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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB1052 Introduced 1/12/2023, by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/4-109 | from Ch. 108 1/2, par. 4-109 |
40 ILCS 5/4-109.1 | from Ch. 108 1/2, par. 4-109.1 | 30 ILCS 805/8.47 new | |
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Amends the Downstate Firefighter Article of the Illinois Pension Code. In a provision that reduces the amount of the pension for a Tier 2 firefighter who retires with at least 10 years of creditable service before attaining age 55, provides that the pension of a Tier 2 firefighter who is retiring after attaining age 50 with 20 or more years of creditable service shall not be reduced. Makes a conforming change. Provides that each annual increase for Tier 2 firefighters shall be increased on the January 1 occurring either on or after the attainment of age 55 (instead of age 60) or the first anniversary of the pension start date, whichever is later, and shall be calculated at 3% of the originally granted pension (instead of calculated at the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for a 12-month period ending in September preceding each November 1). Provides that the changes shall apply without regard to whether a Tier 2 firefighter is in active service under the Article on or after the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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| | | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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| | A BILL FOR |
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| | HB1052 | | LRB103 04996 RPS 50008 b |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Pension Code is amended by |
5 | | changing Sections 4-109 and 4-109.1 as follows:
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6 | | (40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
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7 | | Sec. 4-109. Pension.
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8 | | (a) A firefighter age 50 or more with 20 or more years of |
9 | | creditable
service, who is no longer in service as a |
10 | | firefighter, shall receive a monthly
pension of 1/2 the |
11 | | monthly salary attached to the rank held by him or her in
the |
12 | | fire service at the date of retirement.
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13 | | The monthly pension shall be increased by 1/12 of 2.5% of |
14 | | such
monthly salary for each additional month over 20 years of |
15 | | service through 30
years of service, to a maximum of 75% of |
16 | | such monthly salary.
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17 | | The changes made to this subsection (a) by this amendatory |
18 | | Act of the
91st General Assembly apply to all pensions that |
19 | | become payable under this
subsection on or after January 1, |
20 | | 1999. All pensions payable under this
subsection that began on |
21 | | or after January 1, 1999 and before the effective date
of this |
22 | | amendatory Act shall be recalculated, and the amount of the |
23 | | increase
accruing for that period shall be payable to the |
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1 | | pensioner in a lump sum.
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2 | | (b) A firefighter who retires or is separated from service |
3 | | having at
least 10 but less than 20 years of creditable |
4 | | service, who is not entitled
to receive a disability pension, |
5 | | and who did not apply for a refund of
contributions at his or |
6 | | her last separation from service shall receive a
monthly |
7 | | pension upon attainment of age 60 based on the monthly salary |
8 | | attached
to his or her rank in the fire service on the date of |
9 | | retirement or separation
from service according to the |
10 | | following schedule:
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11 | | For 10 years of service, 15% of salary;
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12 | | For 11 years of service, 17.6% of salary;
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13 | | For 12 years of service, 20.4% of salary;
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14 | | For 13 years of service, 23.4% of salary;
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15 | | For 14 years of service, 26.6% of salary;
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16 | | For 15 years of service, 30% of salary;
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17 | | For 16 years of service, 33.6% of salary;
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18 | | For 17 years of service, 37.4% of salary;
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19 | | For 18 years of service, 41.4% of salary;
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20 | | For 19 years of service, 45.6% of salary.
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21 | | (c) Notwithstanding any other provision of this Article,
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22 | | the provisions of this subsection (c) apply to a person who |
23 | | first
becomes a firefighter under this Article on or after |
24 | | January 1, 2011. |
25 | | A firefighter age 55 or more who has 10 or more years of |
26 | | service in that capacity shall be entitled at his option to |
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1 | | receive a monthly pension for his service as a firefighter |
2 | | computed by multiplying 2.5% for each year of such service by |
3 | | his or her final average salary. |
4 | | The pension of a firefighter who is retiring after |
5 | | attaining age 50 with 10 or more years but less than 20 years |
6 | | of creditable service shall be reduced by one-half of 1% for |
7 | | each month that the firefighter's age is under age 55. |
8 | | The pension of a firefighter who is retiring after |
9 | | attaining age 50 with 20 or more years of creditable service |
10 | | shall not be reduced. |
11 | | The maximum pension under this subsection (c) shall be 75%
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12 | | of final average salary. |
13 | | For the purposes of this subsection (c), "final average |
14 | | salary" means the greater of: (i) the average monthly salary |
15 | | obtained by dividing the total salary of the firefighter |
16 | | during the 48 consecutive months of service within the last 60 |
17 | | months of service in which the total salary was the highest by |
18 | | the number of months of service in that period; or (ii) the |
19 | | average monthly salary obtained by dividing the total salary |
20 | | of the firefighter during the 96 consecutive months of service |
21 | | within the last 120 months of service in which the total salary |
22 | | was the highest by the number of months of service in that |
23 | | period. |
24 | | Beginning on January 1, 2011, for all purposes under
this |
25 | | Code (including without limitation the calculation of
benefits |
26 | | and employee contributions), the annual salary
based on the |
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1 | | plan year of a member or participant to whom this Section |
2 | | applies shall not exceed $106,800; however, that amount shall |
3 | | annually thereafter be increased by the lesser of (i) 3% of |
4 | | that amount, including all previous adjustments, or (ii) the |
5 | | annual unadjusted percentage increase (but not less than zero) |
6 | | in the consumer price index-u for the 12 months ending with the |
7 | | September preceding each November 1, including all previous |
8 | | adjustments. |
9 | | Nothing in this amendatory Act of the 101st General |
10 | | Assembly shall cause or otherwise result in any retroactive |
11 | | adjustment of any employee contributions. |
12 | | (Source: P.A. 101-610, eff. 1-1-20.)
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13 | | (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
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14 | | Sec. 4-109.1. Increase in pension.
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15 | | (a) Except as provided in subsection (e), the monthly |
16 | | pension of a
firefighter who retires after July 1, 1971 and |
17 | | prior to January 1, 1986, shall,
upon either the first of the |
18 | | month following the first anniversary of the date
of |
19 | | retirement if 60 years of age or over at retirement date, or |
20 | | upon the first
day of the month following attainment of age 60 |
21 | | if it occurs after the first
anniversary of retirement, be |
22 | | increased by 2% of the originally granted monthly
pension and |
23 | | by an additional 2% in each January thereafter. Effective |
24 | | January
1976, the rate of the annual increase shall be 3% of |
25 | | the originally granted
monthly pension.
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1 | | (b) The monthly pension of a firefighter who retired
from |
2 | | service with 20 or more years of service, on or before
July 1, |
3 | | 1971, shall be increased, in January of the year
following the |
4 | | year of attaining age 65 or in January
1972, if then over age |
5 | | 65, by 2% of the originally granted monthly
pension, for each |
6 | | year the firefighter received pension payments.
In each |
7 | | January thereafter, he or she shall receive an additional
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8 | | increase of 2% of the original monthly pension. Effective
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9 | | January 1976, the rate of the annual increase shall be 3%.
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10 | | (c) The monthly pension of a firefighter who is receiving
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11 | | a disability pension under this Article shall be increased, in
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12 | | January of the year following the year the firefighter attains
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13 | | age 60, or in January 1974, if then over age 60, by 2% of the
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14 | | originally granted monthly pension for each
year he or she |
15 | | received pension payments.
In each January thereafter, the |
16 | | firefighter shall receive an additional
increase of 2% of the |
17 | | original monthly pension. Effective January 1976,
the rate of |
18 | | the annual increase shall be 3%.
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19 | | (c-1) On January 1, 1998, every child's disability benefit |
20 | | payable on that
date under Section 4-110 or 4-110.1 shall be |
21 | | increased by an amount equal to
1/12 of 3% of the amount of the |
22 | | benefit, multiplied by the number of months for
which the |
23 | | benefit has been payable. On each January 1 thereafter, every
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24 | | child's disability benefit payable under Section 4-110 or |
25 | | 4-110.1 shall be
increased by 3% of the amount of the benefit |
26 | | then being paid, including any
previous increases received |
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1 | | under this Article. These increases are not
subject to any |
2 | | limitation on the maximum benefit amount included in Section
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3 | | 4-110 or 4-110.1.
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4 | | (c-2) On July 1, 2004, every pension payable to or on |
5 | | behalf of a minor
or disabled surviving child that is payable |
6 | | on that date under Section 4-114
shall be increased by an |
7 | | amount equal to 1/12 of 3% of the amount of the
pension, |
8 | | multiplied by the number of months for which the benefit has |
9 | | been
payable. On July 1, 2005, July 1, 2006, July 1, 2007, and |
10 | | July 1, 2008, every pension payable to or on behalf
of a minor |
11 | | or disabled surviving child that is payable under Section |
12 | | 4-114
shall be increased by 3% of the amount of the pension |
13 | | then being paid,
including any previous increases received |
14 | | under this Article. These increases
are not subject to any |
15 | | limitation on the maximum benefit amount included in
Section |
16 | | 4-114.
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17 | | (d) The monthly pension of a firefighter who retires after |
18 | | January 1,
1986, shall, upon either the first of the month |
19 | | following the first
anniversary of the date of retirement if |
20 | | 55 years of age or over, or
upon the first day of the month |
21 | | following attainment of
age 55 if it occurs after the first |
22 | | anniversary of retirement, be increased
by 1/12 of 3% of the |
23 | | originally granted monthly pension for each full
month that |
24 | | has elapsed since the pension began, and by an
additional 3% in |
25 | | each January thereafter.
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26 | | The changes made to this subsection (d) by this amendatory |
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1 | | Act of the 91st
General Assembly apply to all initial |
2 | | increases that become payable under this
subsection on or |
3 | | after January 1, 1999. All initial increases that became
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4 | | payable under this subsection on or after January 1, 1999 and |
5 | | before the
effective date of this amendatory Act shall be |
6 | | recalculated and the additional
amount accruing for that |
7 | | period, if any, shall be payable to the pensioner in a
lump |
8 | | sum.
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9 | | (e) Notwithstanding the provisions of subsection (a), upon |
10 | | the
first day of the month following (1) the first anniversary |
11 | | of the date of
retirement, or (2) the attainment of age 55, or |
12 | | (3) July 1, 1987, whichever
occurs latest, the monthly pension |
13 | | of a firefighter who retired on or after
January 1, 1977 and on |
14 | | or before January 1, 1986 and did not receive an
increase under |
15 | | subsection (a) before July 1, 1987,
shall be increased by 3% of |
16 | | the originally granted monthly pension for
each full year that |
17 | | has elapsed since the pension began, and by an
additional 3% in |
18 | | each January thereafter. The increases provided under
this |
19 | | subsection are in lieu of the increases provided in subsection |
20 | | (a).
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21 | | (f) In July 2009, the monthly pension of a
firefighter who |
22 | | retired before July 1, 1977 shall be recalculated and |
23 | | increased to reflect the amount that the firefighter would |
24 | | have received in July 2009 had the firefighter been receiving |
25 | | a 3% compounded increase for each year he or she received |
26 | | pension payments after January 1, 1986, plus any increases in |
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1 | | pension received for each year prior to January 1, 1986. In |
2 | | each January thereafter, he or she shall receive an additional
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3 | | increase of 3% of the amount of the pension then being paid. |
4 | | The changes made to this Section by this amendatory Act of the |
5 | | 96th General Assembly apply without regard to whether the |
6 | | firefighter was in service on or after its effective date. |
7 | | (g) Notwithstanding any other provision of this Article, |
8 | | the monthly pension of a
person who first becomes a |
9 | | firefighter under this Article on or after January 1, 2011 |
10 | | shall be increased on the January 1 occurring either on or |
11 | | after the attainment of age 55 60 or the first anniversary of |
12 | | the pension start date, whichever is later. Each annual |
13 | | increase shall be calculated at 3% or one-half the annual |
14 | | unadjusted percentage increase (but not less than zero) in the |
15 | | consumer price index-u for the 12 months ending with the |
16 | | September preceding each November 1, whichever is less, of the |
17 | | originally granted pension. If the annual unadjusted |
18 | | percentage change in the consumer price index-u for a 12-month |
19 | | period ending in September is zero or, when compared with the |
20 | | preceding period, decreases, then the pension shall not be |
21 | | increased. |
22 | | For the purposes of this subsection (g), "consumer price |
23 | | index-u" means the index published by the Bureau of Labor |
24 | | Statistics of the United States Department of Labor that |
25 | | measures the average change in prices of goods and services |
26 | | purchased by all urban consumers, United States city average, |
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1 | | all items, 1982-84 = 100. The new amount resulting from each |
2 | | annual adjustment shall be determined by the Public Pension |
3 | | Division of the Department of Insurance and made available to |
4 | | the boards of the pension funds. |
5 | | Notwithstanding Section 1-103.1, the changes made by this |
6 | | amendatory Act of the 103rd General Assembly apply without |
7 | | regard to whether the person who first became a firefighter |
8 | | under this Article on or after January 1, 2011 is in active |
9 | | service under this Article on or after the effective date of |
10 | | this amendatory Act of the 103rd General Assembly. |
11 | | (Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
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12 | | Section 90. The State Mandates Act is amended by adding |
13 | | Section 8.47 as follows: |
14 | | (30 ILCS 805/8.47 new) |
15 | | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and |
16 | | 8 of this Act, no reimbursement by the State is required for |
17 | | the implementation of any mandate created by this amendatory |
18 | | Act of the 103rd General Assembly.
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19 | | Section 99. Effective date. This Act takes effect upon |
20 | | becoming law.
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