96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3538


 
Introduced 2/10/2010, by Sen. Kwame Raoul
 
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 18789 AMC 34174 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 




  






SB3538

LRB096 18789 AMC 34174 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 
5
Section 6-229 as follows:
 
6
    (40 ILCS 5/6-229 new)
7
    Sec. 6-229. Reversionary annuity.
8
    (a) A fireman, prior to retirement on annuity, may elect to 
9
take a lesser amount of annuity and provide, with the actuarial 
10
value of the amount by which his or her annuity is reduced, a 
11
reversionary annuity for a spouse. The option may be exercised 
12
by filing a written designation with the board prior to 
13
retirement, and may be revoked by the fireman at any time 
14
before retirement. The death of the fireman prior to his or her 
15
retirement shall automatically void the option.
16
    (b) The death of the designated reversionary annuitant 
17
prior to the fireman's retirement shall automatically void the 
18
option. If the reversionary annuitant dies after the fireman's 
19
retirement and before the death of the fireman annuitant, the 
20
reduced annuity being paid to the retired fireman annuitant 
21
shall be increased to the amount of annuity before reduction 
22
for the reversionary annuity and no reversionary annuity shall 
23
be payable.
The option is subject to the further condition that 
 


 






SB3538
- 2 -
LRB096 18789 AMC 34174 b




1
no reversionary annuity shall be paid if the fireman dies 
2
before the expiration of 730 days from the date his or her 
3
written designation was filed with the board, even though he 
4
has retired and is receiving a reduced annuity.
5
    (c) A fireman exercising this option may not reduce his or 
6
her annuity by more than $400 per month or elect to provide a 
7
reversionary annuity of less than $100 per month.
8
    (d) A reversionary annuity shall begin on the day following 
9
the death of the annuitant, with the first prorated payment due 
10
and payable the first day of the month following the date of 
11
death, and shall continue monthly thereafter until the death of 
12
the reversionary annuitant, with the last payment prorated to 
13
date of death.
14
    (e) Notwithstanding the fact that a fireman has elected to 
15
receive a reduced annuity under this Section, the increases in 
16
annuity provided in Section 6-164 of this Article shall be 
17
calculated on the amount of the original unreduced annuity.
18
    (f) The amount of the monthly reversionary annuity shall be 
19
determined by multiplying the amount of the monthly reduction 
20
in the fireman's annuity by the applicable factor in the 
21
following table based on the age of the fireman and the 
22
difference in the age of the fireman and the age of the 
23
fireman's spouse at the starting date of the fireman's annuity:
 
24
Fireman's Age:       50-52 53-55 56-58 59-61 62-64 65 & over

25
Spouse's Age:

 


 






SB3538
- 3 -
LRB096 18789 AMC 34174 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

16
older                27.03 24.90 23.51 22.52 21.60 20.90 
  
 
17
    Section 90. The State Mandates Act is amended by adding 
18
Section 8.34 as follows:
 
19
    (30 ILCS 805/8.34 new)
20
    Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 
21
of this Act, no reimbursement by the State is required for the 
22
implementation of any mandate created by this amendatory Act of 
23
the 96th General Assembly.