Full Text of SB3538 96th General Assembly
SB3538enr 96TH GENERAL ASSEMBLY |
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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 | | Sections 1-113.2, 3-111, 3-111.1, 3-112, 3-125, 4-109, | 6 | | 4-109.1, 4-114, 4-118, 5-167.1, 5-168, 6-164, 6-165, and | 7 | | 7-142.1 and by adding Sections 1-113.4a, 1-165, 5-238, and | 8 | | 6-229 as follows:
| 9 | | (40 ILCS 5/1-113.2)
| 10 | | Sec. 1-113.2.
List of permitted investments for all Article | 11 | | 3 or 4 pension
funds. Any pension fund established under | 12 | | Article 3 or 4 may invest in the
following items:
| 13 | | (1) Interest bearing direct obligations of the United | 14 | | States of America.
| 15 | | (2) Interest bearing obligations to the extent that they | 16 | | are fully
guaranteed or insured as to payment of principal and | 17 | | interest by the United
States of America.
| 18 | | (3) Interest bearing bonds, notes, debentures, or other | 19 | | similar obligations
of agencies of the United States of | 20 | | America. For the purposes of this Section,
"agencies of the | 21 | | United States of America" includes: (i) the Federal National
| 22 | | Mortgage Association and the Student Loan Marketing | 23 | | Association; (ii) federal
land banks, federal intermediate |
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| 1 | | credit banks,
federal farm credit banks, and any other entity | 2 | | authorized to
issue direct debt obligations of the United | 3 | | States of America under the Farm
Credit Act of 1971 or | 4 | | amendments to that Act; (iii) federal home loan banks and
the | 5 | | Federal Home Loan Mortgage Corporation; and (iv) any agency | 6 | | created
by Act of Congress that is authorized to issue direct | 7 | | debt obligations of the
United States of America.
| 8 | | (4) Interest bearing savings accounts or certificates of | 9 | | deposit, issued by
federally chartered banks or savings and | 10 | | loan associations, to the extent that
the deposits are insured | 11 | | by agencies or instrumentalities of the federal
government.
| 12 | | (5) Interest bearing savings accounts or certificates of | 13 | | deposit, issued by
State of Illinois chartered banks or savings | 14 | | and loan associations, to the
extent that the deposits are | 15 | | insured by agencies or instrumentalities of the
federal | 16 | | government.
| 17 | | (6) Investments in credit unions, to the extent that the | 18 | | investments are
insured by agencies or instrumentalities of the | 19 | | federal government.
| 20 | | (7) Interest bearing bonds of the State of Illinois.
| 21 | | (8) Pooled interest bearing accounts managed by the | 22 | | Illinois Public
Treasurer's Investment Pool in accordance with | 23 | | the Deposit of State Moneys Act ,
and interest bearing funds or | 24 | | pooled accounts of the Illinois Metropolitan Investment Funds, | 25 | | and interest bearing funds or pooled accounts managed, | 26 | | operated, and
administered by banks, subsidiaries of banks, or |
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| 1 | | subsidiaries of bank holding
companies in accordance with the | 2 | | laws of the State of Illinois.
| 3 | | (9) Interest bearing bonds or tax anticipation warrants of | 4 | | any county,
township, or municipal corporation of the State of | 5 | | Illinois.
| 6 | | (10) Direct obligations of the State of Israel, subject to | 7 | | the conditions
and limitations of item (5.1) of Section 1-113.
| 8 | | (11) Money market mutual funds managed by investment | 9 | | companies that are
registered under the federal Investment | 10 | | Company Act of 1940 and the Illinois
Securities Law of 1953 and | 11 | | are diversified, open-ended management investment
companies; | 12 | | provided that the portfolio of the money market mutual fund is
| 13 | | limited to the following:
| 14 | | (i) bonds, notes, certificates of indebtedness, | 15 | | treasury bills, or other
securities that are guaranteed by | 16 | | the full faith and credit of the United
States of America | 17 | | as to principal and interest;
| 18 | | (ii) bonds, notes, debentures, or other similar | 19 | | obligations of the United
States of America or its | 20 | | agencies; and
| 21 | | (iii) short term obligations of corporations organized | 22 | | in the United
States with assets exceeding $400,000,000, | 23 | | provided that (A) the obligations
mature no later than 180 | 24 | | days from the date of purchase, (B) at the time of
| 25 | | purchase, the obligations are rated by at least 2 standard | 26 | | national rating
services at one of their 3 highest |
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| 1 | | classifications, and (C) the obligations
held by the mutual | 2 | | fund do not exceed 10% of the corporation's outstanding
| 3 | | obligations.
| 4 | | (12) General accounts of life insurance companies | 5 | | authorized to transact
business in Illinois.
| 6 | | (13) Any combination of the following, not to exceed 10% of | 7 | | the pension
fund's net assets:
| 8 | | (i) separate accounts that are managed by life | 9 | | insurance companies
authorized to transact business in | 10 | | Illinois and are comprised of diversified
portfolios | 11 | | consisting of common or preferred stocks, bonds, or money | 12 | | market
instruments;
| 13 | | (ii) separate accounts that are managed by insurance | 14 | | companies authorized
to transact business in Illinois, and | 15 | | are comprised of real estate
or loans upon real estate | 16 | | secured by first or second mortgages; and
| 17 | | (iii) mutual funds that meet the following | 18 | | requirements:
| 19 | | (A) the mutual fund is managed by an investment | 20 | | company as defined and
registered under the federal | 21 | | Investment Company Act of 1940 and registered
under the | 22 | | Illinois Securities Law of 1953;
| 23 | | (B) the mutual fund has been in operation for at | 24 | | least 5 years;
| 25 | | (C) the mutual fund has total net assets of $250 | 26 | | million or more; and
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| 1 | | (D) the mutual fund is comprised of diversified | 2 | | portfolios of
common or preferred stocks, bonds, or | 3 | | money market instruments.
| 4 | | (14) Corporate bonds managed through an investment advisor | 5 | | must meet all of the following requirements: | 6 | | (1) The bonds must be rated as investment grade by one | 7 | | of the 2 largest rating services at the time of purchase. | 8 | | (2) If subsequently downgraded below investment grade, | 9 | | the bonds must be liquidated from the portfolio within 90 | 10 | | days after being downgraded by the manager. | 11 | | (Source: P.A. 90-507, eff. 8-22-97; 91-887, eff. 7-6-00.)
| 12 | | (40 ILCS 5/1-113.4a new) | 13 | | Sec. 1-113.4a. List of additional permitted investments | 14 | | for Article 3 and 4 pension funds with net assets of | 15 | | $10,000,000 or more. | 16 | | (a) In addition to the items in Sections 1-113.2 and | 17 | | 1-113.3, a pension fund established under Article 3 or 4 that | 18 | | has net assets of at least $10,000,000 and has appointed an | 19 | | investment adviser, as defined under Sections 1-101.4 and | 20 | | 1-113.5, may, through that investment adviser, invest an | 21 | | additional portion of its assets in common and preferred stocks | 22 | | and mutual funds. | 23 | | (b) The stocks must meet all of the following requirements: | 24 | | (1) The common stocks must be listed on a national | 25 | | securities exchange or board of trade (as defined in the |
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| 1 | | Federal Securities Exchange Act of 1934 and set forth in | 2 | | paragraph G of Section 3 of the Illinois Securities Law of | 3 | | 1953) or quoted in the National Association of Securities | 4 | | Dealers Automated Quotation System National Market System. | 5 | | (2) The securities must be of a corporation in | 6 | | existence for at least 5 years. | 7 | | (3) The market value of stock in any one corporation | 8 | | may not exceed 5% of the cash and invested assets of the | 9 | | pension fund, and the investments in the stock of any one | 10 | | corporation may not exceed 5% of the total outstanding | 11 | | stock of that corporation. | 12 | | (4) The straight preferred stocks or convertible | 13 | | preferred stocks must be issued or guaranteed by a | 14 | | corporation whose common stock qualifies for investment by | 15 | | the board. | 16 | | (c) The mutual funds must meet the following requirements: | 17 | | (1) The mutual fund must be managed by an investment | 18 | | company registered under the Federal Investment Company | 19 | | Act of 1940 and registered under the Illinois Securities | 20 | | Law of 1953. | 21 | | (2) The mutual fund must have been in operation for at | 22 | | least 5 years. | 23 | | (3) The mutual fund must have total net assets of | 24 | | $250,000,000 or more. | 25 | | (4) The mutual fund must be comprised of a diversified | 26 | | portfolio of common or preferred stocks, bonds, or money |
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| 1 | | market instruments. | 2 | | (d) A pension fund's total investment in the items | 3 | | authorized under this Section and Section 1-113.3 shall not | 4 | | exceed 50% effective July 1, 2011 and 55% effective July 1, | 5 | | 2012 of the market value of the pension fund's net present | 6 | | assets stated in its most recent annual report on file with the | 7 | | Department of Insurance. | 8 | | (e) A pension fund that invests funds under this Section | 9 | | shall electronically file with the Division any reports of its | 10 | | investment activities that the Division may require, at the | 11 | | time and in the format required by the Division. | 12 | | (40 ILCS 5/1-165 new) | 13 | | Sec. 1-165. Commission on Government Forecasting and | 14 | | Accountability study. The Commission on Government Forecasting | 15 | | and Accountability shall conduct a study on the feasibility of: | 16 | | (1) the creation of an investment pool to supplement | 17 | | and enhance the investment opportunities available to | 18 | | boards of trustees of the pension funds organized under | 19 | | Articles 3 and 4 of this Code; the study shall include an | 20 | | analysis on any cost or cost savings associated with | 21 | | establishing the system and transferring assets for | 22 | | management under the investment pool; and | 23 | | (2) enacting a contribution cost-share component | 24 | | wherein employing municipalities and members of funds | 25 | | established under Articles 3 and 4 of this Code each |
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| 1 | | contribute 50% of the normal cost of the defined-benefit | 2 | | plan. | 3 | | The Commission shall issue a report on its findings on or | 4 | | before December 31, 2011.
| 5 | | (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
| 6 | | Sec. 3-111. Pension.
| 7 | | (a) A police officer age 50 or more with 20 or
more years | 8 | | of creditable service, who is not a participant in the
| 9 | | self-managed plan under Section 3-109.3 and who is no longer in | 10 | | service
as a police officer, shall receive a pension of 1/2 of | 11 | | the salary
attached to the rank held by the officer on the | 12 | | police force for one year
immediately prior to retirement or, | 13 | | beginning July 1, 1987 for persons
terminating service on or | 14 | | after that date, the salary attached to the rank
held on the | 15 | | last day of service or for one year prior to the last day,
| 16 | | whichever is greater. The pension shall be increased by 2.5%
of | 17 | | such salary for each additional year of service over 20 years | 18 | | of service
through 30 years of service, to a maximum of 75% of | 19 | | such
salary.
| 20 | | The changes made to this subsection (a) by this amendatory | 21 | | Act of the
91st General Assembly apply to all pensions that | 22 | | become payable under this
subsection on or after January 1, | 23 | | 1999. All pensions payable under this
subsection that began on | 24 | | or after January 1, 1999 and before the effective date
of this | 25 | | amendatory Act shall be recalculated, and the amount of the |
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| 1 | | increase
accruing for that period shall be payable to the | 2 | | pensioner in a lump sum.
| 3 | | (a-5) No pension in effect on or granted after June 30, | 4 | | l973 shall be
less than $200 per month. Beginning July 1, 1987, | 5 | | the minimum retirement
pension for a police officer having at | 6 | | least 20 years of creditable service
shall be $400 per month, | 7 | | without regard to whether or not retirement occurred
prior to | 8 | | that date.
If the minimum pension established in Section | 9 | | 3-113.1 is greater than the
minimum provided in this | 10 | | subsection, the Section 3-113.1 minimum controls.
| 11 | | (b) A police officer mandatorily retired from service
due | 12 | | to age by operation of law, having at least 8 but
less than 20 | 13 | | years of creditable service, shall receive a pension
equal to 2 | 14 | | 1/2% of the salary attached to the rank he or she held on
the | 15 | | police force for one year immediately prior to retirement or,
| 16 | | beginning July 1, 1987 for persons terminating service on or | 17 | | after that
date, the salary attached to the rank held on the | 18 | | last day of service or
for one year prior to the last day, | 19 | | whichever is greater, for each
year of creditable service.
| 20 | | A police officer who retires or is separated from service | 21 | | having at least 8
years but less than 20 years of creditable | 22 | | service, who is not mandatorily
retired due to age by operation | 23 | | of law, and who does not apply for a refund of
contributions at | 24 | | his or her last separation from police service, shall receive
a | 25 | | pension upon attaining age 60 equal to 2.5% of the salary | 26 | | attached to the
rank held by the police officer on the police |
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| 1 | | force for one year immediately
prior to retirement or, | 2 | | beginning July 1, 1987 for persons terminating service
on or | 3 | | after that date, the salary attached to the rank held on the | 4 | | last day of
service or for one year prior to the last day, | 5 | | whichever is greater, for each
year of creditable service.
| 6 | | (c) A police officer no longer in service who has at least | 7 | | one but less
than 8 years of creditable service in a police | 8 | | pension fund but meets the
requirements of this subsection (c) | 9 | | shall be eligible to receive a pension from
that fund equal to | 10 | | 2.5% of the salary attached to the rank held on the last day
of | 11 | | service under that fund or for one year prior to that last day, | 12 | | whichever is
greater, for each year of creditable service in | 13 | | that fund. The pension shall
begin no earlier than upon | 14 | | attainment of age 60 (or upon mandatory retirement
from the | 15 | | fund by operation of law due to age, if that occurs before age | 16 | | 60) and
in no event before the effective date of this | 17 | | amendatory Act of 1997.
| 18 | | In order to be eligible for a pension under this subsection | 19 | | (c), the police
officer must have at least 8 years of | 20 | | creditable service in a second police
pension fund under this | 21 | | Article and be receiving a pension under subsection (a)
or (b) | 22 | | of this Section from that second fund. The police officer need | 23 | | not be
in service on or after the effective date of this | 24 | | amendatory Act of 1997.
| 25 | | (d) Notwithstanding any other provision of this Article,
| 26 | | the provisions of this subsection (d) apply to a person who is |
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| 1 | | not a participant in the self-managed plan under Section | 2 | | 3-109.3 and who first
becomes a police officer under this | 3 | | Article on or after January 1, 2011. | 4 | | A police officer age 55 or more who has 10 or more years of | 5 | | service in that capacity shall be entitled at his option to | 6 | | receive a monthly pension for his service as a police officer | 7 | | computed by multiplying 2.5% for each year of such service by | 8 | | his or her final average salary. | 9 | | The pension of a police officer who is retiring after | 10 | | attaining age 50 with 10 or more years of creditable service | 11 | | shall be reduced by one-half of 1% for each month that the | 12 | | police officer's age is under age 55. | 13 | | The maximum pension under this subsection (d) shall be 75%
| 14 | | of final average salary. | 15 | | For the purposes of this subsection (d), "final average | 16 | | salary" means the average monthly salary obtained by dividing | 17 | | the total salary of the police officer during the 96 | 18 | | consecutive months of service within the last 120 months of | 19 | | service in which the total salary was the highest by the number | 20 | | of months of service in that period. | 21 | | Beginning on January 1, 2011, for all purposes under
this | 22 | | Code (including without limitation the calculation of
benefits | 23 | | and employee contributions), the annual salary
based on the | 24 | | plan year of a member or participant to whom this Section | 25 | | applies shall not exceed $106,800; however, that amount shall | 26 | | annually thereafter be increased by the lesser of (i) 3% of |
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| 1 | | that amount, including all previous adjustments, or (ii) | 2 | | one-half the annual unadjusted percentage increase (but not | 3 | | less than zero) in the consumer price index-u for the 12 months | 4 | | ending with the September preceding each November 1, including | 5 | | all previous adjustments. | 6 | | (Source: P.A. 90-460, eff. 8-17-97; 91-939, eff. 2-1-01.)
| 7 | | (40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
| 8 | | Sec. 3-111.1. Increase in pension.
| 9 | | (a) Except as provided in subsection (e), the monthly | 10 | | pension of a
police officer who retires after July 1, 1971, and | 11 | | prior to January 1, 1986,
shall be increased, upon either the | 12 | | first of the month following the first
anniversary of the date | 13 | | of retirement if the officer is 60 years of age or over
at | 14 | | retirement date, or upon the first day of the month following | 15 | | attainment of
age 60 if it occurs after the first anniversary | 16 | | of retirement, by 3% of the
originally granted pension and by | 17 | | an additional 3% of the originally granted
pension in January | 18 | | of each year thereafter.
| 19 | | (b) The monthly pension of a police officer who retired | 20 | | from service
with 20 or more years of service, on or before | 21 | | July 1, 1971, shall be
increased in January of the year | 22 | | following the year of attaining age 65 or
in January of 1972, | 23 | | if then over age 65, by 3% of the originally granted
pension | 24 | | for each year the police officer received pension payments. In | 25 | | each
January thereafter, he or she shall receive an additional |
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| 1 | | increase of 3% of
the original pension.
| 2 | | (c) The monthly pension of a police officer who retires on | 3 | | disability or
is retired for disability shall be increased in | 4 | | January of the year
following the year of attaining age 60, by | 5 | | 3% of the original grant of
pension for each year he or she | 6 | | received pension payments. In each January
thereafter, the | 7 | | police officer shall receive an additional increase of 3%
of | 8 | | the original pension.
| 9 | | (d) The monthly pension of a police officer who retires | 10 | | after January
1, 1986, shall be increased, upon either the | 11 | | first of the month following
the first anniversary of the date | 12 | | of retirement if the officer is 55 years
of age or over, or | 13 | | upon the first day of the month
following attainment of age 55 | 14 | | if it occurs after the first anniversary of
retirement, by 1/12 | 15 | | of 3% of the originally granted pension for each full
month | 16 | | that has elapsed since the pension began, and by an
additional | 17 | | 3% of the originally granted pension in January of each year
| 18 | | thereafter.
| 19 | | The changes made to this subsection (d) by this amendatory | 20 | | Act of the 91st
General Assembly apply to all initial increases | 21 | | that become payable under this
subsection on or after January | 22 | | 1, 1999. All initial increases that became
payable under this | 23 | | subsection on or after January 1, 1999 and before the
effective | 24 | | date of this amendatory Act shall be recalculated and the | 25 | | additional
amount accruing for that period, if any, shall be | 26 | | payable to the pensioner in a
lump sum.
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| 1 | | (e) Notwithstanding the provisions of subsection (a), upon | 2 | | the first
day of the month following (1) the first anniversary | 3 | | of the date of
retirement, or (2) the attainment of age 55, or | 4 | | (3) July 1, 1987, whichever
occurs latest, the monthly pension | 5 | | of a police officer who retired on or after
January 1, 1977 and | 6 | | on or before January 1, 1986, and did not receive an
increase | 7 | | under subsection (a) before July 1, 1987, shall be increased by | 8 | | 3% of
the originally granted monthly pension for each full year | 9 | | that has elapsed
since the pension began, and by an additional | 10 | | 3% of the originally granted
pension in each January | 11 | | thereafter. The increases provided under this
subsection are in | 12 | | lieu of the increases provided in subsection (a).
| 13 | | (f) Notwithstanding the other provisions of this Section, | 14 | | beginning
with increases granted on or after July 1, 1993, the | 15 | | second and all
subsequent automatic annual increases granted | 16 | | under subsection (a), (b),
(d), or (e) of this Section shall be | 17 | | calculated as 3% of the amount of
pension payable at the time | 18 | | of the increase, including any increases
previously granted | 19 | | under this Section, rather than 3% of the originally
granted | 20 | | pension amount. Section 1-103.1 does not apply to this | 21 | | subsection
(f).
| 22 | | (g) Notwithstanding any other provision of this Article, | 23 | | the monthly pension of a
person who first becomes a police | 24 | | officer under this Article on or after January 1, 2011 shall be | 25 | | increased on the January 1 occurring either on or after the | 26 | | attainment of age 60 or the first anniversary of the pension |
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| 1 | | start date, whichever is later. Each annual increase shall be | 2 | | calculated at 3% or one-half the annual unadjusted percentage | 3 | | increase (but not less than zero) in the consumer price index-u | 4 | | for the 12 months ending with the September preceding each | 5 | | November 1, whichever is less, of the originally granted | 6 | | pension. If the annual unadjusted percentage change in the | 7 | | consumer price index-u for a 12-month period ending in | 8 | | September is zero or, when compared with the preceding period, | 9 | | decreases, then the pension shall not be increased. | 10 | | For the purposes of this subsection (g), "consumer price | 11 | | index-u" means the index published by the Bureau of Labor | 12 | | Statistics of the United States Department of Labor that | 13 | | measures the average change in prices of goods and services | 14 | | purchased by all urban consumers, United States city average, | 15 | | all items, 1982-84 = 100. The new amount resulting from each | 16 | | annual adjustment shall be determined by the Public Pension | 17 | | Division of the Department of Insurance and made available to | 18 | | the boards of the pension funds. | 19 | | (Source: P.A. 91-939, eff. 2-1-01.)
| 20 | | (40 ILCS 5/3-112) (from Ch. 108 1/2, par. 3-112)
| 21 | | Sec. 3-112. Pension to survivors.
| 22 | | (a) Upon the death of a police officer entitled to a | 23 | | pension under Section
3-111, the surviving spouse shall be | 24 | | entitled to the pension to which the
police officer was then | 25 | | entitled. Upon the death of the surviving spouse,
or upon the |
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| 1 | | remarriage of the surviving spouse if that remarriage
| 2 | | terminates the surviving spouse's eligibility under Section | 3 | | 3-121, the police
officer's unmarried children who are under | 4 | | age 18 or who are dependent because
of physical or mental | 5 | | disability shall be entitled to equal shares of such
pension. | 6 | | If there is no eligible surviving spouse and no eligible child, | 7 | | the
dependent parent or parents of the officer shall be | 8 | | entitled to receive or
share such pension until their death or | 9 | | marriage or remarriage after the death
of the police officer.
| 10 | | Notwithstanding any other provision of this Article, for a | 11 | | person who first becomes a police officer under this Article on | 12 | | or after January 1, 2011, the pension to which the surviving | 13 | | spouse, children, or parents are entitled under this subsection | 14 | | (a) shall be in the amount of 66 2/3% of the police officer's | 15 | | earned pension at the date of death. Nothing in this subsection | 16 | | (a) shall act to diminish the survivor's
benefits described in | 17 | | subsection (e) of this Section. | 18 | | Notwithstanding any other provision of this Article, the | 19 | | monthly pension
of a survivor of a person who first becomes a | 20 | | police officer under this Article on or after January 1, 2011 | 21 | | shall be increased on the January 1 after attainment of age 60 | 22 | | by the recipient of the survivor's pension and
each January 1 | 23 | | thereafter by 3% or one-half the annual unadjusted percentage | 24 | | increase (but not less than zero) in the consumer price index-u | 25 | | for the 12 months ending with the September preceding each | 26 | | November 1, whichever is less, of the originally granted |
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| 1 | | survivor's pension. If the annual unadjusted percentage change | 2 | | in
the consumer price index-u for a 12-month period ending in | 3 | | September is zero or, when compared with the preceding period, | 4 | | decreases, then the survivor's pension shall not
be increased. | 5 | | For the purposes of this subsection (a), "consumer price | 6 | | index-u" means the index published by the Bureau of Labor | 7 | | Statistics of the United States Department of Labor that | 8 | | measures the average change in prices of goods and services | 9 | | purchased by all urban consumers, United States city average, | 10 | | all items, 1982-84 = 100. The new amount resulting from each | 11 | | annual adjustment shall be determined by the Public Pension | 12 | | Division of the Department of Insurance and made available to | 13 | | the boards of the pension funds. | 14 | | (b) Upon the death of a police officer while in service, | 15 | | having at least
20 years of creditable service, or upon the | 16 | | death of a police officer who
retired from service with at | 17 | | least 20 years of creditable service, whether
death occurs | 18 | | before or after attainment of age 50, the pension earned by
the | 19 | | police officer as of the date of death as provided in Section | 20 | | 3-111
shall be paid to the survivors in the sequence provided | 21 | | in subsection (a)
of this Section.
| 22 | | (c) Upon the death of a police officer while in service, | 23 | | having at least
10 but less than 20 years of service, a pension | 24 | | of 1/2 of the salary attached
to the rank or ranks held by the | 25 | | officer for one year immediately
prior to death shall be | 26 | | payable to the survivors in the sequence provided
in subsection |
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| 1 | | (a) of this Section. If death occurs as a result of the
| 2 | | performance of duty, the 10 year requirement shall not apply | 3 | | and the
pension to survivors shall be payable after any period | 4 | | of service.
| 5 | | (d) Beginning July 1, 1987, a minimum pension of $400 per | 6 | | month shall
be paid to all surviving spouses, without regard to | 7 | | the fact that the death
of the police officer occurred prior to | 8 | | that date.
If the minimum pension established in Section | 9 | | 3-113.1 is greater than the
minimum provided in this | 10 | | subsection, the Section 3-113.1 minimum controls.
| 11 | | (e) The pension of the surviving spouse of a police officer | 12 | | who dies (i)
on or after January 1, 2001, (ii) without having | 13 | | begun to receive either a
retirement pension payable under | 14 | | Section 3-111 or a disability pension payable
under Section | 15 | | 3-114.1, 3-114.2, 3-114.3, or 3-114.6, and (iii) as a result of
| 16 | | sickness, accident, or injury incurred in or resulting from the | 17 | | performance of
an act of duty shall not be less than 100% of | 18 | | the salary attached to the rank
held by the deceased police | 19 | | officer on the last day of service, notwithstanding
any | 20 | | provision in this Article to the contrary.
| 21 | | (Source: P.A. 91-939, eff. 2-1-01.)
| 22 | | (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
| 23 | | Sec. 3-125. Financing. | 24 | | (a) The city council or the board of trustees of
the | 25 | | municipality shall annually levy a tax upon all
the taxable |
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| 1 | | property of the municipality at the rate on the dollar which
| 2 | | will produce an amount which, when added to the deductions from | 3 | | the salaries
or wages of police officers, and revenues
| 4 | | available from other
sources, will equal a sum sufficient to | 5 | | meet
the annual requirements of the police pension fund. The | 6 | | annual
requirements to be provided by such tax levy are equal
| 7 | | to (1) the normal cost of the pension fund for the year | 8 | | involved, plus
(2) an the amount sufficient to bring the total | 9 | | assets of the pension fund up to 90% of the total actuarial | 10 | | liabilities of the pension fund by the end of municipal fiscal | 11 | | year 2040, as annually updated and determined by an enrolled | 12 | | actuary employed by the Illinois Department of Insurance or by | 13 | | an enrolled actuary retained by the pension fund or the | 14 | | municipality. In making these determinations, the required | 15 | | minimum employer contribution shall be calculated each year as | 16 | | a level percentage of payroll over the years remaining up to | 17 | | and including fiscal year 2040 and shall be determined under | 18 | | the projected unit credit actuarial cost method necessary to | 19 | | amortize the fund's unfunded accrued liabilities
as provided in | 20 | | Section 3-127 . The tax shall be levied and
collected in the | 21 | | same manner as the general taxes
of the municipality, and in | 22 | | addition to all other taxes now or hereafter authorized to
be | 23 | | levied upon all property within the municipality, and shall be | 24 | | in
addition to the amount authorized to be levied for general | 25 | | purposes as
provided by Section 8-3-1 of the Illinois Municipal | 26 | | Code, approved May
29, 1961, as amended. The tax shall be |
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| 1 | | forwarded directly to the treasurer of the board within 30 | 2 | | business days after receipt by the county.
| 3 | | (b) For purposes of determining the required employer | 4 | | contribution to a pension fund, the value of the pension fund's | 5 | | assets shall be equal to the actuarial value of the pension | 6 | | fund's assets, which shall be calculated as follows: | 7 | | (1) On March 30, 2011, the actuarial value of a pension | 8 | | fund's assets shall be equal to the market value of the | 9 | | assets as of that date. | 10 | | (2) In determining the actuarial value of the System's | 11 | | assets for fiscal years after March 30, 2011, any actuarial | 12 | | gains or losses from investment return incurred in a fiscal | 13 | | year shall be recognized in equal annual amounts over the | 14 | | 5-year period following that fiscal year. | 15 | | (c) If a participating municipality fails to transmit to | 16 | | the fund contributions required of it under this Article for | 17 | | more than 90 days after the payment of those contributions is | 18 | | due, the fund may, after giving notice to the municipality, | 19 | | certify to the State Comptroller the amounts of the delinquent | 20 | | payments, and the Comptroller must, beginning in fiscal year | 21 | | 2016, deduct and deposit into the fund the certified amounts or | 22 | | a portion of those amounts from the following proportions of | 23 | | grants of State funds to the municipality: | 24 | | (1) in fiscal year 2016, one-third of the total amount | 25 | | of any grants of State funds to the municipality; | 26 | | (2) in fiscal year 2017, two-thirds of the total amount |
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| 1 | | of any grants of State funds to the municipality; and | 2 | | (3) in fiscal year 2018 and each fiscal year | 3 | | thereafter, the total amount of any grants of State funds | 4 | | to the municipality. | 5 | | The State Comptroller may not deduct from any grants of | 6 | | State funds to the municipality more than the amount of | 7 | | delinquent payments certified to the State Comptroller by the | 8 | | fund. | 9 | | (d) The police pension fund shall consist of the following | 10 | | moneys which
shall be set apart by the treasurer of the | 11 | | municipality:
| 12 | | (1) All moneys derived from the taxes levied hereunder;
| 13 | | (2) Contributions by police officers under Section | 14 | | 3-125.1;
| 15 | | (3) All moneys accumulated by the municipality under | 16 | | any previous
legislation establishing a fund for the | 17 | | benefit of disabled or retired
police officers;
| 18 | | (4) Donations, gifts or other transfers authorized by | 19 | | this
Article.
| 20 | | (e) The Commission on Government Forecasting and
| 21 | | Accountability shall conduct a study of all funds established
| 22 | | under this Article and shall report its findings to the General
| 23 | | Assembly on or before January 1, 2013. To the fullest extent | 24 | | possible, the study shall include, but not be limited to, the | 25 | | following: | 26 | | (1) fund balances; |
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| 1 | | (2) historical employer contribution rates for each
| 2 | | fund; | 3 | | (3) the actuarial formulas used as a basis for employer
| 4 | | contributions, including the actual assumed rate of return
| 5 | | for each year, for each fund; | 6 | | (4) available contribution funding sources; | 7 | | (5) the impact of any revenue limitations caused by
| 8 | | PTELL and employer home rule or non-home rule status; and | 9 | | (6) existing statutory funding compliance procedures
| 10 | | and funding enforcement mechanisms for all municipal
| 11 | | pension funds. | 12 | | (Source: P.A. 95-530, eff. 8-28-07.)
| 13 | | (40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
| 14 | | Sec. 4-109. Pension.
| 15 | | (a) A firefighter age 50 or more with 20 or more years of | 16 | | creditable
service, who is no longer in service as a | 17 | | firefighter, shall receive a monthly
pension of 1/2 the monthly | 18 | | salary attached to the rank held by him or her in
the fire | 19 | | service at the date of retirement.
| 20 | | The monthly pension shall be increased by 1/12 of 2.5% of | 21 | | such
monthly salary for each additional month over 20 years of | 22 | | service through 30
years of service, to a maximum of 75% of | 23 | | such monthly salary.
| 24 | | The changes made to this subsection (a) by this amendatory | 25 | | Act of the
91st General Assembly apply to all pensions that |
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| 1 | | become payable under this
subsection on or after January 1, | 2 | | 1999. All pensions payable under this
subsection that began on | 3 | | or after January 1, 1999 and before the effective date
of this | 4 | | amendatory Act shall be recalculated, and the amount of the | 5 | | increase
accruing for that period shall be payable to the | 6 | | pensioner in a lump sum.
| 7 | | (b) A firefighter who retires or is separated from service | 8 | | having at
least 10 but less than 20 years of creditable | 9 | | service, who is not entitled
to receive a disability pension, | 10 | | and who did not apply for a refund of
contributions at his or | 11 | | her last separation from service shall receive a
monthly | 12 | | pension upon attainment of age 60 based on the monthly salary | 13 | | attached
to his or her rank in the fire service on the date of | 14 | | retirement or separation
from service according to the | 15 | | following schedule:
| 16 | | For 10 years of service, 15% of salary;
| 17 | | For 11 years of service, 17.6% of salary;
| 18 | | For 12 years of service, 20.4% of salary;
| 19 | | For 13 years of service, 23.4% of salary;
| 20 | | For 14 years of service, 26.6% of salary;
| 21 | | For 15 years of service, 30% of salary;
| 22 | | For 16 years of service, 33.6% of salary;
| 23 | | For 17 years of service, 37.4% of salary;
| 24 | | For 18 years of service, 41.4% of salary;
| 25 | | For 19 years of service, 45.6% of salary.
| 26 | | (c) Notwithstanding any other provision of this Article,
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| 1 | | the provisions of this subsection (c) apply to a person who | 2 | | first
becomes a firefighter under this Article on or after | 3 | | January 1, 2011. | 4 | | A firefighter age 55 or more who has 10 or more years of | 5 | | service in that capacity shall be entitled at his option to | 6 | | receive a monthly pension for his service as a firefighter | 7 | | computed by multiplying 2.5% for each year of such service by | 8 | | his or her final average salary. | 9 | | The pension of a firefighter who is retiring after | 10 | | attaining age 50 with 10 or more years of creditable service | 11 | | shall be reduced by one-half of 1% for each month that the | 12 | | firefighter's age is under age 55. | 13 | | The maximum pension under this subsection (c) shall be 75%
| 14 | | of final average salary. | 15 | | For the purposes of this subsection (c), "final average | 16 | | salary" means the average monthly salary obtained by dividing | 17 | | the total salary of the firefighter during the 96 consecutive | 18 | | months of service within the last 120 months of service in | 19 | | which the total salary was the highest by the number of months | 20 | | of service in that period. | 21 | | Beginning on January 1, 2011, for all purposes under
this | 22 | | Code (including without limitation the calculation of
benefits | 23 | | and employee contributions), the annual salary
based on the | 24 | | plan year of a member or participant to whom this Section | 25 | | applies shall not exceed $106,800; however, that amount shall | 26 | | annually thereafter be increased by the lesser of (i) 3% of |
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| 1 | | that amount, including all previous adjustments, or (ii) | 2 | | one-half the annual unadjusted percentage increase (but not | 3 | | less than zero) in the consumer price index-u for the 12 months | 4 | | ending with the September preceding each November 1, including | 5 | | all previous adjustments. | 6 | | (Source: P.A. 91-466, eff. 8-6-99.)
| 7 | | (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
| 8 | | Sec. 4-109.1. Increase in pension.
| 9 | | (a) Except as provided in subsection (e), the monthly | 10 | | pension of a
firefighter who retires after July 1, 1971 and | 11 | | prior to January 1, 1986, shall,
upon either the first of the | 12 | | month following the first anniversary of the date
of retirement | 13 | | if 60 years of age or over at retirement date, or upon the | 14 | | first
day of the month following attainment of age 60 if it | 15 | | occurs after the first
anniversary of retirement, be increased | 16 | | by 2% of the originally granted monthly
pension and by an | 17 | | additional 2% in each January thereafter. Effective January
| 18 | | 1976, the rate of the annual increase shall be 3% of the | 19 | | originally granted
monthly pension.
| 20 | | (b) The monthly pension of a firefighter who retired
from | 21 | | service with 20 or more years of service, on or before
July 1, | 22 | | 1971, shall be increased, in January of the year
following the | 23 | | year of attaining age 65 or in January
1972, if then over age | 24 | | 65, by 2% of the originally granted monthly
pension, for each | 25 | | year the firefighter received pension payments.
In each January |
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| 1 | | thereafter, he or she shall receive an additional
increase of | 2 | | 2% of the original monthly pension. Effective
January 1976, the | 3 | | rate of the annual increase shall be 3%.
| 4 | | (c) The monthly pension of a firefighter who is receiving
a | 5 | | disability pension under this Article shall be increased, in
| 6 | | January of the year following the year the firefighter attains
| 7 | | age 60, or in January 1974, if then over age 60, by 2% of the
| 8 | | originally granted monthly pension for each
year he or she | 9 | | received pension payments.
In each January thereafter, the | 10 | | firefighter shall receive an additional
increase of 2% of the | 11 | | original monthly pension. Effective January 1976,
the rate of | 12 | | the annual increase shall be 3%.
| 13 | | (c-1) On January 1, 1998, every child's disability benefit | 14 | | payable on that
date under Section 4-110 or 4-110.1 shall be | 15 | | increased by an amount equal to
1/12 of 3% of the amount of the | 16 | | benefit, multiplied by the number of months for
which the | 17 | | benefit has been payable. On each January 1 thereafter, every
| 18 | | child's disability benefit payable under Section 4-110 or | 19 | | 4-110.1 shall be
increased by 3% of the amount of the benefit | 20 | | then being paid, including any
previous increases received | 21 | | under this Article. These increases are not
subject to any | 22 | | limitation on the maximum benefit amount included in Section
| 23 | | 4-110 or 4-110.1.
| 24 | | (c-2) On July 1, 2004, every pension payable to or on | 25 | | behalf of a minor
or disabled surviving child that is payable | 26 | | on that date under Section 4-114
shall be increased by an |
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| 1 | | amount equal to 1/12 of 3% of the amount of the
pension, | 2 | | multiplied by the number of months for which the benefit has | 3 | | been
payable. On July 1, 2005, July 1, 2006, July 1, 2007, and | 4 | | July 1, 2008, every pension payable to or on behalf
of a minor | 5 | | or disabled surviving child that is payable under Section 4-114
| 6 | | shall be increased by 3% of the amount of the pension then | 7 | | being paid,
including any previous increases received under | 8 | | this Article. These increases
are not subject to any limitation | 9 | | on the maximum benefit amount included in
Section 4-114.
| 10 | | (d) The monthly pension of a firefighter who retires after | 11 | | January 1,
1986, shall, upon either the first of the month | 12 | | following the first
anniversary of the date of retirement if 55 | 13 | | years of age or over, or
upon the first day of the month | 14 | | following attainment of
age 55 if it occurs after the first | 15 | | anniversary of retirement, be increased
by 1/12 of 3% of the | 16 | | originally granted monthly pension for each full
month that has | 17 | | elapsed since the pension began, and by an
additional 3% in | 18 | | each January thereafter.
| 19 | | The changes made to this subsection (d) by this amendatory | 20 | | Act of the 91st
General Assembly apply to all initial increases | 21 | | that become payable under this
subsection on or after January | 22 | | 1, 1999. All initial increases that became
payable under this | 23 | | subsection on or after January 1, 1999 and before the
effective | 24 | | date of this amendatory Act shall be recalculated and the | 25 | | additional
amount accruing for that period, if any, shall be | 26 | | payable to the pensioner in a
lump sum.
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| 1 | | (e) Notwithstanding the provisions of subsection (a), upon | 2 | | the
first day of the month following (1) the first anniversary | 3 | | of the date of
retirement, or (2) the attainment of age 55, or | 4 | | (3) July 1, 1987, whichever
occurs latest, the monthly pension | 5 | | of a firefighter who retired on or after
January 1, 1977 and on | 6 | | or before January 1, 1986 and did not receive an
increase under | 7 | | subsection (a) before July 1, 1987,
shall be increased by 3% of | 8 | | the originally granted monthly pension for
each full year that | 9 | | has elapsed since the pension began, and by an
additional 3% in | 10 | | each January thereafter. The increases provided under
this | 11 | | subsection are in lieu of the increases provided in subsection | 12 | | (a).
| 13 | | (f) In July 2009, the monthly pension of a
firefighter who | 14 | | retired before July 1, 1977 shall be recalculated and increased | 15 | | to reflect the amount that the firefighter would have received | 16 | | in July 2009 had the firefighter been receiving a 3% compounded | 17 | | increase for each year he or she received pension payments | 18 | | after January 1, 1986, plus any increases in pension received | 19 | | for each year prior to January 1, 1986. In each January | 20 | | thereafter, he or she shall receive an additional
increase of | 21 | | 3% of the amount of the pension then being paid. The changes | 22 | | made to this Section by this amendatory Act of the 96th General | 23 | | Assembly apply without regard to whether the firefighter was in | 24 | | service on or after its effective date. | 25 | | (g) Notwithstanding any other provision of this Article, | 26 | | the monthly pension of a
person who first becomes a firefighter |
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| 1 | | under this Article on or after January 1, 2011 shall be | 2 | | increased on the January 1 occurring either on or after the | 3 | | attainment of age 60 or the first anniversary of the pension | 4 | | start date, whichever is later. Each annual increase shall be | 5 | | calculated at 3% or one-half the annual unadjusted percentage | 6 | | increase (but not less than zero) in the consumer price index-u | 7 | | for the 12 months ending with the September preceding each | 8 | | November 1, whichever is less, of the originally granted | 9 | | pension. If the annual unadjusted percentage change in the | 10 | | consumer price index-u for a 12-month period ending in | 11 | | September is zero or, when compared with the preceding period, | 12 | | decreases, then the pension shall not be increased. | 13 | | For the purposes of this subsection (g), "consumer price | 14 | | index-u" means the index published by the Bureau of Labor | 15 | | Statistics of the United States Department of Labor that | 16 | | measures the average change in prices of goods and services | 17 | | purchased by all urban consumers, United States city average, | 18 | | all items, 1982-84 = 100. The new amount resulting from each | 19 | | annual adjustment shall be determined by the Public Pension | 20 | | Division of the Department of Insurance and made available to | 21 | | the boards of the pension funds. | 22 | | (Source: P.A. 96-775, eff. 8-28-09.)
| 23 | | (40 ILCS 5/4-114) (from Ch. 108 1/2, par. 4-114)
| 24 | | Sec. 4-114. Pension to survivors. If a firefighter who is | 25 | | not receiving a
disability pension under Section 4-110 or |
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| 1 | | 4-110.1 dies (1) as a result of any
illness or accident, or (2) | 2 | | from any cause while in receipt of a disability
pension under | 3 | | this Article, or (3) during retirement after 20 years service, | 4 | | or
(4) while vested for or in receipt of a pension payable | 5 | | under subsection (b)
of Section 4-109, or (5) while a deferred | 6 | | pensioner, having made all required
contributions, a pension | 7 | | shall be paid to his or her survivors, based on the
monthly | 8 | | salary attached to the firefighter's rank on the last day of | 9 | | service
in the fire department, as follows:
| 10 | | (a)(1) To the surviving spouse, a monthly pension of
| 11 | | 40% of the monthly salary, and to the guardian of any minor | 12 | | child or
children including a child which has been | 13 | | conceived but not yet born, 12%
of such monthly salary for | 14 | | each such child until attainment of age 18 or
until the | 15 | | child's marriage, whichever occurs first. Beginning July | 16 | | 1,
1993, the monthly pension to the surviving spouse shall | 17 | | be 54% of the
monthly salary for all persons receiving a | 18 | | surviving spouse pension under
this Article, regardless of | 19 | | whether the deceased firefighter was in service
on or after | 20 | | the effective date of this amendatory Act of 1993.
| 21 | | (2) Beginning July 1, 2004, unless the amount provided | 22 | | under paragraph (1) of this subsection (a) is greater, the | 23 | | total monthly pension payable under
this paragraph (a), | 24 | | including any amount payable on account of children, to the | 25 | | surviving spouse of a firefighter who died (i) while
| 26 | | receiving a retirement pension, (ii) while he or she was a |
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| 1 | | deferred pensioner with at least 20 years of creditable | 2 | | service, or (iii) while he or she was in active service | 3 | | having at least 20 years of creditable service, regardless | 4 | | of age, shall be no less than 100% of the monthly | 5 | | retirement pension earned by
the deceased firefighter at | 6 | | the time of death, regardless of whether death occurs | 7 | | before or after attainment of age 50, including any
| 8 | | increases under Section 4-109.1. This minimum applies to | 9 | | all such surviving
spouses who are eligible to receive a | 10 | | surviving spouse pension, regardless of
whether the | 11 | | deceased firefighter was in service on or after the | 12 | | effective date
of this amendatory Act of the 93rd General | 13 | | Assembly, and notwithstanding any
limitation on maximum | 14 | | pension under paragraph (d) or any other provision of
this | 15 | | Article.
| 16 | | (3) If the pension paid on and after July 1, 2004 to | 17 | | the surviving spouse of a firefighter who died on or after | 18 | | July 1, 2004 and before the effective date of this | 19 | | amendatory Act of the 93rd General Assembly was less than | 20 | | the minimum pension payable under paragraph (1) or (2) of | 21 | | this subsection (a), the fund shall pay a lump sum equal to | 22 | | the difference within 90 days after the effective date of | 23 | | this amendatory Act of the 93rd General Assembly.
| 24 | | The pension to the surviving spouse shall terminate in | 25 | | the event of the
surviving spouse's remarriage prior to | 26 | | July 1, 1993; remarriage on or after
that date does not |
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| 1 | | affect the surviving spouse's pension, regardless of
| 2 | | whether the deceased firefighter was in service on or after | 3 | | the effective
date of this amendatory Act of 1993.
| 4 | | The surviving spouse's pension shall be subject to the | 5 | | minimum established
in Section 4-109.2.
| 6 | | (b) Upon the death of the surviving spouse leaving one | 7 | | or more minor
children, to the duly appointed guardian of | 8 | | each such child, for support
and maintenance of each such | 9 | | child until the child reaches age 18 or
marries, whichever | 10 | | occurs first, a monthly pension of 20% of the monthly
| 11 | | salary.
| 12 | | (c) If a deceased firefighter leaves no surviving | 13 | | spouse or unmarried
minor children under age 18, but leaves | 14 | | a dependent father or mother, to
each dependent parent a | 15 | | monthly pension of 18% of the monthly salary. To
qualify | 16 | | for the pension, a dependent parent must furnish | 17 | | satisfactory proof
that the deceased firefighter was at the | 18 | | time of his or her death the sole
supporter of the parent | 19 | | or that the parent was the deceased's dependent for
federal | 20 | | income tax purposes.
| 21 | | (d) The total pension provided under paragraphs (a), | 22 | | (b) and (c) of this
Section shall not exceed 75% of the | 23 | | monthly salary of the deceased firefighter
(1) when paid to | 24 | | the survivor of a firefighter who has attained 20 or more
| 25 | | years of service credit and who receives or is eligible to | 26 | | receive a retirement
pension under this Article, or (2) |
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| 1 | | when paid to the survivor of a firefighter
who dies as a | 2 | | result of illness or accident, or (3) when paid to the | 3 | | survivor
of a firefighter who dies from any cause while in | 4 | | receipt of a disability
pension under this Article, or (4) | 5 | | when paid to the survivor of a deferred
pensioner. For all | 6 | | other survivors of deceased firefighters, the total | 7 | | pension
provided under paragraphs (a), (b) and (c) of this | 8 | | Section shall not exceed 50%
of the retirement annuity the | 9 | | firefighter would have received on the date of
death.
| 10 | | The maximum pension limitations in this paragraph (d) | 11 | | do not control
over any contrary provision of this Article | 12 | | explicitly establishing a minimum
amount of pension or | 13 | | granting a one-time or annual increase in pension.
| 14 | | (e) If a firefighter leaves no eligible survivors under | 15 | | paragraphs (a),
(b) and (c), the board shall refund to the | 16 | | firefighter's estate the amount
of his or her accumulated | 17 | | contributions, less the amount of pension
payments, if any, | 18 | | made to the firefighter while living.
| 19 | | (f) (Blank).
| 20 | | (g) If a judgment of dissolution of marriage between a | 21 | | firefighter and
spouse is judicially set aside subsequent | 22 | | to the firefighter's death, the
surviving spouse is | 23 | | eligible for the pension provided in paragraph (a) only
if | 24 | | the judicial proceedings are filed within 2 years after the | 25 | | date of the
dissolution of marriage and within one year | 26 | | after the firefighter's death and
the board is made a party |
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| 1 | | to the proceedings. In such case the pension shall be
| 2 | | payable only from the date of the court's order setting | 3 | | aside the judgment of
dissolution of marriage.
| 4 | | (h) Benefits payable on account of a child under this | 5 | | Section shall
not be reduced or terminated by reason of the | 6 | | child's attainment of age 18
if he or she is then dependent | 7 | | by reason of a physical or mental disability
but shall | 8 | | continue to be paid as long as such dependency continues.
| 9 | | Individuals over the age of 18 and adjudged as a disabled | 10 | | person pursuant
to Article XIa of the Probate Act of 1975, | 11 | | except for persons receiving
benefits under Article III of | 12 | | the Illinois Public Aid Code, shall be
eligible to receive | 13 | | benefits under this Act.
| 14 | | (i) Beginning January 1, 2000, the pension of the | 15 | | surviving spouse of
a firefighter who dies on or after | 16 | | January 1, 1994 as a result of sickness,
accident, or | 17 | | injury incurred in or resulting from the performance of an | 18 | | act of
duty or from the cumulative effects of acts of duty | 19 | | shall not be less than 100%
of the salary attached to the | 20 | | rank held by the deceased firefighter on the last
day of | 21 | | service, notwithstanding subsection (d) or any other | 22 | | provision of
this Article.
| 23 | | (j) Beginning July 1, 2004, the pension of the | 24 | | surviving spouse of
a firefighter who dies on or after | 25 | | January 1, 1988 as a result of sickness,
accident, or | 26 | | injury incurred in or resulting from the performance of an |
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| 1 | | act of
duty or from the cumulative effects of acts of duty | 2 | | shall not be less than 100%
of the salary attached to the | 3 | | rank held by the deceased firefighter on the last
day of | 4 | | service, notwithstanding subsection (d) or any other | 5 | | provision of
this Article.
| 6 | | Notwithstanding any other provision of this Article, if a | 7 | | person who first becomes a firefighter under this Article on or | 8 | | after January 1, 2011 and who is not receiving a
disability | 9 | | pension under Section 4-110 or 4-110.1 dies (1) as a result of | 10 | | any
illness or accident, (2) from any cause while in receipt of | 11 | | a disability
pension under this Article, (3) during retirement | 12 | | after 20 years service, (4) while vested for or in receipt of a | 13 | | pension payable under subsection (b)
of Section 4-109, or (5) | 14 | | while a deferred pensioner, having made all required
| 15 | | contributions, then a pension shall be paid to his or her | 16 | | survivors in the amount of 66 2/3% of the firefighter's earned | 17 | | pension at the date of death. Nothing in this Section shall act | 18 | | to diminish the
survivor's benefits described in subsection (j) | 19 | | of this Section. | 20 | | Notwithstanding any other provision of this Article, the | 21 | | monthly
pension of a survivor of a person who first becomes a | 22 | | firefighter under this Article on or after January 1, 2011 | 23 | | shall be increased on the January 1 after attainment of age 60 | 24 | | by the recipient of the survivor's pension and
each January 1 | 25 | | thereafter by 3% or one-half the annual unadjusted percentage | 26 | | increase in the consumer price index-u for the
12 months ending |
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| 1 | | with the September preceding each November 1, whichever is | 2 | | less, of the originally granted survivor's pension. If the | 3 | | annual unadjusted percentage change in
the consumer price | 4 | | index-u for a 12-month period ending in September is zero or, | 5 | | when compared with the preceding period, decreases, then the | 6 | | survivor's pension shall not
be increased. | 7 | | For the purposes of this Section, "consumer price index-u" | 8 | | means the index published by the Bureau of Labor Statistics of | 9 | | the United States Department of Labor that measures the average | 10 | | change in prices of goods and services purchased by all urban | 11 | | consumers, United States city average, all items, 1982-84 = | 12 | | 100. The new amount resulting from each annual adjustment shall | 13 | | be determined by the Public Pension Division of the Department | 14 | | of Insurance and made available to the boards of the pension | 15 | | funds. | 16 | | (Source: P.A. 95-279, eff. 1-1-08.)
| 17 | | (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
| 18 | | Sec. 4-118. Financing.
| 19 | | (a) The city council or the board of trustees
of the | 20 | | municipality shall annually levy a tax upon all the taxable | 21 | | property
of the municipality at the rate on the dollar which | 22 | | will produce an amount
which, when added to the deductions from | 23 | | the salaries or wages of
firefighters and revenues available | 24 | | from other sources, will equal a sum
sufficient to meet the | 25 | | annual actuarial requirements of the pension fund,
as |
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| 1 | | determined by an enrolled actuary employed by the Illinois | 2 | | Department of
Insurance or by an enrolled actuary retained by | 3 | | the pension fund or
municipality. For the purposes of this | 4 | | Section, the annual actuarial
requirements of the pension fund | 5 | | are equal to (1) the normal cost of the
pension fund, or 17.5% | 6 | | of the salaries and wages to be paid to firefighters
for the | 7 | | year involved, whichever is greater, plus (2) an the annual | 8 | | amount
sufficient to bring the total assets of the pension fund | 9 | | up to 90% of the total actuarial liabilities of the pension | 10 | | fund by the end of municipal fiscal year 2040, as annually | 11 | | updated and determined by an enrolled actuary employed by the | 12 | | Illinois Department of Insurance or by an enrolled actuary | 13 | | retained by the pension fund or the municipality. In making | 14 | | these determinations, the required minimum employer | 15 | | contribution shall be calculated each year as a level | 16 | | percentage of payroll over the years remaining up to and | 17 | | including fiscal year 2040 and shall be determined under the | 18 | | projected unit credit actuarial cost method necessary to | 19 | | amortize the fund's unfunded accrued liabilities over a period
| 20 | | of 40 years from July 1, 1993, as annually updated and | 21 | | determined by an
enrolled actuary employed by the Illinois | 22 | | Department of Insurance or by an
enrolled actuary retained by | 23 | | the pension fund or the municipality . The amount
to be applied | 24 | | towards the amortization of the unfunded accrued liability in | 25 | | any
year shall not be less than the annual amount required to | 26 | | amortize the unfunded
accrued liability, including interest, |
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| 1 | | as a level percentage of payroll over
the number of years | 2 | | remaining in the 40 year amortization period.
| 3 | | (a-5) For purposes of determining the required employer | 4 | | contribution to a pension fund, the value of the pension fund's | 5 | | assets shall be equal to the actuarial value of the pension | 6 | | fund's assets, which shall be calculated as follows: | 7 | | (1) On March 30, 2011, the actuarial value of a pension | 8 | | fund's assets shall be equal to the market value of the | 9 | | assets as of that date. | 10 | | (2) In determining the actuarial value of the pension | 11 | | fund's assets for fiscal years after March 30, 2011, any | 12 | | actuarial gains or losses from investment return incurred | 13 | | in a fiscal year shall be recognized in equal annual | 14 | | amounts over the 5-year period following that fiscal year. | 15 | | (b) The tax shall be levied and collected in the same | 16 | | manner
as the general taxes of the municipality, and shall be | 17 | | in addition
to all other taxes now or hereafter authorized to | 18 | | be levied upon all
property within the municipality, and in | 19 | | addition to the amount authorized
to be levied for general | 20 | | purposes, under Section 8-3-1 of the Illinois
Municipal Code or | 21 | | under Section 14 of the Fire Protection District Act. The
tax | 22 | | shall be forwarded directly to the treasurer of the board | 23 | | within 30
business days of receipt by the county
(or, in the | 24 | | case of amounts
added to the tax levy under subsection (f), | 25 | | used by the municipality to pay the
employer contributions | 26 | | required under subsection (b-1) of Section 15-155 of
this |
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| 1 | | Code).
| 2 | | (b-5) If a participating municipality fails to transmit to | 3 | | the fund contributions required of it under this Article for | 4 | | more than 90 days after the payment of those contributions is | 5 | | due, the fund may, after giving notice to the municipality, | 6 | | certify to the State Comptroller the amounts of the delinquent | 7 | | payments, and the Comptroller must, beginning in fiscal year | 8 | | 2016, deduct and deposit into the fund the certified amounts or | 9 | | a portion of those amounts from the following proportions of | 10 | | grants of State funds to the municipality: | 11 | | (1) in fiscal year 2016, one-third of the total amount | 12 | | of any grants of State funds to the municipality; | 13 | | (2) in fiscal year 2017, two-thirds of the total amount | 14 | | of any grants of State funds to the municipality; and | 15 | | (3) in fiscal year 2018 and each fiscal year | 16 | | thereafter, the total amount of any grants of State funds | 17 | | to the municipality. | 18 | | The State Comptroller may not deduct from any grants of | 19 | | State funds to the municipality more than the amount of | 20 | | delinquent payments certified to the State Comptroller by the | 21 | | fund. | 22 | | (c) The board shall make available to the membership and | 23 | | the general public
for inspection and copying at reasonable | 24 | | times the most recent Actuarial
Valuation Balance Sheet and Tax | 25 | | Levy Requirement issued to the fund by the
Department of | 26 | | Insurance.
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| 1 | | (d) The firefighters' pension fund shall consist of the | 2 | | following moneys
which shall be set apart by the treasurer of | 3 | | the municipality: (1) all
moneys derived from the taxes levied | 4 | | hereunder; (2) contributions
by firefighters as provided under | 5 | | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | 6 | | emoluments that may be paid or given
for or on account of | 7 | | extraordinary service by the fire department or any
member | 8 | | thereof, except when allowed to be retained by competitive | 9 | | awards;
and (4) any money, real estate or personal property | 10 | | received by the board.
| 11 | | (e) For the purposes of this Section, "enrolled actuary" | 12 | | means an actuary:
(1) who is a member of the Society of | 13 | | Actuaries or the American
Academy of Actuaries; and (2) who is | 14 | | enrolled under Subtitle
C of Title III of the Employee | 15 | | Retirement Income Security Act of 1974, or
who has been engaged | 16 | | in providing actuarial services to one or more public
| 17 | | retirement systems for a period of at least 3 years as of July | 18 | | 1, 1983.
| 19 | | (f) The corporate authorities of a municipality that | 20 | | employs a person
who is described in subdivision (d) of Section | 21 | | 4-106 may add to the tax levy
otherwise provided for in this | 22 | | Section an amount equal to the projected cost of
the employer | 23 | | contributions required to be paid by the municipality to the | 24 | | State
Universities Retirement System under subsection (b-1) of | 25 | | Section 15-155 of this
Code. | 26 | | (g) The Commission on Government Forecasting and
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| 1 | | Accountability shall conduct a study of all funds established
| 2 | | under this Article and shall report its findings to the General
| 3 | | Assembly on or before January 1, 2013. To the fullest extent | 4 | | possible, the study shall include, but not be limited to, the | 5 | | following: | 6 | | (1) fund balances; | 7 | | (2) historical employer contribution rates for each
| 8 | | fund; | 9 | | (3) the actuarial formulas used as a basis for employer
| 10 | | contributions, including the actual assumed rate of return
| 11 | | for each year, for each fund; | 12 | | (4) available contribution funding sources; | 13 | | (5) the impact of any revenue limitations caused by
| 14 | | PTELL and employer home rule or non-home rule status; and | 15 | | (6) existing statutory funding compliance procedures
| 16 | | and funding enforcement mechanisms for all municipal
| 17 | | pension funds.
| 18 | | (Source: P.A. 94-859, eff. 6-15-06.)
| 19 | | (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
| 20 | | Sec. 5-167.1. Automatic increase in annuity; retirement | 21 | | from service
after September 1, 1967. | 22 | | (a) A policeman who retires from service after September 1, | 23 | | 1967
with at least 20 years of service credit shall, upon | 24 | | either the first
of the month following the first anniversary | 25 | | of his date of retirement
if he is age 60 (age 55 if born before |
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| 1 | | January 1, 1955)
or over on that anniversary date, or upon the | 2 | | first of the month following
his attainment of age 60 (age 55 | 3 | | if born before January 1, 1955)
if it occurs after the first | 4 | | anniversary of his retirement date, have his
then fixed and | 5 | | payable monthly annuity increased by 1 1/2% and such first
| 6 | | fixed annuity as granted at retirement increased by an | 7 | | additional 1 1/2% in
January of each year thereafter up to a | 8 | | maximum increase of 30%. Beginning
January 1, 1983 for | 9 | | policemen born before January 1, 1930, and beginning
January 1, | 10 | | 1988 for policemen born on or after January 1, 1930 but before
| 11 | | January 1, 1940, and beginning January 1, 1996 for policemen | 12 | | born on or after
January 1, 1940 but before January 1, 1945, | 13 | | and beginning January 1, 2000
for policemen born on or after | 14 | | January 1, 1945 but before January 1, 1950, and beginning | 15 | | January 1, 2005
for policemen born on or after January 1, 1950 | 16 | | but before January 1, 1955,
such increases shall be 3% and such | 17 | | policemen shall not be subject to the
30% maximum increase.
| 18 | | Any policeman born before January 1, 1945 who qualifies for | 19 | | a minimum
annuity and retires after September 1, 1967 but has | 20 | | not received the initial
increase under this subsection before | 21 | | January 1, 1996 is entitled to receive
the initial increase | 22 | | under this subsection on (1) January 1, 1996, (2) the
first | 23 | | anniversary of the date of retirement, or (3) attainment of age | 24 | | 55,
whichever occurs last. The changes to this Section made by | 25 | | Public Act
89-12 apply beginning January 1, 1996 and
without | 26 | | regard to whether the policeman or annuitant terminated service |
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| 1 | | before
the effective date of that Act.
| 2 | | Any policeman born before January 1, 1950 who qualifies for | 3 | | a minimum
annuity and retires after September 1, 1967 but has | 4 | | not received the initial
increase under this subsection before | 5 | | January 1, 2000 is entitled to receive
the initial increase | 6 | | under this subsection on (1) January 1, 2000, (2) the
first | 7 | | anniversary of the date of retirement, or (3) attainment of age | 8 | | 55,
whichever occurs last. The changes to this Section made by | 9 | | this amendatory
Act of the 92nd General Assembly apply without | 10 | | regard to whether the policeman
or annuitant terminated service | 11 | | before the effective date of this amendatory
Act.
| 12 | | Any policeman born before January 1, 1955 who qualifies for | 13 | | a minimum
annuity and retires after September 1, 1967 but has | 14 | | not received the initial
increase under this subsection before | 15 | | January 1, 2005 is entitled to receive
the initial increase | 16 | | under this subsection on (1) January 1, 2005, (2) the
first | 17 | | anniversary of the date of retirement, or (3) attainment of age | 18 | | 55,
whichever occurs last. The changes to this Section made by | 19 | | this amendatory
Act of the 94th General Assembly apply without | 20 | | regard to whether the policeman
or annuitant terminated service | 21 | | before the effective date of this amendatory
Act.
| 22 | | (b) Subsection (a) of this Section is
not applicable to an | 23 | | employee receiving a term annuity.
| 24 | | (c) To help defray the cost of such increases in annuity, | 25 | | there shall
be deducted, beginning September 1, 1967, from each | 26 | | payment of salary to a
policeman, 1/2 of 1% of each salary |
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| 1 | | payment concurrently with and in addition
to the salary | 2 | | deductions otherwise made for annuity purposes.
| 3 | | The city, in addition to the contributions otherwise made | 4 | | by it for
annuity purposes under other provisions of this | 5 | | Article, shall make
matching contributions concurrently with | 6 | | such salary deductions.
| 7 | | Each such 1/2 of 1% deduction from salary and each such | 8 | | contribution
by the city of 1/2 of 1% of salary shall be | 9 | | credited to the Automatic
Increase Reserve, to be used to | 10 | | defray the cost of the 1 1/2% annuity
increase provided by this | 11 | | Section. Any balance in such reserve as of the
beginning of | 12 | | each calendar year shall be credited with interest at the
rate | 13 | | of 3% per annum.
| 14 | | Such deductions from salary and city contributions shall | 15 | | continue
while the policeman is in service.
| 16 | | The salary deductions provided in this Section are not | 17 | | subject to
refund, except to the policeman himself, in any case | 18 | | in which a
policeman withdraws prior to qualification for | 19 | | minimum annuity and
applies for refund or applies for annuity, | 20 | | and also where a term annuity
becomes payable. In such cases, | 21 | | the total of such salary deductions
shall be refunded to the | 22 | | policeman, without interest, and charged to the
Automatic | 23 | | Increase Reserve.
| 24 | | (d) Notwithstanding any other provision of this Article, | 25 | | for a person who first becomes a policeman under this Article | 26 | | on or after January 1, 2011, the annuity to which the survivor |
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| 1 | | is entitled under this subsection (d) shall be in the amount of | 2 | | 66 2/3% of the policeman's earned annuity at the date of death. | 3 | | Nothing in this subsection (d) shall act to diminish the | 4 | | survivor's
benefits described in this Section. | 5 | | Notwithstanding any other provision of this Article, the | 6 | | monthly annuity
of a survivor of a person who first becomes a | 7 | | policeman under this Article on or after January 1, 2011 shall | 8 | | be increased on the January 1 after attainment of age 60 by the | 9 | | recipient of the survivor's annuity and
each January 1 | 10 | | thereafter by 3% or one-half the annual unadjusted percentage | 11 | | increase (but not less than zero) in the consumer price index-u | 12 | | for the
12 months ending with the September preceding each | 13 | | November 1, whichever is less, of the originally granted | 14 | | annuity. If the annual unadjusted percentage change in
the | 15 | | consumer price index-u for a 12-month period ending in | 16 | | September is zero or, when compared with the preceding period, | 17 | | decreases, then the annuity shall 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. |
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| 1 | | (Source: P.A. 94-719, eff. 1-6-06.)
| 2 | | (40 ILCS 5/5-168)
(from Ch. 108 1/2, par. 5-168)
| 3 | | Sec. 5-168. Financing.
| 4 | | (a) Except as expressly provided in this Section, the city | 5 | | shall levy a
tax annually upon all taxable property therein for | 6 | | the purpose of providing
revenue for the fund.
| 7 | | The tax shall be at a rate that will produce a sum which, | 8 | | when added to the
amounts deducted from the policemen's | 9 | | salaries and the amounts deposited in
accordance with | 10 | | subsection (g), is sufficient for the purposes of the fund.
| 11 | | For the years 1968 and 1969, the city council shall levy a | 12 | | tax
annually at a rate on the dollar of the assessed
valuation | 13 | | of all taxable property that will produce, when extended, not
| 14 | | to exceed $9,700,000. Beginning with the year 1970 and through | 15 | | 2014, each year
thereafter the city council shall levy a tax | 16 | | annually at a rate on the
dollar of the assessed valuation of | 17 | | all taxable property that will
produce when extended an amount | 18 | | not to exceed the total amount of
contributions by the | 19 | | policemen to the Fund made in the calendar year 2
years before | 20 | | the year for which the applicable annual tax is levied,
| 21 | | multiplied by 1.40 for the tax levy year 1970; by 1.50 for the | 22 | | year
1971; by 1.65 for 1972; by 1.85 for 1973; by 1.90 for | 23 | | 1974; by 1.97 for
1975 through 1981; by 2.00 for 1982 and for | 24 | | each year through 2014 thereafter . Beginning in 2015, the city | 25 | | council shall levy a tax annually at a rate on the dollar of |
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| 1 | | the assessed valuation of all taxable property that will | 2 | | produce when extended an annual amount that is equal to (1) the | 3 | | normal cost to the Fund, plus (2) an annual amount sufficient | 4 | | to bring the total assets of the Fund up to 90% of the total | 5 | | actuarial liabilities of the Fund by the end of fiscal year | 6 | | 2040, as annually updated and determined by an enrolled actuary | 7 | | employed by the Illinois Department of Insurance or by an | 8 | | enrolled actuary retained by the Fund or the city. In making | 9 | | these determinations, the required minimum employer | 10 | | contribution shall be calculated each year as a level | 11 | | percentage of payroll over the years remaining up to and | 12 | | including fiscal year 2040 and shall be determined under the | 13 | | projected unit credit actuarial cost method. For the purposes | 14 | | of this subsection (a), contributions by the policeman to the | 15 | | Fund shall not include payments made by a policeman to | 16 | | establish credit under Section 5-214.2 of this Code.
| 17 | | (a-5) For purposes of determining the required employer | 18 | | contribution to the Fund, the value of the Fund's assets shall | 19 | | be equal to the actuarial value of the Fund's assets, which | 20 | | shall be calculated as follows: | 21 | | (1) On March 30, 2011, the actuarial value of the | 22 | | Fund's assets shall be equal to the market value of the | 23 | | assets as of that date. | 24 | | (2) In determining the actuarial value of the Fund's | 25 | | assets for fiscal years after March 30, 2011, any actuarial | 26 | | gains or losses from investment return incurred in a fiscal |
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| 1 | | year shall be recognized in equal annual amounts over the | 2 | | 5-year period following that fiscal year. | 3 | | (a-7) If the city fails to transmit to the Fund | 4 | | contributions required of it under this Article for more than | 5 | | 90 days after the payment of those contributions is due, the | 6 | | Fund may, after giving notice to the city, certify to the State | 7 | | Comptroller the amounts of the delinquent payments, and the | 8 | | Comptroller must, beginning in fiscal year 2016, deduct and | 9 | | deposit into the Fund the certified amounts or a portion of | 10 | | those amounts from the following proportions of grants of State | 11 | | funds to the city: | 12 | | (1) in fiscal year 2016, one-third of the total amount | 13 | | of any grants of State funds to the city; | 14 | | (2) in fiscal year 2017, two-thirds of the total amount | 15 | | of any grants of State funds to the city; and | 16 | | (3) in fiscal year 2018 and each fiscal year | 17 | | thereafter, the total amount of any grants of State funds | 18 | | to the city. | 19 | | The State Comptroller may not deduct from any grants of | 20 | | State funds to the city more than the amount of delinquent | 21 | | payments certified to the State Comptroller by the Fund. | 22 | | (b) The tax shall be levied and collected in like manner | 23 | | with the
general taxes of the city, and is in addition to all | 24 | | other taxes which the
city is now or may hereafter be | 25 | | authorized to levy upon all taxable property
therein, and is | 26 | | exclusive of and in addition to the amount of tax the city is
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| 1 | | now or may hereafter be authorized to levy for general purposes | 2 | | under any
law which may limit the amount of tax which the city | 3 | | may levy for general
purposes. The county clerk of the county | 4 | | in which the city is located, in
reducing tax levies under | 5 | | Section 8-3-1 of the Illinois
Municipal Code, shall not | 6 | | consider the tax herein authorized as a part
of the general tax | 7 | | levy for city purposes, and shall not include the tax
in any | 8 | | limitation of the percent of the assessed valuation upon which
| 9 | | taxes are required to be extended for the city.
| 10 | | (c) On or before January 10 of each year, the board shall | 11 | | notify the
city council of the requirement that the tax herein | 12 | | authorized be levied by
the city council for that current year. | 13 | | The board shall compute the
amounts necessary for the purposes | 14 | | of this fund to be credited to the
reserves established and | 15 | | maintained within the fund; shall make an
annual determination | 16 | | of the amount of the required city contributions;
and shall | 17 | | certify the results thereof to the city council.
| 18 | | As soon as any revenue derived from the tax is collected it | 19 | | shall be
paid to the city treasurer of the city and shall be | 20 | | held by him for the
benefit of the fund in accordance with this | 21 | | Article.
| 22 | | (d) If the funds available are insufficient during any year | 23 | | to meet the
requirements of this Article, the city may issue | 24 | | tax anticipation warrants
against the tax levy for the current | 25 | | fiscal year.
| 26 | | (e) The various sums, including interest, to be contributed |
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| 1 | | by the city,
shall be taken from the revenue derived from such | 2 | | tax or otherwise as expressly
provided in this Section. Any | 3 | | moneys of the city derived from any source other
than the tax | 4 | | herein authorized shall not be used for any purpose of the fund
| 5 | | nor the cost of administration thereof, unless applied to make | 6 | | the deposit
expressly authorized in this Section
or the | 7 | | additional city contributions required under subsection (h).
| 8 | | (f) If it is not possible or practicable for the city to | 9 | | make its
contributions at the time that salary deductions are | 10 | | made, the city
shall make such contributions as soon as | 11 | | possible thereafter, with
interest thereon to the time it is | 12 | | made.
| 13 | | (g) In lieu of levying all or a portion of the tax required | 14 | | under this
Section in any year, the city may deposit with the | 15 | | city treasurer no later than
March 1 of that year for the | 16 | | benefit of the fund, to be held in accordance with
this | 17 | | Article, an amount that, together with the taxes levied under | 18 | | this Section
for that year, is not less than the amount of the | 19 | | city contributions for that
year as certified by the board to | 20 | | the city council. The deposit may be derived
from any source | 21 | | legally available for that purpose, including, but not limited
| 22 | | to, the proceeds of city borrowings. The making of a deposit | 23 | | shall satisfy
fully the requirements of this Section for that | 24 | | year to the extent of the
amounts so deposited. Amounts | 25 | | deposited under this subsection may be used by
the fund for any | 26 | | of the purposes for which the proceeds of the tax levied under
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| 1 | | this Section may be used, including the payment of any amount | 2 | | that is otherwise
required by this Article to be paid from the | 3 | | proceeds of that tax.
| 4 | | (h) In addition to the contributions required under the | 5 | | other provisions
of this Article, by November 1 of the | 6 | | following specified years, the city shall
deposit with the city | 7 | | treasurer for the benefit of the fund, to be held and
used in | 8 | | accordance with this Article, the following specified amounts:
| 9 | | $6,300,000 in 1999;
$5,880,000 in 2000;
$5,460,000 in 2001;
| 10 | | $5,040,000 in 2002; and
$4,620,000 in 2003.
| 11 | | The additional city contributions required under this | 12 | | subsection are
intended to decrease the unfunded liability of | 13 | | the fund and shall not decrease
the amount of the city | 14 | | contributions required under the other provisions of
this | 15 | | Article. The additional city contributions made under this | 16 | | subsection
may be used by the fund for any of its lawful | 17 | | purposes.
| 18 | | (Source: P.A. 95-1036, eff. 2-17-09.)
| 19 | | (40 ILCS 5/5-238 new) | 20 | | Sec. 5-238. Provisions applicable to new hires. | 21 | | (a) Notwithstanding any other provision of this Article,
| 22 | | the provisions of this Section apply to a person who first
| 23 | | becomes a policeman under this Article on or after January 1, | 24 | | 2011. | 25 | | (b) A policeman age 55 or more who has 10 or more years of |
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| 1 | | service in that capacity shall be entitled at his option to | 2 | | receive a monthly retirement annuity for his service as a | 3 | | police officer computed by multiplying 2.5% for each year of | 4 | | such service by his or her final average salary. | 5 | | The retirement annuity of a policeman who is retiring after | 6 | | attaining age 50 with 10 or more years of creditable service | 7 | | shall be reduced by one-half of 1% for each month that the | 8 | | police officer's age is under age 55. | 9 | | The maximum retirement annuity under this subsection (b) | 10 | | shall be 75%
of final average salary. | 11 | | For the purposes of this subsection (b), "final average | 12 | | salary" means the average monthly salary obtained by dividing | 13 | | the total salary of the policeman during the 96 consecutive | 14 | | months of service within the last 120 months of service in | 15 | | which the total salary was the highest by the number of months | 16 | | of service in that period. | 17 | | Beginning on January 1, 2011, for all purposes under
this | 18 | | Code (including without limitation the calculation of
benefits | 19 | | and employee contributions), the annual salary
based on the | 20 | | plan year of a member or participant to whom this Section | 21 | | applies shall not exceed $106,800; however, that amount shall | 22 | | annually thereafter be increased by the lesser of (i) 3% of | 23 | | that amount, including all previous adjustments, or (ii) | 24 | | one-half the annual unadjusted percentage increase (but not | 25 | | less than zero) in the consumer price index-u for the 12 months | 26 | | ending with the September preceding each November 1, including |
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| 1 | | all previous adjustments. | 2 | | (c) Notwithstanding any other provision of this Article, | 3 | | for a person who first becomes a policeman under this Article | 4 | | on or after January 1, 2011, the annuity to which the surviving | 5 | | spouse, children, or parents are entitled under this subsection | 6 | | (c) shall be in the amount of 66 2/3% of the policeman's earned | 7 | | annuity at the date of death. | 8 | | Notwithstanding any other provision of this Article, the | 9 | | monthly annuity
of a survivor of a person who first becomes a | 10 | | policeman under this Article on or after January 1, 2011 shall | 11 | | be increased on the January 1 after attainment of age 60 by the | 12 | | recipient of the survivor's annuity and
each January 1 | 13 | | thereafter by 3% or one-half the annual unadjusted percentage | 14 | | increase (but not less than zero) in the consumer price index-u | 15 | | for the
12 months ending with the September preceding each | 16 | | November 1, whichever is less, of the originally granted | 17 | | survivor's annuity. If the unadjusted percentage change in
the | 18 | | consumer price index-u for a 12-month period ending in | 19 | | September is zero or, when compared with the preceding period, | 20 | | decreases, then the annuity shall not
be increased. | 21 | | For the purposes of this Section, "consumer price index-u" | 22 | | means the index published by the Bureau of Labor Statistics of | 23 | | the United States Department of Labor that measures the average | 24 | | change in prices of goods and services purchased by all urban | 25 | | consumers, United States city average, all items, 1982-84 = | 26 | | 100. The new amount resulting from each annual adjustment shall |
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| 1 | | be determined by the Public Pension Division of the Department | 2 | | of Insurance and made available to the boards of the pension | 3 | | funds.
| 4 | | (40 ILCS 5/6-164)
(from Ch. 108 1/2, par. 6-164)
| 5 | | Sec. 6-164. Automatic annual increase; retirement after | 6 | | September 1, 1959.
| 7 | | (a) A fireman qualifying for a minimum annuity who retires | 8 | | from service
after September 1, 1959 shall, upon either the | 9 | | first of the month following the
first anniversary of his date | 10 | | of retirement if he is age 60 (age 55 if born
before January 1, | 11 | | 1955) or over on that anniversary date, or upon
the first of | 12 | | the month following his attainment of age 60 (age 55 if born
| 13 | | before January 1, 1955) if that occurs after the first | 14 | | anniversary
of his retirement date, have his then fixed and | 15 | | payable monthly annuity
increased by 1 1/2%, and such first | 16 | | fixed annuity as granted at retirement
increased by an | 17 | | additional 1 1/2% in January of each year thereafter up to a
| 18 | | maximum increase of 30%.
Beginning July 1, 1982 for firemen | 19 | | born before January 1, 1930, and beginning
January 1, 1990 for | 20 | | firemen born after December 31, 1929 and before January 1,
| 21 | | 1940, and beginning January 1, 1996 for firemen born after | 22 | | December 31, 1939
but before January 1, 1945, and beginning | 23 | | January 1, 2004, for firemen born
after December 31, 1944 but | 24 | | before January 1, 1955, such increases shall be
3% and such | 25 | | firemen shall not be subject to the 30% maximum increase.
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| 1 | | Any fireman born before January 1, 1945 who qualifies for a | 2 | | minimum annuity
and retires after September 1, 1967 but has not | 3 | | received the initial increase
under this subsection before | 4 | | January 1, 1996 is entitled to receive the initial
increase | 5 | | under this subsection on (1) January 1, 1996, (2) the first
| 6 | | anniversary of the date of retirement, or (3) attainment of age | 7 | | 55, whichever
occurs last. The changes to this Section made by | 8 | | this amendatory Act of 1995
apply beginning January 1, 1996 and | 9 | | apply without regard to whether the fireman
or annuitant | 10 | | terminated service before the effective date of this amendatory
| 11 | | Act of 1995.
| 12 | | Any fireman born before January 1, 1955 who qualifies for a | 13 | | minimum
annuity and retires after September 1, 1967 but has not | 14 | | received the initial
increase under this subsection before | 15 | | January 1, 2004 is entitled to receive
the initial increase | 16 | | under this subsection on (1) January 1, 2004, (2) the
first | 17 | | anniversary of the date of retirement, or (3) attainment of age | 18 | | 55,
whichever occurs last. The changes to this Section made by | 19 | | this amendatory
Act of the 93rd General Assembly apply without | 20 | | regard to whether the fireman
or annuitant terminated service | 21 | | before the effective date of this amendatory
Act.
| 22 | | (b) Subsection (a) of this Section is
not applicable to an | 23 | | employee receiving a term annuity.
| 24 | | (c) To help defray the cost of such increases in annuity, | 25 | | there
shall be deducted, beginning September 1, 1959, from each | 26 | | payment of salary
to a fireman, 1/8 of 1% of each such salary |
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| 1 | | payment and an additional 1/8
of 1% beginning on September 1, | 2 | | 1961, and September 1, 1963, respectively,
concurrently with | 3 | | and in addition to the salary deductions otherwise made
for | 4 | | annuity purposes.
| 5 | | Each such additional 1/8 of 1% deduction from salary which | 6 | | shall, on
September 1, 1963, result in a total increase of 3/8 | 7 | | of 1% of salary,
shall be credited to the Automatic Increase | 8 | | Reserve, to be used,
together with city contributions as | 9 | | provided in this Article, to defray
the cost of the 1 1/2% | 10 | | annuity increments herein specified. Any balance
in such | 11 | | reserve as of the beginning of each calendar year shall be
| 12 | | credited with interest at the rate of 3% per annum.
| 13 | | The salary deductions provided in this Section are not | 14 | | subject to
refund, except to the fireman himself, in any case | 15 | | in which a fireman
withdraws prior to qualification for minimum | 16 | | annuity and applies for
refund, or applies for annuity, and | 17 | | also where a term annuity becomes
payable. In such cases, the | 18 | | total of such salary deductions shall be
refunded to the | 19 | | fireman, without interest, and charged to the
aforementioned | 20 | | reserve.
| 21 | | (d) Notwithstanding any other provision of this Article, | 22 | | the monthly annuity of a
person who first becomes a fireman | 23 | | under this Article on or after January 1, 2011 shall be | 24 | | increased on the January 1 occurring either on or after the | 25 | | attainment of age 60 or the first anniversary of the annuity | 26 | | start date, whichever is later. Each annual increase shall be |
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| 1 | | calculated at 3% or one-half the annual unadjusted percentage | 2 | | increase (but not less than zero) in the consumer price index-u | 3 | | for the 12 months ending with the September preceding each | 4 | | November 1, whichever is less, of the originally granted | 5 | | retirement annuity. If the annual unadjusted percentage change | 6 | | in the consumer price index-u for a 12-month period ending in | 7 | | September is zero or, when compared with the preceding period, | 8 | | decreases, then the annuity shall not be increased. | 9 | | For the purposes of this subsection (d), "consumer price | 10 | | index-u" means the index published by the Bureau of Labor | 11 | | Statistics of the United States Department of Labor that | 12 | | measures the average change in prices of goods and services | 13 | | purchased by all urban consumers, United States city average, | 14 | | all items, 1982-84 = 100. The new amount resulting from each | 15 | | annual adjustment shall be determined by the Public Pension | 16 | | Division of the Department of Insurance and made available to | 17 | | the boards of the pension funds. | 18 | | (Source: P.A. 93-654, eff. 1-16-04.)
| 19 | | (40 ILCS 5/6-165)
(from Ch. 108 1/2, par. 6-165)
| 20 | | Sec. 6-165. Financing; tax.
| 21 | | (a) Except as expressly provided in this
Section, each city | 22 | | shall levy a tax annually upon all
taxable property therein for | 23 | | the purpose of providing revenue for the
fund. For the years | 24 | | prior to the year 1960, the tax rate shall be as
provided for | 25 | | in the "Firemen's Annuity and Benefit Fund of the Illinois
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| 1 | | Municipal Code". The tax, from and after January 1, 1968 to and
| 2 | | including the year 1971, shall not exceed .0863% of the value, | 3 | | as
equalized or assessed by the Department of Revenue, of
all | 4 | | taxable property in the city. Beginning with the year 1972 and | 5 | | through 2014, each
year thereafter the city shall levy a tax | 6 | | annually at a rate on the
dollar of the value, as equalized or | 7 | | assessed by the Department of Revenue
of all taxable property | 8 | | within such city that will
produce, when extended, not to | 9 | | exceed an amount equal to the total
amount of contributions by | 10 | | the employees to the fund made in the
calendar year 2 years | 11 | | prior to the year for which the annual applicable
tax is | 12 | | levied, multiplied by 2.23 through the calendar year 1981, and | 13 | | by
2.26 for the year 1982 and for each year through 2014 | 14 | | thereafter . Beginning in 2015, the city council shall levy a | 15 | | tax annually at a rate on the dollar of the assessed valuation | 16 | | of all taxable property that will produce when extended an | 17 | | annual amount that is equal to (1) the normal cost to the Fund, | 18 | | plus (2) an annual amount sufficient to bring the total assets | 19 | | of the Fund up to 90% of the total actuarial liabilities of the | 20 | | Fund by the end of fiscal year 2040, as annually updated and | 21 | | determined by an enrolled actuary employed by the Illinois | 22 | | Department of Insurance or by an enrolled actuary retained by | 23 | | the Fund or the city. In making these determinations, the | 24 | | required minimum employer contribution shall be calculated | 25 | | each year as a level percentage of payroll over the years | 26 | | remaining up to and including fiscal year 2040 and shall be |
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| 1 | | determined under the projected unit credit actuarial cost | 2 | | method.
| 3 | | To provide revenue for the ordinary death benefit | 4 | | established by
Section 6-150 of this Article, in addition to | 5 | | the contributions by the firemen
for this purpose, the city | 6 | | council shall for the
year 1962 and each year thereafter | 7 | | annually levy a tax, which shall be
in addition to and | 8 | | exclusive of the taxes authorized to be levied under
the | 9 | | foregoing provisions of this Section, upon all taxable property | 10 | | in
the city, as equalized or assessed by the Department of | 11 | | Revenue, at such
rate per cent of the value of such property as | 12 | | shall be
sufficient to produce for each year the sum of | 13 | | $142,000.
| 14 | | The amounts produced by the taxes levied annually, together | 15 | | with the
deposit expressly authorized in this Section, shall be
| 16 | | sufficient, when added to the amounts deducted from the | 17 | | salaries of
firemen and applied to the fund, to provide for the | 18 | | purposes of the
fund.
| 19 | | (a-5) For purposes of determining the required employer | 20 | | contribution to the Fund, the value of the Fund's assets shall | 21 | | be equal to the actuarial value of the Fund's assets, which | 22 | | shall be calculated as follows: | 23 | | (1) On March 30, 2011, the actuarial value of the | 24 | | Fund's assets shall be equal to the market value of the | 25 | | assets as of that date. | 26 | | (2) In determining the actuarial value of the Fund's |
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| 1 | | assets for fiscal years after March 30, 2011, any actuarial | 2 | | gains or losses from investment return incurred in a fiscal | 3 | | year shall be recognized in equal annual amounts over the | 4 | | 5-year period following that fiscal year. | 5 | | (a-7) If the city fails to transmit to the Fund | 6 | | contributions required of it under this Article for more than | 7 | | 90 days after the payment of those contributions is due, the | 8 | | Fund may, after giving notice to the city, certify to the State | 9 | | Comptroller the amounts of the delinquent payments, and the | 10 | | Comptroller must, beginning in fiscal year 2016, deduct and | 11 | | deposit into the Fund the certified amounts or a portion of | 12 | | those amounts from the following proportions of grants of State | 13 | | funds to the city: | 14 | | (1) in fiscal year 2016, one-third of the total amount | 15 | | of any grants of State funds to the city; | 16 | | (2) in fiscal year 2017, two-thirds of the total amount | 17 | | of any grants of State funds to the city; and | 18 | | (3) in fiscal year 2018 and each fiscal year | 19 | | thereafter, the total amount of any grants of State funds | 20 | | to the city. | 21 | | The State Comptroller may not deduct from any grants of | 22 | | State funds to the city more than the amount of delinquent | 23 | | payments certified to the State Comptroller by the Fund. | 24 | | (b) The taxes shall be levied and collected in like manner | 25 | | with the
general taxes of the city, and shall be in addition to | 26 | | all other taxes
which the city may levy upon all taxable |
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| 1 | | property therein and shall be
exclusive of and in addition to | 2 | | the amount of tax the city may levy for
general purposes under | 3 | | Section 8-3-1 of the Illinois Municipal Code,
approved May 29, | 4 | | 1961, as amended, or under any other law or laws which
may | 5 | | limit the amount of tax which the city may levy for general
| 6 | | purposes.
| 7 | | (c) The amounts of the taxes to be levied in each year | 8 | | shall be
certified to the city council by the board.
| 9 | | (d) As soon as any revenue derived from such taxes is | 10 | | collected, it
shall be paid to the city treasurer and held for | 11 | | the benefit of the fund, and
all such revenue shall be paid | 12 | | into the fund in accordance with the
provisions of this | 13 | | Article.
| 14 | | (e) If the funds available are insufficient during any year | 15 | | to
meet the requirements of this Article, the city may issue | 16 | | tax anticipation
warrants, against the tax levies herein | 17 | | authorized for the current
fiscal year.
| 18 | | (f) The various sums, hereinafter stated, including | 19 | | interest, to be
contributed by the city, shall be taken from | 20 | | the revenue derived from the taxes
or otherwise as expressly | 21 | | provided in this Section. Except for defraying the
cost of | 22 | | administration of the fund during the calendar year in which a | 23 | | city
first attains a population of 500,000 and comes under the | 24 | | provisions of this
Article and the first calendar year | 25 | | thereafter, any money of the city derived
from any source other | 26 | | than these taxes or the sale of tax anticipation warrants
shall |
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| 1 | | not be used to provide revenue for the fund, nor to pay any | 2 | | part of the
cost of administration thereof, unless applied to | 3 | | make the deposit expressly
authorized in this Section
or the | 4 | | additional city contributions required under subsection (h).
| 5 | | (g) In lieu of levying all or a portion of the tax required | 6 | | under this
Section in any year, the city may deposit with the | 7 | | city treasurer no later than
March 1 of that year for the | 8 | | benefit of the fund, to be held in accordance with
this | 9 | | Article, an amount that, together with the taxes levied under | 10 | | this Section
for that year, is not less than the amount of the | 11 | | city contributions for that
year as certified by the board to | 12 | | the city council. The deposit may be derived
from any source | 13 | | legally available for that purpose, including, but not limited
| 14 | | to, the proceeds of city borrowings. The making of a deposit | 15 | | shall satisfy
fully the requirements of this Section for that | 16 | | year to the extent of the
amounts so deposited. Amounts | 17 | | deposited under this subsection may be used
by the fund for any | 18 | | of the purposes for which the proceeds of the taxes levied
| 19 | | under this Section may be used, including the payment of any | 20 | | amount that is
otherwise required by this Article to be paid | 21 | | from the proceeds of those
taxes.
| 22 | | (h) In addition to the contributions required under the | 23 | | other provisions
of this Article, by November 1 of the | 24 | | following specified years, the city shall
deposit with the city | 25 | | treasurer for the benefit of the fund, to be held and
used in | 26 | | accordance with this Article, the following specified amounts:
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| 1 | | $6,300,000 in 1999;
$5,880,000 in 2000;
$5,460,000 in 2001;
| 2 | | $5,040,000 in 2002; and
$4,620,000 in 2003.
| 3 | | The additional city contributions required under this | 4 | | subsection are
intended to decrease the unfunded liability of | 5 | | the fund and shall not decrease
the amount of the city | 6 | | contributions required under the other provisions of
this | 7 | | Article. The additional city contributions made under this | 8 | | subsection
may be used by the fund for any of its lawful | 9 | | purposes.
| 10 | | (Source: P.A. 93-654, eff. 1-16-04.)
| 11 | | (40 ILCS 5/6-229 new) | 12 | | Sec. 6-229. Provisions applicable to new hires. | 13 | | (a) Notwithstanding any other provision of this Article,
| 14 | | the provisions of this Section apply to a person who first
| 15 | | becomes a fireman under this Article on or after January 1, | 16 | | 2011. | 17 | | (b) A fireman age 55 or more who has 10 or more years of | 18 | | service in that capacity shall be entitled at his option to | 19 | | receive a monthly retirement annuity for his service as a | 20 | | fireman computed by multiplying 2.5% for each year of such | 21 | | service by his or her final average salary. | 22 | | The retirement annuity of a fireman who is retiring after | 23 | | attaining age 50 with 10 or more years of creditable service | 24 | | shall be reduced by one-half of 1% for each month that the | 25 | | fireman's age is under age 55. |
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| 1 | | The maximum retirement annuity under this subsection (b) | 2 | | shall be 75%
of final average salary. | 3 | | For the purposes of this subsection (b), "final average | 4 | | salary" means the average monthly salary obtained by dividing | 5 | | the total salary of the fireman during the 96 consecutive | 6 | | months of service within the last 120 months of service in | 7 | | which the total salary was the highest by the number of months | 8 | | of service in that period. | 9 | | Beginning on January 1, 2011, for all purposes under
this | 10 | | Code (including without limitation the calculation of
benefits | 11 | | and employee contributions), the annual salary
based on the | 12 | | plan year of a member or participant to whom this Section | 13 | | applies shall not exceed $106,800; however, that amount shall | 14 | | annually thereafter be increased by the lesser of (i) 3% of | 15 | | that amount, including all previous adjustments, or (ii) | 16 | | one-half the annual unadjusted percentage increase (but not | 17 | | less than zero) in the consumer price index-u for the 12 months | 18 | | ending with the September preceding each November 1, including | 19 | | all previous adjustments. | 20 | | (c) Notwithstanding any other provision of this Article, | 21 | | for a person who first becomes a fireman under this Article on | 22 | | or after January 1, 2011, the annuity to which the surviving | 23 | | spouse, children, or parents are entitled under this subsection | 24 | | (c) shall be in the amount of 66 2/3% of the fireman's earned | 25 | | pension at the date of death. | 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | monthly annuity
of a survivor of a person who first becomes a | 2 | | fireman under this Article on or after January 1, 2011 shall be | 3 | | increased on the January 1 after attainment of age 60 by the | 4 | | recipient of the survivor's pension and
each January 1 | 5 | | thereafter by 3% or one-half the annual unadjusted percentage | 6 | | increase in the consumer price index-u for the
12 months ending | 7 | | with September preceding each November 1, whichever is less, of | 8 | | the originally granted survivor's annuity. If the annual | 9 | | unadjusted percentage change in
the consumer price index-u for | 10 | | a 12-month period ending in September is zero or, when compared | 11 | | with the preceding period, decreases, then the annuity shall | 12 | | not
be increased. | 13 | | (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1) | 14 | | Sec. 7-142.1. Sheriff's law enforcement employees.
| 15 | | (a) In lieu of the retirement annuity provided by | 16 | | subparagraph 1 of
paragraph (a) of Section 7-142:
| 17 | | Any sheriff's law enforcement employee who
has 20 or more | 18 | | years of service in that capacity and who terminates
service | 19 | | prior to January 1, 1988 shall be entitled at his
option to | 20 | | receive a monthly retirement annuity for his service as a
| 21 | | sheriff's law enforcement employee computed by multiplying 2% | 22 | | for each year
of such service up to 10 years, 2 1/4% for each | 23 | | year
of such service above 10 years and up to 20 years, and
2 | 24 | | 1/2% for each year of such service above
20 years, by his | 25 | | annual final rate of earnings and dividing by 12.
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| 1 | | Any sheriff's law enforcement employee who has 20 or more | 2 | | years of
service in that capacity and who terminates service on | 3 | | or after January 1,
1988 and before July 1, 2004 shall be | 4 | | entitled at his option to receive
a monthly retirement
annuity | 5 | | for his service as a sheriff's law enforcement employee | 6 | | computed by
multiplying 2.5% for each year of such service up | 7 | | to 20 years, 2% for each
year of such service above 20 years | 8 | | and up to 30 years, and 1% for each
year of such service above | 9 | | 30 years, by his annual final rate of earnings
and dividing by | 10 | | 12.
| 11 | | Any sheriff's law enforcement employee who has 20 or more | 12 | | years of
service in that capacity and who terminates service on | 13 | | or after July 1,
2004 shall be entitled at his or her option to | 14 | | receive a monthly retirement
annuity for service as a sheriff's | 15 | | law enforcement employee computed by
multiplying 2.5% for each | 16 | | year of such service by his annual final rate of
earnings and | 17 | | dividing by 12.
| 18 | | If a sheriff's law enforcement employee has service in any | 19 | | other
capacity, his retirement annuity for service as a | 20 | | sheriff's law enforcement
employee may be computed under this | 21 | | Section and the retirement annuity for
his other service under | 22 | | Section 7-142.
| 23 | | In no case shall the total monthly retirement annuity for | 24 | | persons who retire before July 1, 2004 exceed 75% of the
| 25 | | monthly final rate of earnings. In no case shall the total | 26 | | monthly retirement annuity for persons who retire on or after |
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| 1 | | July 1, 2004 exceed 80% of the
monthly final rate of earnings.
| 2 | | (b) Whenever continued group insurance coverage is elected | 3 | | in accordance
with the provisions of Section 367h of the | 4 | | Illinois Insurance Code, as now
or hereafter amended, the total | 5 | | monthly premium for such continued group
insurance coverage or | 6 | | such portion thereof as is not paid
by the municipality shall, | 7 | | upon request of the person electing such
continued group | 8 | | insurance coverage, be deducted from any monthly pension
| 9 | | benefit otherwise payable to such person pursuant to this | 10 | | Section, to be
remitted by the Fund to the insurance company
or | 11 | | other entity providing the group insurance coverage.
| 12 | | (c) A sheriff's law enforcement employee who has service in | 13 | | any other
capacity may convert up to 10 years of that service | 14 | | into service as a sheriff's
law enforcement employee by paying | 15 | | to the Fund an amount equal to (1) the
additional employee | 16 | | contribution required under Section 7-173.1, plus (2) the | 17 | | additional employer contribution required under Section 7-172, | 18 | | plus (3) interest on items (1) and (2) at the
prescribed rate | 19 | | from the date of the service to the date of payment.
| 20 | | (d) The changes to subsections (a) and (b) of this Section | 21 | | made by this amendatory Act of the 94th General Assembly apply | 22 | | only to persons in service on or after July 1, 2004. In the | 23 | | case of such a person who begins to receive a retirement | 24 | | annuity before the effective date of this amendatory Act of the | 25 | | 94th General Assembly, the annuity shall be recalculated | 26 | | prospectively to reflect those changes, with the resulting |
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| 1 | | increase beginning to accrue on the first annuity payment date | 2 | | following the effective date of this amendatory Act.
| 3 | | (e) Any elected county officer who was entitled to receive | 4 | | a stipend from the State on or after July 1, 2009 and on or | 5 | | before June 30, 2010 may establish earnings credit for the | 6 | | amount of stipend not received, if the elected county official | 7 | | applies in writing to the fund within 6 months after the | 8 | | effective date of this amendatory Act of the 96th General | 9 | | Assembly and pays to the fund an amount equal to (i) employee | 10 | | contributions on the amount of stipend not received, (ii) | 11 | | employer contributions determined by the Board equal to the | 12 | | employer's normal cost of the benefit on the amount of stipend | 13 | | not received, plus (iii) interest on items (i) and (ii) at the | 14 | | actuarially assumed rate. | 15 | | (f) Notwithstanding any other provision of this Article,
| 16 | | the provisions of this subsection (f) apply to a person who | 17 | | first
becomes a sheriff's law enforcement employee under this | 18 | | Article on or after January 1, 2011. | 19 | | A sheriff's law enforcement employee age 55 or more who has | 20 | | 10 or more years of service in that capacity shall be entitled | 21 | | at his option to receive a monthly retirement annuity for his | 22 | | or her service as a sheriff's law enforcement employee computed | 23 | | by multiplying 2.5% for each year of such service by his or her | 24 | | final rate of earnings. | 25 | | The retirement annuity of a sheriff's law enforcement | 26 | | employee who is retiring after attaining age 50 with 10 or more |
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| 1 | | years of creditable service shall be reduced by one-half of 1% | 2 | | for each month that the sheriff's law enforcement employee's | 3 | | age is under age 55. | 4 | | The maximum retirement annuity under this subsection (f) | 5 | | shall be 75%
of final rate of earnings. | 6 | | For the purposes of this subsection (f), "final rate of | 7 | | earnings" means the average monthly earnings obtained by | 8 | | dividing the total salary of the sheriff's law enforcement | 9 | | employee during the 96 consecutive months of service within the | 10 | | last 120 months of service in which the total earnings was the | 11 | | highest by the number of months of service in that period. | 12 | | Notwithstanding any other provision of this Article, | 13 | | beginning on January 1, 2011, for all purposes under this Code | 14 | | (including without limitation the calculation of benefits and | 15 | | employee contributions), the annual earnings of a sheriff's law | 16 | | enforcement employee to whom this Section applies shall not | 17 | | include overtime and shall not exceed $106,800; however, that | 18 | | amount shall annually thereafter be increased by the lesser of | 19 | | (i) 3% of that amount, including all previous adjustments, or | 20 | | (ii) one-half the annual unadjusted percentage increase (but | 21 | | not less than zero) in the consumer price index-u for the 12 | 22 | | months ending with the September preceding each November 1, | 23 | | including all previous adjustments. | 24 | | (g) Notwithstanding any other provision of this Article, | 25 | | the monthly annuity
of a person who first becomes a sheriff's | 26 | | law enforcement employee under this Article on or after January |
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| 1 | | 1, 2011 shall be increased on the January 1 occurring either on | 2 | | or after the attainment of age 60 or the first anniversary of | 3 | | the annuity start date, whichever is later. Each annual | 4 | | increase shall be calculated at 3% or one-half the annual | 5 | | unadjusted percentage increase (but not less than zero) in the | 6 | | consumer price index-u for the 12 months ending with the | 7 | | September preceding each November 1, whichever is less, of the | 8 | | originally granted retirement annuity. If the annual | 9 | | unadjusted percentage change in the consumer price index-u for | 10 | | a 12-month period ending in September is zero or, when compared | 11 | | with the preceding period, decreases, then the annuity shall | 12 | | not be increased. | 13 | | (h) Notwithstanding any other provision of this Article, | 14 | | for a person who first becomes a sheriff's law enforcement | 15 | | employee under this Article on or after January 1, 2011, the | 16 | | annuity to which the surviving spouse, children, or parents are | 17 | | entitled under this subsection (h) shall be in the amount of 66 | 18 | | 2/3% of the sheriff's law enforcement employee's earned annuity | 19 | | at the date of death. | 20 | | (i) Notwithstanding any other provision of this Article, | 21 | | the monthly annuity
of a survivor of a person who first becomes | 22 | | a sheriff's law enforcement employee under this Article on or | 23 | | after January 1, 2011 shall be increased on the January 1 after | 24 | | attainment of age 60 by the recipient of the survivor's annuity | 25 | | and
each January 1 thereafter by 3% or one-half the annual | 26 | | unadjusted percentage increase in the consumer price index-u |
| | | SB3538 Enrolled | - 71 - | LRB096 18789 AMC 34174 b |
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| 1 | | for the
12 months ending with the September preceding each | 2 | | November 1, whichever is less, of the originally granted | 3 | | pension. If the annual unadjusted percentage change in
the | 4 | | consumer price index-u for a 12-month period ending in | 5 | | September is zero or, when compared with the preceding period, | 6 | | decreases, then the annuity shall not
be increased. | 7 | | (j) For the purposes of this Section, "consumer price | 8 | | index-u" means the index published by the Bureau of Labor | 9 | | Statistics of the United States Department of Labor that | 10 | | measures the average change in prices of goods and services | 11 | | purchased by all urban consumers, United States city average, | 12 | | all items, 1982-84 = 100. The new amount resulting from each | 13 | | annual adjustment shall be determined by the Public Pension | 14 | | Division of the Department of Insurance and made available to | 15 | | the boards of the pension funds. | 16 | | (Source: P.A. 96-961, eff. 7-2-10.)
| 17 | | Section 99. Effective date. This Act takes effect January | 18 | | 1, 2011.
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