96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6184


 
Introduced 2/11/2010, by Rep. Kevin A. McCarthy
 
SYNOPSIS AS INTRODUCED:
 		





 







40 ILCS 5/6-229 new






30 ILCS 805/8.34 new











     Amends the Chicago Firefighter Article of the Illinois Pension Code. Allows a fireman, prior to retirement on annuity, to elect to take a lesser amount of annuity and provide, with the actuarial value of the amount by which his or her annuity is reduced, a reversionary annuity for a spouse. Provides that a fireman exercising the  option to provide a reversionary annuity may not reduce his or her annuity by more than $400 per month or elect to provide a reversionary annuity of less than $100 per month. Provides that a reversionary annuity shall begin on the day following the death of the annuitant and shall continue monthly thereafter until the death of the reversionary annuitant. Provides a method for calculating the amount of the reversionary annuity. Amends the State Mandates Act to require implementation without reimbursement. 
  















LRB096 18790 AMC 34175 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 




  






HB6184

LRB096 18790 AMC 34175 b





  
1
    AN ACT concerning public employee benefits.
  
 
2
    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 adding 
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Section 6-229 as follows:
 
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    (40 ILCS 5/6-229 new)
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    Sec. 6-229. Reversionary annuity.
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    (a) A fireman, prior to retirement on annuity, may elect to 
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take a lesser amount of annuity and provide, with the actuarial 
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value of the amount by which his or her annuity is reduced, a 
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reversionary annuity for a spouse. The option may be exercised 
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by filing a written designation with the board prior to 
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retirement, and may be revoked by the fireman at any time 
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before retirement. The death of the fireman prior to his or her 
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retirement shall automatically void the option.
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    (b) The death of the designated reversionary annuitant 
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prior to the fireman's retirement shall automatically void the 
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option. If the reversionary annuitant dies after the fireman's 
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retirement and before the death of the fireman annuitant, the 
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reduced annuity being paid to the retired fireman annuitant 
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shall be increased to the amount of annuity before reduction 
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for the reversionary annuity and no reversionary annuity shall 
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be payable.
The option is subject to the further condition that 
 


 






HB6184
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LRB096 18790 AMC 34175 b




1
no reversionary annuity shall be paid if the fireman dies 
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before the expiration of 730 days from the date his or her 
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written designation was filed with the board, even though he 
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has retired and is receiving a reduced annuity.
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    (c) A fireman exercising this option may not reduce his or 
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her annuity by more than $400 per month or elect to provide a 
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reversionary annuity of less than $100 per month.
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    (d) A reversionary annuity shall begin on the day following 
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the death of the annuitant, with the first prorated payment due 
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and payable the first day of the month following the date of 
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death, and shall continue monthly thereafter until the death of 
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the reversionary annuitant, with the last payment prorated to 
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date of death.
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    (e) Notwithstanding the fact that a fireman has elected to 
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receive a reduced annuity under this Section, the increases in 
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annuity provided in Section 6-164 of this Article shall be 
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calculated on the amount of the original unreduced annuity.
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    (f) The amount of the monthly reversionary annuity shall be 
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determined by multiplying the amount of the monthly reduction 
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in the fireman's annuity by the applicable factor in the 
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following table based on the age of the fireman and the 
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difference in the age of the fireman and the age of the 
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fireman's spouse at the starting date of the fireman's annuity:
 
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Fireman's Age:       50-52 53-55 56-58 59-61 62-64 65 & over

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Spouse's Age:

 


 






HB6184
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LRB096 18790 AMC 34175 b




1
30 or more years

2
younger               2.92  2.48  2.10  1.77  1.48  1.24

3
25-29 years younger   3.06  2.60  2.20  1.86  1.57  1.32

4
20-24 years younger   3.25  2.76  2.35  2.00  1.69  1.42

5
15-19 years younger   3.50  2.99  2.56  2.19  1.86  1.57

6
10-14 years younger   3.86  3.31  2.85  2.45  2.10  1.79

7
5-9 years younger     4.36  3.77  3.26  2.83  2.44  2.10

8
0-4 years younger     5.06  4.40  3.85  3.36  2.93  2.55

9
1-5 years older       6.04  5.30  4.68  4.13  3.63  3.19

10
6-10 years older      7.40  6.56  5.86  5.23  4.63  4.09

11
11-15 years older     9.31  8.33  7.51  6.75  6.01  5.31

12
16-20 years older    11.95 10.78  9.78  8.84  7.90  7.02

13
21-25 years older    15.54 14.07 12.86 11.73 10.60  9.56

14
26-30 years older    20.37 18.55 17.15 15.94 14.73 13.62

15
31 or more years

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older                27.03 24.90 23.51 22.52 21.60 20.90 
  
 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.34 as follows:
 
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    (30 ILCS 805/8.34 new)
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    Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 
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of this Act, no reimbursement by the State is required for the 
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implementation of any mandate created by this amendatory Act of 
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the 96th General Assembly.