99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1390

 

Introduced , by Rep. Daniel J. Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.39 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Beginning December 1, 2015, extends eligibility for the 3% annual increase in retirement annuity at age 55 to firemen born after December 31, 1954 but before January 1, 1965 who began service prior to January 1, 2011. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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 changing
5Section 6-164 as follows:
 
6    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
7    Sec. 6-164. Automatic annual increase; retirement after
8September 1, 1959.
9    (a) A fireman qualifying for a minimum annuity who retires
10from service after September 1, 1959 shall, upon either the
11first of the month following the first anniversary of his date
12of retirement if he is age 60 (age 55 if he began service prior
13to January 1, 2011 and was born before January 1, 1965 1955) or
14over on that anniversary date, or upon the first of the month
15following his attainment of age 60 (age 55 if he began service
16prior to January 1, 2011 and was born before January 1, 1965
171955) if that occurs after the first anniversary of his
18retirement date, have his then fixed and payable monthly
19annuity increased by 1 1/2%, and such first fixed annuity as
20granted at retirement increased by an additional 1 1/2% in
21January of each year thereafter up to a maximum increase of
2230%. Beginning July 1, 1982 for firemen born before January 1,
231930, and beginning January 1, 1990 for firemen born after

 

 

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1December 31, 1929 and before January 1, 1940, and beginning
2January 1, 1996 for firemen born after December 31, 1939 but
3before January 1, 1945, and beginning January 1, 2004, for
4firemen born after December 31, 1944 but before January 1,
51955, and beginning December 1, 2015 for firemen born after
6December 31, 1954 but before January 1, 1965 who began service
7prior to January 1, 2011, such increases shall be 3% and such
8firemen shall not be subject to the 30% maximum increase.
9    Any fireman born before January 1, 1945 who qualifies for a
10minimum annuity and retires after September 1, 1967 but has not
11received the initial increase under this subsection before
12January 1, 1996 is entitled to receive the initial increase
13under this subsection on (1) January 1, 1996, (2) the first
14anniversary of the date of retirement, or (3) attainment of age
1555, whichever occurs last. The changes to this Section made by
16this amendatory Act of 1995 apply beginning January 1, 1996 and
17apply without regard to whether the fireman or annuitant
18terminated service before the effective date of this amendatory
19Act of 1995.
20    Any fireman born before January 1, 1955 who qualifies for a
21minimum annuity and retires after September 1, 1967 but has not
22received the initial increase under this subsection before
23January 1, 2004 is entitled to receive the initial increase
24under this subsection on (1) January 1, 2004, (2) the first
25anniversary of the date of retirement, or (3) attainment of age
2655, whichever occurs last. The changes to this Section made by

 

 

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1this amendatory Act of the 93rd General Assembly apply without
2regard to whether the fireman or annuitant terminated service
3before the effective date of this amendatory Act.
4    Any fireman born before January 1, 1965 who began service
5prior to January 1, 2011, qualifies for a minimum annuity, and
6retires after September 1, 1967 but has not received the
7initial increase under this subsection before December 1, 2015
8is entitled to receive the initial increase under this
9subsection on (1) December 1, 2015, (2) the first anniversary
10of the date of retirement, or (3) attainment of age 55,
11whichever occurs last. The changes to this Section made by this
12amendatory Act of the 99th General Assembly apply without
13regard to whether the fireman or annuitant terminated service
14before the effective date of this amendatory Act.
15    (b) Subsection (a) of this Section is not applicable to an
16employee receiving a term annuity.
17    (c) To help defray the cost of such increases in annuity,
18there shall be deducted, beginning September 1, 1959, from each
19payment of salary to a fireman, 1/8 of 1% of each such salary
20payment and an additional 1/8 of 1% beginning on September 1,
211961, and September 1, 1963, respectively, concurrently with
22and in addition to the salary deductions otherwise made for
23annuity purposes.
24    Each such additional 1/8 of 1% deduction from salary which
25shall, on September 1, 1963, result in a total increase of 3/8
26of 1% of salary, shall be credited to the Automatic Increase

 

 

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1Reserve, to be used, together with city contributions as
2provided in this Article, to defray the cost of the 1 1/2%
3annuity increments herein specified. Any balance in such
4reserve as of the beginning of each calendar year shall be
5credited with interest at the rate of 3% per annum.
6    The salary deductions provided in this Section are not
7subject to refund, except to the fireman himself, in any case
8in which a fireman withdraws prior to qualification for minimum
9annuity and applies for refund, or applies for annuity, and
10also where a term annuity becomes payable. In such cases, the
11total of such salary deductions shall be refunded to the
12fireman, without interest, and charged to the aforementioned
13reserve.
14    (d) Notwithstanding any other provision of this Article,
15the monthly annuity of a person who first becomes a fireman
16under this Article on or after January 1, 2011 shall be
17increased on the January 1 occurring either on or after the
18attainment of age 60 or the first anniversary of the annuity
19start date, whichever is later. Each annual increase shall be
20calculated at 3% or one-half the annual unadjusted percentage
21increase (but not less than zero) in the consumer price index-u
22for the 12 months ending with the September preceding each
23November 1, whichever is less, of the originally granted
24retirement annuity. If the annual unadjusted percentage change
25in the consumer price index-u for a 12-month period ending in
26September is zero or, when compared with the preceding period,

 

 

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1decreases, then the annuity shall not be increased.
2    For the purposes of this subsection (d), "consumer price
3index-u" means the index published by the Bureau of Labor
4Statistics of the United States Department of Labor that
5measures the average change in prices of goods and services
6purchased by all urban consumers, United States city average,
7all items, 1982-84 = 100. The new amount resulting from each
8annual adjustment shall be determined by the Public Pension
9Division of the Department of Insurance and made available to
10the boards of the pension funds.
11(Source: P.A. 96-1495, eff. 1-1-11.)
 
12    Section 90. The State Mandates Act is amended by adding
13Section 8.39 as follows:
 
14    (30 ILCS 805/8.39 new)
15    Sec. 8.39. Exempt mandate. Notwithstanding Sections 6 and 8
16of this Act, no reimbursement by the State is required for the
17implementation of any mandate created by this amendatory Act of
18the 99th General Assembly.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.