97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3376

 

Introduced 2/24/2011, by Rep. Kevin A. McCarthy

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-167.1  from Ch. 108 1/2, par. 5-167.1

    Amends the Chicago Police Article of the Illinois Pension Code. Makes changes concerning annual increases to the monthly annuities of persons who first become a policeman on or after the effective date of the amendatory Act and deletes repetitive language concerning annual increases in survivor's annuities for new hires. Effective immediately.


LRB097 08172 JDS 48296 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3376LRB097 08172 JDS 48296 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 5-167.1 as follows:
 
6    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
7    Sec. 5-167.1. Automatic increase in annuity; retirement
8from service after September 1, 1967.
9    (a) A policeman who retires from service after September 1,
101967 with at least 20 years of service credit shall, upon
11either the first of the month following the first anniversary
12of his date of retirement if he is age 60 (age 55 if born before
13January 1, 1955) or over on that anniversary date, or upon the
14first of the month following his attainment of age 60 (age 55
15if born before January 1, 1955) if it occurs after the first
16anniversary of his retirement date, have his then fixed and
17payable monthly annuity increased by 1 1/2% and such first
18fixed annuity as granted at retirement increased by an
19additional 1 1/2% in January of each year thereafter up to a
20maximum increase of 30%. Beginning January 1, 1983 for
21policemen born before January 1, 1930, and beginning January 1,
221988 for policemen born on or after January 1, 1930 but before
23January 1, 1940, and beginning January 1, 1996 for policemen

 

 

HB3376- 2 -LRB097 08172 JDS 48296 b

1born on or after January 1, 1940 but before January 1, 1945,
2and beginning January 1, 2000 for policemen born on or after
3January 1, 1945 but before January 1, 1950, and beginning
4January 1, 2005 for policemen born on or after January 1, 1950
5but before January 1, 1955, such increases shall be 3% and such
6policemen shall not be subject to the 30% maximum increase.
7    Any policeman born before January 1, 1945 who qualifies for
8a minimum annuity and retires after September 1, 1967 but has
9not received the initial increase under this subsection before
10January 1, 1996 is entitled to receive the initial increase
11under this subsection on (1) January 1, 1996, (2) the first
12anniversary of the date of retirement, or (3) attainment of age
1355, whichever occurs last. The changes to this Section made by
14Public Act 89-12 apply beginning January 1, 1996 and without
15regard to whether the policeman or annuitant terminated service
16before the effective date of that Act.
17    Any policeman born before January 1, 1950 who qualifies for
18a minimum annuity and retires after September 1, 1967 but has
19not received the initial increase under this subsection before
20January 1, 2000 is entitled to receive the initial increase
21under this subsection on (1) January 1, 2000, (2) the first
22anniversary of the date of retirement, or (3) attainment of age
2355, whichever occurs last. The changes to this Section made by
24this amendatory Act of the 92nd General Assembly apply without
25regard to whether the policeman or annuitant terminated service
26before the effective date of this amendatory Act.

 

 

HB3376- 3 -LRB097 08172 JDS 48296 b

1    Any policeman born before January 1, 1955 who qualifies for
2a minimum annuity and retires after September 1, 1967 but has
3not received the initial increase under this subsection before
4January 1, 2005 is entitled to receive the initial increase
5under this subsection on (1) January 1, 2005, (2) the first
6anniversary of the date of retirement, or (3) attainment of age
755, whichever occurs last. The changes to this Section made by
8this amendatory Act of the 94th General Assembly apply without
9regard to whether the policeman or annuitant terminated service
10before the effective date of this amendatory Act.
11    (b) Subsection (a) of this Section is not applicable to an
12employee receiving a term annuity.
13    (c) To help defray the cost of such increases in annuity,
14there shall be deducted, beginning September 1, 1967, from each
15payment of salary to a policeman, 1/2 of 1% of each salary
16payment concurrently with and in addition to the salary
17deductions otherwise made for annuity purposes.
18    The city, in addition to the contributions otherwise made
19by it for annuity purposes under other provisions of this
20Article, shall make matching contributions concurrently with
21such salary deductions.
22    Each such 1/2 of 1% deduction from salary and each such
23contribution by the city of 1/2 of 1% of salary shall be
24credited to the Automatic Increase Reserve, to be used to
25defray the cost of the 1 1/2% annuity increase provided by this
26Section. Any balance in such reserve as of the beginning of

 

 

HB3376- 4 -LRB097 08172 JDS 48296 b

1each calendar year shall be credited with interest at the rate
2of 3% per annum.
3    Such deductions from salary and city contributions shall
4continue while the policeman is in service.
5    The salary deductions provided in this Section are not
6subject to refund, except to the policeman himself, in any case
7in which a policeman withdraws prior to qualification for
8minimum annuity and applies for refund or applies for annuity,
9and also where a term annuity becomes payable. In such cases,
10the total of such salary deductions shall be refunded to the
11policeman, without interest, and charged to the Automatic
12Increase Reserve.
13    (d) Notwithstanding any other provision of this Article,
14the monthly annuity of a person who first becomes a policeman
15under this Article on or after the effective date of this
16amendatory Act of the 97th General Assembly shall be increased
17on the January 1 occurring either on or after the attainment of
18age 60 or the first anniversary of the annuity start date,
19whichever is later. Each annual increase shall be calculated at
203% or one-half the annual unadjusted percentage increase (but
21not less than zero) in the consumer price index-u for the 12
22months ending with the September preceding each November 1,
23whichever is less, of the originally granted retirement
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,

 

 

HB3376- 5 -LRB097 08172 JDS 48296 b

1decreases, then the annuity shall not be increased.
2    Notwithstanding any other provision of this Article, for a
3person who first becomes a policeman under this Article on or
4after January 1, 2011, the annuity to which the survivor is
5entitled under this subsection (d) shall be in the amount of 66
62/3% of the policeman's earned annuity at the date of death.
7Nothing in this subsection (d) shall act to diminish the
8survivor's benefits described in this Section.
9    Notwithstanding any other provision of this Article, the
10monthly annuity of a survivor of a person who first becomes a
11policeman under this Article on or after January 1, 2011 shall
12be increased on the January 1 after attainment of age 60 by the
13recipient of the survivor's annuity and each January 1
14thereafter by 3% or one-half the annual unadjusted percentage
15increase (but not less than zero) in the consumer price index-u
16for the 12 months ending with the September preceding each
17November 1, whichever is less, of the originally granted
18annuity. If the annual unadjusted percentage change in the
19consumer price index-u for a 12-month period ending in
20September is zero or, when compared with the preceding period,
21decreases, then the annuity shall not be increased.
22    For the purposes of this subsection (d), "consumer price
23index-u" means the index published by the Bureau of Labor
24Statistics of the United States Department of Labor that
25measures the average change in prices of goods and services
26purchased by all urban consumers, United States city average,

 

 

HB3376- 6 -LRB097 08172 JDS 48296 b

1all items, 1982-84 = 100. The new amount resulting from each
2annual adjustment shall be determined by the Public Pension
3Division of the Department of Insurance and made available to
4the boards of the pension funds.
5(Source: P.A. 96-1495, eff. 1-1-11.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.