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Public Act 097-0344
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| HB3376 Enrolled | LRB097 08172 JDS 48296 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 |
Section 5-167.1 as follows:
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(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
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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, 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, 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
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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
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January 1, 1940, and beginning January 1, 1996 for policemen |
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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,
such increases shall be 3% and such |
policemen shall not be subject to the
30% maximum increase.
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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.
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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.
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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.
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(b) Subsection (a) of this Section is
not applicable to an |
employee receiving a term annuity.
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(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.
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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.
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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 |
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each calendar year shall be credited with interest at the
rate |
of 3% per annum.
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Such deductions from salary and city contributions shall |
continue
while the policeman is in service.
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The salary deductions provided in this Section are not |
subject to
refund, except to the policeman himself, in any case |
in which a
policeman withdraws prior to qualification for |
minimum annuity and
applies for refund or applies for annuity, |
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.
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(d) Notwithstanding any other provision of this Article, |
the monthly 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 the attainment of |
age 60 or 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, |
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decreases, then the annuity shall not be increased. |
Notwithstanding any other provision of this Article, for a |
person who first becomes a policeman under this Article on or |
after January 1, 2011, the annuity to which the survivor is |
entitled under this subsection (d) shall be in the amount of 66 |
2/3% of the policeman's earned annuity at the date of death. |
Nothing in this subsection (d) shall act to diminish the |
survivor's
benefits described in this Section. |
Notwithstanding any other provision of this Article, the |
monthly annuity
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 after attainment of age 60 by the |
recipient of the survivor's annuity and
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 |
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, |