Full Text of HB4659 100th General Assembly
HB4659 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4659 Introduced , by Rep. Robert Martwick SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/5-167.1 | from Ch. 108 1/2, par. 5-167.1 |
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Amends the Chicago Police Article of the Illinois Pension Code. Removes a birthdate restriction on eligibility at age 55 for a 3% automatic annual increase in retirement annuity that is not subject to a maximum increase of 30%. Makes a related change. Specifies the timing of an initial increase in retirement annuity for persons who have not received the initial increase before January 1, 2019. 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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| | | HB4659 | | LRB100 17234 RPS 32393 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 changing | 5 | | Section 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 | 8 | | from service
after September 1, 1967. | 9 | | (a) A policeman who retires from service after September 1, | 10 | | 1967
with at least 20 years of service credit shall, upon | 11 | | either the first
of the month following the first anniversary | 12 | | of his date of retirement
if he is age 55 60 (age 55 if born | 13 | | before January 1, 1966)
or over on that anniversary date, or | 14 | | upon the first of the month following
his attainment of age 55 | 15 | | 60 (age 55 if born before January 1, 1966)
if it occurs after | 16 | | the first anniversary of his retirement date, have his
then | 17 | | fixed and payable monthly annuity increased by 3% 1 1/2% and | 18 | | such first
fixed annuity as granted at retirement increased by | 19 | | an additional 3% 1 1/2% in
January of each year thereafter up | 20 | | to a maximum increase of 30%. Beginning
January 1, 1983 for | 21 | | policemen born before January 1, 1930, and beginning
January 1, | 22 | | 1988 for policemen born on or after January 1, 1930 but before
| 23 | | January 1, 1940, and beginning January 1, 1996 for policemen |
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| 1 | | born on or after
January 1, 1940 but before January 1, 1945, | 2 | | and beginning January 1, 2000
for policemen born on or after | 3 | | January 1, 1945 but before January 1, 1950, and beginning | 4 | | January 1, 2005
for policemen born on or after January 1, 1950 | 5 | | but before January 1, 1955, and beginning January 1, 2017
for | 6 | | policemen born on or after January 1, 1955 but before January | 7 | | 1, 1966,
such increases shall be 3% and such policemen shall | 8 | | not be subject to the
30% maximum increase .
| 9 | | Any policeman born before January 1, 1945 who qualifies for | 10 | | a minimum
annuity and retires after September 1, 1967 but has | 11 | | not received the initial
increase under this subsection before | 12 | | January 1, 1996 is entitled to receive
the initial increase | 13 | | under this subsection on (1) January 1, 1996, (2) the
first | 14 | | anniversary of the date of retirement, or (3) attainment of age | 15 | | 55,
whichever occurs last. The changes to this Section made by | 16 | | Public Act
89-12 apply beginning January 1, 1996 and
without | 17 | | regard to whether the policeman or annuitant terminated service | 18 | | before
the effective date of that Act.
| 19 | | Any policeman born before January 1, 1950 who qualifies for | 20 | | a minimum
annuity and retires after September 1, 1967 but has | 21 | | not received the initial
increase under this subsection before | 22 | | January 1, 2000 is entitled to receive
the initial increase | 23 | | under this subsection on (1) January 1, 2000, (2) the
first | 24 | | anniversary of the date of retirement, or (3) attainment of age | 25 | | 55,
whichever occurs last. The changes to this Section made by | 26 | | this amendatory
Act of the 92nd General Assembly apply without |
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| 1 | | regard to whether the policeman
or annuitant terminated service | 2 | | before the effective date of this amendatory
Act.
| 3 | | Any policeman born before January 1, 1955 who qualifies for | 4 | | a minimum
annuity and retires after September 1, 1967 but has | 5 | | not received the initial
increase under this subsection before | 6 | | January 1, 2005 is entitled to receive
the initial increase | 7 | | under this subsection on (1) January 1, 2005, (2) the
first | 8 | | anniversary of the date of retirement, or (3) attainment of age | 9 | | 55,
whichever occurs last. The changes to this Section made by | 10 | | this amendatory
Act of the 94th General Assembly apply without | 11 | | regard to whether the policeman
or annuitant terminated service | 12 | | before the effective date of this amendatory
Act.
| 13 | | Any policeman born before January 1, 1966 who qualifies for
| 14 | | a minimum annuity and retires after
September 1, 1967 but has | 15 | | not received the initial increase
under this subsection before | 16 | | January 1, 2017 is entitled to
receive an initial increase | 17 | | under this subsection on (1)
January 1, 2017, (2) the first | 18 | | anniversary of the date of
retirement, or (3) attainment of age | 19 | | 55, whichever occurs last, in an amount equal to 3% for each | 20 | | complete year following the date of retirement or attainment of | 21 | | age 55, whichever occurs later. The changes to this subsection | 22 | | made by this amendatory
Act of the 99th General Assembly apply | 23 | | without regard to whether the policeman
or annuitant terminated | 24 | | service before the effective date of this amendatory
Act. | 25 | | Any policeman born after January 1, 1966 who qualifies for | 26 | | a minimum annuity and retires after September 1, 1967 but has |
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| 1 | | not received the initial increase under this subsection before | 2 | | January 1, 2019 is entitled to receive the initial increase | 3 | | under this subsection on (1) January 1, 2019, (2) the first | 4 | | anniversary of the date of retirement, or (3) attainment of age | 5 | | 55, whichever occurs last. The changes to this Section made by | 6 | | this amendatory Act of the 100th General Assembly apply without | 7 | | regard to whether the policeman or annuitant terminated service | 8 | | before the effective date of this amendatory Act. | 9 | | (b) Subsection (a) of this Section is
not applicable to an | 10 | | employee receiving a term annuity.
| 11 | | (c) To help defray the cost of such increases in annuity, | 12 | | there shall
be deducted, beginning September 1, 1967, from each | 13 | | payment of salary to a
policeman, 1/2 of 1% of each salary | 14 | | payment concurrently with and in addition
to the salary | 15 | | deductions otherwise made for annuity purposes.
| 16 | | The city, in addition to the contributions otherwise made | 17 | | by it for
annuity purposes under other provisions of this | 18 | | Article, shall make
matching contributions concurrently with | 19 | | such salary deductions.
| 20 | | Each such 1/2 of 1% deduction from salary and each such | 21 | | contribution
by the city of 1/2 of 1% of salary shall be | 22 | | credited to the Automatic
Increase Reserve, to be used to | 23 | | defray the cost of the annuity
increase provided by this | 24 | | Section. Any balance in such reserve as of the
beginning of | 25 | | each calendar year shall be credited with interest at the
rate | 26 | | of 3% per annum.
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| 1 | | Such deductions from salary and city contributions shall | 2 | | continue
while the policeman is in service.
| 3 | | The salary deductions provided in this Section are not | 4 | | subject to
refund, except to the policeman himself, in any case | 5 | | in which: (i) the
policeman withdraws prior to qualification | 6 | | for minimum annuity or Tier 2 monthly retirement annuity and
| 7 | | applies for refund, (ii) the policeman applies for an annuity | 8 | | of a type that is not subject to annual increases under this | 9 | | Section, or (iii) a term annuity
becomes payable. In such | 10 | | cases, the total of such salary deductions
shall be refunded to | 11 | | the policeman, without interest, and charged to the
Automatic | 12 | | Increase Reserve.
| 13 | | (d) Notwithstanding any other provision of this Article, | 14 | | the Tier 2 monthly retirement annuity of a
person who first | 15 | | becomes a policeman under this Article on or after the | 16 | | effective date of this amendatory Act of the 97th General | 17 | | Assembly shall be increased on the January 1 occurring either | 18 | | on or after (i) the attainment of age 60 or (ii) the first | 19 | | anniversary of the annuity start date, whichever is later. Each | 20 | | annual increase shall be calculated at 3% or one-half the | 21 | | annual unadjusted percentage increase (but not less than zero) | 22 | | in the consumer price index-u for the 12 months ending with the | 23 | | September preceding each November 1, whichever is less, of the | 24 | | originally granted retirement annuity. If the annual | 25 | | unadjusted percentage change in the consumer price index-u for | 26 | | a 12-month period ending in September is zero or, when compared |
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| 1 | | with the preceding period, decreases, then the annuity shall | 2 | | not be increased. | 3 | | For the purposes of this subsection (d), "consumer price | 4 | | index-u" means the index published by the Bureau of Labor | 5 | | Statistics of the United States Department of Labor that | 6 | | measures the average change in prices of goods and services | 7 | | purchased by all urban consumers, United States city average, | 8 | | all items, 1982-84 = 100. The new amount resulting from each | 9 | | annual adjustment shall be determined by the Public Pension | 10 | | Division of the Department of Insurance and made available to | 11 | | the boards of the pension funds by November 1 of each year. | 12 | | (Source: P.A. 99-905, eff. 11-29-16.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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