093_HB0402

 
                                     LRB093 03971 EFG 04010 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, 1945) or over on that anniversary date,  or
14    upon  the  first of the month following his attainment of age
15    60 (age 55 if born before January 1,  1945)  if  that  occurs
16    after  the first anniversary of his retirement date, have his
17    then fixed and payable monthly annuity increased  by  1 1/2%,
18    and  such  first  fixed  annuity  as  granted  at  retirement
19    increased  by  an  additional  1 1/2% in January of each year
20    thereafter up to a maximum increase of 30%.   Beginning  July
21    1,  1982  for  firemen  born  before  January  1,  1930,  and
22    beginning January 1, 1990 for firemen born after December 31,
23    1929  and  before  January  1, 1940, and beginning January 1,
24    1996 for firemen born after  December  31,  1939  but  before
25    January  1,  1945,  and  beginning  January  1,  2004 for all
26    firemen qualifying under this subsection  without  regard  to
27    date  of  birth,  such increases shall be 3% and such firemen
28    shall not be subject to the 30% maximum increase.   Beginning
29    January 1, 2004, the increases provided under this subsection
30    shall  be  3%  of  the total amount of annuity payable at the
31    time  of  the  increase,  including  any  previous  increases
 
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 1    granted under this Article.
 2        Any fireman born before January 1, 1945 who qualifies for
 3    a minimum annuity and retires after  September  1,  1967  but
 4    before  the effective date of this amendatory Act of the 93rd
 5    General Assembly and has not received  the  initial  increase
 6    under  this  subsection before January 1, 1996 is entitled to
 7    receive the initial increase under  this  subsection  on  (1)
 8    January  1,  1996,  (2)  the first anniversary of the date of
 9    retirement, or (3) attainment of  age  55,  whichever  occurs
10    last.   The  changes  to this Section made by this amendatory
11    Act of 1995 apply beginning January 1, 1996 and apply without
12    regard to whether the fireman or annuitant terminated service
13    before the effective date of this amendatory Act of 1995.
14        A fireman who withdraws from  service  on  or  after  the
15    effective  date  of  this  amendatory Act of the 93rd General
16    Assembly with at least 20 years of service credit is entitled
17    to receive the initial increase under this subsection on  the
18    first  anniversary  of  the date of retirement, regardless of
19    age.
20        A fireman who withdrew from service before the  effective
21    date of this amendatory Act of the 93rd General Assembly with
22    at  least 20 years of service credit and has not received the
23    initial increase under this subsection before January 1, 2004
24    is entitled  to  receive  the  initial  increase  under  this
25    subsection  on  the  later  of  January  1, 2004 or the first
26    anniversary of the date of  retirement,  regardless  of  age.
27    The changes to this Section made by this amendatory Act apply
28    without regard to whether the fireman or annuitant terminated
29    service before the effective date of this amendatory Act.
30        (b)  Subsection  (a) of this Section is not applicable to
31    an employee receiving a term annuity.
32        (c)  To  help  defray  the  cost  of  such  increases  in
33    annuity, there shall  be  deducted,  beginning  September  1,
34    1959,  from each payment of salary to a fireman, 1/8 of 1% of
 
                            -3-      LRB093 03971 EFG 04010 b
 1    each  such  salary  payment  and  an  additional  1/8  of  1%
 2    beginning on  September  1,  1961,  and  September  1,  1963,
 3    respectively, concurrently with and in addition to the salary
 4    deductions otherwise made for annuity purposes.
 5        Each  such  additional  1/8  of  1% deduction from salary
 6    which shall, on September 1, 1963, result in a total increase
 7    of 3/8 of 1% of salary, shall be credited  to  the  Automatic
 8    Increase   Reserve,   to   be   used,   together   with  city
 9    contributions as provided in this Article, to defray the cost
10    of the  1$1/2%  annuity  increments  herein  specified.   Any
11    balance  in such reserve as of the beginning of each calendar
12    year shall be credited with interest at the rate  of  3%  per
13    annum.
14        The  salary  deductions  provided in this Section are not
15    subject to refund, except to the fireman himself, in any case
16    in which a  fireman  withdraws  prior  to  qualification  for
17    minimum  annuity  and  applies  for  refund,  or  applies for
18    annuity, and also where a term annuity  becomes  payable.  In
19    such  cases,  the  total  of  such salary deductions shall be
20    refunded to the fireman, without interest, and charged to the
21    aforementioned reserve.
22    (Source: P.A. 89-136, eff. 7-14-95.)

23        Section 90.  The State Mandates Act is amended by  adding
24    Section 8.27 as follows:

25        (30 ILCS 805/8.27 new)
26        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
27    and 8 of this Act, no reimbursement by the State is  required
28    for  the  implementation  of  any  mandate  created  by  this
29    amendatory Act of the 93rd General Assembly.

30        Section  99.  Effective date.  This Act takes effect upon
31    becoming law.