103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1052

 

Introduced 1/12/2023, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
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

    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.


LRB103 04996 RPS 50008 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB1052LRB103 04996 RPS 50008 b

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
5changing Sections 4-109 and 4-109.1 as follows:
 
6    (40 ILCS 5/4-109)  (from Ch. 108 1/2, par. 4-109)
7    Sec. 4-109. Pension.
8    (a) A firefighter age 50 or more with 20 or more years of
9creditable service, who is no longer in service as a
10firefighter, shall receive a monthly pension of 1/2 the
11monthly salary attached to the rank held by him or her in the
12fire service at the date of retirement.
13    The monthly pension shall be increased by 1/12 of 2.5% of
14such monthly salary for each additional month over 20 years of
15service through 30 years of service, to a maximum of 75% of
16such monthly salary.
17    The changes made to this subsection (a) by this amendatory
18Act of the 91st General Assembly apply to all pensions that
19become payable under this subsection on or after January 1,
201999. All pensions payable under this subsection that began on
21or after January 1, 1999 and before the effective date of this
22amendatory Act shall be recalculated, and the amount of the
23increase accruing for that period shall be payable to the

 

 

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1pensioner in a lump sum.
2    (b) A firefighter who retires or is separated from service
3having at least 10 but less than 20 years of creditable
4service, who is not entitled to receive a disability pension,
5and who did not apply for a refund of contributions at his or
6her last separation from service shall receive a monthly
7pension upon attainment of age 60 based on the monthly salary
8attached to his or her rank in the fire service on the date of
9retirement or separation from service according to the
10following schedule:
11    For 10 years of service, 15% of salary;
12    For 11 years of service, 17.6% of salary;
13    For 12 years of service, 20.4% of salary;
14    For 13 years of service, 23.4% of salary;
15    For 14 years of service, 26.6% of salary;
16    For 15 years of service, 30% of salary;
17    For 16 years of service, 33.6% of salary;
18    For 17 years of service, 37.4% of salary;
19    For 18 years of service, 41.4% of salary;
20    For 19 years of service, 45.6% of salary.
21    (c) Notwithstanding any other provision of this Article,
22the provisions of this subsection (c) apply to a person who
23first becomes a firefighter under this Article on or after
24January 1, 2011.
25    A firefighter age 55 or more who has 10 or more years of
26service in that capacity shall be entitled at his option to

 

 

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1receive a monthly pension for his service as a firefighter
2computed by multiplying 2.5% for each year of such service by
3his or her final average salary.
4    The pension of a firefighter who is retiring after
5attaining age 50 with 10 or more years but less than 20 years
6of creditable service shall be reduced by one-half of 1% for
7each month that the firefighter's age is under age 55.
8    The pension of a firefighter who is retiring after
9attaining age 50 with 20 or more years of creditable service
10shall not be reduced.
11    The maximum pension under this subsection (c) shall be 75%
12of final average salary.
13    For the purposes of this subsection (c), "final average
14salary" means the greater of: (i) the average monthly salary
15obtained by dividing the total salary of the firefighter
16during the 48 consecutive months of service within the last 60
17months of service in which the total salary was the highest by
18the number of months of service in that period; or (ii) the
19average monthly salary obtained by dividing the total salary
20of the firefighter during the 96 consecutive months of service
21within the last 120 months of service in which the total salary
22was the highest by the number of months of service in that
23period.
24    Beginning on January 1, 2011, for all purposes under this
25Code (including without limitation the calculation of benefits
26and employee contributions), the annual salary based on the

 

 

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1plan year of a member or participant to whom this Section
2applies shall not exceed $106,800; however, that amount shall
3annually thereafter be increased by the lesser of (i) 3% of
4that amount, including all previous adjustments, or (ii) the
5annual unadjusted percentage increase (but not less than zero)
6in the consumer price index-u for the 12 months ending with the
7September preceding each November 1, including all previous
8adjustments.
9    Nothing in this amendatory Act of the 101st General
10Assembly shall cause or otherwise result in any retroactive
11adjustment of any employee contributions.
12(Source: P.A. 101-610, eff. 1-1-20.)
 
13    (40 ILCS 5/4-109.1)  (from Ch. 108 1/2, par. 4-109.1)
14    Sec. 4-109.1. Increase in pension.
15    (a) Except as provided in subsection (e), the monthly
16pension of a firefighter who retires after July 1, 1971 and
17prior to January 1, 1986, shall, upon either the first of the
18month following the first anniversary of the date of
19retirement if 60 years of age or over at retirement date, or
20upon the first day of the month following attainment of age 60
21if it occurs after the first anniversary of retirement, be
22increased by 2% of the originally granted monthly pension and
23by an additional 2% in each January thereafter. Effective
24January 1976, the rate of the annual increase shall be 3% of
25the originally granted monthly pension.

 

 

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1    (b) The monthly pension of a firefighter who retired from
2service with 20 or more years of service, on or before July 1,
31971, shall be increased, in January of the year following the
4year of attaining age 65 or in January 1972, if then over age
565, by 2% of the originally granted monthly pension, for each
6year the firefighter received pension payments. In each
7January thereafter, he or she shall receive an additional
8increase of 2% of the original monthly pension. Effective
9January 1976, the rate of the annual increase shall be 3%.
10    (c) The monthly pension of a firefighter who is receiving
11a disability pension under this Article shall be increased, in
12January of the year following the year the firefighter attains
13age 60, or in January 1974, if then over age 60, by 2% of the
14originally granted monthly pension for each year he or she
15received pension payments. In each January thereafter, the
16firefighter shall receive an additional increase of 2% of the
17original monthly pension. Effective January 1976, the rate of
18the annual increase shall be 3%.
19    (c-1) On January 1, 1998, every child's disability benefit
20payable on that date under Section 4-110 or 4-110.1 shall be
21increased by an amount equal to 1/12 of 3% of the amount of the
22benefit, multiplied by the number of months for which the
23benefit has been payable. On each January 1 thereafter, every
24child's disability benefit payable under Section 4-110 or
254-110.1 shall be increased by 3% of the amount of the benefit
26then being paid, including any previous increases received

 

 

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1under this Article. These increases are not subject to any
2limitation on the maximum benefit amount included in Section
34-110 or 4-110.1.
4    (c-2) On July 1, 2004, every pension payable to or on
5behalf of a minor or disabled surviving child that is payable
6on that date under Section 4-114 shall be increased by an
7amount equal to 1/12 of 3% of the amount of the pension,
8multiplied by the number of months for which the benefit has
9been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
10July 1, 2008, every pension payable to or on behalf of a minor
11or disabled surviving child that is payable under Section
124-114 shall be increased by 3% of the amount of the pension
13then being paid, including any previous increases received
14under this Article. These increases are not subject to any
15limitation on the maximum benefit amount included in Section
164-114.
17    (d) The monthly pension of a firefighter who retires after
18January 1, 1986, shall, upon either the first of the month
19following the first anniversary of the date of retirement if
2055 years of age or over, or upon the first day of the month
21following attainment of age 55 if it occurs after the first
22anniversary of retirement, be increased by 1/12 of 3% of the
23originally granted monthly pension for each full month that
24has elapsed since the pension began, and by an additional 3% in
25each January thereafter.
26    The changes made to this subsection (d) by this amendatory

 

 

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1Act of the 91st General Assembly apply to all initial
2increases that become payable under this subsection on or
3after January 1, 1999. All initial increases that became
4payable under this subsection on or after January 1, 1999 and
5before the effective date of this amendatory Act shall be
6recalculated and the additional amount accruing for that
7period, if any, shall be payable to the pensioner in a lump
8sum.
9    (e) Notwithstanding the provisions of subsection (a), upon
10the first day of the month following (1) the first anniversary
11of the date of retirement, or (2) the attainment of age 55, or
12(3) July 1, 1987, whichever occurs latest, the monthly pension
13of a firefighter who retired on or after January 1, 1977 and on
14or before January 1, 1986 and did not receive an increase under
15subsection (a) before July 1, 1987, shall be increased by 3% of
16the originally granted monthly pension for each full year that
17has elapsed since the pension began, and by an additional 3% in
18each January thereafter. The increases provided under this
19subsection are in lieu of the increases provided in subsection
20(a).
21    (f) In July 2009, the monthly pension of a firefighter who
22retired before July 1, 1977 shall be recalculated and
23increased to reflect the amount that the firefighter would
24have received in July 2009 had the firefighter been receiving
25a 3% compounded increase for each year he or she received
26pension payments after January 1, 1986, plus any increases in

 

 

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1pension received for each year prior to January 1, 1986. In
2each January thereafter, he or she shall receive an additional
3increase of 3% of the amount of the pension then being paid.
4The changes made to this Section by this amendatory Act of the
596th General Assembly apply without regard to whether the
6firefighter was in service on or after its effective date.
7    (g) Notwithstanding any other provision of this Article,
8the monthly pension of a person who first becomes a
9firefighter under this Article on or after January 1, 2011
10shall be increased on the January 1 occurring either on or
11after the attainment of age 55 60 or the first anniversary of
12the pension start date, whichever is later. Each annual
13increase shall be calculated at 3% or one-half the annual
14unadjusted percentage increase (but not less than zero) in the
15consumer price index-u for the 12 months ending with the
16September preceding each November 1, whichever is less, of the
17originally granted pension. If the annual unadjusted
18percentage change in the consumer price index-u for a 12-month
19period ending in September is zero or, when compared with the
20preceding period, decreases, then the pension shall not be
21increased.
22    For the purposes of this subsection (g), "consumer price
23index-u" means the index published by the Bureau of Labor
24Statistics of the United States Department of Labor that
25measures the average change in prices of goods and services
26purchased by all urban consumers, United States city average,

 

 

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1all items, 1982-84 = 100. The new amount resulting from each
2annual adjustment shall be determined by the Public Pension
3Division of the Department of Insurance and made available to
4the boards of the pension funds.
5    Notwithstanding Section 1-103.1, the changes made by this
6amendatory Act of the 103rd General Assembly apply without
7regard to whether the person who first became a firefighter
8under this Article on or after January 1, 2011 is in active
9service under this Article on or after the effective date of
10this amendatory Act of the 103rd General Assembly.
11(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
 
12    Section 90. The State Mandates Act is amended by adding
13Section 8.47 as follows:
 
14    (30 ILCS 805/8.47 new)
15    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
168 of this Act, no reimbursement by the State is required for
17the implementation of any mandate created by this amendatory
18Act of the 103rd General Assembly.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.