093_HB0399

 
                                     LRB093 03961 EFG 04000 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Section 6-164 as follows:

 6        (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
 7        Sec.  6-164.  Automatic annual increase; retirement after
 8    September 1, 1959.
 9        (a)  A fireman  qualifying  for  a  minimum  annuity  who
10    retires  from  service  after  September  1, 1959 shall, upon
11    either the first of the month following the first anniversary
12    of his date of retirement if he is age 60  (age  55  if  born
13    before  January  1,  1950  1945)  or over on that anniversary
14    date, or upon the first of the month following his attainment
15    of age 60 (age 55 if born before January  1,  1950  1945)  if
16    that  occurs  after  the  first anniversary of his retirement
17    date,  have  his  then  fixed  and  payable  monthly  annuity
18    increased by 1 1/2%, and such first fixed annuity as  granted
19    at retirement increased by an additional 1 1/2% in January of
20    each  year  thereafter  up  to  a  maximum  increase  of 30%.
21    Beginning July 1, 1982 for firemen  born  before  January  1,
22    1930,  and  beginning  January 1, 1990 for firemen born after
23    December 31, 1929 and before January 1, 1940,  and  beginning
24    January  1, 1996 for firemen born after December 31, 1939 but
25    before January 1, 1945, and beginning  January  1,  2004  for
26    firemen  born  after December 31, 1944 but before  January 1,
27    1950, such increases shall be 3% and such firemen  shall  not
28    be subject to the 30% maximum increase.  Beginning January 1,
29    2004,  the  increases provided under this subsection shall be
30    based on the total amount of annuity payable at the  time  of
31    the  increase, including any previous increases granted under
 
                            -2-      LRB093 03961 EFG 04000 b
 1    this Article.
 2        Any fireman born before January 1, 1945 who qualifies for
 3    a minimum annuity and retires after September 1, 1967 but has
 4    not received  the  initial  increase  under  this  subsection
 5    before  January  1,  1996  is entitled to receive the initial
 6    increase under this subsection on (1) January  1,  1996,  (2)
 7    the  first  anniversary  of  the  date  of retirement, or (3)
 8    attainment of age 55, whichever occurs last.  The changes  to
 9    this  Section  made  by  this  amendatory  Act  of 1995 apply
10    beginning January 1, 1996 and apply without regard to whether
11    the  fireman  or  annuitant  terminated  service  before  the
12    effective date of this amendatory Act of 1995.
13        Any fireman born before January 1, 1950 who qualifies for
14    a minimum annuity and retires after September 1, 1967 but has
15    not received  the  initial  increase  under  this  subsection
16    before  January  1,  2004  is entitled to receive the initial
17    increase under this subsection on (1) January  1,  2004,  (2)
18    the  first  anniversary  of  the  date  of retirement, or (3)
19    attainment of age 55, whichever occurs last.  The changes  to
20    this  Section made by this amendatory Act of the 93rd General
21    Assembly apply without  regard  to  whether  the  fireman  or
22    annuitant  terminated  service  before  the effective date of
23    this amendatory Act.
24        (b)  Subsection (a) of this Section is not applicable  to
25    an employee receiving a term annuity.
26        (c)  To  help  defray  the  cost  of  such  increases  in
27    annuity,  there  shall  be  deducted,  beginning September 1,
28    1959, from each payment of salary to a fireman, 1/8 of 1%  of
29    each  such  salary  payment  and  an  additional  1/8  of  1%
30    beginning  on  September  1,  1961,  and  September  1, 1963,
31    respectively, concurrently with and in addition to the salary
32    deductions otherwise made for annuity purposes.
33        Each such additional 1/8  of  1%  deduction  from  salary
34    which shall, on September 1, 1963, result in a total increase
 
                            -3-      LRB093 03961 EFG 04000 b
 1    of  3/8  of  1% of salary, shall be credited to the Automatic
 2    Increase  Reserve,   to   be   used,   together   with   city
 3    contributions as provided in this Article, to defray the cost
 4    of  the  1  1/2%  annuity  increments  herein specified.  Any
 5    balance in such reserve as of the beginning of each  calendar
 6    year  shall  be  credited with interest at the rate of 3% per
 7    annum.
 8        The salary deductions provided in this  Section  are  not
 9    subject to refund, except to the fireman himself, in any case
10    in  which  a  fireman  withdraws  prior  to qualification for
11    minimum annuity  and  applies  for  refund,  or  applies  for
12    annuity,  and  also  where a term annuity becomes payable. In
13    such cases, the total of  such  salary  deductions  shall  be
14    refunded to the fireman, without interest, and charged to the
15    aforementioned reserve.
16    (Source: P.A. 89-136, eff. 7-14-95.)

17        Section  90.  The State Mandates Act is amended by adding
18    Section 8.27 as follows:

19        (30 ILCS 805/8.27 new)
20        Sec. 8.27.  Exempt mandate.  Notwithstanding  Sections  6
21    and  8 of this Act, no reimbursement by the State is required
22    for  the  implementation  of  any  mandate  created  by  this
23    amendatory Act of the 93rd General Assembly.

24        Section 99.  Effective date.  This Act takes effect  upon
25    becoming law.