SB1872 97TH GENERAL ASSEMBLY

LRB097 09737 JDS 49874 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1872

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

SYNOPSIS AS INTRODUCED:

40 ILCS 5/5-136.2 new

Amends the Chicago Police Article of the Illinois Pension Code. Provides that the amount of the annuity of a widow of a policeman who first became a participant of the fund before January 1, 2011 and the annual increases in that annuity shall be equal to the annuity and annual increases provided for the widow of a policeman who first became a participant of the fund on or after that date.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by adding Section 5-136.2 as follows:

(40 ILCS 5/5-136.2 new)

Sec. 5-136.2. Parity of widows' annuities.

(a) Notwithstanding any other provision of this Article, for a widow of a policeman who first became a participant of the fund before January 1, 2011, the annuity to which the widow is entitled shall be in the amount of 66 2/3% of the policeman's earned annuity at the date of death. The provisions of this Section apply without regard to whether the policeman is in service on its effective date. In the case of a person who is receiving a widows' annuity on the effective date of this amendatory Act of the 97th General Assembly, the annuity shall be recalculated to reflect, (i) the changes made by this Section in the amount of the original annuity and (ii) any annual increases that the annuitant is entitled to under this Act, and the resulting increase shall become payable on the next annuity payment date.

(b) Notwithstanding any other provision of this Article, the monthly annuity of a widow of a person who first became a policeman under this Article before January 1, 2011 shall be increased on January 1, 2013 or the January 1 after attainment of age 60 by the recipient of the survivor's annuity, whichever occurs later, and each January 1 thereafter by 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted annuity. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not be increased.

(c) For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds.