97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5645

 

Introduced 2/15/2012, by Rep. Angelo Saviano

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-164  from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.36 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that beginning January 1, 2012 for firemen born on or after January 1, 1955 but before January 1, 1960, the automatic annual increases in retirement annuity shall be 3% and shall not be subject to the 30% maximum increase restriction. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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 6-164 as follows:
 
6    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
7    Sec. 6-164. Automatic annual increase; retirement after
8September 1, 1959.
9    (a) A fireman qualifying for a minimum annuity who retires
10from service after September 1, 1959 shall, upon either the
11first of the month following the first anniversary of his date
12of retirement if he is age 60 (age 55 if born before January 1,
131955) or over on that anniversary date, or upon the first of
14the month following his attainment of age 60 (age 55 if born
15before January 1, 1955) if that 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 July 1, 1982 for firemen
21born before January 1, 1930, and beginning January 1, 1990 for
22firemen born after December 31, 1929 and before January 1,
231940, and beginning January 1, 1996 for firemen born after

 

 

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1December 31, 1939 but before January 1, 1945, and beginning
2January 1, 2004, for firemen born after December 31, 1944 but
3before January 1, 1955, and beginning January 1, 2012 for
4firemen born on or after January 1, 1955 but before January 1,
51960, such increases shall be 3% and such firemen shall not be
6subject to the 30% maximum increase.
7    Any fireman born before January 1, 1945 who qualifies for a
8minimum annuity and retires after September 1, 1967 but has not
9received 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
14this amendatory Act of 1995 apply beginning January 1, 1996 and
15apply without regard to whether the fireman or annuitant
16terminated service before the effective date of this amendatory
17Act of 1995.
18    Any fireman born before January 1, 1955 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, 2004 is entitled to receive the initial increase
22under this subsection on (1) January 1, 2004, (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 the 93rd General Assembly apply without
26regard to whether the fireman or annuitant terminated service

 

 

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1before the effective date of this amendatory Act.
2    Any fireman born on or after January 1, 1955 but before
3January 1, 1960 who qualifies for a minimum annuity and retires
4after September 1, 1967 but has not received the initial
5increase under this subsection before January 1, 2012 is
6entitled to receive the initial increase under this subsection
7on (1) January 1, 2012, (2) the first anniversary of the date
8of retirement, or (3) attainment of age 55, whichever occurs
9last. The changes to this Section made by this amendatory Act
10of the 97th General Assembly apply without regard to whether
11the fireman or annuitant terminated service before the
12effective 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%

 

 

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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

 

 

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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. 96-1495, eff. 1-1-11.)
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.36 as follows:
 
12    (30 ILCS 805/8.36 new)
13    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 97th General Assembly.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.