Full Text of SB0419 100th General Assembly
SB0419ham002 100TH GENERAL ASSEMBLY | Rep. Robert Martwick Filed: 6/21/2017
| | 10000SB0419ham002 | | LRB100 05036 RPS 27591 a |
|
| 1 | | AMENDMENT TO SENATE BILL 419
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 419 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 4-108.5 and 6-164 as follows: | 6 | | (40 ILCS 5/4-108.5) | 7 | | Sec. 4-108.5. Service for providing certain fire | 8 | | protection services.
| 9 | | (a) A firefighter for a participating municipality who was | 10 | | employed as an active firefighter providing fire protection for | 11 | | a village or incorporated town with a population of greater | 12 | | than 10,000 but less than 11,000 located in a county with a | 13 | | population of greater than 600,000 and less than 700,000, as | 14 | | estimated by the United States Census on July 1, 2004, may | 15 | | elect to establish creditable service for periods of that | 16 | | employment in which the firefighter provided fire protection |
| | | 10000SB0419ham002 | - 2 - | LRB100 05036 RPS 27591 a |
|
| 1 | | services for the participating municipality if, by May 1, 2007, | 2 | | the firefighter (i) makes written application to the Board and | 3 | | (ii) pays into the pension fund the amount that the person | 4 | | would have contributed had deductions from salary been made for | 5 | | this purpose at the time the service was rendered, plus | 6 | | interest thereon at 6% per annum compounded annually from the | 7 | | time the service was rendered until the date of payment. | 8 | | (b) Time spent providing fire protection on a part-time | 9 | | basis for a village or incorporated town with a population of | 10 | | greater than 10,000 but less than 11,000 located in a county | 11 | | with a population of greater than 600,000 and less than | 12 | | 700,000, as estimated by the United States Census on July 1, | 13 | | 2004, shall be calculated at the rate of one year of creditable | 14 | | service for each 5 years of time spent providing such fire | 15 | | protection, if the firefighter (i) has at least 5 years of | 16 | | creditable service as an active firefighter, (ii) has at least | 17 | | 5 years of such service with a qualifying village or | 18 | | incorporated town, (iii) applies for the creditable service | 19 | | within 30 days after the effective date of this amendatory Act | 20 | | of the 94th General Assembly, and (iv) contributes to the Fund | 21 | | an amount representing employee contributions for the number of | 22 | | years of creditable service granted under this subsection (b) | 23 | | based on the salary and contribution rate in effect for the | 24 | | firefighter at the date of entry into the fund, as determined | 25 | | by the Board. The amount of creditable service granted under | 26 | | this subsection (b) may not exceed 3 years.
|
| | | 10000SB0419ham002 | - 3 - | LRB100 05036 RPS 27591 a |
|
| 1 | | (c) This subsection applies only to a person who was first | 2 | | employed by a municipality in 2008 to provide fire protection | 3 | | services on a full-time basis as a firefighter or fire chief, | 4 | | but was prevented from
participating in a pension fund under | 5 | | this Article until 2015 by reason of the employing | 6 | | municipality's delay in establishing a pension fund as required | 7 | | under this Article. Such a person may elect to
establish | 8 | | creditable service for periods of such employment by that | 9 | | municipality during
which he or she did not participate, by | 10 | | applying to the board in writing and paying to the pension fund | 11 | | the employee contributions that he or she would have made had | 12 | | deductions from
salary been made for employee contributions at | 13 | | the time the service was rendered,
together with interest | 14 | | thereon at the rate of 6% per annum, compounded annually, from | 15 | | the
time the service was rendered to the date of payment; | 16 | | except that the granting of such creditable service is | 17 | | contingent upon the consent of the governing body of the | 18 | | municipality and payment to the pension fund by the | 19 | | municipality of the corresponding employer contributions, plus | 20 | | interest. | 21 | | For the purposes of Sections 4-109, 4-109.1, and 4-114, and | 22 | | notwithstanding any other provision of this Article, for a | 23 | | person who establishes creditable service under this | 24 | | subsection (c), the date upon which the person first became a | 25 | | participating firefighter under this Article shall be deemed to | 26 | | be no later than the first day of employment for which such |
| | | 10000SB0419ham002 | - 4 - | LRB100 05036 RPS 27591 a |
|
| 1 | | creditable service has been granted. | 2 | | (Source: P.A. 97-813, eff. 7-13-12.)
| 3 | | (40 ILCS 5/6-164)
(from Ch. 108 1/2, par. 6-164)
| 4 | | Sec. 6-164. Automatic annual increase; retirement after | 5 | | September 1, 1959.
| 6 | | (a) For a person who first became a fireman under this | 7 | | Article before January 1, 2011 (Tier 1): | 8 | | (1) A fireman qualifying for a minimum annuity who | 9 | | retires from service
after September 1, 1959 shall, upon | 10 | | either the first of the month following the
first | 11 | | anniversary of his date of retirement if he is age 60 (age | 12 | | 55 if born
before January 1, 1966) or over on that | 13 | | anniversary date, or upon
the first of the month following | 14 | | his attainment of age 60 (age 55 if born
before January 1, | 15 | | 1966) if that occurs after the first anniversary
of his | 16 | | retirement date, have his then fixed and payable monthly | 17 | | annuity
increased by 1 1/2%, and such first fixed annuity | 18 | | as granted at retirement
increased by an additional 1 1/2% | 19 | | in January of each year thereafter up to a
maximum increase | 20 | | of 30%.
Beginning July 1, 1982 for firemen born before | 21 | | January 1, 1930, and beginning
January 1, 1990 for firemen | 22 | | born after December 31, 1929 and before January 1,
1940, | 23 | | and beginning January 1, 1996 for firemen born after | 24 | | December 31, 1939
but before January 1, 1945, and beginning | 25 | | January 1, 2004, for firemen born
after December 31, 1944 |
| | | 10000SB0419ham002 | - 5 - | LRB100 05036 RPS 27591 a |
|
| 1 | | but before January 1, 1955, and beginning January 1, 2017, | 2 | | for firemen born after December 31, 1954 but before January | 3 | | 1, 1966, such increases shall be
3% and such firemen shall | 4 | | not be subject to the 30% maximum increase.
| 5 | | (2) Any fireman born before January 1, 1945 who | 6 | | qualifies for a minimum annuity
and retires after September | 7 | | 1, 1967 but has not received the initial increase
under | 8 | | this subsection before January 1, 1996 is entitled to | 9 | | receive the initial
increase under this subsection on (1) | 10 | | January 1, 1996, (2) the first
anniversary of the date of | 11 | | retirement, or (3) attainment of age 55, whichever
occurs | 12 | | last. The changes to this Section made by this amendatory | 13 | | Act of 1995
apply beginning January 1, 1996 and apply | 14 | | without regard to whether the fireman
or annuitant | 15 | | terminated service before the effective date of this | 16 | | amendatory
Act of 1995.
| 17 | | (3) Any fireman born before January 1, 1955 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, 2004 is entitled to | 21 | | receive
the initial increase under this subsection on (1) | 22 | | January 1, 2004, (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 the 93rd General Assembly apply without regard to | 26 | | whether the fireman
or annuitant terminated service before |
| | | 10000SB0419ham002 | - 6 - | LRB100 05036 RPS 27591 a |
|
| 1 | | the effective date of this amendatory
Act.
| 2 | | (4) Any fireman born before January 1, 1966 who | 3 | | qualifies for
a minimum annuity and retires after
September | 4 | | 1, 1967 but has not received the initial increase
under | 5 | | this subsection before January 1, 2017 is entitled to
| 6 | | receive an initial increase under this subsection (a) on | 7 | | (1)
January 1, 2017, (2) the first anniversary of the date | 8 | | of
retirement, or (3) attainment of age 55, whichever | 9 | | occurs last, in an amount equal to 3% for each complete | 10 | | year following the date of retirement or attainment of age | 11 | | 55, whichever occurs later. This subdivision (4) does not | 12 | | prohibit any qualified fireman from choosing to have his or | 13 | | her eligibility for and the amount of the initial increase | 14 | | in retirement annuity determined in accordance with | 15 | | subdivision (1) or (5) of this subsection. | 16 | | The changes to this subsection made by Public Act | 17 | | 99-905 this amendatory
Act of the 99th General Assembly | 18 | | apply without regard to whether the fireman
or annuitant | 19 | | terminated service before November 29, 2016 ( the effective | 20 | | date of Public Act 99-905) this amendatory
Act . | 21 | | (5) A fireman born before January 1, 1966 who qualifies | 22 | | for a minimum
annuity and retires after September 1, 1967 | 23 | | but has not received the initial
increase under this | 24 | | subsection before June 1, 2018 is entitled to receive
the | 25 | | initial increase under this subsection on (1) June 1, 2018, | 26 | | (2) the
first anniversary of the date of retirement, or (3) |
| | | 10000SB0419ham002 | - 7 - | LRB100 05036 RPS 27591 a |
|
| 1 | | attainment of age 55,
whichever occurs last. This | 2 | | subdivision (5) does not prohibit any qualified fireman | 3 | | from choosing to have his or her eligibility for and the | 4 | | amount of the initial increase in retirement annuity | 5 | | determined in accordance with subdivision (1) or (4) of | 6 | | this subsection. | 7 | | (6) A fireman born on or after January 1, 1955 whose | 8 | | eligibility for and the amount of the initial increase in | 9 | | retirement annuity was determined, calculated, and granted | 10 | | under subdivision (1) of this subsection on or after | 11 | | January 1, 2010 and before November 29, 2016 (the effective | 12 | | date of Public Act 99-905) shall receive a one-time | 13 | | adjustment in his or her retirement annuity on June 1, | 14 | | 2018, equal to (i) 1.5% of the original fixed annuity for | 15 | | each annual increase in that annuity that was calculated at | 16 | | 1.5% instead of 3%, plus (ii) 3% of the original fixed | 17 | | annuity for each annual increase in that annuity that was | 18 | | lost because the eligibility requirement under that | 19 | | subdivision was age 60 rather than age 55 due to the | 20 | | delayed extension of the age 55 provision. | 21 | | (7) A fireman born before January 1, 1966 whose | 22 | | eligibility for and the amount of the initial increase in | 23 | | retirement annuity was determined, calculated, and granted | 24 | | under subdivision (4) of this subsection on or after | 25 | | November 29, 2016 (the effective date of Public Act 99-905) | 26 | | and before the effective date of this amendatory
Act of the |
| | | 10000SB0419ham002 | - 8 - | LRB100 05036 RPS 27591 a |
|
| 1 | | 100th General Assembly shall receive a one-time adjustment | 2 | | in his or her retirement annuity on June 1, 2018, equal to | 3 | | 3% of the original fixed annuity, representing the loss of | 4 | | the traditional increase on the January 1 following the | 5 | | first anniversary of retirement, due to the "complete year" | 6 | | language that was included in subdivision (4). | 7 | | (8) It is the purpose of this amendatory Act of the | 8 | | 100th General Assembly to clarify the intended application | 9 | | of subdivisions (1) and (4) of this subsection (a), as | 10 | | amended by Public Act 99-905, and to grant a one-time | 11 | | adjustment in certain retirement annuities that have | 12 | | already received the initial increase. The changes to this | 13 | | Section made by this amendatory
Act apply without regard to | 14 | | whether the fireman or annuitant terminated service before | 15 | | the effective date of this amendatory
Act. | 16 | | (b) Subsection (a) of this Section is
not applicable to an | 17 | | employee receiving a term annuity.
| 18 | | (c) To help defray the cost of such increases in annuity, | 19 | | there
shall be deducted, beginning September 1, 1959, from each | 20 | | payment of salary
to a fireman, 1/8 of 1% of each such salary | 21 | | payment and an additional 1/8
of 1% beginning on September 1, | 22 | | 1961, and September 1, 1963, respectively,
concurrently with | 23 | | and in addition to the salary deductions otherwise made
for | 24 | | annuity purposes.
| 25 | | Each such additional 1/8 of 1% deduction from salary which | 26 | | shall, on
September 1, 1963, result in a total increase of 3/8 |
| | | 10000SB0419ham002 | - 9 - | LRB100 05036 RPS 27591 a |
|
| 1 | | of 1% of salary,
shall be credited to the Automatic Increase | 2 | | Reserve, to be used,
together with city contributions as | 3 | | provided in this Article, to defray
the cost of the annuity | 4 | | increments specified in this Section. Any balance
in such | 5 | | reserve as of the beginning of each calendar year shall be
| 6 | | credited with interest at the rate of 3% per annum.
| 7 | | The salary deductions provided in this Section are not | 8 | | subject to
refund, except to the fireman himself in any case in | 9 | | which: (i) the fireman
withdraws prior to qualification for | 10 | | minimum annuity or Tier 2 monthly retirement annuity and | 11 | | applies for
refund, (ii) the fireman applies for an annuity of | 12 | | a type that is not subject to annual increases under this | 13 | | Section, or (iii) a term annuity becomes
payable. In such | 14 | | cases, the total of such salary deductions shall be
refunded to | 15 | | the fireman, without interest, and charged to the
| 16 | | aforementioned reserve.
| 17 | | (d) Notwithstanding any other provision of this Article, | 18 | | the Tier 2 monthly retirement annuity of a
person who first | 19 | | becomes a fireman under this Article on or after January 1, | 20 | | 2011 shall be increased on the January 1 occurring either on or | 21 | | after (i) the attainment of age 60 or (ii) the first | 22 | | anniversary of the annuity start date, whichever is later. Each | 23 | | annual increase shall be calculated at 3% or one-half the | 24 | | annual unadjusted percentage increase (but not less than zero) | 25 | | in the consumer price index-u for the 12 months ending with the | 26 | | September preceding each November 1, whichever is less, of the |
| | | 10000SB0419ham002 | - 10 - | LRB100 05036 RPS 27591 a |
|
| 1 | | originally granted retirement annuity. If the annual | 2 | | unadjusted percentage change in the consumer price index-u for | 3 | | a 12-month period ending in September is zero or, when compared | 4 | | with the preceding period, decreases, then the annuity shall | 5 | | not be increased. | 6 | | For the purposes of this subsection (d), "consumer price | 7 | | index-u" means the index published by the Bureau of Labor | 8 | | Statistics of the United States Department of Labor that | 9 | | measures the average change in prices of goods and services | 10 | | purchased by all urban consumers, United States city average, | 11 | | all items, 1982-84 = 100. The new amount resulting from each | 12 | | annual adjustment shall be determined by the Public Pension | 13 | | Division of the Department of Insurance and made available to | 14 | | the boards of the pension funds by November 1 of each year. | 15 | | (Source: P.A. 99-905, eff. 11-29-16.)
| 16 | | Section 90. The State Mandates Act is amended by adding | 17 | | Section 8.41 as follows: | 18 | | (30 ILCS 805/8.41 new) | 19 | | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 | 20 | | of this Act, no reimbursement by the State is required for the | 21 | | implementation of any mandate created by this amendatory Act of | 22 | | the 100th General Assembly. ".
|
|