Full Text of SB1952 103rd General Assembly
SB1952 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB1952 Introduced 2/9/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/6-229 | | 30 ILCS 805/8.47 new | |
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Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u) for the 12 months ending with the September preceding each November 1, including all previous adjustments. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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| | | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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| | A BILL FOR |
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| | | SB1952 | | LRB103 25057 RPS 51392 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 6-229 as follows: | 6 | | (40 ILCS 5/6-229) | 7 | | Sec. 6-229. Provisions applicable to new hires; Tier 2. | 8 | | (a) Notwithstanding any other provision of this Article,
| 9 | | the provisions of this Section apply to a person who first
| 10 | | becomes a fireman under this Article on or after January 1, | 11 | | 2011, and to certain qualified survivors of such a fireman. | 12 | | Such persons, and the benefits and restrictions that apply | 13 | | specifically to them under this Article, may be referred to as | 14 | | "Tier 2". | 15 | | (b) A fireman who has withdrawn from service, has attained | 16 | | age 50 or more, and has 10 or more years of service in that | 17 | | capacity shall be entitled, upon proper application being | 18 | | received by the Fund, to receive a Tier 2 monthly retirement | 19 | | annuity for his service as a fireman. The Tier 2 monthly | 20 | | retirement annuity shall be computed by multiplying 2.5% for | 21 | | each year of such service by his or her final average salary, | 22 | | subject to an annuity reduction factor of one-half of 1% for | 23 | | each month that the fireman's age at retirement is under age |
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| 1 | | 55. The Tier 2 monthly retirement annuity is in lieu of any age | 2 | | and service annuity or other form of retirement annuity under | 3 | | this Article. | 4 | | The maximum retirement annuity under this subsection (b) | 5 | | shall be 75%
of final average salary. | 6 | | For the purposes of this subsection (b), "final average | 7 | | salary" means the average monthly salary obtained by dividing | 8 | | the total salary of the fireman during the 96 consecutive | 9 | | months of service within the last 120 months of service in | 10 | | which the total salary was the highest by the number of months | 11 | | of service in that period. | 12 | | Beginning on January 1, 2011, for all purposes under
this | 13 | | Code (including without limitation the calculation of
benefits | 14 | | and employee contributions), the annual salary
based on the | 15 | | plan year of a member or participant to whom this Section | 16 | | applies shall not exceed $106,800; however, until 2023, that | 17 | | amount shall annually thereafter be increased by the lesser of | 18 | | (i) 3% of that amount, including all previous adjustments, or | 19 | | (ii) one-half the annual unadjusted percentage increase (but | 20 | | not less than zero) in the consumer price index-u for the 12 | 21 | | months ending with the September preceding each November 1, | 22 | | including all previous adjustments ; however, beginning in | 23 | | 2024, that amount shall annually thereafter be increased by | 24 | | the annual unadjusted percentage increase (but not less than | 25 | | zero) in the consumer price index-u for the 12 months ending | 26 | | with the September preceding each November 1, including all |
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| 1 | | previous adjustments . | 2 | | (b-5) For the purposes of this Section, "consumer price | 3 | | index-u" means the index published by the Bureau of Labor | 4 | | Statistics of the United States Department of Labor that | 5 | | measures the average change in prices of goods and services | 6 | | purchased by all urban consumers, United States city average, | 7 | | all items, 1982-84 = 100. The new amount resulting from each | 8 | | annual adjustment shall be determined by the Public Pension | 9 | | Division of the Department of Insurance and made available to | 10 | | the boards of the retirement systems and pension funds by | 11 | | November 1 of each year. | 12 | | (c) Notwithstanding any other provision of this Article, | 13 | | for a person who first becomes a fireman under this Article on | 14 | | or after January 1, 2011, eligibility for and the amount of the | 15 | | annuity to which the qualified surviving spouse, children, and | 16 | | parents of the fireman are entitled under this subsection (c) | 17 | | shall be determined as follows: | 18 | | (1) The surviving spouse of a deceased fireman to whom | 19 | | this Section applies shall be deemed qualified to receive | 20 | | a Tier 2 surviving spouse's annuity under this paragraph | 21 | | (1) if: (i) the deceased fireman meets the requirements | 22 | | specified under subdivision (A), (B), (C), or (D) of this | 23 | | paragraph (1); and (ii) the surviving spouse would not | 24 | | otherwise be excluded from receiving a widow's annuity | 25 | | under the eligibility requirements for a widow's annuity | 26 | | set forth in Section 6-142. The Tier 2 surviving spouse's |
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| 1 | | annuity is in lieu of the widow's annuity determined under | 2 | | any other Section of this Article and is subject to the | 3 | | requirements of Section 6-143.2. | 4 | | As used in this subsection (c), "earned pension" means | 5 | | a Tier 2 monthly retirement annuity determined under | 6 | | subsection (b) of this Section, including any increases | 7 | | the fireman had received pursuant to Section 6-164. | 8 | | (A) If the deceased fireman was receiving an | 9 | | earned pension at the date of his or her death, the | 10 | | Tier 2 surviving spouse's annuity under this paragraph | 11 | | (1) shall be in the amount of 66 2/3% of the fireman's | 12 | | earned pension at the date of death. | 13 | | (B) If the deceased fireman was not receiving an | 14 | | earned pension but had at least 10 years of service at | 15 | | the time of death, the Tier 2 surviving spouse's | 16 | | annuity under this paragraph (1) shall be the greater | 17 | | of: (i) 30% of the salary attached to the rank of first
| 18 | | class firefighter in the classified career service at
| 19 | | the time of the fireman's death; or (ii) 66 2/3% of the | 20 | | Tier 2 monthly retirement annuity that the deceased | 21 | | fireman would have been eligible to receive under | 22 | | subsection (b) of this Section, based upon the actual | 23 | | service accrued through the day before the fireman's | 24 | | death, but determined as though the fireman was at | 25 | | least age 55 on the day before his or her death and | 26 | | retired on that day. |
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| 1 | | (C) If the deceased fireman was an active fireman | 2 | | with at least 1 1/2 but less than 10 years of service | 3 | | at the time of death, the Tier 2 surviving spouse's | 4 | | annuity under this paragraph (1) shall be in the | 5 | | amount of 30% of the salary attached to the rank of | 6 | | first
class firefighter in the classified career | 7 | | service at
the time of the fireman's death. | 8 | | (D) Notwithstanding subdivisions (A), (B), and (C) | 9 | | of this paragraph (1), if the performance of an act or | 10 | | acts of duty results directly in the death of a fireman | 11 | | subject to this Section, or prevents him from | 12 | | subsequently resuming active service in the fire | 13 | | department, then a surviving spouse who would | 14 | | otherwise meet the eligibility requirements for a | 15 | | death in the line of duty widow's annuity granted | 16 | | under Section 6-140 shall be deemed to be qualified | 17 | | for a Tier 2 surviving spouse's annuity under this | 18 | | subdivision (D); except that no such annuity shall be | 19 | | paid to the
surviving spouse of a fireman who dies | 20 | | while in
receipt of disability benefits when the | 21 | | fireman's
death was caused by an intervening illness | 22 | | or injury unrelated to the illness or injury that had | 23 | | prevented him from subsequently resuming active | 24 | | service in the fire department. The Tier 2 surviving | 25 | | spouse's annuity calculated under this subdivision (D) | 26 | | shall be in lieu
of, but in the same amount and paid in |
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| 1 | | the same manner
as, the widow's annuity provided under | 2 | | Section 6-140; except that the salary used for | 3 | | computing a Tier 2 surviving spouse's annuity under | 4 | | this subdivision (D) shall be subject to the Tier 2 | 5 | | salary cap provided under subsection (b) of this | 6 | | Section. | 7 | | (E) Notwithstanding any other provision of this | 8 | | Article, the monthly Tier 2 surviving spouse's annuity | 9 | | under subdivision (A) or (B) of this paragraph (1)
| 10 | | shall be increased on the January 1 next occurring | 11 | | after (i) attainment of age 60 by the recipient of the | 12 | | Tier 2 surviving spouse's annuity or (ii) the first | 13 | | anniversary of the Tier 2 surviving spouse's annuity | 14 | | start date, whichever is later, and on
each January 1 | 15 | | thereafter, by 3% or one-half the annual unadjusted | 16 | | percentage increase in the consumer price index-u for | 17 | | the
12 months ending with September preceding each | 18 | | November 1, whichever is less, of the originally | 19 | | granted Tier 2 surviving spouse's annuity. If the | 20 | | annual unadjusted percentage change in
the consumer | 21 | | price index-u for a 12-month period ending in | 22 | | September is zero or, when compared with the preceding | 23 | | period, decreases, then the annuity shall not
be | 24 | | increased.
| 25 | | (F) Notwithstanding the other provisions of this | 26 | | paragraph (1), for a qualified surviving spouse who is |
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| 1 | | entitled to a Tier 2 surviving spouse's annuity under | 2 | | subdivision (A), (B), (C), or (D) of this paragraph | 3 | | (1), that Tier 2 surviving spouse's annuity shall not | 4 | | be less than the amount of the minimum widow's annuity | 5 | | established from time to time under Section 6-128.4. | 6 | | (2) Surviving children of a deceased fireman subject | 7 | | to this Section who would otherwise meet the eligibility | 8 | | requirements for a child's annuity set forth in Sections | 9 | | 6-147 and 6-148 shall be deemed qualified to receive a | 10 | | Tier 2 child's annuity under this subsection (c), which | 11 | | shall be in lieu of, but in the same amount and paid in the | 12 | | same manner as, the child's annuity provided under those | 13 | | Sections; except that any salary used for computing a Tier | 14 | | 2 child's annuity shall be subject to the Tier 2 salary cap | 15 | | provided under subsection (b) of this Section. For | 16 | | purposes of determining any pro rata reduction in child's | 17 | | annuities under this subsection (c), references in Section | 18 | | 6-148 to the combined annuities of the family shall be | 19 | | deemed to refer to the combined Tier 2 surviving spouse's | 20 | | annuity, if any, and the Tier 2 child's annuities payable | 21 | | under this subsection (c). | 22 | | (3) Surviving parents of a deceased fireman subject to | 23 | | this Section who would otherwise meet the eligibility | 24 | | requirements for a parent's annuity set forth in Section | 25 | | 6-149 shall be deemed qualified to receive a Tier 2 | 26 | | parent's annuity under this subsection (c), which shall be |
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| 1 | | in lieu of, but in the same amount and paid in the same | 2 | | manner as, the parent's annuity provided under Section | 3 | | 6-149; except that any salary used for computing a Tier 2 | 4 | | parent's annuity shall be subject to the Tier 2 salary cap | 5 | | provided under subsection (b) of this Section. For the | 6 | | purposes of this Section, a reference to "annuity" in | 7 | | Section 6-149 includes: (i) in the context of a widow, a | 8 | | Tier 2 surviving spouse's annuity and (ii) in the context | 9 | | of a child, a Tier 2 child's annuity. | 10 | | (d) The General Assembly finds and declares that the | 11 | | provisions of this Section, as enacted by Public Act 96-1495, | 12 | | require clarification relating to necessary eligibility | 13 | | standards and the manner of determining and paying the | 14 | | intended Tier 2 benefits and contributions in order to enable | 15 | | the Fund to unambiguously implement and administer benefits | 16 | | for Tier 2 members. The changes to this Section and the | 17 | | conforming changes to Sections 6-150, 6-158, 6-164 (except for | 18 | | the changes to subsection (a) of that Section), 6-166, and | 19 | | 6-167 made by this amendatory Act of the 99th
General Assembly | 20 | | are enacted to clarify the provisions of this Section as | 21 | | enacted by Public Act 96-1495, and are hereby declared to | 22 | | represent and be consistent with the original and continuing | 23 | | intent of this Section and Public Act 96-1495. | 24 | | (e) The changes to Sections 6-150, 6-158, 6-164 (except | 25 | | for the changes to subsection (a) of that Section), 6-166, and | 26 | | 6-167 made by this amendatory Act of the 99th General Assembly |
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| 1 | | are intended to be retroactive to January 1, 2011 (the | 2 | | effective date of Public Act 96-1495) and, for the purposes of | 3 | | Section 1-103.1 of this Code, they apply without regard to | 4 | | whether the relevant fireman
was in service on or after the | 5 | | effective date of this amendatory Act of the 99th General | 6 | | Assembly. | 7 | | (Source: P.A. 99-905, eff. 11-29-16.) | 8 | | Section 90. The State Mandates Act is amended by adding | 9 | | Section 8.47 as follows: | 10 | | (30 ILCS 805/8.47 new) | 11 | | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | 12 | | 8 of this Act, no reimbursement by the State is required for | 13 | | the implementation of any mandate created by this amendatory | 14 | | Act of the 103rd General Assembly.
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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