Full Text of HB0688 100th General Assembly
HB0688sam002 100TH GENERAL ASSEMBLY | Sen. Bill Cunningham Filed: 5/26/2017
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| 1 | | AMENDMENT TO HOUSE BILL 688
| 2 | | AMENDMENT NO. ______. Amend House Bill 688 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 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 | 8 | | September 1, 1959.
| 9 | | (a) For a person who first became a fireman under this | 10 | | Article before January 1, 2011 (Tier 1): | 11 | | (1) A fireman qualifying for a minimum annuity who | 12 | | retires from service
after September 1, 1959 shall, upon | 13 | | either the first of the month following the
first | 14 | | anniversary of his date of retirement if he is age 60 (age | 15 | | 55 if born
before January 1, 1966) or over on that | 16 | | anniversary date, or upon
the first of the month following |
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| 1 | | his attainment of age 60 (age 55 if born
before January 1, | 2 | | 1966) if that occurs after the first anniversary
of his | 3 | | retirement date, have his then fixed and payable monthly | 4 | | annuity
increased by 1 1/2%, and such first fixed annuity | 5 | | as granted at retirement
increased by an additional 1 1/2% | 6 | | in January of each year thereafter up to a
maximum increase | 7 | | of 30%.
Beginning July 1, 1982 for firemen born before | 8 | | January 1, 1930, and beginning
January 1, 1990 for firemen | 9 | | born after December 31, 1929 and before January 1,
1940, | 10 | | and beginning January 1, 1996 for firemen born after | 11 | | December 31, 1939
but before January 1, 1945, and beginning | 12 | | January 1, 2004, for firemen born
after December 31, 1944 | 13 | | but before January 1, 1955, and beginning January 1, 2017, | 14 | | for firemen born after December 31, 1954 but before January | 15 | | 1, 1966, such increases shall be
3% and such firemen shall | 16 | | not be subject to the 30% maximum increase.
| 17 | | (2) Any fireman born before January 1, 1945 who | 18 | | qualifies for a minimum annuity
and retires after September | 19 | | 1, 1967 but has not received the initial increase
under | 20 | | this subsection before January 1, 1996 is entitled to | 21 | | receive the initial
increase under this subsection on (1) | 22 | | January 1, 1996, (2) the first
anniversary of the date of | 23 | | retirement, or (3) attainment of age 55, whichever
occurs | 24 | | last. The changes to this Section made by this amendatory | 25 | | Act of 1995
apply beginning January 1, 1996 and apply | 26 | | without regard to whether the fireman
or annuitant |
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| 1 | | terminated service before the effective date of this | 2 | | amendatory
Act of 1995.
| 3 | | (3) Any fireman born before January 1, 1955 who | 4 | | qualifies for a minimum
annuity and retires after September | 5 | | 1, 1967 but has not received the initial
increase under | 6 | | this subsection before January 1, 2004 is entitled to | 7 | | receive
the initial increase under this subsection on (1) | 8 | | January 1, 2004, (2) the
first anniversary of the date of | 9 | | retirement, or (3) attainment of age 55,
whichever occurs | 10 | | last. The changes to this Section made by this amendatory
| 11 | | Act of the 93rd General Assembly apply without regard to | 12 | | whether the fireman
or annuitant terminated service before | 13 | | the effective date of this amendatory
Act.
| 14 | | (4) Any fireman born before January 1, 1966 who | 15 | | qualifies for
a minimum annuity and retires after
September | 16 | | 1, 1967 but has not received the initial increase
under | 17 | | this subsection before January 1, 2017 is entitled to
| 18 | | receive an initial increase under this subsection (a) on | 19 | | (1)
January 1, 2017, (2) the first anniversary of the date | 20 | | of
retirement, or (3) attainment of age 55, whichever | 21 | | occurs last, in an amount equal to 3% for each complete | 22 | | year following the date of retirement or attainment of age | 23 | | 55, whichever occurs later. This subdivision (4) does not | 24 | | prohibit any qualified fireman from choosing to have his or | 25 | | her eligibility for and the amount of the initial increase | 26 | | in retirement annuity determined in accordance with |
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| 1 | | subdivision (1) or (5) of this subsection. | 2 | | The changes to this subsection made by Public Act | 3 | | 99-905 this amendatory
Act of the 99th General Assembly | 4 | | apply without regard to whether the fireman
or annuitant | 5 | | terminated service before November 29, 2016 ( the effective | 6 | | date of Public Act 99-905) this amendatory
Act . | 7 | | (5) A fireman born before January 1, 1966 who qualifies | 8 | | for a minimum
annuity and retires after September 1, 1967 | 9 | | but has not received the initial
increase under this | 10 | | subsection before January 1, 2018 is entitled to receive
| 11 | | the initial increase under this subsection on (1) January | 12 | | 1, 2018, (2) the
first anniversary of the date of | 13 | | retirement, or (3) attainment of age 55,
whichever occurs | 14 | | last. This subdivision (5) does not prohibit any qualified | 15 | | fireman from choosing to have his or her eligibility for | 16 | | and the amount of the initial increase in retirement | 17 | | annuity determined in accordance with subdivision (1) or | 18 | | (4) of this subsection. | 19 | | (6) A fireman born on or after January 1, 1955 whose | 20 | | eligibility for and the amount of the initial increase in | 21 | | retirement annuity was determined, calculated, and granted | 22 | | under subdivision (1) of this subsection on or after | 23 | | January 1, 2010 and before November 29, 2016 (the effective | 24 | | date of Public Act 99-905) shall receive a one-time | 25 | | adjustment in his or her retirement annuity on January 1, | 26 | | 2018, equal to (i) 1.5% of the original fixed annuity for |
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| 1 | | each annual increase in that annuity that was calculated at | 2 | | 1.5% instead of 3%, plus (ii) 3% of the original fixed | 3 | | annuity for each annual increase in that annuity that was | 4 | | lost because the eligibility requirement under that | 5 | | subdivision was age 60 rather than age 55 due to the | 6 | | delayed extension of the age 55 provision. | 7 | | (7) A fireman born before January 1, 1966 whose | 8 | | eligibility for and the amount of the initial increase in | 9 | | retirement annuity was determined, calculated, and granted | 10 | | under subdivision (4) of this subsection on or after | 11 | | November 29, 2016 (the effective date of Public Act 99-905) | 12 | | and before the effective date of this amendatory
Act of the | 13 | | 100th General Assembly shall receive a one-time adjustment | 14 | | in his or her retirement annuity on January 1, 2018, equal | 15 | | to 3% of the original fixed annuity, representing the loss | 16 | | of the traditional increase on the January 1 following the | 17 | | first anniversary of retirement, due to the "complete year" | 18 | | language that was included in subdivision (4). | 19 | | (8) It is the purpose of this amendatory Act of the | 20 | | 100th General Assembly to clarify the intended application | 21 | | of subdivisions (1) and (4) of this subsection (a), as | 22 | | amended by Public Act 99-905, and to grant a one-time | 23 | | adjustment in certain retirement annuities that have | 24 | | already received the initial increase. The changes to this | 25 | | Section made by this amendatory
Act apply without regard to | 26 | | whether the fireman or annuitant terminated service before |
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| 1 | | the effective date of this amendatory
Act. | 2 | | (b) Subsection (a) of this Section is
not applicable to an | 3 | | employee receiving a term annuity.
| 4 | | (c) To help defray the cost of such increases in annuity, | 5 | | there
shall be deducted, beginning September 1, 1959, from each | 6 | | payment of salary
to a fireman, 1/8 of 1% of each such salary | 7 | | payment and an additional 1/8
of 1% beginning on September 1, | 8 | | 1961, and September 1, 1963, respectively,
concurrently with | 9 | | and in addition to the salary deductions otherwise made
for | 10 | | annuity purposes.
| 11 | | Each such additional 1/8 of 1% deduction from salary which | 12 | | shall, on
September 1, 1963, result in a total increase of 3/8 | 13 | | of 1% of salary,
shall be credited to the Automatic Increase | 14 | | Reserve, to be used,
together with city contributions as | 15 | | provided in this Article, to defray
the cost of the annuity | 16 | | increments specified in this Section. Any balance
in such | 17 | | reserve as of the beginning of each calendar year shall be
| 18 | | credited with interest at the rate of 3% per annum.
| 19 | | The salary deductions provided in this Section are not | 20 | | subject to
refund, except to the fireman himself in any case in | 21 | | which: (i) the fireman
withdraws prior to qualification for | 22 | | minimum annuity or Tier 2 monthly retirement annuity and | 23 | | applies for
refund, (ii) the fireman applies for an annuity of | 24 | | a type that is not subject to annual increases under this | 25 | | Section, or (iii) a term annuity becomes
payable. In such | 26 | | cases, the total of such salary deductions shall be
refunded to |
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| 1 | | the fireman, without interest, and charged to the
| 2 | | aforementioned reserve.
| 3 | | (d) Notwithstanding any other provision of this Article, | 4 | | the Tier 2 monthly retirement annuity of a
person who first | 5 | | becomes a fireman under this Article on or after January 1, | 6 | | 2011 shall be increased on the January 1 occurring either on or | 7 | | after (i) the attainment of age 60 or (ii) the first | 8 | | anniversary of the annuity start date, whichever is later. Each | 9 | | annual increase shall be calculated at 3% or one-half the | 10 | | annual unadjusted percentage increase (but not less than zero) | 11 | | in the consumer price index-u for the 12 months ending with the | 12 | | September preceding each November 1, whichever is less, of the | 13 | | originally granted retirement annuity. If the annual | 14 | | unadjusted percentage change in the consumer price index-u for | 15 | | a 12-month period ending in September is zero or, when compared | 16 | | with the preceding period, decreases, then the annuity shall | 17 | | not be increased. | 18 | | For the purposes of this subsection (d), "consumer price | 19 | | index-u" means the index published by the Bureau of Labor | 20 | | Statistics of the United States Department of Labor that | 21 | | measures the average change in prices of goods and services | 22 | | purchased by all urban consumers, United States city average, | 23 | | all items, 1982-84 = 100. The new amount resulting from each | 24 | | annual adjustment shall be determined by the Public Pension | 25 | | Division of the Department of Insurance and made available to | 26 | | the boards of the pension funds by November 1 of each year. |
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| 1 | | (Source: P.A. 99-905, eff. 11-29-16.)
| 2 | | Section 90. The State Mandates Act is amended by adding | 3 | | Section 8.41 as follows: | 4 | | (30 ILCS 805/8.41 new) | 5 | | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 | 6 | | of this Act, no reimbursement by the State is required for the | 7 | | implementation of any mandate created by this amendatory Act of | 8 | | the 100th General Assembly.
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.".
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