Rep. Robert Rita

Filed: 5/23/2020

 

 


 

 


 
10100SB0516ham008LRB101 04277 SMS 72451 a

1
AMENDMENT TO SENATE BILL 516

2    AMENDMENT NO. ______. Amend Senate Bill 516, AS AMENDED, by
3inserting immediately above Section 5 the following:
 
4    "Section 3. The Illinois Pension Code is amended by
5changing Sections 5-167.1, 5-238, 6-124, 6-124.1, 6-158,
66-164, and 6-229 as follows:
 
7    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
8    Sec. 5-167.1. Automatic increase in annuity; retirement
9from service after September 1, 1967.
10    (a) A policeman who retires from service after September 1,
111967 with at least 20 years of service credit shall, upon
12either the first of the month following the first anniversary
13of his date of retirement if he is age 55 60 (age 55 if born
14before January 1, 1966) or over on that anniversary date, or
15upon the first of the month following his attainment of age 55
1660 (age 55 if born before January 1, 1966) if it occurs after

 

 

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1the first anniversary of his retirement date, have his then
2fixed and payable monthly annuity increased by 3% 1 1/2% and
3such first fixed annuity as granted at retirement increased by
4an additional 3% 1 1/2% in January of each year thereafter up
5to a maximum increase of 30%. Beginning January 1, 1983 for
6policemen born before January 1, 1930, and beginning January 1,
71988 for policemen born on or after January 1, 1930 but before
8January 1, 1940, and beginning January 1, 1996 for policemen
9born on or after January 1, 1940 but before January 1, 1945,
10and beginning January 1, 2000 for policemen born on or after
11January 1, 1945 but before January 1, 1950, and beginning
12January 1, 2005 for policemen born on or after January 1, 1950
13but before January 1, 1955, and beginning January 1, 2017 for
14policemen born on or after January 1, 1955 but before January
151, 1966, such increases shall be 3% and such policemen shall
16not be subject to the 30% maximum increase.
17    Any policeman born before January 1, 1945 who qualifies for
18a minimum annuity and retires after September 1, 1967 but has
19not received the initial increase under this subsection before
20January 1, 1996 is entitled to receive the initial increase
21under this subsection on (1) January 1, 1996, (2) the first
22anniversary of the date of retirement, or (3) attainment of age
2355, whichever occurs last. The changes to this Section made by
24Public Act 89-12 apply beginning January 1, 1996 and without
25regard to whether the policeman or annuitant terminated service
26before the effective date of that Act.

 

 

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1    Any policeman born before January 1, 1950 who qualifies for
2a minimum annuity and retires after September 1, 1967 but has
3not received the initial increase under this subsection before
4January 1, 2000 is entitled to receive the initial increase
5under this subsection on (1) January 1, 2000, (2) the first
6anniversary of the date of retirement, or (3) attainment of age
755, whichever occurs last. The changes to this Section made by
8this amendatory Act of the 92nd General Assembly apply without
9regard to whether the policeman or annuitant terminated service
10before the effective date of this amendatory Act.
11    Any policeman born before January 1, 1955 who qualifies for
12a minimum annuity and retires after September 1, 1967 but has
13not received the initial increase under this subsection before
14January 1, 2005 is entitled to receive the initial increase
15under this subsection on (1) January 1, 2005, (2) the first
16anniversary of the date of retirement, or (3) attainment of age
1755, whichever occurs last. The changes to this Section made by
18this amendatory Act of the 94th General Assembly apply without
19regard to whether the policeman or annuitant terminated service
20before the effective date of this amendatory Act.
21    Any policeman born before January 1, 1966 who qualifies for
22a minimum annuity and retires after September 1, 1967 but has
23not received the initial increase under this subsection before
24January 1, 2017 is entitled to receive an initial increase
25under this subsection on (1) January 1, 2017, (2) the first
26anniversary of the date of retirement, or (3) attainment of age

 

 

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155, whichever occurs last, in an amount equal to 3% for each
2complete year following the date of retirement or attainment of
3age 55, whichever occurs later. The changes to this subsection
4made by this amendatory Act of the 99th General Assembly apply
5without regard to whether the policeman or annuitant terminated
6service before the effective date of this amendatory Act.
7    Any policeman born after January 1, 1966 who qualifies for
8a minimum annuity and retires after September 1, 1967 but has
9not received the initial increase under this subsection before
10January 1, 2021 is entitled to receive the initial increase
11under this subsection on (1) January 1, 2021, (2) the first
12anniversary of the date of retirement, or (3) attainment of age
1355, whichever occurs last. The changes to this Section made by
14this amendatory Act of the 101st General Assembly apply without
15regard to whether the policeman or annuitant terminated service
16before the effective date of this amendatory Act of the 101st
17General Assembly.
18    (b) Subsection (a) of this Section is not applicable to an
19employee receiving a term annuity.
20    (c) To help defray the cost of such increases in annuity,
21there shall be deducted, beginning September 1, 1967, from each
22payment of salary to a policeman, 1/2 of 1% of each salary
23payment concurrently with and in addition to the salary
24deductions otherwise made for annuity purposes.
25    The city, in addition to the contributions otherwise made
26by it for annuity purposes under other provisions of this

 

 

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1Article, shall make matching contributions concurrently with
2such salary deductions.
3    Each such 1/2 of 1% deduction from salary and each such
4contribution by the city of 1/2 of 1% of salary shall be
5credited to the Automatic Increase Reserve, to be used to
6defray the cost of the annuity increase provided by this
7Section. Any balance in such reserve as of the beginning of
8each calendar year shall be credited with interest at the rate
9of 3% per annum.
10    Such deductions from salary and city contributions shall
11continue while the policeman is in service.
12    The salary deductions provided in this Section are not
13subject to refund, except to the policeman himself, in any case
14in which: (i) the policeman withdraws prior to qualification
15for minimum annuity or Tier 2 monthly retirement annuity and
16applies for refund, (ii) the policeman applies for an annuity
17of a type that is not subject to annual increases under this
18Section, or (iii) a term annuity becomes payable. In such
19cases, the total of such salary deductions shall be refunded to
20the policeman, without interest, and charged to the Automatic
21Increase Reserve.
22    (d) Notwithstanding any other provision of this Article,
23the Tier 2 monthly retirement annuity of a person who first
24becomes a policeman under this Article on or after the
25effective date of this amendatory Act of the 97th General
26Assembly shall be increased on the January 1 occurring either

 

 

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1on or after (i) the attainment of age 60 or (ii) the first
2anniversary of the annuity start date, whichever is later. Each
3annual increase shall be calculated at 3% or one-half the
4annual unadjusted percentage increase (but not less than zero)
5in the consumer price index-u for the 12 months ending with the
6September preceding each November 1, whichever is less, of the
7originally granted retirement annuity. If the annual
8unadjusted percentage change in the consumer price index-u for
9a 12-month period ending in September is zero or, when compared
10with the preceding period, decreases, then the annuity shall
11not be increased.
12    For the purposes of this subsection (d), "consumer price
13index-u" means the index published by the Bureau of Labor
14Statistics of the United States Department of Labor that
15measures the average change in prices of goods and services
16purchased by all urban consumers, United States city average,
17all items, 1982-84 = 100. The new amount resulting from each
18annual adjustment shall be determined by the Public Pension
19Division of the Department of Insurance and made available to
20the boards of the pension funds by November 1 of each year.
21(Source: P.A. 99-905, eff. 11-29-16.)
 
22    (40 ILCS 5/5-238)
23    Sec. 5-238. Provisions applicable to new hires; Tier 2.
24    (a) Notwithstanding any other provision of this Article,
25the provisions of this Section apply to a person who first

 

 

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1becomes a policeman under this Article on or after January 1,
22011, and to certain qualified survivors of such a policeman.
3Such persons, and the benefits and restrictions that apply
4specifically to them under this Article, may be referred to as
5"Tier 2".
6    (b) A policeman who has withdrawn from service, has
7attained age 50 or more, and has 10 or more years of service in
8that capacity shall be entitled, upon proper application being
9received by the Fund, to receive a Tier 2 monthly retirement
10annuity for his service as a police officer. The Tier 2 monthly
11retirement annuity shall be computed by multiplying 2.5% for
12each year of such service by his or her final average salary,
13subject to an annuity reduction factor of one-half of 1% for
14each month that the police officer's age at retirement is under
15age 55. The Tier 2 monthly retirement annuity is in lieu of any
16age and service annuity or other form of retirement annuity
17under this Article.
18    The maximum retirement annuity under this subsection (b)
19shall be 75% of final average salary.
20    For the purposes of this subsection (b), "final average
21salary" means the greater of: (i) the average monthly salary
22obtained by dividing the total salary of the policeman during
23the 96 consecutive months of service within the last 120 months
24of service in which the total salary was the highest by the
25number of months of service in that period; or (ii) the average
26monthly salary obtained by dividing the total salary of the

 

 

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1policeman during the 48 consecutive months of service within
2the last 120 months of service in which the total salary was
3the highest by the number of months of service in that period.
4    Beginning on January 1, 2011, for all purposes under this
5Code (including without limitation the calculation of benefits
6and employee contributions), the annual salary based on the
7plan year of a member or participant to whom this Section
8applies shall not exceed $106,800; however, that amount shall
9annually thereafter be increased by the lesser of (i) 3% of
10that amount, including all previous adjustments, or (ii)
11one-half the annual unadjusted percentage increase (but not
12less than zero) in the consumer price index-u for the 12 months
13ending with the September preceding each November 1, including
14all previous adjustments.
15    Nothing in this amendatory Act of the 101st General
16Assembly shall cause or otherwise result in any retroactive
17adjustment of any employee contributions.
18    (c) Notwithstanding any other provision of this Article,
19for a person who first becomes a policeman under this Article
20on or after January 1, 2011, eligibility for and the amount of
21the annuity to which the qualified surviving spouse, children,
22and parents are entitled under this subsection (c) shall be
23determined as follows:
24        (1) The surviving spouse of a deceased policeman to
25    whom this Section applies shall be deemed qualified to
26    receive a Tier 2 surviving spouse's annuity under this

 

 

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1    paragraph (1) if: (i) the deceased policeman meets the
2    requirements specified under subdivision (A), (B), (C), or
3    (D) of this paragraph (1); and (ii) the surviving spouse
4    would not otherwise be excluded from receiving a widow's
5    annuity under the eligibility requirements for a widow's
6    annuity set forth in Section 5-146. The Tier 2 surviving
7    spouse's annuity is in lieu of the widow's annuity
8    determined under any other Section of this Article and is
9    subject to the requirements of Section 5-147.1.
10        As used in this subsection (c), "earned annuity" means
11    a Tier 2 monthly retirement annuity determined under
12    subsection (b) of this Section, including any increases the
13    policeman had received pursuant to Section 5-167.1.
14            (A) If the deceased policeman was receiving an
15        earned annuity at the date of his or her death, the
16        Tier 2 surviving spouse's annuity under this paragraph
17        (1) shall be in the amount of 66 2/3% of the
18        policeman's earned annuity at the date of death.
19            If the deceased policeman was a parent of a child
20        or children, including any child who has been conceived
21        but not yet born, and there is a surviving spouse, 12%
22        of the policeman's earned annuity at the date of death
23        shall be granted to the guardian of any such minor
24        child or children for each such child until attainment
25        of age 18. Upon the death of the surviving spouse
26        leaving one or more children under the age of 18, or

 

 

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1        upon the death of a policeman leaving one or more
2        children under the age of 18 but no surviving spouse, a
3        monthly pension of 20% of the policeman's monthly
4        salary at the date of death shall be granted to the
5        duly appointed guardian of each such child for the
6        support and maintenance of each such child until the
7        child reaches age 18. The benefit in this paragraph is
8        in lieu of a benefit under paragraph (2) of this
9        subsection (c) but does not apply if the beneficiary is
10        entitled to receive a greater benefit under paragraph
11        (2) of this subsection (c).
12            (B) If the deceased policeman was not receiving an
13        earned annuity but had at least 10 years of service at
14        the time of death, the Tier 2 surviving spouse's
15        annuity under this paragraph (1) shall be the greater
16        of: (i) 30% of the annual maximum salary attached to
17        the classified civil service position of a first class
18        patrolman at the time of his death; (ii) 54% of the
19        policeman's monthly salary at the time of the
20        policeman's death; or (iii) (ii) 66 2/3% of the Tier 2
21        monthly retirement annuity that the deceased policeman
22        would have been eligible to receive under subsection
23        (b) of this Section, based upon the actual service
24        accrued through the day before the policeman's death,
25        but determined as though the policeman was at least age
26        55 on the day before his or her death and retired on

 

 

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1        that day.
2            If the deceased policeman was a parent of a child
3        or children, including any child who has been conceived
4        but not yet born, and there is a surviving spouse, 12%
5        of the policeman's monthly salary at the date of death
6        shall be granted to the guardian of any such minor
7        child or children for each such child until attainment
8        of age 18. Upon the death of the surviving spouse
9        leaving one or more children under the age of 18, or
10        upon the death of a policeman leaving one or more
11        children under the age of 18 but no surviving spouse, a
12        monthly pension of 20% of the policeman's monthly
13        salary at the date of death shall be granted to the
14        duly appointed guardian of each such child for the
15        support and maintenance of each such child until the
16        child reaches age 18. The benefit in this paragraph is
17        in lieu of a benefit under paragraph (2) of this
18        subsection (c) but does not apply if the beneficiary is
19        entitled to receive a greater benefit under paragraph
20        (2) of this subsection (c).
21            (C) If the deceased policeman was an active
22        policeman with at least 1 1/2 but less than 10 years of
23        service at the time of death, the Tier 2 surviving
24        spouse's annuity under this paragraph (1) shall be the
25        greater of: (i) in the amount of 30% of the annual
26        maximum salary attached to the classified civil

 

 

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1        service position of a first class patrolman at the time
2        of his death; or (ii) 54% of the policeman's monthly
3        salary at the time of the policeman's death.
4            If the deceased policeman was a parent of a child
5        or children, including any child who has been conceived
6        but not yet born, and there is a surviving spouse, 12%
7        of the policeman's monthly salary at the date of death
8        shall be granted to the guardian of any such minor
9        child or children for each such child until attainment
10        of age 18. Upon the death of the surviving spouse
11        leaving one or more children under the age of 18, or
12        upon the death of a policeman leaving one or more
13        children under the age of 18 but no surviving spouse, a
14        monthly pension of 20% of the policeman's monthly
15        salary at the date of death shall be granted to the
16        duly appointed guardian of each such child for the
17        support and maintenance of each such child until the
18        child reaches age 18. The benefit in this paragraph is
19        in lieu of a benefit under paragraph (2) of this
20        subsection (c) but does not apply if the beneficiary is
21        entitled to receive a greater benefit under paragraph
22        (2) of this subsection (c).
23            (D) If the performance of an act or acts of duty
24        results directly in the death of a policeman subject to
25        this Section, or prevents him from subsequently
26        resuming active service in the police department, and

 

 

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1        if the policeman's Tier 2 surviving spouse would
2        otherwise meet the eligibility requirements for a
3        compensation annuity or supplemental annuity granted
4        under Section 5-144, then in addition to the Tier 2
5        surviving spouse's annuity provided under subdivision
6        (A), (B), or (C) of this paragraph (1), whichever
7        applies, the Tier 2 surviving spouse shall be qualified
8        to receive compensation annuity or supplemental
9        annuity, as would be provided under Section 5-144, in
10        order to bring the total benefit up to the applicable
11        75% salary limitation provided in that Section, but
12        subject to the Tier 2 salary cap provided under
13        subsection (b) of this Section; except that no such
14        annuity shall be paid to the surviving spouse of a
15        policeman who dies while in receipt of disability
16        benefits when the policeman's death was caused by an
17        intervening illness or injury unrelated to the illness
18        or injury that had prevented him from subsequently
19        resuming active service in the police department.
20            (E) Notwithstanding any other provision of this
21        Article, the monthly Tier 2 surviving spouse's annuity
22        under subdivision (A) or (B) of this paragraph (1)
23        shall be increased on the January 1 next occurring
24        after (i) attainment of age 60 by the recipient of the
25        Tier 2 surviving spouse's annuity or (ii) the first
26        anniversary of the Tier 2 surviving spouse's annuity

 

 

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1        start date, whichever is later, and on each January 1
2        thereafter, by 3% or one-half the annual unadjusted
3        percentage increase (but not less than zero) in the
4        consumer price index-u for the 12 months ending with
5        the September preceding each November 1, whichever is
6        less, of the originally granted Tier 2 surviving
7        spouse's annuity. If the unadjusted percentage change
8        in the consumer price index-u for a 12-month period
9        ending in September is zero or, when compared with the
10        preceding period, decreases, then the annuity shall
11        not be increased.
12            For the purposes of this Section, "consumer price
13        index-u" means the index published by the Bureau of
14        Labor Statistics of the United States Department of
15        Labor that measures the average change in prices of
16        goods and services purchased by all urban consumers,
17        United States city average, all items, 1982-84 = 100.
18        The new amount resulting from each annual adjustment
19        shall be determined by the Public Pension Division of
20        the Department of Insurance and made available to the
21        boards of the pension funds.
22            (F) Notwithstanding the other provisions of this
23        paragraph (1), for a qualified surviving spouse who is
24        entitled to a Tier 2 surviving spouse's annuity under
25        subdivision (A), (B), (C), or (D) of this paragraph
26        (1), that Tier 2 surviving spouse's annuity shall not

 

 

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1        be less than the amount of the minimum widow's annuity
2        established from time to time under Section 5-167.4.
3        (2) Surviving children of a deceased policeman subject
4    to this Section who would otherwise meet the eligibility
5    requirements for a child's annuity set forth in Sections
6    5-151 and 5-152 shall be deemed qualified to receive a Tier
7    2 child's annuity under this subsection (c), which shall be
8    in lieu of, but in the same amount and paid in the same
9    manner as, the child's annuity provided under those
10    Sections; except that any salary used for computing a Tier
11    2 child's annuity shall be subject to the Tier 2 salary cap
12    provided under subsection (b) of this Section. For purposes
13    of determining any pro rata reduction in child's annuities
14    under this subsection (c), references in Section 5-152 to
15    the combined annuities of the family shall be deemed to
16    refer to the combined Tier 2 surviving spouse's annuity, if
17    any, and the Tier 2 child's annuities payable under this
18    subsection (c).
19        (3) Surviving parents of a deceased policeman subject
20    to this Section who would otherwise meet the eligibility
21    requirements for a parent's annuity set forth in Section
22    5-152 shall be deemed qualified to receive a Tier 2
23    parent's annuity under this subsection (c), which shall be
24    in lieu of, but in the same amount and paid in the same
25    manner as, the parent's annuity provided under Section
26    5-152.1; except that any salary used for computing a Tier 2

 

 

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1    parent's annuity shall be subject to the Tier 2 salary cap
2    provided under subsection (b) of this Section. For the
3    purposes of this Section, a reference to "annuity" in
4    Section 5-152.1 includes: (i) in the context of a widow, a
5    Tier 2 surviving spouse's annuity and (ii) in the context
6    of a child, a Tier 2 child's annuity.
7    Notwithstanding Section 1-103.1, the changes made to this
8subsection by this amendatory Act of the 101st General Assembly
9apply without regard to whether the deceased policeman was in
10service on or after the effective date of this amendatory Act
11of the 101st General Assembly. The changes made by this
12amendatory Act of the 101st General Assembly shall not diminish
13the survivor's benefits described in this Section.
14    (d) The General Assembly finds and declares that the
15provisions of this Section, as enacted by Public Act 96-1495,
16require clarification relating to necessary eligibility
17standards and the manner of determining and paying the intended
18Tier 2 benefits and contributions in order to enable the Fund
19to unambiguously implement and administer benefits for Tier 2
20members. The changes to this Section and the conforming changes
21to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the
22changes to subsection (a) of that Section), 5-169, and 5-170
23made by this amendatory Act of the 99th General Assembly are
24enacted to clarify the provisions of this Section as enacted by
25Public Act 96-1495, and are hereby declared to represent and be
26consistent with the original and continuing intent of this

 

 

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1Section and Public Act 96-1495.
2    (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
3(except for the changes to subsection (a) of that Section),
45-169, and 5-170 made by this amendatory Act of the 99th
5General Assembly are intended to be retroactive to January 1,
62011 (the effective date of Public Act 96-1495) and, for the
7purposes of Section 1-103.1 of this Code, they apply without
8regard to whether the relevant policeman was in service on or
9after the effective date of this amendatory Act of the 99th
10General Assembly.
11(Source: P.A. 99-905, eff. 11-29-16.)
 
12    (40 ILCS 5/6-124)  (from Ch. 108 1/2, par. 6-124)
13    Sec. 6-124. Future entrants; amount entrants-age 63 in
14service-amount of annuity. When a future entrant attains age 63
15in service, except for a fireman who is not subject to the
16compulsory retirement age, his age and service annuity shall be
17fixed as of age 63. The annuity shall be that provided from the
18entire sum accumulated to his credit for age and service
19annuity on the date he attains age 63.
20    When a future entrant who is not subject to the compulsory
21retirement age withdraws from service and is at least age 63,
22his or her age and service annuity shall be fixed as of the age
23he or she withdraws from service. The annuity shall be that
24provided from the entire sum accumulated to his or her credit
25for age and service annuity on the date he or she withdraws

 

 

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1from service.
2(Source: P.A. 76-1668.)
 
3    (40 ILCS 5/6-124.1)
4    Sec. 6-124.1. Withdrawal from service; amount at
5compulsory retirement age - amount of annuity.
6    (a) In lieu of any annuity provided in the other provisions
7of this Article, a fireman who (1) is required to withdraw from
8service due to attainment of compulsory retirement age, or is
9not subject to compulsory retirement age, withdraws from
10service, and is at least age 63, and (2) has at least 10 but
11less than 20 years of service credit may elect to receive an
12annuity equal to 30% of average salary for the first 10 years
13of service plus 2% of average salary for each completed year of
14service or remaining fraction thereof in excess of 10, but not
15to exceed a maximum of 50% of average salary.
16    (b) For the purpose of this Section, "average salary" means
17the average of the fireman's highest 4 consecutive years of
18salary within the last 10 years of service.
19    (c) For the purpose of qualifying for the annual increases
20provided in Section 6-164, a fireman whose retirement annuity
21is calculated under this Section shall be deemed to qualify for
22a minimum annuity.
23(Source: P.A. 93-654, eff. 1-16-04.)
 
24    (40 ILCS 5/6-158)  (from Ch. 108 1/2, par. 6-158)

 

 

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1    Sec. 6-158. Refund Refund - General.
2    (a) A fireman who withdraws before age 50 and a fireman
3with less than 10 years of service who withdraws before age 57,
4or any fireman who withdraws and enters the service of another
5department of the city, has a right to a refund of the entire
6amount to his credit as of the date of withdrawal for age and
7service annuity or Tier 2 monthly retirement annuity, for
8automatic annual increase in annuity as provided in Section
96-164, and for widow's annuity or Tier 2 surviving spouse's
10annuity, from deductions from salary.
11    (b) Any such fireman shall be entitled to refund until he
12re-enters service or until his annuity is fixed.
13    (c) A fireman who receives a refund forfeits all rights to
14any annuity or benefit from the fund, for himself and for any
15other person who might benefit through him because of his
16service, provided he shall retain the right to credit for any
17such service, for the purpose of computing his total service if
18he re-enters service before age 57, becomes a beneficiary of
19the fund and makes repayment of the refund with interest.
20    (d) A fireman completing 10 years of service who does not
21receive a refund, may receive an annuity as provided in this
22Article.
23    (e) A fireman completing less than 10 years who does not
24receive a refund has a right to have all amounts to his credit
25for annuity purposes on the date of withdrawal improved by
26interest while he is out of service until age 57 only, for his

 

 

10100SB0516ham008- 20 -LRB101 04277 SMS 72451 a

1benefit and the benefit of any person who may have any right to
2annuity through him, if he subsequently reenters service and
3attains a right to annuity.
4(Source: P.A. 99-905, eff. 11-29-16.)
 
5    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
6    Sec. 6-164. Automatic annual increase; retirement after
7September 1, 1959.
8    (a) A fireman qualifying for a minimum annuity who retires
9from service after September 1, 1959 shall, upon either the
10first of the month following the first anniversary of his date
11of retirement if he is age 60 (age 55 if born before January 1,
121966) or over on that anniversary date, or upon the first of
13the month following his attainment of age 60 (age 55 if born
14before January 1, 1966) if that occurs after the first
15anniversary of his retirement date, have his then fixed and
16payable monthly annuity increased by 1 1/2%, and such first
17fixed annuity as granted at retirement increased by an
18additional 1 1/2% in January of each year thereafter up to a
19maximum increase of 30%. Beginning July 1, 1982 for firemen
20born before January 1, 1930, and beginning January 1, 1990 for
21firemen born after December 31, 1929 and before January 1,
221940, and beginning January 1, 1996 for firemen born after
23December 31, 1939 but before January 1, 1945, and beginning
24January 1, 2004, for firemen born after December 31, 1944 but
25before January 1, 1955, and beginning January 1, 2017, for

 

 

10100SB0516ham008- 21 -LRB101 04277 SMS 72451 a

1firemen born after December 31, 1954 but before January 1,
21966, such increases shall be 3% and such firemen shall not be
3subject to the 30% maximum increase.
4    Any fireman born before January 1, 1945 who qualifies for a
5minimum annuity and retires after September 1, 1967 but has not
6received the initial increase under this subsection before
7January 1, 1996 is entitled to receive the initial increase
8under this subsection on (1) January 1, 1996, (2) the first
9anniversary of the date of retirement, or (3) attainment of age
1055, whichever occurs last. The changes to this Section made by
11this amendatory Act of 1995 apply beginning January 1, 1996 and
12apply without regard to whether the fireman or annuitant
13terminated service before the effective date of this amendatory
14Act of 1995.
15    Any fireman born before January 1, 1955 who qualifies for a
16minimum annuity and retires after September 1, 1967 but has not
17received the initial increase under this subsection before
18January 1, 2004 is entitled to receive the initial increase
19under this subsection on (1) January 1, 2004, (2) the first
20anniversary of the date of retirement, or (3) attainment of age
2155, whichever occurs last. The changes to this Section made by
22this amendatory Act of the 93rd General Assembly apply without
23regard to whether the fireman or annuitant terminated service
24before the effective date of this amendatory Act.
25    Any fireman born after December 31, 1954 but before January
261, 1966 who qualifies for a minimum annuity and retires after

 

 

10100SB0516ham008- 22 -LRB101 04277 SMS 72451 a

1September 1, 1967 is entitled to receive an increase under this
2subsection on (1) January 1, 2017, (2) the first anniversary of
3the date of retirement, or (3) attainment of age 55, whichever
4occurs last, in an amount equal to an increase of 3% of his
5then fixed and payable monthly annuity upon the first of the
6month following the first anniversary of his date of retirement
7if he is age 55 or over on that anniversary date or upon the
8first of the month following his attainment of age 55 if that
9date occurs after the first anniversary of his retirement date
10and such first fixed annuity as granted at retirement shall be
11increased by an additional 3% in January of each year
12thereafter. In the case of a fireman born after December 31,
131954 but before January 1, 1966 who received an increase in any
14year of 1.5%, that fireman shall receive an increase for any
15such year so that the total increase is equal to 3% for each
16year the fireman would have been otherwise eligible had the
17fireman not received any increase. The changes to this
18subsection made by this amendatory Act of the 99th General
19Assembly apply without regard to whether the fireman or
20annuitant terminated service before the effective date of this
21amendatory Act. The changes to this subsection made by this
22amendatory Act of the 100th General Assembly are a declaration
23of existing law and shall not be construed as a new enactment.
24    Any fireman who qualifies for a minimum annuity and retires
25after September 1, 1967 is entitled to receive an increase
26under this subsection on (1) January 1, 2021, (2) the first

 

 

10100SB0516ham008- 23 -LRB101 04277 SMS 72451 a

1anniversary of the date of retirement, or (3) attainment of age
255, whichever occurs last, in an amount equal to an increase of
33% of his or her then fixed and payable monthly annuity upon
4the first of the month following the first anniversary of his
5or her date of retirement if he or she is age 55 or over on that
6anniversary date or upon the first of the month following his
7or her attainment of age 55 if that date occurs after the first
8anniversary of his or her retirement date and such first fixed
9annuity as granted at retirement shall be increased by an
10additional 3% in January of each year thereafter. In the case
11of a fireman who received an increase in any year of 1.5%, that
12fireman shall receive an increase for any such year so that the
13total increase is equal to 3% for each year the fireman would
14have been otherwise eligible had the fireman not received any
15increase. The changes to this subsection made by this
16amendatory Act of the 101st General Assembly apply without
17regard to whether the fireman or annuitant terminated service
18before the effective date of this amendatory Act of the 101st
19General Assembly.
20    (b) Subsection (a) of this Section is not applicable to an
21employee receiving a term annuity.
22    (c) To help defray the cost of such increases in annuity,
23there shall be deducted, beginning September 1, 1959, from each
24payment of salary to a fireman, 1/8 of 1% of each such salary
25payment and an additional 1/8 of 1% beginning on September 1,
261961, and September 1, 1963, respectively, concurrently with

 

 

10100SB0516ham008- 24 -LRB101 04277 SMS 72451 a

1and in addition to the salary deductions otherwise made for
2annuity purposes.
3    Each such additional 1/8 of 1% deduction from salary which
4shall, on September 1, 1963, result in a total increase of 3/8
5of 1% of salary, shall be credited to the Automatic Increase
6Reserve, to be used, together with city contributions as
7provided in this Article, to defray the cost of the annuity
8increments specified in this Section. Any balance in such
9reserve as of the beginning of each calendar year shall be
10credited with interest at the rate of 3% per annum.
11    The salary deductions provided in this Section are not
12subject to refund, except to the fireman himself in any case in
13which: (i) the fireman withdraws prior to qualification for
14minimum annuity or Tier 2 monthly retirement annuity and
15applies for refund, (ii) the fireman applies for an annuity of
16a type that is not subject to annual increases under this
17Section, or (iii) a term annuity becomes payable. In such
18cases, the total of such salary deductions shall be refunded to
19the fireman, without interest, and charged to the
20aforementioned reserve.
21    (d) Notwithstanding any other provision of this Article,
22the Tier 2 monthly retirement annuity of a person who first
23becomes a fireman under this Article on or after January 1,
242011 shall be increased on the January 1 occurring either on or
25after (i) the attainment of age 60 or (ii) the first
26anniversary of the annuity start date, whichever is later. Each

 

 

10100SB0516ham008- 25 -LRB101 04277 SMS 72451 a

1annual increase shall be calculated at 3% or one-half the
2annual unadjusted percentage increase (but not less than zero)
3in the consumer price index-u for the 12 months ending with the
4September preceding each November 1, whichever is less, of the
5originally granted retirement annuity. If the annual
6unadjusted percentage change in the consumer price index-u for
7a 12-month period ending in September is zero or, when compared
8with the preceding period, decreases, then the annuity shall
9not be increased.
10    For the purposes of this subsection (d), "consumer price
11index-u" means the index published by the Bureau of Labor
12Statistics of the United States Department of Labor that
13measures the average change in prices of goods and services
14purchased by all urban consumers, United States city average,
15all items, 1982-84 = 100. The new amount resulting from each
16annual adjustment shall be determined by the Public Pension
17Division of the Department of Insurance and made available to
18the boards of the pension funds by November 1 of each year.
19(Source: P.A. 99-905, eff. 11-29-16; 100-23, eff. 7-6-17;
20100-539, eff. 11-7-17.)
 
21    (40 ILCS 5/6-229)
22    Sec. 6-229. Provisions applicable to new hires; Tier 2.
23    (a) Notwithstanding any other provision of this Article,
24the provisions of this Section apply to a person who first
25becomes a fireman under this Article on or after January 1,

 

 

10100SB0516ham008- 26 -LRB101 04277 SMS 72451 a

12011, and to certain qualified survivors of such a fireman.
2Such persons, and the benefits and restrictions that apply
3specifically to them under this Article, may be referred to as
4"Tier 2".
5    (b) A fireman who has withdrawn from service, has attained
6age 50 or more, and has 10 or more years of service in that
7capacity shall be entitled, upon proper application being
8received by the Fund, to receive a Tier 2 monthly retirement
9annuity for his service as a fireman. The Tier 2 monthly
10retirement annuity shall be computed by multiplying 2.5% for
11each year of such service by his or her final average salary,
12subject to an annuity reduction factor of one-half of 1% for
13each month that the fireman's age at retirement is under age
1455. The Tier 2 monthly retirement annuity is in lieu of any age
15and service annuity or other form of retirement annuity under
16this Article.
17    The maximum retirement annuity under this subsection (b)
18shall be 75% of final average salary.
19    For the purposes of this subsection (b), "final average
20salary" means the greater of: (i) the average monthly salary
21obtained by dividing the total salary of the fireman during the
2296 consecutive months of service within the last 120 months of
23service in which the total salary was the highest by the number
24of months of service in that period; or (ii) the average
25monthly salary obtained by dividing the total salary of the
26fireman during the 48 consecutive months of service within the

 

 

10100SB0516ham008- 27 -LRB101 04277 SMS 72451 a

1last 120 months of service in which the total salary was the
2highest by the number of months of service in that period.
3    Beginning on January 1, 2011, for all purposes under this
4Code (including without limitation the calculation of benefits
5and employee contributions), the annual salary based on the
6plan year of a member or participant to whom this Section
7applies shall not exceed $106,800; however, that amount shall
8annually thereafter be increased by the lesser of (i) 3% of
9that amount, including all previous adjustments, or (ii)
10one-half the annual unadjusted percentage increase (but not
11less than zero) in the consumer price index-u for the 12 months
12ending with the September preceding each November 1, including
13all previous adjustments.
14    Nothing in this amendatory Act of the 101st General
15Assembly shall cause or otherwise result in any retroactive
16adjustment of any employee contributions.
17    (b-5) For the purposes of this Section, "consumer price
18index-u" means the index published by the Bureau of Labor
19Statistics of the United States Department of Labor that
20measures the average change in prices of goods and services
21purchased by all urban consumers, United States city average,
22all items, 1982-84 = 100. The new amount resulting from each
23annual adjustment shall be determined by the Public Pension
24Division of the Department of Insurance and made available to
25the boards of the retirement systems and pension funds by
26November 1 of each year.

 

 

10100SB0516ham008- 28 -LRB101 04277 SMS 72451 a

1    (c) Notwithstanding any other provision of this Article,
2for a person who first becomes a fireman under this Article on
3or after January 1, 2011, eligibility for and the amount of the
4annuity to which the qualified surviving spouse, children, and
5parents of the fireman are entitled under this subsection (c)
6shall be determined as follows:
7        (1) The surviving spouse of a deceased fireman to whom
8    this Section applies shall be deemed qualified to receive a
9    Tier 2 surviving spouse's annuity under this paragraph (1)
10    if: (i) the deceased fireman meets the requirements
11    specified under subdivision (A), (B), (C), or (D) of this
12    paragraph (1); and (ii) the surviving spouse would not
13    otherwise be excluded from receiving a widow's annuity
14    under the eligibility requirements for a widow's annuity
15    set forth in Section 6-142. The Tier 2 surviving spouse's
16    annuity is in lieu of the widow's annuity determined under
17    any other Section of this Article and is subject to the
18    requirements of Section 6-143.2.
19        As used in this subsection (c), "earned pension" means
20    a Tier 2 monthly retirement annuity determined under
21    subsection (b) of this Section, including any increases the
22    fireman had received pursuant to Section 6-164.
23            (A) If the deceased fireman was receiving an earned
24        pension at the date of his or her death, the Tier 2
25        surviving spouse's annuity under this paragraph (1)
26        shall be in the amount of 66 2/3% of the fireman's

 

 

10100SB0516ham008- 29 -LRB101 04277 SMS 72451 a

1        earned pension at the date of death.
2             If the deceased fireman was a parent of a child or
3        children, including any child who has been conceived
4        but not yet born, and there is a surviving spouse, 12%
5        of the fireman's earned pension at the date of death
6        shall be granted to the guardian of any such minor
7        child or children for each such child until attainment
8        of age 18. Upon the death of the surviving spouse
9        leaving one or more children under the age of 18, or
10        upon the death of a fireman leaving one or more
11        children under the age of 18 but no surviving spouse, a
12        monthly pension of 20% of the fireman's monthly salary
13        at the date of death shall be granted to the duly
14        appointed guardian of each such child for the support
15        and maintenance of each such child until the child
16        reaches age 18. The benefit in this paragraph is in
17        lieu of a benefit under paragraph (2) of this
18        subsection (c) but does not apply if the beneficiary is
19        entitled to receive a greater benefit under paragraph
20        (2) of this subsection (c).
21            (B) If the deceased fireman was not receiving an
22        earned pension but had at least 10 years of service at
23        the time of death, the Tier 2 surviving spouse's
24        annuity under this paragraph (1) shall be the greater
25        of: (i) 30% of the salary attached to the rank of first
26        class firefighter in the classified career service at

 

 

10100SB0516ham008- 30 -LRB101 04277 SMS 72451 a

1        the time of the fireman's death; (ii) 54% of the
2        fireman's monthly salary at the time of the fireman's
3        death; or (iii) (ii) 66 2/3% of the Tier 2 monthly
4        retirement annuity that the deceased fireman would
5        have been eligible to receive under subsection (b) of
6        this Section, based upon the actual service accrued
7        through the day before the fireman's death, but
8        determined as though the fireman was at least age 55 on
9        the day before his or her death and retired on that
10        day.
11            If the deceased fireman was a parent of a child or
12        children, including any child who has been conceived
13        but not yet born, and there is a surviving spouse, 12%
14        of the fireman's monthly salary at the date of death
15        shall be granted to the guardian of any such minor
16        child or children for each such child until attainment
17        of age 18. Upon the death of the surviving spouse
18        leaving one or more children under the age of 18, or
19        upon the death of a fireman leaving one or more
20        children under the age of 18 but no surviving spouse, a
21        monthly pension of 20% of the fireman's monthly salary
22        at the date of death shall be granted to the duly
23        appointed guardian of each such child for the support
24        and maintenance of each such child until the child
25        reaches age 18. The benefit in this paragraph is in
26        lieu of a benefit under paragraph (2) of this

 

 

10100SB0516ham008- 31 -LRB101 04277 SMS 72451 a

1        subsection (c) but does not apply if the beneficiary is
2        entitled to receive a greater benefit under paragraph
3        (2) of this subsection (c).
4            (C) If the deceased fireman was an active fireman
5        with at least 1 1/2 but less than 10 years of service
6        at the time of death, the Tier 2 surviving spouse's
7        annuity under this paragraph (1) shall be the greater
8        of: (i) in the amount of 30% of the salary attached to
9        the rank of first class firefighter in the classified
10        career service at the time of the fireman's death; or
11        (ii) 54% of the fireman's monthly salary at the time of
12        the fireman's death.
13            If the deceased fireman was a parent of a child or
14        children, including any child who has been conceived
15        but not yet born, and there is a surviving spouse, 12%
16        of the fireman's monthly salary at the date of death
17        shall be granted to the guardian of any such minor
18        child or children for each such child until attainment
19        of age 18. Upon the death of the surviving spouse
20        leaving one or more children under the age of 18, or
21        upon the death of a fireman leaving one or more
22        children under the age of 18 but no surviving spouse, a
23        monthly pension of 20% of the fireman's monthly salary
24        at the date of death shall be granted to the duly
25        appointed guardian of each such child for the support
26        and maintenance of each such child until the child

 

 

10100SB0516ham008- 32 -LRB101 04277 SMS 72451 a

1        reaches age 18. The benefit in this paragraph is in
2        lieu of a benefit under paragraph (2) of this
3        subsection (c) but does not apply if the beneficiary is
4        entitled to receive a greater benefit under paragraph
5        (2) of this subsection (c).
6            (D) Notwithstanding subdivisions (A), (B), and (C)
7        of this paragraph (1), if the performance of an act or
8        acts of duty results directly in the death of a fireman
9        subject to this Section, or prevents him from
10        subsequently resuming active service in the fire
11        department, then a surviving spouse who would
12        otherwise meet the eligibility requirements for a
13        death in the line of duty widow's annuity granted under
14        Section 6-140 shall be deemed to be qualified for a
15        Tier 2 surviving spouse's annuity under this
16        subdivision (D); except that no such annuity shall be
17        paid to the surviving spouse of a fireman who dies
18        while in receipt of disability benefits when the
19        fireman's death was caused by an intervening illness or
20        injury unrelated to the illness or injury that had
21        prevented him from subsequently resuming active
22        service in the fire department. The Tier 2 surviving
23        spouse's annuity calculated under this subdivision (D)
24        shall be in lieu of, but in the same amount and paid in
25        the same manner as, the widow's annuity provided under
26        Section 6-140; except that the salary used for

 

 

10100SB0516ham008- 33 -LRB101 04277 SMS 72451 a

1        computing a Tier 2 surviving spouse's annuity under
2        this subdivision (D) shall be subject to the Tier 2
3        salary cap provided under subsection (b) of this
4        Section.
5            (E) Notwithstanding any other provision of this
6        Article, the monthly Tier 2 surviving spouse's annuity
7        under subdivision (A) or (B) of this paragraph (1)
8        shall be increased on the January 1 next occurring
9        after (i) attainment of age 60 by the recipient of the
10        Tier 2 surviving spouse's annuity or (ii) the first
11        anniversary of the Tier 2 surviving spouse's annuity
12        start date, whichever is later, and on each January 1
13        thereafter, by 3% or one-half the annual unadjusted
14        percentage increase in the consumer price index-u for
15        the 12 months ending with September preceding each
16        November 1, whichever is less, of the originally
17        granted Tier 2 surviving spouse's annuity. If the
18        annual unadjusted percentage change in the consumer
19        price index-u for a 12-month period ending in September
20        is zero or, when compared with the preceding period,
21        decreases, then the annuity shall not be increased.
22            (F) Notwithstanding the other provisions of this
23        paragraph (1), for a qualified surviving spouse who is
24        entitled to a Tier 2 surviving spouse's annuity under
25        subdivision (A), (B), (C), or (D) of this paragraph
26        (1), that Tier 2 surviving spouse's annuity shall not

 

 

10100SB0516ham008- 34 -LRB101 04277 SMS 72451 a

1        be less than the amount of the minimum widow's annuity
2        established from time to time under Section 6-128.4.
3        (2) Surviving children of a deceased fireman subject to
4    this Section who would otherwise meet the eligibility
5    requirements for a child's annuity set forth in Sections
6    6-147 and 6-148 shall be deemed qualified to receive a Tier
7    2 child's annuity under this subsection (c), which shall be
8    in lieu of, but in the same amount and paid in the same
9    manner as, the child's annuity provided under those
10    Sections; except that any salary used for computing a Tier
11    2 child's annuity shall be subject to the Tier 2 salary cap
12    provided under subsection (b) of this Section. For purposes
13    of determining any pro rata reduction in child's annuities
14    under this subsection (c), references in Section 6-148 to
15    the combined annuities of the family shall be deemed to
16    refer to the combined Tier 2 surviving spouse's annuity, if
17    any, and the Tier 2 child's annuities payable under this
18    subsection (c).
19        (3) Surviving parents of a deceased fireman subject to
20    this Section who would otherwise meet the eligibility
21    requirements for a parent's annuity set forth in Section
22    6-149 shall be deemed qualified to receive a Tier 2
23    parent's annuity under this subsection (c), which shall be
24    in lieu of, but in the same amount and paid in the same
25    manner as, the parent's annuity provided under Section
26    6-149; except that any salary used for computing a Tier 2

 

 

10100SB0516ham008- 35 -LRB101 04277 SMS 72451 a

1    parent's annuity shall be subject to the Tier 2 salary cap
2    provided under subsection (b) of this Section. For the
3    purposes of this Section, a reference to "annuity" in
4    Section 6-149 includes: (i) in the context of a widow, a
5    Tier 2 surviving spouse's annuity and (ii) in the context
6    of a child, a Tier 2 child's annuity.
7    Notwithstanding Section 1-103.1, the changes made to this
8subsection by this amendatory Act of the 101st General Assembly
9apply without regard to whether the deceased fireman was in
10service on or after the effective date of this amendatory Act
11of the 101st General Assembly. The changes made by this
12amendatory Act of the 101st General Assembly shall not diminish
13the survivor's benefits described in this Section.
14    (d) The General Assembly finds and declares that the
15provisions of this Section, as enacted by Public Act 96-1495,
16require clarification relating to necessary eligibility
17standards and the manner of determining and paying the intended
18Tier 2 benefits and contributions in order to enable the Fund
19to unambiguously implement and administer benefits for Tier 2
20members. The changes to this Section and the conforming changes
21to Sections 6-150, 6-158, 6-164 (except for the changes to
22subsection (a) of that Section), 6-166, and 6-167 made by this
23amendatory Act of the 99th General Assembly are enacted to
24clarify the provisions of this Section as enacted by Public Act
2596-1495, and are hereby declared to represent and be consistent
26with the original and continuing intent of this Section and

 

 

10100SB0516ham008- 36 -LRB101 04277 SMS 72451 a

1Public Act 96-1495.
2    (e) The changes to Sections 6-150, 6-158, 6-164 (except for
3the changes to subsection (a) of that Section), 6-166, and
46-167 made by this amendatory Act of the 99th General Assembly
5are intended to be retroactive to January 1, 2011 (the
6effective date of Public Act 96-1495) and, for the purposes of
7Section 1-103.1 of this Code, they apply without regard to
8whether the relevant fireman was in service on or after the
9effective date of this amendatory Act of the 99th General
10Assembly.
11(Source: P.A. 99-905, eff. 11-29-16.)"; and
 
12by inserting immediately above Section 99 the following:
 
13    "Section 90. The State Mandates Act is amended by adding
14Section 8.44 as follows:
 
15    (30 ILCS 805/8.44 new)
16    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
17of this Act, no reimbursement by the State is required for the
18implementation of any mandate created by this amendatory Act of
19the 101st General Assembly.".