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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 Section 5-167.1 as follows:
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6 | (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
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7 | Sec. 5-167.1. Automatic increase in annuity; retirement | ||||||||||||||||||||||||||
8 | from service
after September 1, 1967. | ||||||||||||||||||||||||||
9 | (a) A policeman who retires from service after September | ||||||||||||||||||||||||||
10 | 1, 1967
with at least 20 years of service credit shall, upon | ||||||||||||||||||||||||||
11 | either the first
of the month following the first anniversary | ||||||||||||||||||||||||||
12 | of his date of retirement
if he is age 55 60 (age 55 if born | ||||||||||||||||||||||||||
13 | before January 1, 1966)
or over on that anniversary date, or | ||||||||||||||||||||||||||
14 | upon the first of the month following
his attainment of age 55 | ||||||||||||||||||||||||||
15 | 60 (age 55 if born before January 1, 1966)
if it occurs after | ||||||||||||||||||||||||||
16 | the first anniversary of his retirement date, have his
then | ||||||||||||||||||||||||||
17 | fixed and payable monthly annuity increased by 3% 1 1/2% and | ||||||||||||||||||||||||||
18 | such first
fixed annuity as granted at retirement increased by | ||||||||||||||||||||||||||
19 | an additional 3% 1 1/2% in
January of each year thereafter up | ||||||||||||||||||||||||||
20 | to a maximum increase of 30%. Beginning
January 1, 1983 for | ||||||||||||||||||||||||||
21 | policemen born before January 1, 1930, and beginning
January | ||||||||||||||||||||||||||
22 | 1, 1988 for policemen born on or after January 1, 1930 but | ||||||||||||||||||||||||||
23 | before
January 1, 1940, and beginning January 1, 1996 for |
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1 | policemen born on or after
January 1, 1940 but before January | ||||||
2 | 1, 1945, and beginning January 1, 2000
for policemen born on or | ||||||
3 | after January 1, 1945 but before January 1, 1950, and | ||||||
4 | beginning January 1, 2005
for policemen born on or after | ||||||
5 | January 1, 1950 but before January 1, 1955, and beginning | ||||||
6 | January 1, 2017
for policemen born on or after January 1, 1955 | ||||||
7 | but before January 1, 1966,
such increases shall be 3% and such | ||||||
8 | policemen shall not be subject to the
30% maximum increase .
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9 | Any policeman born before January 1, 1945 who qualifies | ||||||
10 | for a minimum
annuity and retires after September 1, 1967 but | ||||||
11 | has not received the initial
increase under this subsection | ||||||
12 | before January 1, 1996 is entitled to receive
the initial | ||||||
13 | increase under this subsection on (1) January 1, 1996, (2) the
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14 | first anniversary of the date of retirement, or (3) attainment | ||||||
15 | of age 55,
whichever occurs last. The changes to this Section | ||||||
16 | made by Public Act
89-12 apply beginning January 1, 1996 and
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17 | without regard to whether the policeman or annuitant | ||||||
18 | terminated service before
the effective date of that Act.
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19 | Any policeman born before January 1, 1950 who qualifies | ||||||
20 | for a minimum
annuity and retires after September 1, 1967 but | ||||||
21 | has not received the initial
increase under this subsection | ||||||
22 | before January 1, 2000 is entitled to receive
the initial | ||||||
23 | increase under this subsection on (1) January 1, 2000, (2) the
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24 | first anniversary of the date of retirement, or (3) attainment | ||||||
25 | of age 55,
whichever occurs last. The changes to this Section | ||||||
26 | made by this amendatory
Act of the 92nd General Assembly apply |
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1 | without regard to whether the policeman
or annuitant | ||||||
2 | terminated service before the effective date of this | ||||||
3 | amendatory
Act.
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4 | Any policeman born before January 1, 1955 who qualifies | ||||||
5 | for a minimum
annuity and retires after September 1, 1967 but | ||||||
6 | has not received the initial
increase under this subsection | ||||||
7 | before January 1, 2005 is entitled to receive
the initial | ||||||
8 | increase under this subsection on (1) January 1, 2005, (2) the
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9 | first anniversary of the date of retirement, or (3) attainment | ||||||
10 | of age 55,
whichever occurs last. The changes to this Section | ||||||
11 | made by this amendatory
Act of the 94th General Assembly apply | ||||||
12 | without regard to whether the policeman
or annuitant | ||||||
13 | terminated service before the effective date of this | ||||||
14 | amendatory
Act.
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15 | Any policeman born before January 1, 1966 who qualifies | ||||||
16 | for
a minimum annuity and retires after
September 1, 1967 but | ||||||
17 | has not received the initial increase
under this subsection | ||||||
18 | before January 1, 2017 is entitled to
receive an initial | ||||||
19 | increase under this subsection on (1)
January 1, 2017, (2) the | ||||||
20 | first anniversary of the date of
retirement, or (3) attainment | ||||||
21 | of age 55, whichever occurs last, in an amount equal to 3% for | ||||||
22 | each complete year following the date of retirement or | ||||||
23 | attainment of age 55, whichever occurs later. The changes to | ||||||
24 | this subsection made by this amendatory
Act of the 99th | ||||||
25 | General Assembly apply without regard to whether the policeman
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26 | or annuitant terminated service before the effective date of |
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1 | this amendatory
Act. | ||||||
2 | Any policeman born after January 1, 1966 who qualifies for | ||||||
3 | a minimum annuity and retires after September 1, 1967 but has | ||||||
4 | not received the initial increase under this subsection before | ||||||
5 | January 1, 2023 is entitled to receive the initial increase | ||||||
6 | under this subsection on (1) January 1, 2023, (2) the first | ||||||
7 | anniversary of the date of retirement, or (3) attainment of | ||||||
8 | age 55, whichever occurs last. The changes to this Section | ||||||
9 | made by this amendatory Act of the 103rd General Assembly | ||||||
10 | apply without regard to whether the policeman or annuitant | ||||||
11 | terminated service before the effective date of this | ||||||
12 | amendatory Act of the 103rd General Assembly. | ||||||
13 | (b) Subsection (a) of this Section is
not applicable to an | ||||||
14 | employee receiving a term annuity.
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15 | (c) To help defray the cost of such increases in annuity, | ||||||
16 | there shall
be deducted, beginning September 1, 1967, from | ||||||
17 | each payment of salary to a
policeman, 1/2 of 1% of each salary | ||||||
18 | payment concurrently with and in addition
to the salary | ||||||
19 | deductions otherwise made for annuity purposes.
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20 | The city, in addition to the contributions otherwise made | ||||||
21 | by it for
annuity purposes under other provisions of this | ||||||
22 | Article, shall make
matching contributions concurrently with | ||||||
23 | such salary deductions.
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24 | Each such 1/2 of 1% deduction from salary and each such | ||||||
25 | contribution
by the city of 1/2 of 1% of salary shall be | ||||||
26 | credited to the Automatic
Increase Reserve, to be used to |
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1 | defray the cost of the annuity
increase provided by this | ||||||
2 | Section. Any balance in such reserve as of the
beginning of | ||||||
3 | each calendar year shall be credited with interest at the
rate | ||||||
4 | of 3% per annum.
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5 | Such deductions from salary and city contributions shall | ||||||
6 | continue
while the policeman is in service.
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7 | The salary deductions provided in this Section are not | ||||||
8 | subject to
refund, except to the policeman himself, in any | ||||||
9 | case in which: (i) the
policeman withdraws prior to | ||||||
10 | qualification for minimum annuity or Tier 2 monthly retirement | ||||||
11 | annuity and
applies for refund, (ii) the policeman applies for | ||||||
12 | an annuity of a type that is not subject to annual increases | ||||||
13 | under this Section, or (iii) a term annuity
becomes payable. | ||||||
14 | In such cases, the total of such salary deductions
shall be | ||||||
15 | refunded to the policeman, without interest, and charged to | ||||||
16 | the
Automatic Increase Reserve.
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17 | (d) Notwithstanding any other provision of this Article, | ||||||
18 | the Tier 2 monthly retirement annuity of a
person who first | ||||||
19 | becomes a policeman under this Article on or after the | ||||||
20 | effective date of this amendatory Act of the 97th General | ||||||
21 | Assembly shall be increased on the January 1 occurring either | ||||||
22 | on or after (i) the attainment of age 60 or (ii) the first | ||||||
23 | anniversary of the annuity start date, whichever is later. | ||||||
24 | Each annual increase shall be calculated at 3% or one-half the | ||||||
25 | annual unadjusted percentage increase (but not less than zero) | ||||||
26 | in the consumer price index-u for the 12 months ending with the |
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1 | September preceding each November 1, whichever is less, of the | ||||||
2 | originally granted retirement annuity. If the annual | ||||||
3 | unadjusted percentage change in the consumer price index-u for | ||||||
4 | a 12-month period ending in September is zero or, when | ||||||
5 | compared with the preceding period, decreases, then the | ||||||
6 | annuity shall not be increased. | ||||||
7 | For the purposes of this subsection (d), "consumer price | ||||||
8 | index-u" means the index published by the Bureau of Labor | ||||||
9 | Statistics of the United States Department of Labor that | ||||||
10 | measures the average change in prices of goods and services | ||||||
11 | purchased by all urban consumers, United States city average, | ||||||
12 | all items, 1982-84 = 100. The new amount resulting from each | ||||||
13 | annual adjustment shall be determined by the Public Pension | ||||||
14 | Division of the Department of Insurance and made available to | ||||||
15 | the boards of the pension funds by November 1 of each year. | ||||||
16 | (Source: P.A. 99-905, eff. 11-29-16.)
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17 | Section 90. The State Mandates Act is amended by adding | ||||||
18 | Section 8.47 as follows: | ||||||
19 | (30 ILCS 805/8.47 new) | ||||||
20 | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | ||||||
21 | 8 of this Act, no reimbursement by the State is required for | ||||||
22 | the implementation of any mandate created by this amendatory | ||||||
23 | Act of the 103rd General Assembly.
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24 | Section 99. Effective date. This Act takes effect upon |
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1 | becoming law.
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