093_HB0491

 
                                     LRB093 03953 EFG 03992 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,  1955  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,  1955  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    1955, such increases shall be 3% and such firemen  shall  not
28    be subject to the 30% maximum increase.
29        Any fireman born before January 1, 1945 who qualifies for
30    a minimum annuity and retires after September 1, 1967 but has
31    not  received  the  initial  increase  under  this subsection
 
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 1    before January 1, 1996 is entitled  to  receive  the  initial
 2    increase  under  this  subsection on (1) January 1, 1996, (2)
 3    the first anniversary of  the  date  of  retirement,  or  (3)
 4    attainment  of age 55, whichever occurs last.  The changes to
 5    this Section made  by  this  amendatory  Act  of  1995  apply
 6    beginning January 1, 1996 and apply without regard to whether
 7    the  fireman  or  annuitant  terminated  service  before  the
 8    effective date of this amendatory Act of 1995.
 9        Any fireman born before January 1, 1955 who qualifies for
10    a minimum annuity and retires after September 1, 1967 but has
11    not  received  the  initial  increase  under  this subsection
12    before January 1, 2004 is entitled  to  receive  the  initial
13    increase  under  this  subsection on (1) January 1, 2004, (2)
14    the first anniversary of  the  date  of  retirement,  or  (3)
15    attainment  of age 55, whichever occurs last.  The changes to
16    this Section made by this amendatory Act of the 93rd  General
17    Assembly  apply  without  regard  to  whether  the fireman or
18    annuitant terminated service before  the  effective  date  of
19    this amendatory Act.
20        (b)  Subsection  (a) of this Section is not applicable to
21    an employee receiving a term annuity.
22        (c)  To  help  defray  the  cost  of  such  increases  in
23    annuity, there shall  be  deducted,  beginning  September  1,
24    1959,  from each payment of salary to a fireman, 1/8 of 1% of
25    each  such  salary  payment  and  an  additional  1/8  of  1%
26    beginning on  September  1,  1961,  and  September  1,  1963,
27    respectively, concurrently with and in addition to the salary
28    deductions otherwise made for annuity purposes.
29        Each  such  additional  1/8  of  1% deduction from salary
30    which shall, on September 1, 1963, result in a total increase
31    of 3/8 of 1% of salary, shall be credited  to  the  Automatic
32    Increase   Reserve,   to   be   used,   together   with  city
33    contributions as provided in this Article, to defray the cost
34    of the 1  1/2%  annuity  increments  herein  specified.   Any
 
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 1    balance  in such reserve as of the beginning of each calendar
 2    year shall be credited with interest at the rate  of  3%  per
 3    annum.
 4        The  salary  deductions  provided in this Section are not
 5    subject to refund, except to the fireman himself, in any case
 6    in which a  fireman  withdraws  prior  to  qualification  for
 7    minimum  annuity  and  applies  for  refund,  or  applies for
 8    annuity, and also where a term annuity  becomes  payable.  In
 9    such  cases,  the  total  of  such salary deductions shall be
10    refunded to the fireman, without interest, and charged to the
11    aforementioned reserve.
12    (Source: P.A. 89-136, eff. 7-14-95.)

13        Section 90.  The State Mandates Act is amended by  adding
14    Section 8.27 as follows:

15        (30 ILCS 805/8.27 new)
16        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
17    and 8 of this Act, no reimbursement by the State is  required
18    for  the  implementation  of  any  mandate  created  by  this
19    amendatory Act of the 93rd General Assembly.

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.