SB1625 96TH GENERAL ASSEMBLY

LRB096 03832 AMC 13864 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1625

Introduced 2/19/2009, by Sen. Louis S. Viverito

SYNOPSIS AS INTRODUCED:

40 ILCS 5/3-111	from Ch. 108 1/2, par. 3-111
40 ILCS 5/4-109	from Ch. 108 1/2, par. 4-109
40 ILCS 5/4-117	from Ch. 108 1/2, par. 4-117

Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Provides that, for police officers and firefighters who enter service on or after the effective date of the amendatory Act, pension benefits are based on qualified salary rather than the salary attached to the rank he or she held. Defines "qualified salary" to mean the amount of the monthly earnings obtained by dividing the total earnings received by the police officer or firefighter during the period of the 48 consecutive months of service within the last 120 months of service in which his or her total earnings were the highest. Effective January 1, 2010.

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 Sections 3-111, 4-109 and 4-117 as follows:

(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)

Sec. 3-111. Pension.

(a) A police officer age 50 or more with 20 or more years of creditable service, who is not a participant in the self-managed plan under Section 3-109.3 and who is no longer in service as a police officer, shall receive a pension of 1/2 of his or her qualified the salary attached to the rank held by the officer on the police force for one year immediately prior to retirement or, beginning July 1, 1987 for persons terminating service on or after that date, the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5% of such salary for each additional year of service over 20 years of service through 30 years of service, to a maximum of 75% of such salary.

The changes made to this subsection (a) by this amendatory Act of the 91st General Assembly apply to all pensions that become payable under this subsection on or after January 1, 1999. All pensions payable under this subsection that began on or after January 1, 1999 and before the effective date of this amendatory Act shall be recalculated, and the amount of the increase accruing for that period shall be payable to the pensioner in a lump sum.

(a-5) No pension in effect on or granted after June 30, l973 shall be less than $200 per month. Beginning July 1, 1987, the minimum retirement pension for a police officer having at least 20 years of creditable service shall be $400 per month, without regard to whether or not retirement occurred prior to that date. If the minimum pension established in Section 3-113.1 is greater than the minimum provided in this subsection, the Section 3-113.1 minimum controls.

(b) A police officer mandatorily retired from service due to age by operation of law, having at least 8 but less than 20 years of creditable service, shall receive a pension equal to 2 1/2% of his or her qualified the salary attached to the rank he or she held on the police force for one year immediately prior to retirement or, beginning July 1, 1987 for persons terminating service on or after that date, the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater, for each year of creditable service.

A police officer who retires or is separated from service having at least 8 years but less than 20 years of creditable service, who is not mandatorily retired due to age by operation of law, and who does not apply for a refund of contributions at his or her last separation from police service, shall receive a pension upon attaining age 60 equal to 2.5% of his or her qualified the salary attached to the rank held by the police officer on the police force for one year immediately prior to retirement or, beginning July 1, 1987 for persons terminating service on or after that date, the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater, for each year of creditable service.

(c) A police officer no longer in service who has at least one but less than 8 years of creditable service in a police pension fund but meets the requirements of this subsection (c) shall be eligible to receive a pension from that fund equal to 2.5% of the salary attached to the rank held on the last day of service under that fund or for one year prior to that last day, whichever is greater, for each year of creditable service in that fund. The pension shall begin no earlier than upon attainment of age 60 (or upon mandatory retirement from the fund by operation of law due to age, if that occurs before age 60) and in no event before the effective date of this amendatory Act of 1997.

In order to be eligible for a pension under this subsection (c), the police officer must have at least 8 years of creditable service in a second police pension fund under this Article and be receiving a pension under subsection (a) or (b) of this Section from that second fund. The police officer need not be in service on or after the effective date of this amendatory Act of 1997.

(d) For the purposes of this Section, "qualified salary" has the following meanings:

(1) for police officers who entered service before the effective date of this amendatory Act of the 96th General Assembly, "qualified salary" means the salary attached to the rank held by the police officer on the police force for one year immediately prior to retirement or, beginning July 1, 1987 for persons terminating service on or after that date, the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater, for each year of creditable service; and

(2) for police officers who enter service on or after the effective date of this amendatory Act of the 96th General Assembly, "qualified salary" means the amount of the monthly earnings obtained by dividing the total earnings received by the police officers during the period of the 48 consecutive months of service within the last 120 months of service in which his or her total earnings were the highest.

(Source: P.A. 90-460, eff. 8-17-97; 91-939, eff. 2-1-01.)

(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)

Sec. 4-109. Pension.

(a) A firefighter age 50 or more with 20 or more years of creditable service, who is no longer in service as a firefighter, shall receive a monthly pension of 1/2 of his or her qualified salary the monthly salary attached to the rank held by him or her in the fire service at the date of retirement.

The monthly pension shall be increased by 1/12 of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service, to a maximum of 75% of his or her qualified such monthly salary.

The changes made to this subsection (a) by this amendatory Act of the 91st General Assembly apply to all pensions that become payable under this subsection on or after January 1, 1999. All pensions payable under this subsection that began on or after January 1, 1999 and before the effective date of this amendatory Act shall be recalculated, and the amount of the increase accruing for that period shall be payable to the pensioner in a lump sum.

(b) A firefighter who retires or is separated from service having at least 10 but less than 20 years of creditable service, who is not entitled to receive a disability pension, and who did not apply for a refund of contributions at his or her last separation from service shall receive a monthly pension upon attainment of age 60 based on his or her qualified salary the monthly salary attached to his or her rank in the fire service on the date of retirement or separation from service according to the following schedule:

For 10 years of service, 15% of qualified salary;

For 11 years of service, 17.6% of qualified salary;

For 12 years of service, 20.4% of qualified salary;

For 13 years of service, 23.4% of qualified salary;

For 14 years of service, 26.6% of qualified salary;

For 15 years of service, 30% of qualified salary;

For 16 years of service, 33.6% of qualified salary;

For 17 years of service, 37.4% of qualified salary;

For 18 years of service, 41.4% of qualified salary;

For 19 years of service, 45.6% of qualified salary.

(c) For the purposes of this Section, "qualified salary" has the following meanings:

(1) for firefighters who entered service before the effective date of this amendatory Act of the 96th General Assembly, "qualified salary" means the monthly salary attached to his or her rank in the fire service on the date of retirement or separation from service; and

(2) for firefighters who enter service on or after the effective date of this amendatory Act of the 96th General Assembly, "qualified salary" means the amount of the monthly earnings obtained by dividing the total earnings received by the firefighter during the period of the 48 consecutive months of service within the last 120 months of service in which his or her total earnings were the highest.

(Source: P.A. 91-466, eff. 8-6-99.)

(40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)

Sec. 4-117. Reentry into active service.

(a) If a firefighter receiving pension payments reenters active service, pension payments shall be suspended while he or she is in service. If the firefighter again retires or is discharged, his or her monthly pension shall be resumed in the same amount as was paid upon first retirement or discharge unless he or she remained in active service 3 or more years after re-entry in which case the monthly pension shall be based on the firefighter's qualified salary, as that term is defined or subsection (d) of Section 4-109, attached to the firefighter's rank at the date of last retirement.

(b) If a deferred pensioner re-enters active service, and again retires or is discharged from the fire service, his or her pension shall be based on the firefighter's qualified salary, as that term is defined or subsection (d) of Section 4-109, attached to the rank held in the fire service at the date of earlier retirement, unless the firefighter remains in active service for 3 or more years after re-entry, in which case the monthly pension shall be based on the firefighter's qualified salary attached to the firefighter's rank at the date of last retirement.

(c) If a pensioner or deferred pensioner re-enters or is recalled to active service and is thereafter injured, and the injury is not related to an injury for which he or she was previously receiving a disability pension, the 3 year service requirement shall not apply in order for the firefighter to qualify for the increased pension based on the rate of pay at the time of the new injury.

(Source: P.A. 83-1440.)

Section 99. Effective date. This Act takes effect January 1, 2010.