity" means | ||
a Tier 2 monthly retirement annuity determined under | ||
subsection (b) of this Section, including any increases the | ||
policeman had received pursuant to Section 5-167.1. | ||
(A) If the deceased policeman was receiving an | ||
earned annuity at the date of his or her death, the | ||
Tier 2 surviving spouse's annuity under this paragraph | ||
(1) shall be in the amount of 66 2/3% of the | ||
policeman's earned annuity at the date of death. | ||
(B) If the deceased policeman was not receiving an |
earned annuity but had at least 10 years of service at | ||
the time of death, the Tier 2 surviving spouse's | ||
annuity under this paragraph (1) shall be the greater | ||
of: (i) 30% of the annual maximum salary attached to | ||
the classified civil service position of a first class | ||
patrolman at the time of his death; or (ii) 66 2/3% of | ||
the Tier 2 monthly retirement annuity that the deceased | ||
policeman would have been eligible to receive under | ||
subsection (b) of this Section, based upon the actual | ||
service accrued through the day before the policeman's | ||
death, but determined as though the policeman was at | ||
least age 55 on the day before his or her death and | ||
retired on that day. | ||
(C) If the deceased policeman was an active | ||
policeman with at least 1 1/2 but less than 10 years of | ||
service at the time of death, the Tier 2 surviving | ||
spouse's annuity under this paragraph (1) shall be in | ||
the amount of 30% of the annual maximum salary attached | ||
to the classified civil service position of a first | ||
class patrolman at the time of his death. | ||
(D) If the performance of an act or acts of duty | ||
results directly in the death of a policeman subject to | ||
this Section, or prevents him from subsequently | ||
resuming active service in the police department, and | ||
if the policeman's Tier 2 surviving spouse would | ||
otherwise meet the eligibility requirements for a |
compensation annuity or supplemental annuity granted | ||
under Section 5-144, then in addition to the Tier 2 | ||
surviving spouse's annuity provided under subdivision | ||
(A), (B), or (C) of this paragraph (1), whichever | ||
applies, the Tier 2 surviving spouse shall be qualified | ||
to receive compensation annuity or supplemental | ||
annuity, as would be provided under Section 5-144, in | ||
order to bring the total benefit up to the applicable | ||
75% salary limitation provided in that Section, but | ||
subject to the Tier 2 salary cap provided under | ||
subsection (b) of this Section; except that no such | ||
annuity shall be paid to the
surviving spouse of a | ||
policeman who dies while in
receipt of disability | ||
benefits when the policeman's
death was caused by an | ||
intervening illness or injury unrelated to the illness | ||
or injury that had prevented him from subsequently | ||
resuming active service in the police department. | ||
(E) Notwithstanding any other provision of this | ||
Article, the monthly Tier 2 surviving spouse's annuity | ||
under subdivision (A) or (B) of this paragraph (1)
of a | ||
survivor of a person who first becomes a policeman | ||
under this Article on or after January 1, 2011 shall be | ||
increased on the January 1 next occurring after (i) | ||
attainment of age 60 by the recipient of the Tier 2 | ||
surviving spouse's annuity or (ii) the first | ||
anniversary of the Tier 2 surviving spouse's annuity |
start date, whichever is later, survivor's annuity and | ||
on
each January 1 thereafter , by 3% or one-half the | ||
annual unadjusted percentage increase (but not less | ||
than zero) in the consumer price index-u for the
12 | ||
months ending with the September preceding each | ||
November 1, whichever is less, of the originally | ||
granted Tier 2 surviving spouse's survivor's annuity. | ||
If the unadjusted percentage change in
the consumer | ||
price index-u for a 12-month period ending in September | ||
is zero or, when compared with the preceding period, | ||
decreases, then the annuity shall not
be increased. | ||
For the purposes of this Section, "consumer price | ||
index-u" means the index published by the Bureau of | ||
Labor Statistics of the United States Department of | ||
Labor that measures the average change in prices of | ||
goods and services purchased by all urban consumers, | ||
United States city average, all items, 1982-84 = 100. | ||
The new amount resulting from each annual adjustment | ||
shall be determined by the Public Pension Division of | ||
the Department of Insurance and made available to the | ||
boards of the pension funds.
| ||
(F) Notwithstanding the other provisions of this | ||
paragraph (1), for a qualified surviving spouse who is | ||
entitled to a Tier 2 surviving spouse's annuity under | ||
subdivision (A), (B), (C), or (D) of this paragraph | ||
(1), that Tier 2 surviving spouse's annuity shall not |
be less than the amount of the minimum widow's annuity | ||
established from time to time under Section 5-167.4. | ||
(2) Surviving children of a deceased policeman subject | ||
to this Section who would otherwise meet the eligibility | ||
requirements for a child's annuity set forth in Sections | ||
5-151 and 5-152 shall be deemed qualified to receive a Tier | ||
2 child's annuity under this subsection (c), which shall be | ||
in lieu of, but in the same amount and paid in the same | ||
manner as, the child's annuity provided under those | ||
Sections; except that any salary used for computing a Tier | ||
2 child's annuity shall be subject to the Tier 2 salary cap | ||
provided under subsection (b) of this Section. For purposes | ||
of determining any pro rata reduction in child's annuities | ||
under this subsection (c), references in Section 5-152 to | ||
the combined annuities of the family shall be deemed to | ||
refer to the combined Tier 2 surviving spouse's annuity, if | ||
any, and the Tier 2 child's annuities payable under this | ||
subsection (c). | ||
(3) Surviving parents of a deceased policeman subject | ||
to this Section who would otherwise meet the eligibility | ||
requirements for a parent's annuity set forth in Section | ||
5-152 shall be deemed qualified to receive a Tier 2 | ||
parent's annuity under this subsection (c), which shall be | ||
in lieu of, but in the same amount and paid in the same | ||
manner as, the parent's annuity provided under Section | ||
5-152.1; except that any salary used for computing a Tier 2 |
parent's annuity shall be subject to the Tier 2 salary cap | ||
provided under subsection (b) of this Section. For the | ||
purposes of this Section, a reference to "annuity" in | ||
Section 5-152.1 includes: (i) in the context of a widow, a | ||
Tier 2 surviving spouse's annuity and (ii) in the context | ||
of a child, a Tier 2 child's annuity. | ||
(d) The General Assembly finds and declares that the | ||
provisions of this Section, as enacted by Public Act 96-1495, | ||
require clarification relating to necessary eligibility | ||
standards and the manner of determining and paying the intended | ||
Tier 2 benefits and contributions in order to enable the Fund | ||
to unambiguously implement and administer benefits for Tier 2 | ||
members. The changes to this Section and the conforming changes | ||
to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the | ||
changes to subsection (a) of that Section), 5-169, and 5-170 | ||
made by this amendatory Act of the 99th
General Assembly are | ||
enacted to clarify the provisions of this Section as enacted by | ||
Public Act 96-1495, and are hereby declared to represent and be | ||
consistent with the original and continuing intent of this | ||
Section and Public Act 96-1495. | ||
(e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1 | ||
(except for the changes to subsection (a) of that Section), | ||
5-169, and 5-170 made by this amendatory Act of the 99th | ||
General Assembly are intended to be retroactive to January 1, | ||
2011 (the effective date of Public Act 96-1495) and, for the | ||
purposes of Section 1-103.1 of this Code, they apply without |
regard to whether the relevant policeman
was in service on or | ||
after the effective date of this amendatory Act of the 99th | ||
General Assembly. | ||
(Source: P.A. 96-1495, eff. 1-1-11.)
| ||
(40 ILCS 5/6-128.4)
(from Ch. 108 1/2, par. 6-128.4)
| ||
Sec. 6-128.4. Minimum widow's annuities.
| ||
(a) Notwithstanding any other provision of this Article, | ||
beginning
January 1, 1996, the minimum amount of widow's | ||
annuity payable to any person
who is entitled to receive a | ||
widow's annuity under this Article is $700 per
month, without | ||
regard to whether the deceased fireman is in service on or | ||
after
the effective date of this amendatory Act of 1995.
| ||
(b) Notwithstanding Section 6-128.3, beginning January 1, | ||
1994, the
minimum widow's annuity under this Article shall be | ||
$700 per month for (1) all
persons receiving widow's annuities | ||
on that date who are survivors of employees
who retired at age | ||
50 or over with at least 20 years of service, and (2)
persons | ||
who become eligible for widow's annuities and are survivors of
| ||
employees who retired at age 50 or over with at least 20 years | ||
of service.
| ||
(c) Notwithstanding Section 6-128.3, beginning January 1, | ||
1999, the
minimum widow's annuity under this Article shall be | ||
$800 per month for (1) all
persons receiving widow's annuities | ||
on that date who are survivors of employees
who retired at age | ||
50 or over with at least 20 years of service, and (2)
persons |
who become eligible for widow's annuities and are survivors of
| ||
employees who retired at age 50 or over with at least 20 years | ||
of service.
| ||
(d) Notwithstanding Section 6-128.3, beginning January 1, | ||
2004, the
minimum widow's annuity under this Article shall be | ||
$900 per month for all
persons receiving widow's annuities on | ||
or after that date, without regard to
whether the deceased | ||
fireman is in service on or after the effective date of
this | ||
amendatory Act of the 93rd General Assembly.
| ||
(e) Notwithstanding Section 6-128.3, beginning January 1, | ||
2005, the
minimum widow's annuity under this Article shall be | ||
$1,000 per month for all
persons receiving widow's annuities on | ||
or after that date, without regard to
whether the deceased | ||
fireman is in service on or after the effective date of
this | ||
amendatory Act of the 93rd General Assembly.
| ||
(f) Notwithstanding Section 6-128.3, beginning January 1, | ||
2017, the minimum widow's annuity under this Article shall be | ||
no less than 125% of the Federal Poverty Level for all persons | ||
receiving widow's annuities on or after that date, without | ||
regard to whether the deceased fireman is in service on or | ||
after the effective date of this amendatory Act of the 99th | ||
General Assembly. For purposes of this Section, "Federal | ||
Poverty Level" means the poverty guidelines applicable to an | ||
individual in a single-person household located in Illinois, as | ||
updated periodically in the Federal Register by the United | ||
States Department of Health and Human Services under the |
authority of 42 U.S.C. 9902(2). | ||
(Source: P.A. 93-654, eff. 1-16-04.)
| ||
(40 ILCS 5/6-150) (from Ch. 108 1/2, par. 6-150)
| ||
Sec. 6-150. Death benefit. | ||
(a) Effective January 1, 1962, an ordinary death benefit | ||
shall
be payable on account of any fireman in service and in | ||
receipt of salary on
or after such date, which benefit shall be | ||
in addition to all other
annuities and benefits herein | ||
provided. This benefit shall be payable upon
death of a | ||
fireman:
| ||
(1) occurring in active service while in receipt of | ||
salary;
| ||
(2) on an authorized and approved leave of absence, | ||
without salary,
beginning on or after January 1, 1962, if | ||
the death occurs within 60 days
from the date the fireman | ||
was in receipt of salary;
| ||
(3) receiving duty, occupational disease, or ordinary | ||
disability
benefit;
| ||
(4) occurring within 60 days from the date of | ||
termination of duty
disability, occupational disease | ||
disability or ordinary disability benefit
payments if | ||
re-entry into service had not occurred; or
| ||
(5) occurring on retirement and while in receipt of an | ||
age and service annuity ,
prior service annuity , Tier 2 | ||
monthly retirement annuity, or minimum annuity; provided |
(a) retirement on such
annuity occurred on or after January | ||
1, 1962, and (b) such separation from
service was effective | ||
on or after the fireman's attainment of age 50, and
(c) | ||
application for such annuity was made within 60 days after | ||
separation
from service.
| ||
(b) The ordinary death benefit shall be payable to such | ||
beneficiary or
beneficiaries as the fireman has nominated by | ||
written direction duly signed
and acknowledged before an | ||
officer authorized to take acknowledgments, and
filed with the | ||
board. If no such written direction has been filed or if the
| ||
designated beneficiaries do not survive the fireman, payment of | ||
the benefit
shall be made to his estate.
| ||
(c) Beginning July 1, 1983, if death occurs prior to | ||
retirement on
annuity and before the
fireman's attainment of | ||
age 50, the amount of the benefit payable shall be
$12,000. | ||
Beginning July 1, 1983, if death occurs prior
to retirement, at | ||
age 50 or over, the benefit
of $12,000 shall be reduced $400 | ||
for each year
(commencing on the fireman's
attainment of age 50 | ||
and thereafter on each succeeding birth date) that the
| ||
fireman's age, at date of death, is more than age 49, but in no | ||
event below
the amount of $6,000.
| ||
Beginning July 1, 1983, if the fireman's death occurs while | ||
he is in
receipt of an annuity, the
benefit shall be $6,000.
| ||
(Source: P.A. 83-152.)
| ||
(40 ILCS 5/6-158) (from Ch. 108 1/2, par. 6-158)
|
Sec. 6-158. Refund - General.
| ||
(a) A fireman who withdraws before age 50 and a fireman | ||
with less than
10 years of service who withdraws before age 57, | ||
or any fireman who
withdraws and enters the service of another | ||
department of the city, has a
right to a refund of the entire | ||
amount to his credit as of the date of
withdrawal for age and | ||
service annuity or Tier 2 monthly retirement annuity, for | ||
automatic annual increase in annuity as provided in Section | ||
6-164, and for widow's annuity or Tier 2 surviving spouse's | ||
annuity, from deductions
from salary.
| ||
(b) Any such fireman shall be entitled to refund until he | ||
re-enters
service or until his annuity is fixed.
| ||
(c) A fireman who receives a refund forfeits all rights to | ||
any annuity
or benefit from the fund, for himself and for any | ||
other person who might
benefit through him because of his | ||
service, provided he shall retain the
right to credit for any | ||
such service, for the purpose of computing his
total service if | ||
he re-enters service before age 57, becomes a beneficiary
of | ||
the fund and makes repayment of the refund with interest.
| ||
(d) A fireman completing 10 years of service who does not | ||
receive a
refund, may receive an annuity as provided in this | ||
Article.
| ||
(e) A fireman completing less than 10 years who does not | ||
receive a
refund has a right to have all amounts to his credit | ||
for annuity purposes
on the date of withdrawal improved by | ||
interest while he is out of service
until age 57 only, for his |
benefit and the benefit of any person who may
have any right to | ||
annuity through him, if he subsequently reenters service
and | ||
attains a right to annuity.
| ||
(Source: Laws 1965, p. 2464.)
| ||
(40 ILCS 5/6-164)
(from Ch. 108 1/2, par. 6-164)
| ||
Sec. 6-164. Automatic annual increase; retirement after | ||
September 1, 1959.
| ||
(a) A fireman qualifying for a minimum annuity who retires | ||
from service
after September 1, 1959 shall, upon either the | ||
first of the month following the
first anniversary of his date | ||
of retirement if he is age 60 (age 55 if born
before January 1, | ||
1966 1955 ) or over on that anniversary date, or upon
the first | ||
of the month following his attainment of age 60 (age 55 if born
| ||
before January 1, 1966 1955 ) if that occurs after the first | ||
anniversary
of his retirement date, have his then fixed and | ||
payable monthly annuity
increased by 1 1/2%, and such first | ||
fixed annuity as granted at retirement
increased by an | ||
additional 1 1/2% in January of each year thereafter up to a
| ||
maximum increase of 30%.
Beginning July 1, 1982 for firemen | ||
born before January 1, 1930, and beginning
January 1, 1990 for | ||
firemen born after December 31, 1929 and before January 1,
| ||
1940, and beginning January 1, 1996 for firemen born after | ||
December 31, 1939
but before January 1, 1945, and beginning | ||
January 1, 2004, for firemen born
after December 31, 1944 but | ||
before January 1, 1955, and beginning January 1, 2017, for |
firemen born after December 31, 1954 but before January 1, | ||
1966, such increases shall be
3% and such firemen shall not be | ||
subject to the 30% maximum increase.
| ||
Any fireman born before January 1, 1945 who qualifies for a | ||
minimum annuity
and retires after September 1, 1967 but has not | ||
received the initial increase
under this subsection before | ||
January 1, 1996 is entitled to receive the initial
increase | ||
under this subsection on (1) January 1, 1996, (2) the first
| ||
anniversary of the date of retirement, or (3) attainment of age | ||
55, whichever
occurs last. The changes to this Section made by | ||
this amendatory Act of 1995
apply beginning January 1, 1996 and | ||
apply without regard to whether the fireman
or annuitant | ||
terminated service before the effective date of this amendatory
| ||
Act of 1995.
| ||
Any fireman born before January 1, 1955 who qualifies for a | ||
minimum
annuity and retires after September 1, 1967 but has not | ||
received the initial
increase under this subsection before | ||
January 1, 2004 is entitled to receive
the initial increase | ||
under this subsection on (1) January 1, 2004, (2) the
first | ||
anniversary of the date of retirement, or (3) attainment of age | ||
55,
whichever occurs last. The changes to this Section made by | ||
this amendatory
Act of the 93rd General Assembly apply without | ||
regard to whether the fireman
or annuitant terminated service | ||
before the effective date of this amendatory
Act.
| ||
Any fireman born before January 1, 1966 who qualifies for
a | ||
minimum annuity and retires after
September 1, 1967 but has not |
received the initial increase
under this subsection before | ||
January 1, 2017 is entitled to
receive an initial increase | ||
under this subsection on (1)
January 1, 2017, (2) the first | ||
anniversary of the date of
retirement, or (3) attainment of age | ||
55, whichever occurs last, in an amount equal to 3% for each | ||
complete year following the date of retirement or attainment of | ||
age 55, whichever occurs later. The changes to this subsection | ||
made by this amendatory
Act of the 99th General Assembly apply | ||
without regard to whether the fireman
or annuitant terminated | ||
service before the effective date of this amendatory
Act. | ||
(b) Subsection (a) of this Section is
not applicable to an | ||
employee receiving a term annuity.
| ||
(c) To help defray the cost of such increases in annuity, | ||
there
shall be deducted, beginning September 1, 1959, from each | ||
payment of salary
to a fireman, 1/8 of 1% of each such salary | ||
payment and an additional 1/8
of 1% beginning on September 1, | ||
1961, and September 1, 1963, respectively,
concurrently with | ||
and in addition to the salary deductions otherwise made
for | ||
annuity purposes.
| ||
Each such additional 1/8 of 1% deduction from salary which | ||
shall, on
September 1, 1963, result in a total increase of 3/8 | ||
of 1% of salary,
shall be credited to the Automatic Increase | ||
Reserve, to be used,
together with city contributions as | ||
provided in this Article, to defray
the cost of the 1 1/2% | ||
annuity increments herein specified in this Section . Any | ||
balance
in such reserve as of the beginning of each calendar |
year shall be
credited with interest at the rate of 3% per | ||
annum.
| ||
The salary deductions provided in this Section are not | ||
subject to
refund, except to the fireman himself , in any case | ||
in which : (i) the a fireman
withdraws prior to qualification | ||
for minimum annuity or Tier 2 monthly retirement annuity and | ||
applies for
refund, (ii) the fireman or applies for an annuity | ||
of a type that is not subject to annual increases under this | ||
Section, or (iii) , and also where a term annuity becomes
| ||
payable. In such cases, the total of such salary deductions | ||
shall be
refunded to the fireman, without interest, and charged | ||
to the
aforementioned reserve.
| ||
(d) Notwithstanding any other provision of this Article, | ||
the Tier 2 monthly retirement annuity of a
person who first | ||
becomes a fireman under this Article on or after January 1, | ||
2011 shall be increased on the January 1 occurring either on or | ||
after (i) the attainment of age 60 or (ii) the first | ||
anniversary of the annuity start date, whichever is later. Each | ||
annual increase shall be calculated at 3% or one-half the | ||
annual unadjusted percentage increase (but not less than zero) | ||
in the consumer price index-u for the 12 months ending with the | ||
September preceding each November 1, whichever is less, of the | ||
originally granted retirement annuity. If the annual | ||
unadjusted percentage change in the consumer price index-u for | ||
a 12-month period ending in September is zero or, when compared | ||
with the preceding period, decreases, then the annuity shall |
not be increased. | ||
For the purposes of this subsection (d), "consumer price | ||
index-u" means the index published by the Bureau of Labor | ||
Statistics of the United States Department of Labor that | ||
measures the average change in prices of goods and services | ||
purchased by all urban consumers, United States city average, | ||
all items, 1982-84 = 100. The new amount resulting from each | ||
annual adjustment shall be determined by the Public Pension | ||
Division of the Department of Insurance and made available to | ||
the boards of the pension funds by November 1 of each year . | ||
(Source: P.A. 96-1495, eff. 1-1-11.)
| ||
(40 ILCS 5/6-166) (from Ch. 108 1/2, par. 6-166)
| ||
Sec. 6-166. Contributions for age and service annuities or | ||
Tier 2 monthly retirement annuities for present employees and
| ||
future entrants. | ||
(a) After the effective date and prior to July 1, 1953, 3 | ||
1/2%, and after
June 30, 1953, and prior to September 1, 1959, | ||
6%, and beginning September
1, 1959, 7 1/8% of each payment of | ||
the salary of each present employee and
future entrant shall be | ||
deducted and contributed to the fund for age and
service | ||
annuity or Tier 2 monthly retirement annuity . The deductions | ||
shall be made at the time payments of
salary are payable and | ||
shall continue while the employee is in service.
| ||
Concurrently with each such contribution, the city shall | ||
contribute 8
1/2% of each payment of salary, but the city |
contributions shall cease for
all employees upon their | ||
attainment of age 63.
| ||
(b) Each contribution by the employee and the city shall be | ||
allocated to the
account of and credited to the employee, and | ||
shall be improved by interest
at the applicable rate during the | ||
time he is in service until the age and
service annuity is | ||
fixed. Any accretion, by way of interest or otherwise,
upon | ||
such sum or any deduction from salary made after the annuity is | ||
fixed
for a present employee or after attainment of age 63 by a | ||
future entrant
who first
becomes a fireman under this Article | ||
before January 1, 2011 shall not be credited to the employee | ||
for age and service annuity.
| ||
(Source: P.A. 76-1668.)
| ||
(40 ILCS 5/6-167) (from Ch. 108 1/2, par. 6-167)
| ||
Sec. 6-167. Contributions for widow's annuity and Tier 2 | ||
surviving spouse's annuity. Beginning on the effective date and | ||
prior to September 1, 1957,
1% of each payment of salary of not | ||
more than $3,000 of each employee and
beginning September 1, | ||
1957, 1% of each payment of salary of not more than
$6,000 of | ||
each present employee and future entrant shall be deducted and
| ||
contributed to the fund for widow's annuity. After September 1, | ||
1967
and prior to January 1, 1976,
1%,
and beginning January 1, | ||
1976, 1 1/2%
of salary without limitation shall be deducted | ||
from the pay of each
present employee and future entrant and | ||
contributed to the fund for widow's
annuity or Tier 2 surviving |
spouse's annuity . The deduction shall be made at the time the | ||
payments of salary are
payable and shall continue during the | ||
service of the employee.
| ||
Concurrently with each contribution, the city shall | ||
contribute 2% of
each payment of salary.
| ||
Each contribution by the employee and the city shall be | ||
allocated to the
accounts of and credited to the employee for | ||
widow's annuity or Tier 2 surviving spouse's annuity .
| ||
(Source: P.A. 79-633.)
| ||
(40 ILCS 5/6-229) | ||
Sec. 6-229. Provisions applicable to new hires ; Tier 2 . | ||
(a) Notwithstanding any other provision of this Article,
| ||
the provisions of this Section apply to a person who first
| ||
becomes a fireman under this Article on or after January 1, | ||
2011 , and to certain qualified survivors of such a fireman. | ||
Such persons, and the benefits and restrictions that apply | ||
specifically to them under this Article, may be referred to as | ||
"Tier 2" . | ||
(b) A fireman who has withdrawn from service, has attained | ||
age 50 55 or more , and who has 10 or more years of service in | ||
that capacity shall be entitled , upon proper application being | ||
received by the Fund, at his option to receive a Tier 2 monthly | ||
retirement annuity for his service as a fireman . The Tier 2 | ||
monthly retirement annuity shall be computed by multiplying | ||
2.5% for each year of such service by his or her final average |
salary , subject to an annuity reduction factor of . The | ||
retirement annuity of a fireman who is retiring after attaining | ||
age 50 with 10 or more years of creditable service shall be | ||
reduced by one-half of 1% for each month that the fireman's age | ||
at retirement is under age 55. The Tier 2 monthly retirement | ||
annuity is in lieu of any age and service annuity or other form | ||
of retirement annuity under this Article. | ||
The maximum retirement annuity under this subsection (b) | ||
shall be 75%
of final average salary. | ||
For the purposes of this subsection (b), "final average | ||
salary" means the average monthly salary obtained by dividing | ||
the total salary of the fireman during the 96 consecutive | ||
months of service within the last 120 months of service in | ||
which the total salary was the highest by the number of months | ||
of service in that period. | ||
Beginning on January 1, 2011, for all purposes under
this | ||
Code (including without limitation the calculation of
benefits | ||
and employee contributions), the annual salary
based on the | ||
plan year of a member or participant to whom this Section | ||
applies shall not exceed $106,800; however, that amount shall | ||
annually thereafter be increased by the lesser of (i) 3% of | ||
that amount, including all previous adjustments, or (ii) | ||
one-half the annual unadjusted percentage increase (but not | ||
less than zero) in the consumer price index-u for the 12 months | ||
ending with the September preceding each November 1, including | ||
all previous adjustments. |
(b-5) For the purposes of this Section, "consumer price | ||
index-u" means the index published by the Bureau of Labor | ||
Statistics of the United States Department of Labor that | ||
measures the average change in prices of goods and services | ||
purchased by all urban consumers, United States city average, | ||
all items, 1982-84 = 100. The new amount resulting from each | ||
annual adjustment shall be determined by the Public Pension | ||
Division of the Department of Insurance and made available to | ||
the boards of the retirement systems and pension funds by | ||
November 1 of each year. | ||
(c) Notwithstanding any other provision of this Article, | ||
for a person who first becomes a fireman under this Article on | ||
or after January 1, 2011, eligibility for and the amount of the | ||
annuity to which the qualified surviving spouse, children, and | ||
or parents of the fireman are entitled under this subsection | ||
(c) shall be determined as follows: | ||
(1) The surviving spouse of a deceased fireman to whom | ||
this Section applies shall be deemed qualified to receive a | ||
Tier 2 surviving spouse's annuity under this paragraph (1) | ||
if: (i) the deceased fireman meets the requirements | ||
specified under subdivision (A), (B), (C), or (D) of this | ||
paragraph (1); and (ii) the surviving spouse would not | ||
otherwise be excluded from receiving a widow's annuity | ||
under the eligibility requirements for a widow's annuity | ||
set forth in Section 6-142. The Tier 2 surviving spouse's | ||
annuity is in lieu of the widow's annuity determined under |
any other Section of this Article and is subject to the | ||
requirements of Section 6-143.2. | ||
As used in this subsection (c), "earned pension" means | ||
a Tier 2 monthly retirement annuity determined under | ||
subsection (b) of this Section, including any increases the | ||
fireman had received pursuant to Section 6-164. | ||
(A) If the deceased fireman was receiving an earned | ||
pension at the date of his or her death, the Tier 2 | ||
surviving spouse's annuity under this paragraph (1) | ||
shall be in the amount of 66 2/3% of the fireman's | ||
earned pension at the date of death. | ||
(B) If the deceased fireman was not receiving an | ||
earned pension but had at least 10 years of service at | ||
the time of death, the Tier 2 surviving spouse's | ||
annuity under this paragraph (1) shall be the greater | ||
of: (i) 30% of the salary attached to the rank of first
| ||
class firefighter in the classified career service at
| ||
the time of the fireman's death; or (ii) 66 2/3% of the | ||
Tier 2 monthly retirement annuity that the deceased | ||
fireman would have been eligible to receive under | ||
subsection (b) of this Section, based upon the actual | ||
service accrued through the day before the fireman's | ||
death, but determined as though the fireman was at | ||
least age 55 on the day before his or her death and | ||
retired on that day. | ||
(C) If the deceased fireman was an active fireman |
with at least 1 1/2 but less than 10 years of service | ||
at the time of death, the Tier 2 surviving spouse's | ||
annuity under this paragraph (1) shall be in the amount | ||
of 30% of the salary attached to the rank of first
| ||
class firefighter in the classified career service at
| ||
the time of the fireman's death. | ||
(D) Notwithstanding subdivisions (A), (B), and (C) | ||
of this paragraph (1), if the performance of an act or | ||
acts of duty results directly in the death of a fireman | ||
subject to this Section, or prevents him from | ||
subsequently resuming active service in the fire | ||
department, then a surviving spouse who would | ||
otherwise meet the eligibility requirements for a | ||
death in the line of duty widow's annuity granted under | ||
Section 6-140 shall be deemed to be qualified for a | ||
Tier 2 surviving spouse's annuity under this | ||
subdivision (D); except that no such annuity shall be | ||
paid to the
surviving spouse of a fireman who dies | ||
while in
receipt of disability benefits when the | ||
fireman's
death was caused by an intervening illness or | ||
injury unrelated to the illness or injury that had | ||
prevented him from subsequently resuming active | ||
service in the fire department. The Tier 2 surviving | ||
spouse's annuity calculated under this subdivision (D) | ||
shall be in lieu
of, but in the same amount and paid in | ||
the same manner
as, the widow's annuity provided under |
Section 6-140; except that the salary used for | ||
computing a Tier 2 surviving spouse's annuity under | ||
this subdivision (D) shall be subject to the Tier 2 | ||
salary cap provided under subsection (b) of this | ||
Section. | ||
(E) Notwithstanding any other provision of this | ||
Article, the monthly Tier 2 surviving spouse's annuity | ||
under subdivision (A) or (B) of this paragraph (1)
of a | ||
survivor of a person who first becomes a fireman under | ||
this Article on or after January 1, 2011 shall be | ||
increased on the January 1 next occurring after (i) | ||
attainment of age 60 by the recipient of the Tier 2 | ||
surviving spouse's annuity or (ii) the first | ||
anniversary of the Tier 2 surviving spouse's annuity | ||
start date, whichever is later, survivor's pension and | ||
on
each January 1 thereafter , by 3% or one-half the | ||
annual unadjusted percentage increase in the consumer | ||
price index-u for the
12 months ending with September | ||
preceding each November 1, whichever is less, of the | ||
originally granted Tier 2 surviving spouse's | ||
survivor's annuity. If the annual unadjusted | ||
percentage change in
the consumer price index-u for a | ||
12-month period ending in September is zero or, when | ||
compared with the preceding period, decreases, then | ||
the annuity shall not
be increased.
| ||
(F) Notwithstanding the other provisions of this |
paragraph (1), for a qualified surviving spouse who is | ||
entitled to a Tier 2 surviving spouse's annuity under | ||
subdivision (A), (B), (C), or (D) of this paragraph | ||
(1), that Tier 2 surviving spouse's annuity shall not | ||
be less than the amount of the minimum widow's annuity | ||
established from time to time under Section 6-128.4. | ||
(2) Surviving children of a deceased fireman subject to | ||
this Section who would otherwise meet the eligibility | ||
requirements for a child's annuity set forth in Sections | ||
6-147 and 6-148 shall be deemed qualified to receive a Tier | ||
2 child's annuity under this subsection (c), which shall be | ||
in lieu of, but in the same amount and paid in the same | ||
manner as, the child's annuity provided under those | ||
Sections; except that any salary used for computing a Tier | ||
2 child's annuity shall be subject to the Tier 2 salary cap | ||
provided under subsection (b) of this Section. For purposes | ||
of determining any pro rata reduction in child's annuities | ||
under this subsection (c), references in Section 6-148 to | ||
the combined annuities of the family shall be deemed to | ||
refer to the combined Tier 2 surviving spouse's annuity, if | ||
any, and the Tier 2 child's annuities payable under this | ||
subsection (c). | ||
(3) Surviving parents of a deceased fireman subject to | ||
this Section who would otherwise meet the eligibility | ||
requirements for a parent's annuity set forth in Section | ||
6-149 shall be deemed qualified to receive a Tier 2 |
parent's annuity under this subsection (c), which shall be | ||
in lieu of, but in the same amount and paid in the same | ||
manner as, the parent's annuity provided under Section | ||
6-149; except that any salary used for computing a Tier 2 | ||
parent's annuity shall be subject to the Tier 2 salary cap | ||
provided under subsection (b) of this Section. For the | ||
purposes of this Section, a reference to "annuity" in | ||
Section 6-149 includes: (i) in the context of a widow, a | ||
Tier 2 surviving spouse's annuity and (ii) in the context | ||
of a child, a Tier 2 child's annuity. | ||
(d) The General Assembly finds and declares that the | ||
provisions of this Section, as enacted by Public Act 96-1495, | ||
require clarification relating to necessary eligibility | ||
standards and the manner of determining and paying the intended | ||
Tier 2 benefits and contributions in order to enable the Fund | ||
to unambiguously implement and administer benefits for Tier 2 | ||
members. The changes to this Section and the conforming changes | ||
to Sections 6-150, 6-158, 6-164 (except for the changes to | ||
subsection (a) of that Section), 6-166, and 6-167 made by this | ||
amendatory Act of the 99th
General Assembly are enacted to | ||
clarify the provisions of this Section as enacted by Public Act | ||
96-1495, and are hereby declared to represent and be consistent | ||
with the original and continuing intent of this Section and | ||
Public Act 96-1495. | ||
(e) The changes to Sections 6-150, 6-158, 6-164 (except for | ||
the changes to subsection (a) of that Section), 6-166, and |
6-167 made by this amendatory Act of the 99th General Assembly | ||
are intended to be retroactive to January 1, 2011 (the | ||
effective date of Public Act 96-1495) and, for the purposes of | ||
Section 1-103.1 of this Code, they apply without regard to | ||
whether the relevant fireman
was in service on or after the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly. | ||
(Source: P.A. 96-1495, eff. 1-1-11.)
| ||
Section 90. The State Mandates Act is amended by adding | ||
Section 8.40 as follows: | ||
(30 ILCS 805/8.40 new) | ||
Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8 | ||
of this Act, no reimbursement by the State is required for the | ||
implementation of any mandate created by this amendatory Act of | ||
the 99th General Assembly. | ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law. |