97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3355

 

Introduced 2/7/2012, by Sen. Kwame Raoul

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-167.1  from Ch. 108 1/2, par. 5-167.1
30 ILCS 805/8.36 new

    Amends the Chicago Police Article of the Illinois Pension Code. Provides that, beginning on January 1, 2012, for certain policemen born on or after January 1, 1955, automatic annual increases in retirement annuity shall be 3% and such policemen shall not be subject to the 30% maximum increase. Also makes a technical change. 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 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) Except as provided in subsection (d), a A policeman who
10retires from service after September 1, 1967 with at least 20
11years of service credit shall, upon either the first of the
12month following the first anniversary of his date of retirement
13if he is age 60 (age 55 if born before January 1, 1955) or over
14on that anniversary date, or upon the first of the month
15following his attainment of age 60 (age 55 if born before
16January 1, 1955) if it occurs after the first anniversary of
17his retirement date, have his then fixed and payable monthly
18annuity increased by 1 1/2% and such first fixed annuity as
19granted at retirement increased by an additional 1 1/2% in
20January of each year thereafter up to a maximum increase of
2130%. Beginning January 1, 1983 for policemen born before
22January 1, 1930, and beginning January 1, 1988 for policemen
23born on or after January 1, 1930 but before January 1, 1940,

 

 

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1and beginning January 1, 1996 for policemen born on or after
2January 1, 1940 but before January 1, 1945, and beginning
3January 1, 2000 for policemen born on or after January 1, 1945
4but before January 1, 1950, and beginning January 1, 2005 for
5policemen born on or after January 1, 1950 but before January
61, 1955, and beginning January 1, 2012 for policemen born on or
7after January 1, 1955, such increases shall be 3% and such
8policemen shall not be subject to the 30% maximum increase.
9    Any policeman born before January 1, 1945 who qualifies for
10a minimum annuity and retires after September 1, 1967 but has
11not received the initial increase under this subsection before
12January 1, 1996 is entitled to receive the initial increase
13under this subsection on (1) January 1, 1996, (2) the first
14anniversary of the date of retirement, or (3) attainment of age
1555, whichever occurs last. The changes to this Section made by
16Public Act 89-12 apply beginning January 1, 1996 and without
17regard to whether the policeman or annuitant terminated service
18before the effective date of that Act.
19    Any policeman born before January 1, 1950 who qualifies for
20a minimum annuity and retires after September 1, 1967 but has
21not received the initial increase under this subsection before
22January 1, 2000 is entitled to receive the initial increase
23under this subsection on (1) January 1, 2000, (2) the first
24anniversary of the date of retirement, or (3) attainment of age
2555, whichever occurs last. The changes to this Section made by
26this amendatory Act of the 92nd General Assembly apply without

 

 

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1regard to whether the policeman or annuitant terminated service
2before the effective date of this amendatory Act.
3    Any policeman born before January 1, 1955 who qualifies for
4a minimum annuity and retires after September 1, 1967 but has
5not received the initial increase under this subsection before
6January 1, 2005 is entitled to receive the initial increase
7under this subsection on (1) January 1, 2005, (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 94th General Assembly apply without
11regard to whether the policeman or annuitant terminated service
12before the effective date of this amendatory Act.
13    Except as provided in subsection (d), any policeman who
14qualifies for a minimum annuity and retires after September 1,
151967 but has not received the initial increase under this
16subsection before January 1, 2012 is entitled to receive the
17initial increase under this subsection on (1) January 1, 2012,
18(2) the first anniversary of the date of retirement, or (3)
19attainment of age 55, whichever occurs last. The changes to
20this Section made by this amendatory Act of the 97th General
21Assembly apply without regard to whether the policeman or
22annuitant terminated service before the effective date of this
23amendatory Act.
24    (b) Subsection (a) of this Section is not applicable to an
25employee receiving a term annuity.
26    (c) To help defray the cost of such increases in annuity,

 

 

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1there shall be deducted, beginning September 1, 1967, from each
2payment of salary to a policeman, 1/2 of 1% of each salary
3payment concurrently with and in addition to the salary
4deductions otherwise made for annuity purposes.
5    The city, in addition to the contributions otherwise made
6by it for annuity purposes under other provisions of this
7Article, shall make matching contributions concurrently with
8such salary deductions.
9    Each such 1/2 of 1% deduction from salary and each such
10contribution by the city of 1/2 of 1% of salary shall be
11credited to the Automatic Increase Reserve, to be used to
12defray the cost of the 1 1/2% annuity increase provided by this
13Section. Any balance in such reserve as of the beginning of
14each calendar year shall be credited with interest at the rate
15of 3% per annum.
16    Such deductions from salary and city contributions shall
17continue while the policeman is in service.
18    The salary deductions provided in this Section are not
19subject to refund, except to the policeman himself, in any case
20in which a policeman withdraws prior to qualification for
21minimum annuity and applies for refund or applies for annuity,
22and also where a term annuity becomes payable. In such cases,
23the total of such salary deductions shall be refunded to the
24policeman, without interest, and charged to the Automatic
25Increase Reserve.
26    (d) Notwithstanding any other provision of this Article,

 

 

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1the monthly annuity of a person who first becomes a policeman
2under this Article on or after August 12, 2011 (the effective
3date of Public Act 97-344) this amendatory Act of the 97th
4General Assembly shall be increased on the January 1 occurring
5either on or after the attainment of age 60 or the first
6anniversary of the annuity start date, whichever is later. Each
7annual increase shall be calculated at 3% or one-half the
8annual unadjusted percentage increase (but not less than zero)
9in the consumer price index-u for the 12 months ending with the
10September preceding each November 1, whichever is less, of the
11originally granted retirement annuity. If the annual
12unadjusted percentage change in the consumer price index-u for
13a 12-month period ending in September is zero or, when compared
14with the preceding period, decreases, then the annuity shall
15not be increased.
16    For the purposes of this subsection (d), "consumer price
17index-u" means the index published by the Bureau of Labor
18Statistics of the United States Department of Labor that
19measures the average change in prices of goods and services
20purchased by all urban consumers, United States city average,
21all items, 1982-84 = 100. The new amount resulting from each
22annual adjustment shall be determined by the Public Pension
23Division of the Department of Insurance and made available to
24the boards of the pension funds.
25(Source: P.A. 96-1495, eff. 1-1-11; 97-344, eff. 8-12-11.)
 

 

 

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1    Section 90. The State Mandates Act is amended by adding
2Section 8.36 as follows:
 
3    (30 ILCS 805/8.36 new)
4    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
5of this Act, no reimbursement by the State is required for the
6implementation of any mandate created by this amendatory Act of
7the 97th General Assembly.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.