Illinois General Assembly - Full Text of HB3518
Illinois General Assembly

Previous General Assemblies

Full Text of HB3518  101st General Assembly

HB3518 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3518

 

Introduced , by Rep. Mark Batinick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-155 new

    Amends the General Provisions Article of the Illinois Pension Code. Provides that a Tier 1 participant of a pension fund or retirement system, except for a pension fund established under the Downstate Police, Downstate Firefighter, Chicago Police, or Chicago Firefighter Article, may irrevocably elect to have increases to his or her retirement annuity or supplemental annuity based on the annual unadjusted percentage increase in the consumer price index-u for a specified 12-month period. Requires each pension fund or retirement system to inform Tier 1 participants that they have the option to make that election. Provides that the changes apply without regard to whether the Tier 1 participant is in active service on or after the effective date of the amendatory Act. Effective immediately.


LRB101 10983 RPS 56167 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3518LRB101 10983 RPS 56167 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by adding
5Section 1-155 as follows:
 
6    (40 ILCS 5/1-155 new)
7    Sec. 1-155. Calculation of annual increase in annuity for
8Tier 1 participants.
9    (a) As used in this Section:
10    "Consumer price index-u" means the index published by the
11Bureau of Labor Statistics of the United States Department of
12Labor that measures the average change in prices of goods and
13services purchased by all urban consumers, United States city
14average, all items, 1982-84 = 100. The new amount resulting
15from each annual adjustment shall be determined by the Public
16Pension Division of the Department of Insurance and made
17available to the boards of the retirement systems and pension
18funds by November 1 of each year.
19    "Tier 1 participant" means a person who first became a
20participant or member before January 1, 2011 under a pension
21fund or retirement system established under this Code, except
22for a pension fund established under Article 3, 4, 5, or 6.
23    (b) A Tier 1 participant may irrevocably elect to have

 

 

HB3518- 2 -LRB101 10983 RPS 56167 b

1increases to his or her retirement annuity or supplemental
2annuity calculated in accordance with subsection (c). A pension
3fund or retirement system established under this Code, except
4for a pension fund established under Article 3, 4, 5, or 6,
5shall inform Tier 1 participants that they have the option to
6make the election under this subsection.
7    (c) Notwithstanding any other provision of this Code, the
8retirement annuity or supplemental annuity for a Tier 1
9participant who makes the election under subsection (b) shall
10be subject to annual increases equal to the annual unadjusted
11percentage increase in the consumer price index-u for the 12
12months ending with the September preceding each November 1,
13except that:
14        (1) if the annual unadjusted percentage increase in the
15    consumer price index-u for the 12 months ending with the
16    September preceding each November 1 is 1% or less, then the
17    annual increase shall be 1%; and
18        (2) if the annual unadjusted percentage increase in the
19    consumer price index-u for the 12 months ending with the
20    September preceding each November 1 is 5% or more, then the
21    annual increase shall be 5%.
22    (d) Notwithstanding Section 1-103.1, this Section applies
23without regard to whether the Tier 1 participant is in active
24service on or after the effective date of this amendatory Act
25of the 101st General Assembly.
 
26    Section 99. Effective date. This Act takes effect upon

 

 

HB3518- 3 -LRB101 10983 RPS 56167 b

1becoming law.