Full Text of HB0826 94th General Assembly
HB0826 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0826
Introduced 2/2/2005, by Rep. Richard T. Bradley - Daniel J. Burke - Joseph M. Lyons - Edward J. Acevedo - Maria Antonia Berrios SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/6-164 |
from Ch. 108 1/2, par. 6-164 |
30 ILCS 805/8.29 new |
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Amends the Chicago Firefighter Article of the Illinois Pension Code. Increases the required employee contribution by 0.5% of salary.
Compounds the 3% automatic annual increase in retirement annuity for members who have paid the increased contribution for at least one year. Allows certain persons no longer in service to elect to pay an additional contribution and thereby qualify for the compounding. For
firemen born on or after January 1, 1955, increases
the automatic annual increase in retirement annuity to 3%, removes the 30%
maximum, and permits the initial increase at age 55. Amends the State Mandates
Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB0826 |
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LRB094 05964 EFG 36020 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 6-164 as follows:
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| (40 ILCS 5/6-164)
(from Ch. 108 1/2, par. 6-164)
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| Sec. 6-164. Automatic annual increase; retirement after | 8 |
| September 1, 1959.
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| (a) A fireman qualifying for a minimum annuity who retires | 10 |
| from service
after September 1, 1959 shall, upon either the | 11 |
| first of the month following the
first anniversary of his date | 12 |
| of retirement if he is age 60 (age 55 if born
before January 1,
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| 1955) or over on that anniversary date, or upon
the first of | 14 |
| the month following his attainment of age 60 (age 55 if born
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| before January 1,
1955) if that occurs after the first | 16 |
| anniversary
of his retirement date, have his then fixed and | 17 |
| payable monthly annuity
increased by 1 1/2%, and such first | 18 |
| fixed annuity as granted at retirement
increased by an | 19 |
| additional 1 1/2% in January of each year thereafter up to a
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| maximum increase of 30%.
Beginning July 1, 1982 for firemen | 21 |
| born before January 1, 1930, and beginning
January 1, 1990 for | 22 |
| firemen born after December 31, 1929 and before January 1,
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| 1940, 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 but | 26 |
| before January 1, 1955, and beginning January 1, 2006 for | 27 |
| firemen born
after December 31, 1954, such increases shall be
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| 3% and such firemen shall not be subject to the 30% maximum | 29 |
| increase. For a fireman who has made the contribution required | 30 |
| under subsection (c) for at least one year at the 7/8 of 1% | 31 |
| rate, such increases shall be
3% of the total amount of annuity | 32 |
| payable at the time of the increase, including any previous |
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HB0826 |
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| increases under this Article, and the fireman shall not be | 2 |
| subject to the 30% maximum increase.
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| Any fireman born before January 1, 1945 who qualifies for a | 4 |
| minimum annuity
and retires after September 1, 1967 but has not | 5 |
| received the initial increase
under this subsection before | 6 |
| January 1, 1996 is entitled to receive the initial
increase | 7 |
| under this subsection on (1) January 1, 1996, (2) the first
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| 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 1995
apply beginning January 1, 1996 and | 11 |
| apply without regard to whether the fireman
or annuitant | 12 |
| terminated service before the effective date of this amendatory
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| Act of 1995.
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| Any fireman born before January 1, 1955 who qualifies for a | 15 |
| minimum
annuity and retires after September 1, 1967 but has not | 16 |
| received the initial
increase under this subsection before | 17 |
| January 1, 2004 is entitled to receive
the initial increase | 18 |
| under this subsection on (1) January 1, 2004, (2) the
first | 19 |
| anniversary of the date of retirement, or (3) attainment of age | 20 |
| 55,
whichever occurs last. The changes to this Section made by | 21 |
| Public Act 93-654
this amendatory
Act of the 93rd General | 22 |
| Assembly apply without regard to whether the fireman
or | 23 |
| annuitant terminated service before the effective date of this | 24 |
| amendatory
Act.
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| (b) Subsection (a) of this Section is
not applicable to an | 26 |
| employee receiving a term annuity.
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| (c) To help defray the cost of such increases in annuity, | 28 |
| there
shall be deducted, beginning September 1, 1959, from each | 29 |
| payment of salary
to a fireman, 1/8 of 1% of each such salary | 30 |
| payment and an additional 1/8
of 1% beginning on September 1, | 31 |
| 1961, and September 1, 1963, respectively,
concurrently with | 32 |
| and in addition to the salary deductions otherwise made
for | 33 |
| annuity purposes. Beginning January 1, 2006, the deduction from | 34 |
| salary under this subsection (c) shall be 7/8 of 1%.
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| (d) A fireman who terminates service without having made | 36 |
| the contribution required under subsection (c) for at least one |
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| year at the 7/8 of 1% rate may elect to pay to the Fund an | 2 |
| additional contribution in an amount to be calculated by the | 3 |
| Board, equal to 7/8 of 1% of his or her annual salary at the | 4 |
| time of termination of service, less the amount, if any, | 5 |
| contributed under subsection (c) during the last year of | 6 |
| service. | 7 |
| A fireman who has paid the additional contribution under | 8 |
| this subsection shall be entitled to have any increases | 9 |
| thereafter payable under subsection (a) calculated at the rate | 10 |
| of 3% of the total amount of annuity payable at the time of the | 11 |
| increase, including any previous increases under this Article. | 12 |
| This subsection (d) and the other changes to this Section | 13 |
| made by this amendatory Act of the 94th General Assembly apply | 14 |
| without regard to whether the fireman terminated service before | 15 |
| the effective date of this amendatory Act.
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| (e) Each such additional 1/8 of 1% deduction from salary | 17 |
| under subsection (c) and any additional contribution received | 18 |
| under subsection (d)
which shall, on
September 1, 1963, result | 19 |
| in a total increase of 3/8 of 1% of salary,
shall be credited | 20 |
| to the Automatic Increase Reserve, to be used,
together with | 21 |
| city contributions as provided in this Article, to defray
the | 22 |
| cost of the 1 1/2% annuity increments provided under this | 23 |
| Section
herein specified . Any balance
in such reserve as of the | 24 |
| beginning of each calendar year shall be
credited with interest | 25 |
| at the rate of 3% per annum.
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| (f) The salary deductions provided in this Section are not | 27 |
| subject to
refund, except to the fireman himself, in any case | 28 |
| in which a fireman
withdraws prior to qualification for minimum | 29 |
| annuity and applies for
refund, or applies for annuity, and | 30 |
| also where a term annuity becomes
payable. In such cases, the | 31 |
| total of such salary deductions shall be
refunded to the | 32 |
| fireman, without interest, and charged to the
aforementioned | 33 |
| reserve.
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| (Source: P.A. 93-654, eff. 1-16-04.)
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| Section 90. The State Mandates Act is amended by adding |
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| Section 8.29 as
follows:
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| (30 ILCS 805/8.29 new)
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| Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 | 4 |
| of this
Act, no reimbursement by the State is required for the | 5 |
| implementation of
any mandate created by this amendatory Act of | 6 |
| the 94th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
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