Rep. Martin J. Moylan

Filed: 5/17/2023

 

 


 

 


 
10300SB1956ham002LRB103 25834 RPS 62131 a

1
AMENDMENT TO SENATE BILL 1956

2    AMENDMENT NO. ______. Amend Senate Bill 1956 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by adding
5Sections 3-144.3, 4-138.15, 5-240, and 6-235 and by changing
6Section 5-167.1 as follows:
 
7    (40 ILCS 5/3-144.3 new)
8    Sec. 3-144.3. Retirement Systems Reciprocal Act. The
9Retirement Systems Reciprocal Act, Article 20 of this Code, is
10adopted and made a part of this Article, but only with respect
11to a person who, on or after the effective date of this
12amendatory Act of the 103rd General Assembly, is entitled
13under this Article or through a participating system under the
14Retirement Systems Reciprocal Act, as defined in Section
1520-108, to begin receiving a retirement annuity or survivor's
16annuity (as those terms are defined in Article 20) and who

 

 

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1elects to proceed under the Retirement Systems Reciprocal Act.
 
2    (40 ILCS 5/4-138.15 new)
3    Sec. 4-138.15. Retirement Systems Reciprocal Act. The
4Retirement Systems Reciprocal Act, Article 20 of this Code, is
5adopted and made a part of this Article, but only with respect
6to a person who, on or after the effective date of this
7amendatory Act of the 103rd General Assembly, is entitled
8under this Article or through a participating system under the
9Retirement Systems Reciprocal Act, as defined in Section
1020-108, to begin receiving a retirement annuity or survivor's
11annuity (as those terms are defined in Article 20) and who
12elects to proceed under the Retirement Systems Reciprocal Act.
 
13    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
14    Sec. 5-167.1. Automatic increase in annuity; retirement
15from service after September 1, 1967.
16    (a) A policeman who retires from service after September
171, 1967 with at least 20 years of service credit shall, upon
18either the first of the month following the first anniversary
19of his date of retirement if he is age 55 60 (age 55 if born
20before January 1, 1966) or over on that anniversary date, or
21upon the first of the month following his attainment of age 55
2260 (age 55 if born before January 1, 1966) if it occurs after
23the first anniversary of his retirement date, have his then
24fixed and payable monthly annuity increased by 3% 1 1/2% and

 

 

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1such first fixed annuity as granted at retirement increased by
2an additional 3% 1 1/2% in January of each year thereafter up
3to a maximum increase of 30%. Beginning January 1, 1983 for
4policemen born before January 1, 1930, and beginning January
51, 1988 for policemen born on or after January 1, 1930 but
6before January 1, 1940, and beginning January 1, 1996 for
7policemen born on or after January 1, 1940 but before January
81, 1945, and beginning January 1, 2000 for policemen born on or
9after January 1, 1945 but before January 1, 1950, and
10beginning January 1, 2005 for policemen born on or after
11January 1, 1950 but before January 1, 1955, and beginning
12January 1, 2017 for policemen born on or after January 1, 1955
13but before January 1, 1966, such increases shall be 3% and such
14policemen shall not be subject to the 30% maximum increase.
15    Any policeman born before January 1, 1945 who qualifies
16for a minimum annuity and retires after September 1, 1967 but
17has not received the initial increase under this subsection
18before January 1, 1996 is entitled to receive the initial
19increase under this subsection on (1) January 1, 1996, (2) the
20first anniversary of the date of retirement, or (3) attainment
21of age 55, whichever occurs last. The changes to this Section
22made by Public Act 89-12 apply beginning January 1, 1996 and
23without regard to whether the policeman or annuitant
24terminated service before the effective date of that Act.
25    Any policeman born before January 1, 1950 who qualifies
26for a minimum annuity and retires after September 1, 1967 but

 

 

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1has not received the initial increase under this subsection
2before January 1, 2000 is entitled to receive the initial
3increase under this subsection on (1) January 1, 2000, (2) the
4first anniversary of the date of retirement, or (3) attainment
5of age 55, whichever occurs last. The changes to this Section
6made by this amendatory Act of the 92nd General Assembly apply
7without regard to whether the policeman or annuitant
8terminated service before the effective date of this
9amendatory Act.
10    Any policeman born before January 1, 1955 who qualifies
11for a minimum annuity and retires after September 1, 1967 but
12has not received the initial increase under this subsection
13before January 1, 2005 is entitled to receive the initial
14increase under this subsection on (1) January 1, 2005, (2) the
15first anniversary of the date of retirement, or (3) attainment
16of age 55, whichever occurs last. The changes to this Section
17made by this amendatory Act of the 94th General Assembly apply
18without regard to whether the policeman or annuitant
19terminated service before the effective date of this
20amendatory Act.
21    Any policeman born before January 1, 1966 who qualifies
22for a minimum annuity and retires after September 1, 1967 but
23has not received the initial increase under this subsection
24before January 1, 2017 is entitled to receive an initial
25increase under this subsection on (1) January 1, 2017, (2) the
26first anniversary of the date of retirement, or (3) attainment

 

 

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1of age 55, whichever occurs last, in an amount equal to 3% for
2each complete year following the date of retirement or
3attainment of age 55, whichever occurs later. The changes to
4this subsection made by this amendatory Act of the 99th
5General Assembly apply without regard to whether the policeman
6or annuitant terminated service before the effective date of
7this amendatory Act.
8    Any policeman born after January 1, 1966 who qualifies for
9a minimum annuity and retires after September 1, 1967 but has
10not received the initial increase under this subsection before
11January 1, 2023 is entitled to receive the initial increase
12under this subsection on (1) January 1, 2023, (2) the first
13anniversary of the date of retirement, or (3) attainment of
14age 55, whichever occurs last. The changes to this Section
15made by this amendatory Act of the 103rd General Assembly
16apply without regard to whether the policeman or annuitant
17terminated service before the effective date of this
18amendatory Act of the 103rd General Assembly.
19    (b) Subsection (a) of this Section is not applicable to an
20employee receiving a term annuity.
21    (c) To help defray the cost of such increases in annuity,
22there shall be deducted, beginning September 1, 1967, from
23each payment of salary to a policeman, 1/2 of 1% of each salary
24payment concurrently with and in addition to the salary
25deductions otherwise made for annuity purposes.
26    The city, in addition to the contributions otherwise made

 

 

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1by it for annuity purposes under other provisions of this
2Article, shall make matching contributions concurrently with
3such salary deductions.
4    Each such 1/2 of 1% deduction from salary and each such
5contribution by the city of 1/2 of 1% of salary shall be
6credited to the Automatic Increase Reserve, to be used to
7defray the cost of the annuity increase provided by this
8Section. Any balance in such reserve as of the beginning of
9each calendar year shall be credited with interest at the rate
10of 3% per annum.
11    Such deductions from salary and city contributions shall
12continue while the policeman is in service.
13    The salary deductions provided in this Section are not
14subject to refund, except to the policeman himself, in any
15case in which: (i) the policeman withdraws prior to
16qualification for minimum annuity or Tier 2 monthly retirement
17annuity and applies for refund, (ii) the policeman applies for
18an annuity of a type that is not subject to annual increases
19under this Section, or (iii) a term annuity becomes payable.
20In such cases, the total of such salary deductions shall be
21refunded to the policeman, without interest, and charged to
22the Automatic Increase Reserve.
23    (d) Notwithstanding any other provision of this Article,
24the Tier 2 monthly retirement annuity of a person who first
25becomes a policeman under this Article on or after the
26effective date of this amendatory Act of the 97th General

 

 

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1Assembly shall be increased on the January 1 occurring either
2on or after (i) the attainment of age 60 or (ii) the first
3anniversary of the annuity start date, whichever is later.
4Each annual increase shall be calculated at 3% or one-half the
5annual unadjusted percentage increase (but not less than zero)
6in the consumer price index-u for the 12 months ending with the
7September preceding each November 1, whichever is less, of the
8originally granted retirement annuity. If the annual
9unadjusted percentage change in the consumer price index-u for
10a 12-month period ending in September is zero or, when
11compared with the preceding period, decreases, then the
12annuity shall not be increased.
13    For the purposes of this subsection (d), "consumer price
14index-u" means the index published by the Bureau of Labor
15Statistics of the United States Department of Labor that
16measures the average change in prices of goods and services
17purchased by all urban consumers, United States city average,
18all items, 1982-84 = 100. The new amount resulting from each
19annual adjustment shall be determined by the Public Pension
20Division of the Department of Insurance and made available to
21the boards of the pension funds by November 1 of each year.
22(Source: P.A. 99-905, eff. 11-29-16.)
 
23    (40 ILCS 5/5-240 new)
24    Sec. 5-240. Retirement Systems Reciprocal Act. The
25Retirement Systems Reciprocal Act, Article 20 of this Code, is

 

 

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1adopted and made a part of this Article, but only with respect
2to a person who, on or after the effective date of this
3amendatory Act of the 103rd General Assembly, is entitled
4under this Article or through a participating system under the
5Retirement Systems Reciprocal Act, as defined in Section
620-108, to begin receiving a retirement annuity or survivor's
7annuity (as those terms are defined in Article 20) and who
8elects to proceed under the Retirement Systems Reciprocal Act.
 
9    (40 ILCS 5/6-235 new)
10    Sec. 6-235. Retirement Systems Reciprocal Act. The
11Retirement Systems Reciprocal Act, Article 20 of this Code, is
12adopted and made a part of this Article, but only with respect
13to a person who, on or after the effective date of this
14amendatory Act of the 103rd General Assembly, is entitled
15under this Article or through a participating system under the
16Retirement Systems Reciprocal Act, as defined in Section
1720-108, to begin receiving a retirement annuity or survivor's
18annuity (as those terms are defined in Article 20) and who
19elects to proceed under the Retirement Systems Reciprocal Act.
 
20    Section 90. The State Mandates Act is amended by adding
21Section 8.47 as follows:
 
22    (30 ILCS 805/8.47 new)
23    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and

 

 

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18 of this Act, no reimbursement by the State is required for
2the implementation of any mandate created by this amendatory
3Act of the 103rd General Assembly.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".