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Public Act 103-0582


 

Public Act 0582 103RD GENERAL ASSEMBLY

 


 
Public Act 103-0582
 
SB1956 EnrolledLRB103 25834 RPS 52185 b

    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 Section 5-167.1 as follows:
 
    (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 55 60 (age 55 if born
before January 1, 1966) or over on that anniversary date, or
upon the first of the month following his attainment of age 55
60 (age 55 if born before January 1, 1966) if it occurs after
the first anniversary of his retirement date, have his then
fixed and payable monthly annuity increased by 3% 1 1/2% and
such first fixed annuity as granted at retirement increased by
an additional 3% 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.
    Any policeman born on or after 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, 2023 is entitled to receive the
initial increase under this subsection on (1) January 1, 2023,
(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 103rd General
Assembly apply without regard to whether the policeman or
annuitant terminated service before the effective date of this
amendatory Act of the 103rd General Assembly.
    (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 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 policeman withdraws prior to
qualification for minimum annuity or Tier 2 monthly retirement
annuity and applies for refund, (ii) the policeman applies for
an annuity of a type that is not subject to annual increases
under this Section, or (iii) 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. 99-905, eff. 11-29-16.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
 
    (30 ILCS 805/8.47 new)
    Sec. 8.47. 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 103rd General Assembly.
 
    Section 999. Effective date. This Act takes effect upon
becoming law.

Effective Date: 12/8/2023