Rep. Kevin A. McCarthy

Filed: 11/29/2010

 

 


 

 


 
09600SB3538ham002LRB096 18789 JDS 44249 a

1
AMENDMENT TO SENATE BILL 3538

2    AMENDMENT NO. ______. Amend Senate Bill 3538, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 3-111, 3-111.1, 3-112, 3-125, 4-109,
74-109.1, 4-114, 4-118, 5-167.1, 5-168, 6-164, 6-165, and
87-142.1 and by adding Sections 1-113.4a, 5-238, and 6-229 as
9follows:
 
10    (40 ILCS 5/1-113.4a new)
11    Sec. 1-113.4a. List of additional permitted investments
12for Article 3 and 4 pension funds with net assets of
13$10,000,000 or more.
14    (a) In addition to the items in Sections 1-113.2 and
151-113.3, a pension fund established under Article 3 or 4 that
16has net assets of at least $10,000,000 and has appointed an

 

 

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1investment adviser, as defined under Sections 1-101.4 and
21-113.5, may, through that investment adviser, invest an
3additional portion of its assets in common and preferred
4stocks, mutual funds, and corporate bonds.
5    (b) The stocks must meet all of the following requirements:
6        (1) The common stocks must be listed on a national
7    securities exchange or board of trade (as defined in the
8    Federal Securities Exchange Act of 1934 and set forth in
9    paragraph G of Section 3 of the Illinois Securities Law of
10    1953) or quoted in the National Association of Securities
11    Dealers Automated Quotation System National Market System.
12        (2) The securities must be of a corporation in
13    existence for at least 5 years.
14        (3) The market value of stock in any one corporation
15    may not exceed 5% of the cash and invested assets of the
16    pension fund, and the investments in the stock of any one
17    corporation may not exceed 5% of the total outstanding
18    stock of that corporation.
19        (4) The straight preferred stocks or convertible
20    preferred stocks must be issued or guaranteed by a
21    corporation whose common stock qualifies for investment by
22    the board.
23    (c) The mutual funds must meet the following requirements:
24        (1) The mutual fund must be managed by an investment
25    company registered under the Federal Investment Company
26    Act of 1940 and registered under the Illinois Securities

 

 

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1    Law of 1953.
2        (2) The mutual fund must have been in operation for at
3    least 5 years.
4        (3) The mutual fund must have total net assets of
5    $250,000,000 or more.
6        (4) The mutual fund must be comprised of a diversified
7    portfolio of common or preferred stocks, bonds, or money
8    market instruments.
9    (d) Corporate bonds managed through an investment adviser
10must meet the following requirements:
11        (1) Be rated as investment grade by one of the 2
12    largest rating services at the time of purchase.
13        (2) Securities subsequently downgraded below
14    investment grade shall be liquidated from the portfolio
15    within 90 days after the downgrade by the manager.
16    (e) A pension fund's total investment in the items
17authorized under this Section and Section 1-113.3 shall not
18exceed 50% effective July 1, 2011 and 55% effective July 1,
192012 of the market value of the pension fund's net present
20assets stated in its most recent annual report on file with the
21Department of Insurance.
22    (f) A pension fund that invests funds under this Section
23shall electronically file with the Division any reports of its
24investment activities that the Division may require, at the
25time and in the format required by the Division.
 

 

 

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1    (40 ILCS 5/3-111)  (from Ch. 108 1/2, par. 3-111)
2    Sec. 3-111. Pension.
3    (a) A police officer age 50 or more with 20 or more years
4of creditable service, who is not a participant in the
5self-managed plan under Section 3-109.3 and who is no longer in
6service as a police officer, shall receive a pension of 1/2 of
7the salary attached to the rank held by the officer on the
8police force for one year immediately prior to retirement or,
9beginning July 1, 1987 for persons terminating service on or
10after that date, the salary attached to the rank held on the
11last day of service or for one year prior to the last day,
12whichever is greater. The pension shall be increased by 2.5% of
13such salary for each additional year of service over 20 years
14of service through 30 years of service, to a maximum of 75% of
15such salary.
16    The changes made to this subsection (a) by this amendatory
17Act of the 91st General Assembly apply to all pensions that
18become payable under this subsection on or after January 1,
191999. All pensions payable under this subsection that began on
20or after January 1, 1999 and before the effective date of this
21amendatory Act shall be recalculated, and the amount of the
22increase accruing for that period shall be payable to the
23pensioner in a lump sum.
24    (a-5) No pension in effect on or granted after June 30,
25l973 shall be less than $200 per month. Beginning July 1, 1987,
26the minimum retirement pension for a police officer having at

 

 

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1least 20 years of creditable service shall be $400 per month,
2without regard to whether or not retirement occurred prior to
3that date. If the minimum pension established in Section
43-113.1 is greater than the minimum provided in this
5subsection, the Section 3-113.1 minimum controls.
6    (b) A police officer mandatorily retired from service due
7to age by operation of law, having at least 8 but less than 20
8years of creditable service, shall receive a pension equal to 2
91/2% of the salary attached to the rank he or she held on the
10police force for one year immediately prior to retirement or,
11beginning July 1, 1987 for persons terminating service on or
12after that date, the salary attached to the rank held on the
13last day of service or for one year prior to the last day,
14whichever is greater, for each year of creditable service.
15    A police officer who retires or is separated from service
16having at least 8 years but less than 20 years of creditable
17service, who is not mandatorily retired due to age by operation
18of law, and who does not apply for a refund of contributions at
19his or her last separation from police service, shall receive a
20pension upon attaining age 60 equal to 2.5% of the salary
21attached to the rank held by the police officer on the police
22force for one year immediately prior to retirement or,
23beginning July 1, 1987 for persons terminating service on or
24after that date, the salary attached to the rank held on the
25last day of service or for one year prior to the last day,
26whichever is greater, for each year of creditable service.

 

 

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1    (c) A police officer no longer in service who has at least
2one but less than 8 years of creditable service in a police
3pension fund but meets the requirements of this subsection (c)
4shall be eligible to receive a pension from that fund equal to
52.5% of the salary attached to the rank held on the last day of
6service under that fund or for one year prior to that last day,
7whichever is greater, for each year of creditable service in
8that fund. The pension shall begin no earlier than upon
9attainment of age 60 (or upon mandatory retirement from the
10fund by operation of law due to age, if that occurs before age
1160) and in no event before the effective date of this
12amendatory Act of 1997.
13    In order to be eligible for a pension under this subsection
14(c), the police officer must have at least 8 years of
15creditable service in a second police pension fund under this
16Article and be receiving a pension under subsection (a) or (b)
17of this Section from that second fund. The police officer need
18not be in service on or after the effective date of this
19amendatory Act of 1997.
20    (d) Notwithstanding any other provision of this Article,
21the provisions of this subsection (d) apply to a person who is
22not a participant in the self-managed plan under Section
233-109.3 and who first becomes a police officer under this
24Article on or after January 1, 2011.
25    A police officer 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 police officer
2computed by multiplying 2.5% for each year of such service by
3his or her final average salary.
4    The pension of a police officer who is retiring after
5attaining age 50 with 10 or more years of creditable service
6shall be reduced by one-half of 1% for each month that the
7police officer's age is under age 55.
8    The maximum pension under this subsection (d) shall be 75%
9of final average salary.
10    For the purposes of this subsection (d), "final average
11salary" means the average monthly salary obtained by dividing
12the total salary of the police officer during the 96
13consecutive months of service within the last 120 months of
14service in which the total salary was the highest by the number
15of months of service in that period.
16    Notwithstanding any other provision of this Article,
17beginning on January 1, 2011, the final average salary of a
18police officer based on the plan year for any purposes under
19this Article shall not exceed $106,800; however, that amount
20shall annually thereafter be increased by the lesser of (i) 3%
21of that amount, including all previous adjustments, or (ii)
22one-half the annual unadjusted percentage increase (but not
23less than zero) in the consumer price index-u for the 12 months
24ending with the September preceding each November 1, including
25all previous adjustments.
26(Source: P.A. 90-460, eff. 8-17-97; 91-939, eff. 2-1-01.)
 

 

 

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1    (40 ILCS 5/3-111.1)  (from Ch. 108 1/2, par. 3-111.1)
2    Sec. 3-111.1. Increase in pension.
3    (a) Except as provided in subsection (e), the monthly
4pension of a police officer who retires after July 1, 1971, and
5prior to January 1, 1986, shall be increased, upon either the
6first of the month following the first anniversary of the date
7of retirement if the officer is 60 years of age or over at
8retirement date, or upon the first day of the month following
9attainment of age 60 if it occurs after the first anniversary
10of retirement, by 3% of the originally granted pension and by
11an additional 3% of the originally granted pension in January
12of each year thereafter.
13    (b) The monthly pension of a police officer who retired
14from service with 20 or more years of service, on or before
15July 1, 1971, shall be increased in January of the year
16following the year of attaining age 65 or in January of 1972,
17if then over age 65, by 3% of the originally granted pension
18for each year the police officer received pension payments. In
19each January thereafter, he or she shall receive an additional
20increase of 3% of the original pension.
21    (c) The monthly pension of a police officer who retires on
22disability or is retired for disability shall be increased in
23January of the year following the year of attaining age 60, by
243% of the original grant of pension for each year he or she
25received pension payments. In each January thereafter, the

 

 

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1police officer shall receive an additional increase of 3% of
2the original pension.
3    (d) The monthly pension of a police officer who retires
4after January 1, 1986, shall be increased, upon either the
5first of the month following the first anniversary of the date
6of retirement if the officer is 55 years of age or over, or
7upon the first day of the month following attainment of age 55
8if it occurs after the first anniversary of retirement, by 1/12
9of 3% of the originally granted pension for each full month
10that has elapsed since the pension began, and by an additional
113% of the originally granted pension in January of each year
12thereafter.
13    The changes made to this subsection (d) by this amendatory
14Act of the 91st General Assembly apply to all initial increases
15that become payable under this subsection on or after January
161, 1999. All initial increases that became payable under this
17subsection on or after January 1, 1999 and before the effective
18date of this amendatory Act shall be recalculated and the
19additional amount accruing for that period, if any, shall be
20payable to the pensioner in a lump sum.
21    (e) Notwithstanding the provisions of subsection (a), upon
22the first day of the month following (1) the first anniversary
23of the date of retirement, or (2) the attainment of age 55, or
24(3) July 1, 1987, whichever occurs latest, the monthly pension
25of a police officer who retired on or after January 1, 1977 and
26on or before January 1, 1986, and did not receive an increase

 

 

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1under subsection (a) before July 1, 1987, shall be increased by
23% of the originally granted monthly pension for each full year
3that has elapsed since the pension began, and by an additional
43% of the originally granted pension in each January
5thereafter. The increases provided under this subsection are in
6lieu of the increases provided in subsection (a).
7    (f) Notwithstanding the other provisions of this Section,
8beginning with increases granted on or after July 1, 1993, the
9second and all subsequent automatic annual increases granted
10under subsection (a), (b), (d), or (e) of this Section shall be
11calculated as 3% of the amount of pension payable at the time
12of the increase, including any increases previously granted
13under this Section, rather than 3% of the originally granted
14pension amount. Section 1-103.1 does not apply to this
15subsection (f).
16    (g) Notwithstanding any other provision of this Article,
17the monthly pension of a person who first becomes a police
18officer under this Article on or after January 1, 2011 shall be
19increased on the January 1 occurring either on or after the
20attainment of age 60 or the first anniversary of the pension
21start date, whichever is later. Each annual increase shall be
22calculated at 3% or one-half the annual unadjusted percentage
23increase (but not less than zero) in the consumer price index-u
24for the 12 months ending with the September preceding each
25November 1, whichever is less, of the originally granted
26pension. If the annual unadjusted percentage change in the

 

 

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1consumer price index-u for a 12-month period ending in
2September is zero or, when compared with the preceding period,
3decreases, then the pension shall not be increased.
4    For the purposes of this subsection (g), "consumer price
5index-u" means the index published by the Bureau of Labor
6Statistics of the United States Department of Labor that
7measures the average change in prices of goods and services
8purchased by all urban consumers, United States city average,
9all items, 1982-84 = 100. The new amount resulting from each
10annual adjustment shall be determined by the Public Pension
11Division of the Department of Insurance and made available to
12the boards of the pension funds.
13(Source: P.A. 91-939, eff. 2-1-01.)
 
14    (40 ILCS 5/3-112)  (from Ch. 108 1/2, par. 3-112)
15    Sec. 3-112. Pension to survivors.
16    (a) Upon the death of a police officer entitled to a
17pension under Section 3-111, the surviving spouse shall be
18entitled to the pension to which the police officer was then
19entitled. Upon the death of the surviving spouse, or upon the
20remarriage of the surviving spouse if that remarriage
21terminates the surviving spouse's eligibility under Section
223-121, the police officer's unmarried children who are under
23age 18 or who are dependent because of physical or mental
24disability shall be entitled to equal shares of such pension.
25If there is no eligible surviving spouse and no eligible child,

 

 

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1the dependent parent or parents of the officer shall be
2entitled to receive or share such pension until their death or
3marriage or remarriage after the death of the police officer.
4    Notwithstanding any other provision of this Article, for a
5person who first becomes a police officer under this Article on
6or after January 1, 2011, the pension to which the surviving
7spouse, children, or parents are entitled under this subsection
8(a) shall be in the amount of 66 2/3% of the police officer's
9earned pension at the date of death. Nothing in this subsection
10(a) shall act to diminish the survivor's benefits described in
11subsection (e) of this Section.
12    Notwithstanding any other provision of this Article, the
13monthly pension of a survivor of a person who first becomes a
14police officer under this Article on or after January 1, 2011
15shall be increased on the January 1 after commencement of the
16survivor's pension and each January 1 thereafter by 3% or
17one-half the annual unadjusted percentage increase (but not
18less than zero) in the consumer price index-u for the 12 months
19ending with the September preceding each November 1, whichever
20is less, of the originally granted survivor's pension. If the
21annual unadjusted percentage change in the consumer price
22index-u for a 12-month period ending in September is zero or,
23when compared with the preceding period, decreases, then the
24survivor's pension shall not be increased.
25    For the purposes of this subsection (a), "consumer price
26index-u" means the index published by the Bureau of Labor

 

 

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1Statistics of the United States Department of Labor that
2measures the average change in prices of goods and services
3purchased by all urban consumers, United States city average,
4all items, 1982-84 = 100. The new amount resulting from each
5annual adjustment shall be determined by the Public Pension
6Division of the Department of Insurance and made available to
7the boards of the pension funds.
8    (b) Upon the death of a police officer while in service,
9having at least 20 years of creditable service, or upon the
10death of a police officer who retired from service with at
11least 20 years of creditable service, whether death occurs
12before or after attainment of age 50, the pension earned by the
13police officer as of the date of death as provided in Section
143-111 shall be paid to the survivors in the sequence provided
15in subsection (a) of this Section.
16    (c) Upon the death of a police officer while in service,
17having at least 10 but less than 20 years of service, a pension
18of 1/2 of the salary attached to the rank or ranks held by the
19officer for one year immediately prior to death shall be
20payable to the survivors in the sequence provided in subsection
21(a) of this Section. If death occurs as a result of the
22performance of duty, the 10 year requirement shall not apply
23and the pension to survivors shall be payable after any period
24of service.
25    (d) Beginning July 1, 1987, a minimum pension of $400 per
26month shall be paid to all surviving spouses, without regard to

 

 

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1the fact that the death of the police officer occurred prior to
2that date. If the minimum pension established in Section
33-113.1 is greater than the minimum provided in this
4subsection, the Section 3-113.1 minimum controls.
5    (e) The pension of the surviving spouse of a police officer
6who dies (i) on or after January 1, 2001, (ii) without having
7begun to receive either a retirement pension payable under
8Section 3-111 or a disability pension payable under Section
93-114.1, 3-114.2, 3-114.3, or 3-114.6, and (iii) as a result of
10sickness, accident, or injury incurred in or resulting from the
11performance of an act of duty shall not be less than 100% of
12the salary attached to the rank held by the deceased police
13officer on the last day of service, notwithstanding any
14provision in this Article to the contrary.
15(Source: P.A. 91-939, eff. 2-1-01.)
 
16    (40 ILCS 5/3-125)  (from Ch. 108 1/2, par. 3-125)
17    Sec. 3-125. Financing.
18    (a) The city council or the board of trustees of the
19municipality shall annually levy a tax upon all the taxable
20property of the municipality at the rate on the dollar which
21will produce an amount which, when added to the deductions from
22the salaries or wages of police officers, and revenues
23available from other sources, will equal a sum sufficient to
24meet the annual requirements of the police pension fund. The
25annual requirements to be provided by such tax levy are equal

 

 

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1to (1) the normal cost of the pension fund for the year
2involved, plus (2) an the amount sufficient to bring the total
3assets of the pension fund up to 90% of the total actuarial
4liabilities of the pension fund by the end of municipal fiscal
5year 2040, as annually updated and determined by an enrolled
6actuary employed by the Illinois Department of Insurance or by
7an enrolled actuary retained by the pension fund or the
8municipality. In making these determinations, the required
9minimum employer contribution shall be calculated each year as
10a level percentage of payroll over the years remaining up to
11and including fiscal year 2040 and shall be determined under
12the projected unit credit actuarial cost method necessary to
13amortize the fund's unfunded accrued liabilities as provided in
14Section 3-127. The tax shall be levied and collected in the
15same manner as the general taxes of the municipality, and in
16addition to all other taxes now or hereafter authorized to be
17levied upon all property within the municipality, and shall be
18in addition to the amount authorized to be levied for general
19purposes as provided by Section 8-3-1 of the Illinois Municipal
20Code, approved May 29, 1961, as amended. The tax shall be
21forwarded directly to the treasurer of the board within 30
22business days after receipt by the county.
23    (b) For purposes of determining the required employer
24contribution to a pension fund, the value of the pension fund's
25assets shall be equal to the actuarial value of the pension
26fund's assets, which shall be calculated as follows:

 

 

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1        (1) On March 30, 2011, the actuarial value of a pension
2    fund's assets shall be equal to the market value of the
3    assets as of that date.
4        (2) In determining the actuarial value of the System's
5    assets for fiscal years after March 30, 2011, any actuarial
6    gains or losses from investment return incurred in a fiscal
7    year shall be recognized in equal annual amounts over the
8    5-year period following that fiscal year.
9    (c) If a participating municipality fails to transmit to
10the fund contributions required of it under this Article for
11more than 90 days after the payment of those contributions is
12due, the fund may, after giving notice to the municipality,
13certify to the State Comptroller the amounts of the delinquent
14payments, and the Comptroller must, beginning in fiscal year
152016, deduct and deposit into the fund the certified amounts or
16a portion of those amounts from the following proportions of
17grants of State funds to the municipality:
18        (1) in fiscal year 2016, one-third of the total amount
19    of any grants of State funds to the municipality;
20        (2) in fiscal year 2017, two-thirds of the total amount
21    of any grants of State funds to the municipality; and
22        (3) in fiscal year 2018 and each fiscal year
23    thereafter, the total amount of any grants of State funds
24    to the municipality.
25    The State Comptroller may not deduct from any grants of
26State funds to the municipality more than the amount of

 

 

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1delinquent payments certified to the State Comptroller by the
2fund.
3    (d) The police pension fund shall consist of the following
4moneys which shall be set apart by the treasurer of the
5municipality:
6        (1) All moneys derived from the taxes levied hereunder;
7        (2) Contributions by police officers under Section
8    3-125.1;
9        (3) All moneys accumulated by the municipality under
10    any previous legislation establishing a fund for the
11    benefit of disabled or retired police officers;
12        (4) Donations, gifts or other transfers authorized by
13    this Article.
14    (e) The Commission on Government Forecasting and
15Accountability shall conduct a study of all funds established
16under this Article and shall report its findings to the General
17Assembly on or before January 1, 2013. To the fullest extent
18possible, the study shall include, but not be limited to, the
19following:
20        (1) fund balances;
21        (2) historical employer contribution rates for each
22    fund;
23        (3) the actuarial formulas used as a basis for employer
24    contributions, including the actual assumed rate of return
25    for each year, for each fund;
26        (4) available contribution funding sources;

 

 

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1        (5) the impact of any revenue limitations caused by
2    PTELL and employer home rule or non-home rule status; and
3        (6) existing statutory funding compliance procedures
4    and funding enforcement mechanisms for all municipal
5    pension funds.
6(Source: P.A. 95-530, eff. 8-28-07.)
 
7    (40 ILCS 5/4-109)  (from Ch. 108 1/2, par. 4-109)
8    Sec. 4-109. Pension.
9    (a) A firefighter age 50 or more with 20 or more years of
10creditable service, who is no longer in service as a
11firefighter, shall receive a monthly pension of 1/2 the monthly
12salary attached to the rank held by him or her in the fire
13service at the date of retirement.
14    The monthly pension shall be increased by 1/12 of 2.5% of
15such monthly salary for each additional month over 20 years of
16service through 30 years of service, to a maximum of 75% of
17such monthly salary.
18    The changes made to this subsection (a) by this amendatory
19Act of the 91st General Assembly apply to all pensions that
20become payable under this subsection on or after January 1,
211999. All pensions payable under this subsection that began on
22or after January 1, 1999 and before the effective date of this
23amendatory Act shall be recalculated, and the amount of the
24increase accruing for that period shall be payable to the
25pensioner in a lump sum.

 

 

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

 

 

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1computed by multiplying 2.5% for each year of such service by
2his or her final average salary.
3    The pension of a firefighter who is retiring after
4attaining age 50 with 10 or more years of creditable service
5shall be reduced by one-half of 1% for each month that the
6firefighter's age is under age 55.
7    The maximum pension under this subsection (c) shall be 75%
8of final average salary.
9    For the purposes of this subsection (c), "final average
10salary" means the average monthly salary obtained by dividing
11the total salary of the firefighter during the 96 consecutive
12months of service within the last 120 months of service in
13which the total salary was the highest by the number of months
14of service in that period.
15    Notwithstanding any other provision of this Article,
16beginning on January 1, 2011, the final average salary of a
17firefighter based on the plan year for any purposes under this
18Article shall not exceed $106,800; however, that amount shall
19annually thereafter be increased by the lesser of (i) 3% of
20that amount, including all previous adjustments, or (ii)
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1, including
24all previous adjustments.
25(Source: P.A. 91-466, eff. 8-6-99.)
 

 

 

09600SB3538ham002- 21 -LRB096 18789 JDS 44249 a

1    (40 ILCS 5/4-109.1)  (from Ch. 108 1/2, par. 4-109.1)
2    Sec. 4-109.1. Increase in pension.
3    (a) Except as provided in subsection (e), the monthly
4pension of a firefighter who retires after July 1, 1971 and
5prior to January 1, 1986, shall, upon either the first of the
6month following the first anniversary of the date of retirement
7if 60 years of age or over at retirement date, or upon the
8first day of the month following attainment of age 60 if it
9occurs after the first anniversary of retirement, be increased
10by 2% of the originally granted monthly pension and by an
11additional 2% in each January thereafter. Effective January
121976, the rate of the annual increase shall be 3% of the
13originally granted monthly pension.
14    (b) The monthly pension of a firefighter who retired from
15service with 20 or more years of service, on or before July 1,
161971, shall be increased, in January of the year following the
17year of attaining age 65 or in January 1972, if then over age
1865, by 2% of the originally granted monthly pension, for each
19year the firefighter received pension payments. In each January
20thereafter, he or she shall receive an additional increase of
212% of the original monthly pension. Effective January 1976, the
22rate of the annual increase shall be 3%.
23    (c) The monthly pension of a firefighter who is receiving a
24disability pension under this Article shall be increased, in
25January of the year following the year the firefighter attains
26age 60, or in January 1974, if then over age 60, by 2% of the

 

 

09600SB3538ham002- 22 -LRB096 18789 JDS 44249 a

1originally granted monthly pension for each year he or she
2received pension payments. In each January thereafter, the
3firefighter shall receive an additional increase of 2% of the
4original monthly pension. Effective January 1976, the rate of
5the annual increase shall be 3%.
6    (c-1) On January 1, 1998, every child's disability benefit
7payable on that date under Section 4-110 or 4-110.1 shall be
8increased by an amount equal to 1/12 of 3% of the amount of the
9benefit, multiplied by the number of months for which the
10benefit has been payable. On each January 1 thereafter, every
11child's disability benefit payable under Section 4-110 or
124-110.1 shall be increased by 3% of the amount of the benefit
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
164-110 or 4-110.1.
17    (c-2) On July 1, 2004, every pension payable to or on
18behalf of a minor or disabled surviving child that is payable
19on that date under Section 4-114 shall be increased by an
20amount equal to 1/12 of 3% of the amount of the pension,
21multiplied by the number of months for which the benefit has
22been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
23July 1, 2008, every pension payable to or on behalf of a minor
24or disabled surviving child that is payable under Section 4-114
25shall be increased by 3% of the amount of the pension then
26being paid, including any previous increases received under

 

 

09600SB3538ham002- 23 -LRB096 18789 JDS 44249 a

1this Article. These increases are not subject to any limitation
2on the maximum benefit amount included in Section 4-114.
3    (d) The monthly pension of a firefighter who retires after
4January 1, 1986, shall, upon either the first of the month
5following the first anniversary of the date of retirement if 55
6years of age or over, or upon the first day of the month
7following attainment of age 55 if it occurs after the first
8anniversary of retirement, be increased by 1/12 of 3% of the
9originally granted monthly pension for each full month that has
10elapsed since the pension began, and by an additional 3% in
11each January thereafter.
12    The changes made to this subsection (d) by this amendatory
13Act of the 91st General Assembly apply to all initial increases
14that become payable under this subsection on or after January
151, 1999. All initial increases that became payable under this
16subsection on or after January 1, 1999 and before the effective
17date of this amendatory Act shall be recalculated and the
18additional amount accruing for that period, if any, shall be
19payable to the pensioner in a lump sum.
20    (e) Notwithstanding the provisions of subsection (a), upon
21the first day of the month following (1) the first anniversary
22of the date of retirement, or (2) the attainment of age 55, or
23(3) July 1, 1987, whichever occurs latest, the monthly pension
24of a firefighter who retired on or after January 1, 1977 and on
25or before January 1, 1986 and did not receive an increase under
26subsection (a) before July 1, 1987, shall be increased by 3% of

 

 

09600SB3538ham002- 24 -LRB096 18789 JDS 44249 a

1the originally granted monthly pension for each full year that
2has elapsed since the pension began, and by an additional 3% in
3each January thereafter. The increases provided under this
4subsection are in lieu of the increases provided in subsection
5(a).
6    (f) In July 2009, the monthly pension of a firefighter who
7retired before July 1, 1977 shall be recalculated and increased
8to reflect the amount that the firefighter would have received
9in July 2009 had the firefighter been receiving a 3% compounded
10increase for each year he or she received pension payments
11after January 1, 1986, plus any increases in pension received
12for each year prior to January 1, 1986. In each January
13thereafter, he or she shall receive an additional increase of
143% of the amount of the pension then being paid. The changes
15made to this Section by this amendatory Act of the 96th General
16Assembly apply without regard to whether the firefighter was in
17service on or after its effective date.
18    (g) Notwithstanding any other provision of this Article,
19the monthly pension of a person who first becomes a firefighter
20under this Article on or after January 1, 2011 shall be
21increased on the January 1 occurring either on or after the
22attainment of age 60 or the first anniversary of the pension
23start date, whichever is later. Each annual increase shall be
24calculated at 3% or one-half the annual unadjusted percentage
25increase (but not less than zero) in the consumer price index-u
26for the 12 months ending with the September preceding each

 

 

09600SB3538ham002- 25 -LRB096 18789 JDS 44249 a

1November 1, whichever is less, of the originally granted
2pension. If the annual unadjusted percentage change in the
3consumer price index-u for a 12-month period ending in
4September is zero or, when compared with the preceding period,
5decreases, then the pension shall not be increased.
6    For the purposes of this subsection (g), "consumer price
7index-u" means the index published by the Bureau of Labor
8Statistics of the United States Department of Labor that
9measures the average change in prices of goods and services
10purchased by all urban consumers, United States city average,
11all items, 1982-84 = 100. The new amount resulting from each
12annual adjustment shall be determined by the Public Pension
13Division of the Department of Insurance and made available to
14the boards of the pension funds.
15(Source: P.A. 96-775, eff. 8-28-09.)
 
16    (40 ILCS 5/4-114)  (from Ch. 108 1/2, par. 4-114)
17    Sec. 4-114. Pension to survivors. If a firefighter who is
18not receiving a disability pension under Section 4-110 or
194-110.1 dies (1) as a result of any illness or accident, or (2)
20from any cause while in receipt of a disability pension under
21this Article, or (3) during retirement after 20 years service,
22or (4) while vested for or in receipt of a pension payable
23under subsection (b) of Section 4-109, or (5) while a deferred
24pensioner, having made all required contributions, a pension
25shall be paid to his or her survivors, based on the monthly

 

 

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1salary attached to the firefighter's rank on the last day of
2service in the fire department, as follows:
3        (a)(1) To the surviving spouse, a monthly pension of
4    40% of the monthly salary, and to the guardian of any minor
5    child or children including a child which has been
6    conceived but not yet born, 12% of such monthly salary for
7    each such child until attainment of age 18 or until the
8    child's marriage, whichever occurs first. Beginning July
9    1, 1993, the monthly pension to the surviving spouse shall
10    be 54% of the monthly salary for all persons receiving a
11    surviving spouse pension under this Article, regardless of
12    whether the deceased firefighter was in service on or after
13    the effective date of this amendatory Act of 1993.
14        (2) Beginning July 1, 2004, unless the amount provided
15    under paragraph (1) of this subsection (a) is greater, the
16    total monthly pension payable under this paragraph (a),
17    including any amount payable on account of children, to the
18    surviving spouse of a firefighter who died (i) while
19    receiving a retirement pension, (ii) while he or she was a
20    deferred pensioner with at least 20 years of creditable
21    service, or (iii) while he or she was in active service
22    having at least 20 years of creditable service, regardless
23    of age, shall be no less than 100% of the monthly
24    retirement pension earned by the deceased firefighter at
25    the time of death, regardless of whether death occurs
26    before or after attainment of age 50, including any

 

 

09600SB3538ham002- 27 -LRB096 18789 JDS 44249 a

1    increases under Section 4-109.1. This minimum applies to
2    all such surviving spouses who are eligible to receive a
3    surviving spouse pension, regardless of whether the
4    deceased firefighter was in service on or after the
5    effective date of this amendatory Act of the 93rd General
6    Assembly, and notwithstanding any limitation on maximum
7    pension under paragraph (d) or any other provision of this
8    Article.
9        (3) If the pension paid on and after July 1, 2004 to
10    the surviving spouse of a firefighter who died on or after
11    July 1, 2004 and before the effective date of this
12    amendatory Act of the 93rd General Assembly was less than
13    the minimum pension payable under paragraph (1) or (2) of
14    this subsection (a), the fund shall pay a lump sum equal to
15    the difference within 90 days after the effective date of
16    this amendatory Act of the 93rd General Assembly.
17        The pension to the surviving spouse shall terminate in
18    the event of the surviving spouse's remarriage prior to
19    July 1, 1993; remarriage on or after that date does not
20    affect the surviving spouse's pension, regardless of
21    whether the deceased firefighter was in service on or after
22    the effective date of this amendatory Act of 1993.
23        The surviving spouse's pension shall be subject to the
24    minimum established in Section 4-109.2.
25        (b) Upon the death of the surviving spouse leaving one
26    or more minor children, to the duly appointed guardian of

 

 

09600SB3538ham002- 28 -LRB096 18789 JDS 44249 a

1    each such child, for support and maintenance of each such
2    child until the child reaches age 18 or marries, whichever
3    occurs first, a monthly pension of 20% of the monthly
4    salary.
5        (c) If a deceased firefighter leaves no surviving
6    spouse or unmarried minor children under age 18, but leaves
7    a dependent father or mother, to each dependent parent a
8    monthly pension of 18% of the monthly salary. To qualify
9    for the pension, a dependent parent must furnish
10    satisfactory proof that the deceased firefighter was at the
11    time of his or her death the sole supporter of the parent
12    or that the parent was the deceased's dependent for federal
13    income tax purposes.
14        (d) The total pension provided under paragraphs (a),
15    (b) and (c) of this Section shall not exceed 75% of the
16    monthly salary of the deceased firefighter (1) when paid to
17    the survivor of a firefighter who has attained 20 or more
18    years of service credit and who receives or is eligible to
19    receive a retirement pension under this Article, or (2)
20    when paid to the survivor of a firefighter who dies as a
21    result of illness or accident, or (3) when paid to the
22    survivor of a firefighter who dies from any cause while in
23    receipt of a disability pension under this Article, or (4)
24    when paid to the survivor of a deferred pensioner. For all
25    other survivors of deceased firefighters, the total
26    pension provided under paragraphs (a), (b) and (c) of this

 

 

09600SB3538ham002- 29 -LRB096 18789 JDS 44249 a

1    Section shall not exceed 50% of the retirement annuity the
2    firefighter would have received on the date of death.
3        The maximum pension limitations in this paragraph (d)
4    do not control over any contrary provision of this Article
5    explicitly establishing a minimum amount of pension or
6    granting a one-time or annual increase in pension.
7        (e) If a firefighter leaves no eligible survivors under
8    paragraphs (a), (b) and (c), the board shall refund to the
9    firefighter's estate the amount of his or her accumulated
10    contributions, less the amount of pension payments, if any,
11    made to the firefighter while living.
12        (f) (Blank).
13        (g) If a judgment of dissolution of marriage between a
14    firefighter and spouse is judicially set aside subsequent
15    to the firefighter's death, the surviving spouse is
16    eligible for the pension provided in paragraph (a) only if
17    the judicial proceedings are filed within 2 years after the
18    date of the dissolution of marriage and within one year
19    after the firefighter's death and the board is made a party
20    to the proceedings. In such case the pension shall be
21    payable only from the date of the court's order setting
22    aside the judgment of dissolution of marriage.
23        (h) Benefits payable on account of a child under this
24    Section shall not be reduced or terminated by reason of the
25    child's attainment of age 18 if he or she is then dependent
26    by reason of a physical or mental disability but shall

 

 

09600SB3538ham002- 30 -LRB096 18789 JDS 44249 a

1    continue to be paid as long as such dependency continues.
2    Individuals over the age of 18 and adjudged as a disabled
3    person pursuant to Article XIa of the Probate Act of 1975,
4    except for persons receiving benefits under Article III of
5    the Illinois Public Aid Code, shall be eligible to receive
6    benefits under this Act.
7        (i) Beginning January 1, 2000, the pension of the
8    surviving spouse of a firefighter who dies on or after
9    January 1, 1994 as a result of sickness, accident, or
10    injury incurred in or resulting from the performance of an
11    act of duty or from the cumulative effects of acts of duty
12    shall not be less than 100% of the salary attached to the
13    rank held by the deceased firefighter on the last day of
14    service, notwithstanding subsection (d) or any other
15    provision of this Article.
16        (j) Beginning July 1, 2004, the pension of the
17    surviving spouse of a firefighter who dies on or after
18    January 1, 1988 as a result of sickness, accident, or
19    injury incurred in or resulting from the performance of an
20    act of duty or from the cumulative effects of acts of duty
21    shall not be less than 100% of the salary attached to the
22    rank held by the deceased firefighter on the last day of
23    service, notwithstanding subsection (d) or any other
24    provision of this Article.
25    Notwithstanding any other provision of this Article, if a
26person who first becomes a firefighter under this Article on or

 

 

09600SB3538ham002- 31 -LRB096 18789 JDS 44249 a

1after January 1, 2011 and who is not receiving a disability
2pension under Section 4-110 or 4-110.1 dies (1) as a result of
3any illness or accident, (2) from any cause while in receipt of
4a disability pension under this Article, (3) during retirement
5after 20 years service, (4) while vested for or in receipt of a
6pension payable under subsection (b) of Section 4-109, or (5)
7while a deferred pensioner, having made all required
8contributions, then a pension shall be paid to his or her
9survivors in the amount of 66 2/3% of the firefighter's earned
10pension at the date of death. Nothing in this Section shall act
11to diminish the survivor's benefits described in subsection (j)
12of this Section.
13    Notwithstanding any other provision of this Article, the
14monthly pension of a survivor of a person who first becomes a
15firefighter under this Article on or after January 1, 2011
16shall be increased on the January 1 after commencement of the
17pension and each January 1 thereafter by 3% or one-half the
18annual unadjusted percentage increase in the consumer price
19index-u for the 12 months ending with the September preceding
20each November 1, whichever is less, of the originally granted
21survivor's pension. If the annual unadjusted percentage change
22in the consumer price index-u for a 12-month period ending in
23September is zero or, when compared with the preceding period,
24decreases, then the survivor's pension shall not be increased.
25    For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

 

 

09600SB3538ham002- 32 -LRB096 18789 JDS 44249 a

1the United States Department of Labor that measures the average
2change in prices of goods and services purchased by all urban
3consumers, United States city average, all items, 1982-84 =
4100. The new amount resulting from each annual adjustment shall
5be determined by the Public Pension Division of the Department
6of Insurance and made available to the boards of the pension
7funds.
8(Source: P.A. 95-279, eff. 1-1-08.)
 
9    (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)
10    Sec. 4-118. Financing.
11    (a) The city council or the board of trustees of the
12municipality shall annually levy a tax upon all the taxable
13property of the municipality at the rate on the dollar which
14will produce an amount which, when added to the deductions from
15the salaries or wages of firefighters and revenues available
16from other sources, will equal a sum sufficient to meet the
17annual actuarial requirements of the pension fund, as
18determined by an enrolled actuary employed by the Illinois
19Department of Insurance or by an enrolled actuary retained by
20the pension fund or municipality. For the purposes of this
21Section, the annual actuarial requirements of the pension fund
22are equal to (1) the normal cost of the pension fund, or 17.5%
23of the salaries and wages to be paid to firefighters for the
24year involved, whichever is greater, plus (2) an the annual
25amount sufficient to bring the total assets of the pension fund

 

 

09600SB3538ham002- 33 -LRB096 18789 JDS 44249 a

1up to 90% of the total actuarial liabilities of the pension
2fund by the end of municipal fiscal year 2040, as annually
3updated and determined by an enrolled actuary employed by the
4Illinois Department of Insurance or by an enrolled actuary
5retained by the pension fund or the municipality. In making
6these determinations, the required minimum employer
7contribution shall be calculated each year as a level
8percentage of payroll over the years remaining up to and
9including fiscal year 2040 and shall be determined under the
10projected unit credit actuarial cost method necessary to
11amortize the fund's unfunded accrued liabilities over a period
12of 40 years from July 1, 1993, as annually updated and
13determined by an enrolled actuary employed by the Illinois
14Department of Insurance or by an enrolled actuary retained by
15the pension fund or the municipality. The amount to be applied
16towards the amortization of the unfunded accrued liability in
17any year shall not be less than the annual amount required to
18amortize the unfunded accrued liability, including interest,
19as a level percentage of payroll over the number of years
20remaining in the 40 year amortization period.
21    (a-5) For purposes of determining the required employer
22contribution to a pension fund, the value of the pension fund's
23assets shall be equal to the actuarial value of the pension
24fund's assets, which shall be calculated as follows:
25        (1) On March 30, 2011, the actuarial value of a pension
26    fund's assets shall be equal to the market value of the

 

 

09600SB3538ham002- 34 -LRB096 18789 JDS 44249 a

1    assets as of that date.
2        (2) In determining the actuarial value of the pension
3    fund's assets for fiscal years after March 30, 2011, any
4    actuarial gains or losses from investment return incurred
5    in a fiscal year shall be recognized in equal annual
6    amounts over the 5-year period following that fiscal year.
7    (b) The tax shall be levied and collected in the same
8manner as the general taxes of the municipality, and shall be
9in addition to all other taxes now or hereafter authorized to
10be levied upon all property within the municipality, and in
11addition to the amount authorized to be levied for general
12purposes, under Section 8-3-1 of the Illinois Municipal Code or
13under Section 14 of the Fire Protection District Act. The tax
14shall be forwarded directly to the treasurer of the board
15within 30 business days of receipt by the county (or, in the
16case of amounts added to the tax levy under subsection (f),
17used by the municipality to pay the employer contributions
18required under subsection (b-1) of Section 15-155 of this
19Code).
20    (b-5) If a participating municipality fails to transmit to
21the fund contributions required of it under this Article for
22more than 90 days after the payment of those contributions is
23due, the fund may, after giving notice to the municipality,
24certify to the State Comptroller the amounts of the delinquent
25payments, and the Comptroller must, beginning in fiscal year
262016, deduct and deposit into the fund the certified amounts or

 

 

09600SB3538ham002- 35 -LRB096 18789 JDS 44249 a

1a portion of those amounts from the following proportions of
2grants of State funds to the municipality:
3        (1) in fiscal year 2016, one-third of the total amount
4    of any grants of State funds to the municipality;
5        (2) in fiscal year 2017, two-thirds of the total amount
6    of any grants of State funds to the municipality; and
7        (3) in fiscal year 2018 and each fiscal year
8    thereafter, the total amount of any grants of State funds
9    to the municipality.
10    The State Comptroller may not deduct from any grants of
11State funds to the municipality more than the amount of
12delinquent payments certified to the State Comptroller by the
13fund.
14    (c) The board shall make available to the membership and
15the general public for inspection and copying at reasonable
16times the most recent Actuarial Valuation Balance Sheet and Tax
17Levy Requirement issued to the fund by the Department of
18Insurance.
19    (d) The firefighters' pension fund shall consist of the
20following moneys which shall be set apart by the treasurer of
21the municipality: (1) all moneys derived from the taxes levied
22hereunder; (2) contributions by firefighters as provided under
23Section 4-118.1; (3) all rewards in money, fees, gifts, and
24emoluments that may be paid or given for or on account of
25extraordinary service by the fire department or any member
26thereof, except when allowed to be retained by competitive

 

 

09600SB3538ham002- 36 -LRB096 18789 JDS 44249 a

1awards; and (4) any money, real estate or personal property
2received by the board.
3    (e) For the purposes of this Section, "enrolled actuary"
4means an actuary: (1) who is a member of the Society of
5Actuaries or the American Academy of Actuaries; and (2) who is
6enrolled under Subtitle C of Title III of the Employee
7Retirement Income Security Act of 1974, or who has been engaged
8in providing actuarial services to one or more public
9retirement systems for a period of at least 3 years as of July
101, 1983.
11    (f) The corporate authorities of a municipality that
12employs a person who is described in subdivision (d) of Section
134-106 may add to the tax levy otherwise provided for in this
14Section an amount equal to the projected cost of the employer
15contributions required to be paid by the municipality to the
16State Universities Retirement System under subsection (b-1) of
17Section 15-155 of this Code.
18    (g) The Commission on Government Forecasting and
19Accountability shall conduct a study of all funds established
20under this Article and shall report its findings to the General
21Assembly on or before January 1, 2013. To the fullest extent
22possible, the study shall include, but not be limited to, the
23following:
24        (1) fund balances;
25        (2) historical employer contribution rates for each
26    fund;

 

 

09600SB3538ham002- 37 -LRB096 18789 JDS 44249 a

1        (3) the actuarial formulas used as a basis for employer
2    contributions, including the actual assumed rate of return
3    for each year, for each fund;
4        (4) available contribution funding sources;
5        (5) the impact of any revenue limitations caused by
6    PTELL and employer home rule or non-home rule status; and
7        (6) existing statutory funding compliance procedures
8    and funding enforcement mechanisms for all municipal
9    pension funds.
10(Source: P.A. 94-859, eff. 6-15-06.)
 
11    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
12    Sec. 5-167.1. Automatic increase in annuity; retirement
13from service after September 1, 1967.
14    (a) A policeman who retires from service after September 1,
151967 with at least 20 years of service credit shall, upon
16either the first of the month following the first anniversary
17of his date of retirement if he is age 60 (age 55 if born before
18January 1, 1955) or over on that anniversary date, or upon the
19first of the month following his attainment of age 60 (age 55
20if born before January 1, 1955) if it occurs after the first
21anniversary of his retirement date, have his then fixed and
22payable monthly annuity increased by 1 1/2% and such first
23fixed annuity as granted at retirement increased by an
24additional 1 1/2% in January of each year thereafter up to a
25maximum increase of 30%. Beginning January 1, 1983 for

 

 

09600SB3538ham002- 38 -LRB096 18789 JDS 44249 a

1policemen born before January 1, 1930, and beginning January 1,
21988 for policemen born on or after January 1, 1930 but before
3January 1, 1940, and beginning January 1, 1996 for policemen
4born on or after January 1, 1940 but before January 1, 1945,
5and beginning January 1, 2000 for policemen born on or after
6January 1, 1945 but before January 1, 1950, and beginning
7January 1, 2005 for policemen born on or after January 1, 1950
8but before January 1, 1955, such increases shall be 3% and such
9policemen shall not be subject to the 30% maximum increase.
10    Any policeman born before January 1, 1945 who qualifies for
11a minimum annuity and retires after September 1, 1967 but has
12not received the initial increase under this subsection before
13January 1, 1996 is entitled to receive the initial increase
14under this subsection on (1) January 1, 1996, (2) the first
15anniversary of the date of retirement, or (3) attainment of age
1655, whichever occurs last. The changes to this Section made by
17Public Act 89-12 apply beginning January 1, 1996 and without
18regard to whether the policeman or annuitant terminated service
19before the effective date of that Act.
20    Any policeman born before January 1, 1950 who qualifies for
21a minimum annuity and retires after September 1, 1967 but has
22not received the initial increase under this subsection before
23January 1, 2000 is entitled to receive the initial increase
24under this subsection on (1) January 1, 2000, (2) the first
25anniversary of the date of retirement, or (3) attainment of age
2655, whichever occurs last. The changes to this Section made by

 

 

09600SB3538ham002- 39 -LRB096 18789 JDS 44249 a

1this amendatory Act of the 92nd General Assembly apply without
2regard to whether the policeman or annuitant terminated service
3before the effective date of this amendatory Act.
4    Any policeman born before January 1, 1955 who qualifies for
5a minimum annuity and retires after September 1, 1967 but has
6not received the initial increase under this subsection before
7January 1, 2005 is entitled to receive the initial increase
8under this subsection on (1) January 1, 2005, (2) the first
9anniversary of the date of retirement, or (3) attainment of age
1055, whichever occurs last. The changes to this Section made by
11this amendatory Act of the 94th General Assembly apply without
12regard to whether the policeman or annuitant terminated service
13before the effective date of this amendatory Act.
14    (b) Subsection (a) of this Section is not applicable to an
15employee receiving a term annuity.
16    (c) To help defray the cost of such increases in annuity,
17there shall be deducted, beginning September 1, 1967, from each
18payment of salary to a policeman, 1/2 of 1% of each salary
19payment concurrently with and in addition to the salary
20deductions otherwise made for annuity purposes.
21    The city, in addition to the contributions otherwise made
22by it for annuity purposes under other provisions of this
23Article, shall make matching contributions concurrently with
24such salary deductions.
25    Each such 1/2 of 1% deduction from salary and each such
26contribution by the city of 1/2 of 1% of salary shall be

 

 

09600SB3538ham002- 40 -LRB096 18789 JDS 44249 a

1credited to the Automatic Increase Reserve, to be used to
2defray the cost of the 1 1/2% annuity increase provided by this
3Section. Any balance in such reserve as of the beginning of
4each calendar year shall be credited with interest at the rate
5of 3% per annum.
6    Such deductions from salary and city contributions shall
7continue while the policeman is in service.
8    The salary deductions provided in this Section are not
9subject to refund, except to the policeman himself, in any case
10in which a policeman withdraws prior to qualification for
11minimum annuity and applies for refund or applies for annuity,
12and also where a term annuity becomes payable. In such cases,
13the total of such salary deductions shall be refunded to the
14policeman, without interest, and charged to the Automatic
15Increase Reserve.
16    (d) Notwithstanding any other provision of this Article,
17for a person who first becomes a policeman under this Article
18on or after January 1, 2011, the annuity to which the survivor
19is entitled under this subsection (d) shall be in the amount of
2066 2/3% of the policeman's earned annuity at the date of death.
21Nothing in this subsection (d) shall act to diminish the
22survivor's benefits described in this Section.
23    Notwithstanding any other provision of this Article, the
24monthly annuity of a survivor of a person who first becomes a
25policeman under this Article on or after January 1, 2011 shall
26be increased on the January 1 after commencement of the annuity

 

 

09600SB3538ham002- 41 -LRB096 18789 JDS 44249 a

1and each January 1 thereafter by 3% or one-half the annual
2unadjusted percentage increase (but not less than zero) in the
3consumer price index-u for the 12 months ending with the
4September preceding each November 1, whichever is less, of the
5originally granted annuity. If the annual unadjusted
6percentage change in the consumer price index-u for a 12-month
7period ending in September is zero or, when compared with the
8preceding period, decreases, then the annuity shall not be
9increased.
10    For the purposes of this subsection (d), "consumer price
11index-u" means the index published by the Bureau of Labor
12Statistics of the United States Department of Labor that
13measures the average change in prices of goods and services
14purchased by all urban consumers, United States city average,
15all items, 1982-84 = 100. The new amount resulting from each
16annual adjustment shall be determined by the Public Pension
17Division of the Department of Insurance and made available to
18the boards of the pension funds.
19(Source: P.A. 94-719, eff. 1-6-06.)
 
20    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
21    Sec. 5-168. Financing.
22    (a) Except as expressly provided in this Section, the city
23shall levy a tax annually upon all taxable property therein for
24the purpose of providing revenue for the fund.
25    The tax shall be at a rate that will produce a sum which,

 

 

09600SB3538ham002- 42 -LRB096 18789 JDS 44249 a

1when added to the amounts deducted from the policemen's
2salaries and the amounts deposited in accordance with
3subsection (g), is sufficient for the purposes of the fund.
4    For the years 1968 and 1969, the city council shall levy a
5tax annually at a rate on the dollar of the assessed valuation
6of all taxable property that will produce, when extended, not
7to exceed $9,700,000. Beginning with the year 1970 and through
82014, each year thereafter the city council shall levy a tax
9annually at a rate on the dollar of the assessed valuation of
10all taxable property that will produce when extended an amount
11not to exceed the total amount of contributions by the
12policemen to the Fund made in the calendar year 2 years before
13the year for which the applicable annual tax is levied,
14multiplied by 1.40 for the tax levy year 1970; by 1.50 for the
15year 1971; by 1.65 for 1972; by 1.85 for 1973; by 1.90 for
161974; by 1.97 for 1975 through 1981; by 2.00 for 1982 and for
17each year through 2014 thereafter. Beginning in 2015, the city
18council shall levy a tax annually at a rate on the dollar of
19the assessed valuation of all taxable property that will
20produce when extended an annual amount that is equal to (1) the
21normal cost to the Fund, plus (2) an annual amount sufficient
22to bring the total assets of the Fund up to 90% of the total
23actuarial liabilities of the Fund by the end of fiscal year
242040, as annually updated and determined by an enrolled actuary
25employed by the Illinois Department of Insurance or by an
26enrolled actuary retained by the Fund or the city. In making

 

 

09600SB3538ham002- 43 -LRB096 18789 JDS 44249 a

1these determinations, the required minimum employer
2contribution shall be calculated each year as a level
3percentage of payroll over the years remaining up to and
4including fiscal year 2040 and shall be determined under the
5projected unit credit actuarial cost method. For the purposes
6of this subsection (a), contributions by the policeman to the
7Fund shall not include payments made by a policeman to
8establish credit under Section 5-214.2 of this Code.
9    (a-5) For purposes of determining the required employer
10contribution to the Fund, the value of the Fund's assets shall
11be equal to the actuarial value of the Fund's assets, which
12shall be calculated as follows:
13        (1) On March 30, 2011, the actuarial value of the
14    Fund's assets shall be equal to the market value of the
15    assets as of that date.
16        (2) In determining the actuarial value of the Fund's
17    assets for fiscal years after March 30, 2011, any actuarial
18    gains or losses from investment return incurred in a fiscal
19    year shall be recognized in equal annual amounts over the
20    5-year period following that fiscal year.
21    (a-7) If the city fails to transmit to the Fund
22contributions required of it under this Article for more than
2390 days after the payment of those contributions is due, the
24Fund may, after giving notice to the city, certify to the State
25Comptroller the amounts of the delinquent payments, and the
26Comptroller must, beginning in fiscal year 2016, deduct and

 

 

09600SB3538ham002- 44 -LRB096 18789 JDS 44249 a

1deposit into the Fund the certified amounts or a portion of
2those amounts from the following proportions of grants of State
3funds to the city:
4        (1) in fiscal year 2016, one-third of the total amount
5    of any grants of State funds to the city;
6        (2) in fiscal year 2017, two-thirds of the total amount
7    of any grants of State funds to the city; and
8        (3) in fiscal year 2018 and each fiscal year
9    thereafter, the total amount of any grants of State funds
10    to the city.
11    The State Comptroller may not deduct from any grants of
12State funds to the city more than the amount of delinquent
13payments certified to the State Comptroller by the Fund.
14    (b) The tax shall be levied and collected in like manner
15with the general taxes of the city, and is in addition to all
16other taxes which the city is now or may hereafter be
17authorized to levy upon all taxable property therein, and is
18exclusive of and in addition to the amount of tax the city is
19now or may hereafter be authorized to levy for general purposes
20under any law which may limit the amount of tax which the city
21may levy for general purposes. The county clerk of the county
22in which the city is located, in reducing tax levies under
23Section 8-3-1 of the Illinois Municipal Code, shall not
24consider the tax herein authorized as a part of the general tax
25levy for city purposes, and shall not include the tax in any
26limitation of the percent of the assessed valuation upon which

 

 

09600SB3538ham002- 45 -LRB096 18789 JDS 44249 a

1taxes are required to be extended for the city.
2    (c) On or before January 10 of each year, the board shall
3notify the city council of the requirement that the tax herein
4authorized be levied by the city council for that current year.
5The board shall compute the amounts necessary for the purposes
6of this fund to be credited to the reserves established and
7maintained within the fund; shall make an annual determination
8of the amount of the required city contributions; and shall
9certify the results thereof to the city council.
10    As soon as any revenue derived from the tax is collected it
11shall be paid to the city treasurer of the city and shall be
12held by him for the benefit of the fund in accordance with this
13Article.
14    (d) If the funds available are insufficient during any year
15to meet the requirements of this Article, the city may issue
16tax anticipation warrants against the tax levy for the current
17fiscal year.
18    (e) The various sums, including interest, to be contributed
19by the city, shall be taken from the revenue derived from such
20tax or otherwise as expressly provided in this Section. Any
21moneys of the city derived from any source other than the tax
22herein authorized shall not be used for any purpose of the fund
23nor the cost of administration thereof, unless applied to make
24the deposit expressly authorized in this Section or the
25additional city contributions required under subsection (h).
26    (f) If it is not possible or practicable for the city to

 

 

09600SB3538ham002- 46 -LRB096 18789 JDS 44249 a

1make its contributions at the time that salary deductions are
2made, the city shall make such contributions as soon as
3possible thereafter, with interest thereon to the time it is
4made.
5    (g) In lieu of levying all or a portion of the tax required
6under this Section in any year, the city may deposit with the
7city treasurer no later than March 1 of that year for the
8benefit of the fund, to be held in accordance with this
9Article, an amount that, together with the taxes levied under
10this Section for that year, is not less than the amount of the
11city contributions for that year as certified by the board to
12the city council. The deposit may be derived from any source
13legally available for that purpose, including, but not limited
14to, the proceeds of city borrowings. The making of a deposit
15shall satisfy fully the requirements of this Section for that
16year to the extent of the amounts so deposited. Amounts
17deposited under this subsection may be used by the fund for any
18of the purposes for which the proceeds of the tax levied under
19this Section may be used, including the payment of any amount
20that is otherwise required by this Article to be paid from the
21proceeds of that tax.
22    (h) In addition to the contributions required under the
23other provisions of this Article, by November 1 of the
24following specified years, the city shall deposit with the city
25treasurer for the benefit of the fund, to be held and used in
26accordance with this Article, the following specified amounts:

 

 

09600SB3538ham002- 47 -LRB096 18789 JDS 44249 a

1$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
2$5,040,000 in 2002; and $4,620,000 in 2003.
3    The additional city contributions required under this
4subsection are intended to decrease the unfunded liability of
5the fund and shall not decrease the amount of the city
6contributions required under the other provisions of this
7Article. The additional city contributions made under this
8subsection may be used by the fund for any of its lawful
9purposes.
10(Source: P.A. 95-1036, eff. 2-17-09.)
 
11    (40 ILCS 5/5-238 new)
12    Sec. 5-238. Provisions applicable to new hires.
13    (a) Notwithstanding any other provision of this Article,
14the provisions of this Section apply to a person who first
15becomes a policeman under this Article on or after January 1,
162011.
17    (b) A policeman age 55 or more who has 10 or more years of
18service in that capacity shall be entitled at his option to
19receive a monthly retirement annuity for his service as a
20police officer computed by multiplying 2.5% for each year of
21such service by his or her final average salary.
22    The retirement annuity of a policeman who is retiring after
23attaining age 50 with 10 or more years of creditable service
24shall be reduced by one-half of 1% for each month that the
25police officer's age is under age 55.

 

 

09600SB3538ham002- 48 -LRB096 18789 JDS 44249 a

1    The maximum retirement annuity under this subsection (b)
2shall be 75% of final average salary.
3    For the purposes of this subsection (b), "final average
4salary" means the average monthly salary obtained by dividing
5the total salary of the policeman during the 96 consecutive
6months of service within the last 120 months of service in
7which the total salary was the highest by the number of months
8of service in that period.
9    Notwithstanding any other provision of this Article,
10beginning on January 1, 2011, the final average salary of a
11policeman based on the plan year for any purposes under this
12Article shall not exceed $106,800; however, that amount shall
13annually thereafter be increased by the lesser of (i) 3% of
14that amount, including all previous adjustments, or (ii)
15one-half the annual unadjusted percentage increase (but not
16less than zero) in the consumer price index-u for the 12 months
17ending with the September preceding each November 1, including
18all previous adjustments.
19    (c) Notwithstanding any other provision of this Article,
20for a person who first becomes a policeman under this Article
21on or after January 1, 2011, the annuity to which the surviving
22spouse, children, or parents are entitled under this subsection
23(c) shall be in the amount of 66 2/3% of the policeman's earned
24annuity at the date of death.
25    Notwithstanding any other provision of this Article, the
26monthly annuity of a survivor of a person who first becomes a

 

 

09600SB3538ham002- 49 -LRB096 18789 JDS 44249 a

1policeman under this Article on or after January 1, 2011 shall
2be increased on the January 1 after commencement of the annuity
3and each January 1 thereafter by 3% or one-half the annual
4unadjusted percentage increase (but not less than zero) in the
5consumer price index-u for the 12 months ending with the
6September preceding each November 1, whichever is less, of the
7originally granted survivor's annuity. If the unadjusted
8percentage change in the consumer price index-u for a 12-month
9period ending in September is zero or, when compared with the
10preceding period, decreases, then the annuity shall not be
11increased.
12    For the purposes of this Section, "consumer price index-u"
13means the index published by the Bureau of Labor Statistics of
14the United States Department of Labor that measures the average
15change in prices of goods and services purchased by all urban
16consumers, United States city average, all items, 1982-84 =
17100. The new amount resulting from each annual adjustment shall
18be determined by the Public Pension Division of the Department
19of Insurance and made available to the boards of the pension
20funds.
 
21    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
22    Sec. 6-164. Automatic annual increase; retirement after
23September 1, 1959.
24    (a) A fireman qualifying for a minimum annuity who retires
25from service after September 1, 1959 shall, upon either the

 

 

09600SB3538ham002- 50 -LRB096 18789 JDS 44249 a

1first of the month following the first anniversary of his date
2of retirement if he is age 60 (age 55 if born before January 1,
31955) or over on that anniversary date, or upon the first of
4the month following his attainment of age 60 (age 55 if born
5before January 1, 1955) if that occurs after the first
6anniversary of his retirement date, have his then fixed and
7payable monthly annuity increased by 1 1/2%, and such first
8fixed annuity as granted at retirement increased by an
9additional 1 1/2% in January of each year thereafter up to a
10maximum increase of 30%. Beginning July 1, 1982 for firemen
11born before January 1, 1930, and beginning January 1, 1990 for
12firemen born after December 31, 1929 and before January 1,
131940, and beginning January 1, 1996 for firemen born after
14December 31, 1939 but before January 1, 1945, and beginning
15January 1, 2004, for firemen born after December 31, 1944 but
16before January 1, 1955, such increases shall be 3% and such
17firemen shall not be subject to the 30% maximum increase.
18    Any fireman born before January 1, 1945 who qualifies for a
19minimum annuity and retires after September 1, 1967 but has not
20received the initial increase under this subsection before
21January 1, 1996 is entitled to receive the initial increase
22under this subsection on (1) January 1, 1996, (2) the first
23anniversary of the date of retirement, or (3) attainment of age
2455, whichever occurs last. The changes to this Section made by
25this amendatory Act of 1995 apply beginning January 1, 1996 and
26apply without regard to whether the fireman or annuitant

 

 

09600SB3538ham002- 51 -LRB096 18789 JDS 44249 a

1terminated service before the effective date of this amendatory
2Act of 1995.
3    Any fireman born before January 1, 1955 who qualifies for a
4minimum annuity and retires after September 1, 1967 but has not
5received the initial increase under this subsection before
6January 1, 2004 is entitled to receive the initial increase
7under this subsection on (1) January 1, 2004, (2) the first
8anniversary of the date of retirement, or (3) attainment of age
955, whichever occurs last. The changes to this Section made by
10this amendatory Act of the 93rd General Assembly apply without
11regard to whether the fireman or annuitant terminated service
12before the effective date of this amendatory Act.
13    (b) Subsection (a) of this Section is not applicable to an
14employee receiving a term annuity.
15    (c) To help defray the cost of such increases in annuity,
16there shall be deducted, beginning September 1, 1959, from each
17payment of salary to a fireman, 1/8 of 1% of each such salary
18payment and an additional 1/8 of 1% beginning on September 1,
191961, and September 1, 1963, respectively, concurrently with
20and in addition to the salary deductions otherwise made for
21annuity purposes.
22    Each such additional 1/8 of 1% deduction from salary which
23shall, on September 1, 1963, result in a total increase of 3/8
24of 1% of salary, shall be credited to the Automatic Increase
25Reserve, to be used, together with city contributions as
26provided in this Article, to defray the cost of the 1 1/2%

 

 

09600SB3538ham002- 52 -LRB096 18789 JDS 44249 a

1annuity increments herein specified. Any balance in such
2reserve as of the beginning of each calendar year shall be
3credited with interest at the rate of 3% per annum.
4    The salary deductions provided in this Section are not
5subject to refund, except to the fireman himself, in any case
6in which a fireman withdraws prior to qualification for minimum
7annuity and applies for refund, or applies for annuity, and
8also where a term annuity becomes payable. In such cases, the
9total of such salary deductions shall be refunded to the
10fireman, without interest, and charged to the aforementioned
11reserve.
12    (d) Notwithstanding any other provision of this Article,
13the monthly annuity of a person who first becomes a fireman
14under this Article on or after January 1, 2011 shall be
15increased on the January 1 occurring either on or after the
16attainment of age 60 or the first anniversary of the annuity
17start date, whichever is later. Each annual increase shall be
18calculated at 3% or one-half the annual unadjusted percentage
19increase (but not less than zero) in the consumer price index-u
20for the 12 months ending with the September preceding each
21November 1, whichever is less, of the originally granted
22retirement annuity. If the annual unadjusted percentage change
23in the consumer price index-u for a 12-month period ending in
24September is zero or, when compared with the preceding period,
25decreases, then the annuity shall not be increased.
26    For the purposes of this subsection (d), "consumer price

 

 

09600SB3538ham002- 53 -LRB096 18789 JDS 44249 a

1index-u" means the index published by the Bureau of Labor
2Statistics of the United States Department of Labor that
3measures the average change in prices of goods and services
4purchased by all urban consumers, United States city average,
5all items, 1982-84 = 100. The new amount resulting from each
6annual adjustment shall be determined by the Public Pension
7Division of the Department of Insurance and made available to
8the boards of the pension funds.
9(Source: P.A. 93-654, eff. 1-16-04.)
 
10    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
11    Sec. 6-165. Financing; tax.
12    (a) Except as expressly provided in this Section, each city
13shall levy a tax annually upon all taxable property therein for
14the purpose of providing revenue for the fund. For the years
15prior to the year 1960, the tax rate shall be as provided for
16in the "Firemen's Annuity and Benefit Fund of the Illinois
17Municipal Code". The tax, from and after January 1, 1968 to and
18including the year 1971, shall not exceed .0863% of the value,
19as equalized or assessed by the Department of Revenue, of all
20taxable property in the city. Beginning with the year 1972 and
21through 2014, each year thereafter the city shall levy a tax
22annually at a rate on the dollar of the value, as equalized or
23assessed by the Department of Revenue of all taxable property
24within such city that will produce, when extended, not to
25exceed an amount equal to the total amount of contributions by

 

 

09600SB3538ham002- 54 -LRB096 18789 JDS 44249 a

1the employees to the fund made in the calendar year 2 years
2prior to the year for which the annual applicable tax is
3levied, multiplied by 2.23 through the calendar year 1981, and
4by 2.26 for the year 1982 and for each year through 2014
5thereafter. Beginning in 2015, the city council shall levy a
6tax annually at a rate on the dollar of the assessed valuation
7of all taxable property that will produce when extended an
8annual amount that is equal to (1) the normal cost to the Fund,
9plus (2) an annual amount sufficient to bring the total assets
10of the Fund up to 90% of the total actuarial liabilities of the
11Fund by the end of fiscal year 2040, as annually updated and
12determined by an enrolled actuary employed by the Illinois
13Department of Insurance or by an enrolled actuary retained by
14the Fund or the city. In making these determinations, the
15required minimum employer contribution shall be calculated
16each year as a level percentage of payroll over the years
17remaining up to and including fiscal year 2040 and shall be
18determined under the projected unit credit actuarial cost
19method.
20    To provide revenue for the ordinary death benefit
21established by Section 6-150 of this Article, in addition to
22the contributions by the firemen for this purpose, the city
23council shall for the year 1962 and each year thereafter
24annually levy a tax, which shall be in addition to and
25exclusive of the taxes authorized to be levied under the
26foregoing provisions of this Section, upon all taxable property

 

 

09600SB3538ham002- 55 -LRB096 18789 JDS 44249 a

1in the city, as equalized or assessed by the Department of
2Revenue, at such rate per cent of the value of such property as
3shall be sufficient to produce for each year the sum of
4$142,000.
5    The amounts produced by the taxes levied annually, together
6with the deposit expressly authorized in this Section, shall be
7sufficient, when added to the amounts deducted from the
8salaries of firemen and applied to the fund, to provide for the
9purposes of the fund.
10    (a-5) For purposes of determining the required employer
11contribution to the Fund, the value of the Fund's assets shall
12be equal to the actuarial value of the Fund's assets, which
13shall be calculated as follows:
14        (1) On March 30, 2011, the actuarial value of the
15    Fund's assets shall be equal to the market value of the
16    assets as of that date.
17        (2) In determining the actuarial value of the Fund's
18    assets for fiscal years after March 30, 2011, any actuarial
19    gains or losses from investment return incurred in a fiscal
20    year shall be recognized in equal annual amounts over the
21    5-year period following that fiscal year.
22    (a-7) If the city fails to transmit to the Fund
23contributions required of it under this Article for more than
2490 days after the payment of those contributions is due, the
25Fund may, after giving notice to the city, certify to the State
26Comptroller the amounts of the delinquent payments, and the

 

 

09600SB3538ham002- 56 -LRB096 18789 JDS 44249 a

1Comptroller must, beginning in fiscal year 2016, deduct and
2deposit into the Fund the certified amounts or a portion of
3those amounts from the following proportions of grants of State
4funds to the city:
5        (1) in fiscal year 2016, one-third of the total amount
6    of any grants of State funds to the city;
7        (2) in fiscal year 2017, two-thirds of the total amount
8    of any grants of State funds to the city; and
9        (3) in fiscal year 2018 and each fiscal year
10    thereafter, the total amount of any grants of State funds
11    to the city.
12    The State Comptroller may not deduct from any grants of
13State funds to the city more than the amount of delinquent
14payments certified to the State Comptroller by the Fund.
15    (b) The taxes shall be levied and collected in like manner
16with the general taxes of the city, and shall be in addition to
17all other taxes which the city may levy upon all taxable
18property therein and shall be exclusive of and in addition to
19the amount of tax the city may levy for general purposes under
20Section 8-3-1 of the Illinois Municipal Code, approved May 29,
211961, as amended, or under any other law or laws which may
22limit the amount of tax which the city may levy for general
23purposes.
24    (c) The amounts of the taxes to be levied in each year
25shall be certified to the city council by the board.
26    (d) As soon as any revenue derived from such taxes is

 

 

09600SB3538ham002- 57 -LRB096 18789 JDS 44249 a

1collected, it shall be paid to the city treasurer and held for
2the benefit of the fund, and all such revenue shall be paid
3into the fund in accordance with the provisions of this
4Article.
5    (e) If the funds available are insufficient during any year
6to meet the requirements of this Article, the city may issue
7tax anticipation warrants, against the tax levies herein
8authorized for the current fiscal year.
9    (f) The various sums, hereinafter stated, including
10interest, to be contributed by the city, shall be taken from
11the revenue derived from the taxes or otherwise as expressly
12provided in this Section. Except for defraying the cost of
13administration of the fund during the calendar year in which a
14city first attains a population of 500,000 and comes under the
15provisions of this Article and the first calendar year
16thereafter, any money of the city derived from any source other
17than these taxes or the sale of tax anticipation warrants shall
18not be used to provide revenue for the fund, nor to pay any
19part of the cost of administration thereof, unless applied to
20make the deposit expressly authorized in this Section or the
21additional city contributions required under subsection (h).
22    (g) In lieu of levying all or a portion of the tax required
23under this Section in any year, the city may deposit with the
24city treasurer no later than March 1 of that year for the
25benefit of the fund, to be held in accordance with this
26Article, an amount that, together with the taxes levied under

 

 

09600SB3538ham002- 58 -LRB096 18789 JDS 44249 a

1this Section for that year, is not less than the amount of the
2city contributions for that year as certified by the board to
3the city council. The deposit may be derived from any source
4legally available for that purpose, including, but not limited
5to, the proceeds of city borrowings. The making of a deposit
6shall satisfy fully the requirements of this Section for that
7year to the extent of the amounts so deposited. Amounts
8deposited under this subsection may be used by the fund for any
9of the purposes for which the proceeds of the taxes levied
10under this Section may be used, including the payment of any
11amount that is otherwise required by this Article to be paid
12from the proceeds of those taxes.
13    (h) In addition to the contributions required under the
14other provisions of this Article, by November 1 of the
15following specified years, the city shall deposit with the city
16treasurer for the benefit of the fund, to be held and used in
17accordance with this Article, the following specified amounts:
18$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
19$5,040,000 in 2002; and $4,620,000 in 2003.
20    The additional city contributions required under this
21subsection are intended to decrease the unfunded liability of
22the fund and shall not decrease the amount of the city
23contributions required under the other provisions of this
24Article. The additional city contributions made under this
25subsection may be used by the fund for any of its lawful
26purposes.

 

 

09600SB3538ham002- 59 -LRB096 18789 JDS 44249 a

1(Source: P.A. 93-654, eff. 1-16-04.)
 
2    (40 ILCS 5/6-229 new)
3    Sec. 6-229. Provisions applicable to new hires.
4    (a) Notwithstanding any other provision of this Article,
5the provisions of this Section apply to a person who first
6becomes a fireman under this Article on or after January 1,
72011.
8    (b) A fireman age 55 or more who has 10 or more years of
9service in that capacity shall be entitled at his option to
10receive a monthly retirement annuity for his service as a
11fireman computed by multiplying 2.5% for each year of such
12service by his or her final average salary.
13    The retirement annuity of a fireman who is retiring after
14attaining age 50 with 10 or more years of creditable service
15shall be reduced by one-half of 1% for each month that the
16fireman's age is under age 55.
17    The maximum retirement annuity under this subsection (b)
18shall be 75% of final average salary.
19    For the purposes of this subsection (b), "final average
20salary" means the average monthly salary obtained by dividing
21the total salary of the fireman during the 96 consecutive
22months of service within the last 120 months of service in
23which the total salary was the highest by the number of months
24of service in that period.
25    Notwithstanding any other provision of this Article,

 

 

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1beginning on January 1, 2011, the final average salary of a
2fireman based on the plan year for any purposes under this
3Article shall not exceed $106,800; however, that amount shall
4annually thereafter be increased by the lesser of (i) 3% of
5that amount, including all previous adjustments, or (ii)
6one-half the annual unadjusted percentage increase (but not
7less than zero) in the consumer price index-u for the 12 months
8ending with September preceding each November 1, including all
9previous adjustments.
10    (c) Notwithstanding any other provision of this Article,
11for a person who first becomes a fireman under this Article on
12or after January 1, 2011, the annuity to which the surviving
13spouse, children, or parents are entitled under this subsection
14(c) shall be in the amount of 66 2/3% of the fireman's earned
15pension at the date of death.
16    Notwithstanding any other provision of this Article, the
17monthly annuity of a survivor of a person who first becomes a
18fireman under this Article on or after January 1, 2011 shall be
19increased on the January 1 after commencement of the annuity
20and each January 1 thereafter by 3% or one-half the annual
21unadjusted percentage increase in the consumer price index-u
22for the 12 months ending with September preceding each November
231, whichever is less, of the originally granted survivor's
24annuity. If the annual unadjusted percentage change in the
25consumer price index-u for a 12-month period ending in
26September is zero or, when compared with the preceding period,

 

 

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1decreases, then the annuity shall not be increased.
 
2    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
3    Sec. 7-142.1. Sheriff's law enforcement employees.
4    (a) In lieu of the retirement annuity provided by
5subparagraph 1 of paragraph (a) of Section 7-142:
6    Any sheriff's law enforcement employee who has 20 or more
7years of service in that capacity and who terminates service
8prior to January 1, 1988 shall be entitled at his option to
9receive a monthly retirement annuity for his service as a
10sheriff's law enforcement employee computed by multiplying 2%
11for each year of such service up to 10 years, 2 1/4% for each
12year of such service above 10 years and up to 20 years, and 2
131/2% for each year of such service above 20 years, by his
14annual final rate of earnings and dividing by 12.
15    Any sheriff's law enforcement employee who has 20 or more
16years of service in that capacity and who terminates service on
17or after January 1, 1988 and before July 1, 2004 shall be
18entitled at his option to receive a monthly retirement annuity
19for his service as a sheriff's law enforcement employee
20computed by multiplying 2.5% for each year of such service up
21to 20 years, 2% for each year of such service above 20 years
22and up to 30 years, and 1% for each year of such service above
2330 years, by his annual final rate of earnings and dividing by
2412.
25    Any sheriff's law enforcement employee who has 20 or more

 

 

09600SB3538ham002- 62 -LRB096 18789 JDS 44249 a

1years of service in that capacity and who terminates service on
2or after July 1, 2004 shall be entitled at his or her option to
3receive a monthly retirement annuity for service as a sheriff's
4law enforcement employee computed by multiplying 2.5% for each
5year of such service by his annual final rate of earnings and
6dividing by 12.
7    If a sheriff's law enforcement employee has service in any
8other capacity, his retirement annuity for service as a
9sheriff's law enforcement employee may be computed under this
10Section and the retirement annuity for his other service under
11Section 7-142.
12    In no case shall the total monthly retirement annuity for
13persons who retire before July 1, 2004 exceed 75% of the
14monthly final rate of earnings. In no case shall the total
15monthly retirement annuity for persons who retire on or after
16July 1, 2004 exceed 80% of the monthly final rate of earnings.
17    (b) Whenever continued group insurance coverage is elected
18in accordance with the provisions of Section 367h of the
19Illinois Insurance Code, as now or hereafter amended, the total
20monthly premium for such continued group insurance coverage or
21such portion thereof as is not paid by the municipality shall,
22upon request of the person electing such continued group
23insurance coverage, be deducted from any monthly pension
24benefit otherwise payable to such person pursuant to this
25Section, to be remitted by the Fund to the insurance company or
26other entity providing the group insurance coverage.

 

 

09600SB3538ham002- 63 -LRB096 18789 JDS 44249 a

1    (c) A sheriff's law enforcement employee who has service in
2any other capacity may convert up to 10 years of that service
3into service as a sheriff's law enforcement employee by paying
4to the Fund an amount equal to (1) the additional employee
5contribution required under Section 7-173.1, plus (2) the
6additional employer contribution required under Section 7-172,
7plus (3) interest on items (1) and (2) at the prescribed rate
8from the date of the service to the date of payment.
9    (d) The changes to subsections (a) and (b) of this Section
10made by this amendatory Act of the 94th General Assembly apply
11only to persons in service on or after July 1, 2004. In the
12case of such a person who begins to receive a retirement
13annuity before the effective date of this amendatory Act of the
1494th General Assembly, the annuity shall be recalculated
15prospectively to reflect those changes, with the resulting
16increase beginning to accrue on the first annuity payment date
17following the effective date of this amendatory Act.
18    (e) Any elected county officer who was entitled to receive
19a stipend from the State on or after July 1, 2009 and on or
20before June 30, 2010 may establish earnings credit for the
21amount of stipend not received, if the elected county official
22applies in writing to the fund within 6 months after the
23effective date of this amendatory Act of the 96th General
24Assembly and pays to the fund an amount equal to (i) employee
25contributions on the amount of stipend not received, (ii)
26employer contributions determined by the Board equal to the

 

 

09600SB3538ham002- 64 -LRB096 18789 JDS 44249 a

1employer's normal cost of the benefit on the amount of stipend
2not received, plus (iii) interest on items (i) and (ii) at the
3actuarially assumed rate.
4    (f) Notwithstanding any other provision of this Article,
5the provisions of this subsection (f) apply to a person who
6first becomes a sheriff's law enforcement employee under this
7Article on or after January 1, 2011.
8    A sheriff's law enforcement employee age 55 or more who has
910 or more years of service in that capacity shall be entitled
10at his option to receive a monthly retirement annuity for his
11service as a sheriff's law enforcement employee computed by
12multiplying 2.5% for each year of such service by his or her
13final average salary.
14    The retirement annuity of a sheriff's law enforcement
15employee who is retiring after attaining age 50 with 10 or more
16years of creditable service shall be reduced by one-half of 1%
17for each month that the sheriff's law enforcement employee's
18age is under age 55.
19    The maximum retirement annuity under this subsection (f)
20shall be 75% of final average salary.
21    For the purposes of this subsection (f), "final average
22salary" means the average monthly salary, excluding overtime,
23obtained by dividing the total salary of the sheriff's law
24enforcement employee during the 96 consecutive months of
25service within the last 120 months of service in which the
26total salary was the highest by the number of months of service

 

 

09600SB3538ham002- 65 -LRB096 18789 JDS 44249 a

1in that period.
2    Notwithstanding any other provision of this Article,
3beginning on January 1, 2011, the final average salary of a
4sheriff's law enforcement employee based on the plan year for
5any purposes under this Article shall not exceed $106,800;
6however, that amount shall annually thereafter be increased by
7the lesser of (i) 3% of that amount, including all previous
8adjustments, or (ii) one-half the annual unadjusted percentage
9increase (but not less than zero) in the consumer price index-u
10for the 12 months ending with the September preceding each
11November 1, including all previous adjustments.
12    (g) Notwithstanding any other provision of this Article,
13the monthly annuity of a sheriff's law enforcement employee
14shall be increased on the January 1 occurring either on or
15after the attainment of age 60 or the first anniversary of the
16annuity start date, whichever is later. Each annual increase
17shall be calculated at 3% or one-half the annual unadjusted
18percentage increase (but not less than zero) in the consumer
19price index-u for the 12 months ending with the September
20preceding each November 1 whichever is less, of the originally
21granted retirement annuity. If the annual unadjusted
22percentage change in the consumer price index-u for a 12-month
23period ending in September is zero or, when compared with the
24preceding period, decreases, then the annuity shall not be
25increased.
26    (h) Notwithstanding any other provision of this Article,

 

 

09600SB3538ham002- 66 -LRB096 18789 JDS 44249 a

1for a sheriff's law enforcement employee, the annuity to which
2the surviving spouse, children, or parents are entitled under
3this subsection (h) shall be in the amount of 66 2/3% of the
4sheriff's law enforcement employee's earned annuity at the date
5of death. Nothing in this subsection (h) shall act to diminish
6the survivor's benefits described in this Section.
7    (i) Notwithstanding any other provision of this Article,
8the monthly annuity of a survivor of a person who first becomes
9a sheriff's law enforcement employee under this Article on or
10after January 1, 2011 shall be increased on the January 1 after
11commencement of the annuity and each January 1 thereafter by 3%
12or one-half the annual unadjusted percentage increase in the
13consumer price index-u for the 12 months ending with the
14September preceding each November 1, whichever is less, of the
15originally granted pension. If the annual unadjusted
16percentage change in the consumer price index-u for a 12-month
17period ending in September is zero or, when compared with the
18preceding period, decreases, then the annuity shall not be
19increased.
20    (j) For the purposes of this Section, "consumer price
21index-u" means the index published by the Bureau of Labor
22Statistics of the United States Department of Labor that
23measures the average change in prices of goods and services
24purchased by all urban consumers, United States city average,
25all items, 1982-84 = 100. The new amount resulting from each
26annual adjustment shall be determined by the Public Pension

 

 

09600SB3538ham002- 67 -LRB096 18789 JDS 44249 a

1Division of the Department of Insurance and made available to
2the boards of the pension funds.
3(Source: P.A. 96-961, eff. 7-2-10.)
 
4    Section 99. Effective date. This Act takes effect January
51, 2011.".