93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB3074


 
Introduced 2/6/2004, by Antonio Munoz
 
SYNOPSIS AS INTRODUCED:
 		














40 ILCS 5/5-132
  from Ch. 108 1/2, par. 5-132



30 ILCS 805/8.28 new










    Amends the Chicago Police Article of the Illinois Pension Code to base benefits on the salary on the last day of service or during the last year of service, whichever is greater, rather than on the average of the 4 highest years of service during the last  10 for persons retiring after December 31, 2004. Increases the maximum pension for persons who retire after December 31, 2004 from 75% to 80% of salary. Amends the State Mandates Act to require implementations without reimbursement.
















LRB093 18946 LRD 44681 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











SB3074

LRB093 18946 LRD 44681 b






1
    AN ACT concerning public employee benefits.

 
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    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Illinois Pension Code is amended  by changing 
5
Section 5-132 as follows:
 



6
    (40 ILCS 5/5-132)  (from Ch. 108 1/2, par. 5-132)



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    Sec. 5-132. Minimum annuity. Any policeman who withdraws on 
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or after
July 8, 1957, or any policeman
transferred to the 
9
police service of the city under the Exchange of
Functions Act 
10
of 1957 who withdraws on or after July 17, 1959, after

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completing at least 20 years of service, for whom the
annuity 
12
otherwise provided in this Article is less than that stated in 
13
this
Section has a right to receive annuity as follows:

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    (a) If he is age 55 or more on withdrawal, his annuity 
15
after such
withdrawal, shall be equal to 2% of the average 
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salary for 4 consecutive
years of highest salaries within the 
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last 10 years of service before
withdrawal, for each year of 
18
service, together with 1/6 of 1% of such
average salary for 
19
each complete month of service of each fractional year,
but not 
20
in excess of 75% of the average annual salary.

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    (b) If he is age 50 or more but less than age 55 on 
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withdrawal, his
annuity shall be equal to 2% of the average 
23
salary for the 4 highest
consecutive years of the last 10 years 
24
of service for each year of service,
together with 1/16 of 1% 
25
of such average salary for each month of each
fractional year 
26
of service, reduced by 1/2 of 1% for each month that he is
less 
27
than age 55.

28
    (c) If he is less than age 50 on withdrawal, he may, upon 
29
attainment of
age 50 or over, become entitled to the annuity 
30
provided in this Section or,
he may, upon application before 
31
age 50, receive a refund of the deductions
from salary, plus 
32
interest at 1 1/2% per annum if he is entitled to refund
under 
 


 






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Section 5-163.

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    (d) In lieu of the annuity provided in the foregoing 
3
provisions of this
Section 5-132 any policeman who withdraws 
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from the service after December
31, 1973, after having attained 
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age 53 in the service with
23 or more years of service credit 
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shall be entitled to an
annuity computed as follows if such 
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annuity is greater than that provided
in the foregoing 
8
paragraphs of this Section 5-132: An annuity equal to
50% of 
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the average salary for the 4
highest consecutive years of the 
10
last 10 years of service plus
additional annuity equal to 2% of 
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such average salary for each completed
year of service or 
12
fraction
thereof rendered after his attainment of age 53 and 
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the completion
of 23 years of service.

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    Any policeman who has completed 23 years of service prior 
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to
his attainment of age 53 in the service and continues in the

16
service until his attainment of age 53 shall have added to his

17
annuity, computed as provided in the immediately preceding 
18
paragraph, an
additional annuity equal to 1% of such average 
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salary for each
completed year of service or fraction thereof 
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in excess of 23
years up to age 53.

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    (e) In lieu of the annuity provided in the foregoing 
22
provisions of this
Section any policeman who withdraws from the 
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service either (i) after
December 31, 1983 with at least 22 
24
years of service credit and having
attained age 52 in the 
25
service, or (ii) after December 31, 1984 with at
least 21 years 
26
of service credit and having attained age 51 in the service,
or 
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(iii) after December 31, 1985 with at least 20 years of service 
28
credit
and having attained age 50 in the service, or (iv) after 
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December 31,
1990, with at least 20 years of service credit 
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regardless of age, shall
be entitled to an annuity to begin not 
31
earlier than upon attainment of
age 50 if under such age at 
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withdrawal, computed as follows:  an annuity
equal to 50% of the 
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average salary for the 4 highest
consecutive years of the last 
34
10 years of service, plus additional annuity
equal to 2% of 
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such average salary for each completed year of service or

36
fraction thereof rendered after his completion of the minimum 
 


 






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number of
years of service required for him to be eligible 
2
under this subsection (e).
 However, the annuity provided under 
3
this subsection (e) may not exceed 75%
of such average salary.

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    (e-1) In lieu of the annuity provided in the foregoing 
5
provisions of this
Section, any policeman who withdraws from 
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the service after December 31, 2004 with at least 20 years of 
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service credit, regardless of age, shall be entitled to an 
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annuity to begin not earlier than upon attainment of age 50 if 
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under that age at withdrawal, computed as follows: an annuity 
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equal to 50% of the salary attached to the rank held on the 
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last day of service or for one year prior to the last day, 
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whichever is greater, plus additional annuity equal to 5% of 
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that  salary for each completed year of service or fraction 
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thereof rendered after his completion of the minimum number of 
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years of service required for him to be eligible under this 
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subsection (e-1). However, the annuity provided under this 
17
subsection (e-1) may not exceed 80%
of the salary used to 
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calculate the annuity provided under this subsection (e-1).

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    (f) A policeman withdrawing after September 1, 1969, may, 
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in addition, be
entitled to the benefits provided by Section 
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5-167.1 of this Article if he
so qualifies under that Section.

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    If, on withdrawal, total service is less than 20 years, the 
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policeman
shall not be entitled to an annuity under this 
24
Section but may receive an
annuity under the other provisions 
25
of this Article or, if entitled thereto
under Section 5--163, a 
26
refund of the deductions from salary, including, in
the case of 
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policemen transferred to the police service of the city under

28
the Exchange of Functions Act of 1957, the additional 
29
contribution paid on
salary received from August 1, 1957, to 
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July 17, 1959, as provided in the
Park Policemen's Annuity Act, 
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together with interest at 1 1/2% per annum.

32
    Moneys voluntarily contributed under the Policemen's 
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Annuity and Benefit
Fund Act of the Illinois Municipal Code, or 
34
the Park Policemen's Annuity
Act, shall be refunded to the 
35
contributing policemen who were in service on
January 1, 1954, 
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or in the case of policemen transferred to the police
service 
 


 






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of the city under the Exchange of Functions Act of 1957, who 
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were
in service on July 17, 1959.

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    The age and service annuity formula in this Section shall 
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not apply to
any policeman who, having retired before July 8, 
5
1957, or before July 17,
1959, in the case of a policeman 
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transferred under the provisions of the
Exchange of Functions 
7
Act of 1957, re-enters the police service after such
dates, 
8
whichever are applicable.

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(Source: P.A. 86-1488.)

 
10
    Section 90. The State Mandates Act is amended by adding 
11
Section 8.28 as
follows:


 
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    (30 ILCS 805/8.28 new)

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    Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 
14
of this
Act, no reimbursement by the State is required for the 
15
implementation of
any mandate created by this amendatory Act of 
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the 93rd General Assembly.

 

17
    Section 99. Effective date. This Act takes effect upon 
18
becoming law.