97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2060

 

Introduced 2/10/2011, by Sen. Kwame Raoul

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-167.1  from Ch. 108 1/2, par. 5-167.1
40 ILCS 5/5-169.1 new
30 ILCS 805/8.35 new

    Amends the Chicago Police Article of the Illinois Pension Code. Provides that, beginning on January 1, 2012, policemen who do not receive 3% annual increases may irrevocably elect to receive annual increases at that rate by contributing an additional 1% of salary to the fund. Makes changes concerning annual increases to the monthly annuities of persons who first become policemen on or after the effective date of the amendatory Act. Deletes repetitive language concerning annual increases in survivor's annuities for new hires. Amends the State Mandates Act to require implementation without reimbursement.


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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 5-167.1 and by adding Section 5-169.1 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

 

 

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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, and, for a policeman who makes an
6irrevocable election under Section 5-169.1, beginning on the
7January 1 immediately following that election and each January
81 thereafter, such increases shall be 3% and such policemen
9shall 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

 

 

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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

 

 

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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,
17the monthly annuity of a person who first becomes a policeman
18under this Article on or after the effective date of this
19amendatory Act of the 97th General Assembly shall be increased
20on the January 1 occurring either on or after the attainment of
21age 60 or the first anniversary of the annuity start date,
22whichever is later. Each annual increase shall be calculated at
233% or one-half the annual unadjusted percentage increase (but
24not less than zero) in the consumer price index-u for the 12
25months ending with the September preceding each November 1,
26whichever is less, of the originally granted retirement

 

 

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1annuity. If the annual unadjusted percentage change in the
2consumer price index-u for a 12-month period ending in
3September is zero or, when compared with the preceding period,
4decreases, then the annuity shall not be increased.
5Notwithstanding any other provision of this Article, for a
6person who first becomes a policeman under this Article on or
7after January 1, 2011, the annuity to which the survivor is
8entitled under this subsection (d) shall be in the amount of 66
92/3% of the policeman's earned annuity at the date of death.
10Nothing in this subsection (d) shall act to diminish the
11survivor's benefits described in this Section.
12    Notwithstanding any other provision of this Article, the
13monthly annuity of a survivor of a person who first becomes a
14policeman under this Article on or after January 1, 2011 shall
15be increased on the January 1 after attainment of age 60 by the
16recipient of the survivor's annuity and each January 1
17thereafter by 3% or one-half the annual unadjusted percentage
18increase (but not less than zero) in the consumer price index-u
19for the 12 months ending with the September preceding each
20November 1, whichever is less, of the originally granted
21annuity. If the annual unadjusted percentage change in the
22consumer price index-u for a 12-month period ending in
23September is zero or, when compared with the preceding period,
24decreases, then the annuity shall not be increased.
25    For the purposes of this subsection (d), "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(Source: P.A. 96-1495, eff. 1-1-11.)
 
9    (40 ILCS 5/5-169.1 new)
10    Sec. 5-169.1. Contributions for persons electing to
11receive 3% annual increases. Beginning January 1, 2012, each
12present employee who is not entitled to 3% annual increases
13under Section 5-167.1 may make an irrevocable election to have
14an additional 1% of each payment of his or her salary deducted
15and contributed to the fund in exchange for the 3% annual
16increase under subsection (a) of Section 5-167.1. These
17deductions shall be made from each payment of salary and shall
18continue while the employee is in service. The fund may, by
19rule, establish any procedures and forms that are necessary to
20implement this Section.
 
21    Section 90. The State Mandates Act is amended by adding
22Section 8.35 as follows:
 
23    (30 ILCS 805/8.35 new)

 

 

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1    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
2of this Act, no reimbursement by the State is required for the
3implementation of any mandate created by this amendatory Act of
4the 97th General Assembly.