Full Text of HB0933 095th General Assembly
HB0933 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0933
Introduced 2/8/2007, by Rep. Kevin Joyce SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/5-167.1 |
from Ch. 108 1/2, par. 5-167.1 |
40 ILCS 5/5-167.2 |
from Ch. 108 1/2, par. 5-167.2 |
30 ILCS 805/8.31 new |
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Amends the Chicago Police Article of the Illinois Pension Code. Compounds
the automatic annual increase in retirement annuity. Also increases it to 3%,
reduces the minimum age to 55, and removes the 30% maximum increase limitation
for all annuitants. Amends the State Mandates Act to require implementation
without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB0933 |
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LRB095 06686 AMC 26798 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections
5-167.1 and 5-167.2 as follows:
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| (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
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| Sec. 5-167.1. Automatic increase in annuity; retirement | 8 |
| from service
after September 1, 1967.
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| (a) A policeman who retires from service after September 1, | 10 |
| 1967
with at least 20 years of service credit shall, upon | 11 |
| either the first
of the month following the first anniversary | 12 |
| of his date of retirement
if he is age 60 (age 55 if born before | 13 |
| January 1, 1955)
or over on that anniversary date, or upon the | 14 |
| first of the month following
his attainment of age 60 (age 55 | 15 |
| if born before January 1, 1955)
if it occurs after the first | 16 |
| anniversary of his retirement date, have his
then fixed and | 17 |
| payable monthly annuity increased by 1 1/2% and such first
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| fixed annuity as granted at retirement increased by an | 19 |
| additional 1 1/2% in
January of each year thereafter up to a | 20 |
| maximum increase of 30%. Beginning
January 1, 1983 for | 21 |
| policemen born before January 1, 1930, and beginning
January 1, | 22 |
| 1988 for policemen born on or after January 1, 1930 but before
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| January 1, 1940, and beginning January 1, 1996 for policemen |
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HB0933 |
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LRB095 06686 AMC 26798 b |
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| born on or after
January 1, 1940 but before January 1, 1945, | 2 |
| and beginning January 1, 2000
for policemen born on or after | 3 |
| January 1, 1945 but before January 1, 1950, and beginning | 4 |
| January 1, 2005
for policemen born on or after January 1, 1950 | 5 |
| but before January 1, 1955,
such increases shall be 3% and such | 6 |
| policemen shall not be subject to the
30% maximum increase.
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| Beginning January 1, 2008, regardless of the policeman's | 8 |
| date of birth,
all annual increases under this subsection shall | 9 |
| be at the rate of 3% of the
current amount of the annuity, | 10 |
| including any previous increases granted under
this Article, | 11 |
| and the 30% maximum no longer applies.
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| Any policeman born before January 1, 1945 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, 1996 is entitled to receive
the initial increase | 16 |
| under this subsection on (1) January 1, 1996, (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 |
| Public Act
89-12 apply beginning January 1, 1996 and
without | 20 |
| regard to whether the policeman or annuitant terminated service | 21 |
| before
the effective date of that Act.
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| Any policeman born before January 1, 1950 who qualifies for | 23 |
| a minimum
annuity and retires after September 1, 1967 but has | 24 |
| not received the initial
increase under this subsection before | 25 |
| January 1, 2000 is entitled to receive
the initial increase | 26 |
| under this subsection on (1) January 1, 2000, (2) the
first |
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HB0933 |
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LRB095 06686 AMC 26798 b |
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| anniversary of the date of retirement, or (3) attainment of age | 2 |
| 55,
whichever occurs last. The changes to this Section made by | 3 |
| this amendatory
Act of the 92nd General Assembly apply without | 4 |
| regard to whether the policeman
or annuitant terminated service | 5 |
| before the effective date of this amendatory
Act.
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| Any policeman born before January 1, 1955 who qualifies for | 7 |
| a minimum
annuity and retires after September 1, 1967 but has | 8 |
| not received the initial
increase under this subsection before | 9 |
| January 1, 2005 is entitled to receive
the initial increase | 10 |
| under this subsection on (1) January 1, 2005, (2) the
first | 11 |
| anniversary of the date of retirement, or (3) attainment of age | 12 |
| 55,
whichever occurs last. The changes to this Section made by | 13 |
| this amendatory
Act of the 94th General Assembly apply without | 14 |
| regard to whether the policeman
or annuitant terminated service | 15 |
| before the effective date of this amendatory
Act.
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| Notwithstanding the other provisions of this subsection,
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| any policeman who qualifies for a minimum
annuity and retires | 18 |
| after September 1, 1967 but has not received the initial
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| increase under this subsection before January 1, 2008 is | 20 |
| entitled to receive
the initial increase under this subsection | 21 |
| on (1) January 1, 2008, (2) the
first anniversary of the date | 22 |
| of retirement, or (3) attainment of age 55,
whichever occurs | 23 |
| last. The changes to this Section made by this amendatory
Act | 24 |
| of the 95th General Assembly apply without regard to whether | 25 |
| the policeman
or annuitant terminated service before the | 26 |
| effective date of this amendatory
Act.
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HB0933 |
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LRB095 06686 AMC 26798 b |
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| (b) Subsection (a) of this Section is
not applicable to an | 2 |
| employee receiving a term annuity.
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| (c) To help defray the cost of such increases in annuity, | 4 |
| there shall
be deducted, beginning September 1, 1967, from each | 5 |
| payment of salary to a
policeman, 1/2 of 1% of each salary | 6 |
| payment concurrently with and in addition
to the salary | 7 |
| deductions otherwise made for annuity purposes.
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| The city, in addition to the contributions otherwise made | 9 |
| by it for
annuity purposes under other provisions of this | 10 |
| Article, shall make
matching contributions concurrently with | 11 |
| such salary deductions.
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| Each such 1/2 of 1% deduction from salary and each such | 13 |
| contribution
by the city of 1/2 of 1% of salary shall be | 14 |
| credited to the Automatic
Increase Reserve, to be used to | 15 |
| defray the cost of the 1 1/2% annuity
increase provided by this | 16 |
| Section. Any balance in such reserve as of the
beginning of | 17 |
| each calendar year shall be credited with interest at the
rate | 18 |
| of 3% per annum.
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| Such deductions from salary and city contributions shall | 20 |
| continue
while the policeman is in service.
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| The salary deductions provided in this Section are not | 22 |
| subject to
refund, except to the policeman himself, in any case | 23 |
| in which a
policeman withdraws prior to qualification for | 24 |
| minimum annuity and
applies for refund or applies for annuity, | 25 |
| and also where a term annuity
becomes payable. In such cases, | 26 |
| the total of such salary deductions
shall be refunded to the |
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HB0933 |
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LRB095 06686 AMC 26798 b |
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| policeman, without interest, and charged to the
Automatic | 2 |
| Increase Reserve.
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| (Source: P.A. 94-719, eff. 1-6-06.)
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| (40 ILCS 5/5-167.2)
(from Ch. 108 1/2, par. 5-167.2)
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| Sec. 5-167.2. Retirement before September 1, 1967. A | 6 |
| retired
policeman, qualifying for minimum annuity or who | 7 |
| retired from service
with 20 or more years of service, before | 8 |
| September 1, 1967, shall, in
January of the year following the | 9 |
| year he attains the age of 65, or in
January of the year 1970, | 10 |
| if then more than 65 years of age, have his
then fixed and | 11 |
| payable monthly annuity increased by an amount equal to
2% of | 12 |
| the original grant of annuity, for each year the policeman was | 13 |
| in
receipt of annuity payments after the year in which he | 14 |
| attains, or did
attain the age of 63. An additional 2% increase | 15 |
| in such then fixed and
payable original granted annuity shall | 16 |
| accrue in each January thereafter.
Beginning January 1, 1986, | 17 |
| the rate of such increase shall be 3% instead of 2%. Beginning | 18 |
| January 1, 2008, all annual increases under this
paragraph | 19 |
| shall be at the rate of 3% of the current amount of the | 20 |
| annuity,
including any previous increases granted under this | 21 |
| Article. The change made
to this Section by this amendatory Act | 22 |
| of the 95th General Assembly is not
limited to persons in | 23 |
| service on or after its effective date.
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| The provisions of the preceding paragraph of this Section | 25 |
| apply only to
a retired policeman eligible for such increases |
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LRB095 06686 AMC 26798 b |
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| in his annuity who contributes
to the Fund a sum equal to $5 | 2 |
| for each full year of credited service upon
which his annuity | 3 |
| was computed. All such sums contributed shall be placed
in a | 4 |
| Supplementary Payment Reserve and shall be used for the | 5 |
| purposes of
such Fund account.
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| Beginning with the monthly annuity payment due in July, | 7 |
| 1982, the fixed
and granted monthly annuity payment for any | 8 |
| policeman who retired from the
service, before September 1, | 9 |
| 1976, at age 50 or over with 20 or more years
of service and | 10 |
| entitled to an annuity on January 1, 1974, shall be not less
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| than $400. It is the intent of the General Assembly that the | 12 |
| change made in
this Section by this amendatory Act of 1982 | 13 |
| shall apply retroactively to July
1, 1982.
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| Beginning with the monthly annuity payment due on January | 15 |
| 1, 1986, the
fixed and granted monthly annuity payment for any | 16 |
| policeman who retired
from the service before January 1, 1986, | 17 |
| at age 50 or over with 20 or more
years of service, or any | 18 |
| policeman who retired from service due to
termination of | 19 |
| disability and who is entitled to an annuity on January 1,
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| 1986, shall be not less than $475.
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| Beginning with the monthly annuity payment due on January | 22 |
| 1, 1992, the
fixed and granted monthly annuity payment for any | 23 |
| policeman who retired
from the service before January 1, 1992, | 24 |
| at age 50 or over with 20 or more
years of service, and for any | 25 |
| policeman who retired from service due to
termination of | 26 |
| disability and who is entitled to an annuity on January 1,
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HB0933 |
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LRB095 06686 AMC 26798 b |
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| 1992, shall be not less than $650.
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| Beginning with the monthly annuity payment due on January | 3 |
| 1, 1993, the
fixed and granted monthly annuity payment for any | 4 |
| policeman who retired
from the service before January 1, 1993, | 5 |
| at age 50 or over with 20 or more
years of service, and for any | 6 |
| policeman who retired from service due to
termination of | 7 |
| disability and who is entitled to an annuity on January 1,
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| 1993, shall be not less than $750.
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| Beginning with the monthly annuity payment due on January | 10 |
| 1, 1994, the
fixed and granted monthly annuity payment for any | 11 |
| policeman who retired
from the service before January 1, 1994, | 12 |
| at age 50 or over with 20 or more
years of service, and for any | 13 |
| policeman who retired from service due to
termination of | 14 |
| disability and who is entitled to an annuity on January 1,
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| 1994, shall be not less than $850.
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| Beginning with the monthly annuity payment due on January | 17 |
| 1, 2004, the
fixed and granted monthly annuity payment for any | 18 |
| policeman who retired
from the service before January 1, 2004, | 19 |
| at age 50 or over with 20 or more
years of service, and for any | 20 |
| policeman who retired from service due to
termination of | 21 |
| disability and who is entitled to an annuity on January 1,
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| 2004, shall be not less than $950.
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| Beginning with the monthly annuity payment due on January | 24 |
| 1, 2005, the
fixed and granted monthly annuity payment for any | 25 |
| policeman who retired
from the service before January 1, 2005, | 26 |
| at age 50 or over with 20 or more
years of service, and for any |
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HB0933 |
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LRB095 06686 AMC 26798 b |
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| policeman who retired from service due to
termination of | 2 |
| disability and who is entitled to an annuity on January 1,
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| 2005, shall be not less than $1,050.
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| The difference in amount between the original fixed and | 5 |
| granted monthly
annuity of any such policeman on the date of | 6 |
| his retirement from the service
and the monthly annuity | 7 |
| provided for in the immediately
preceding paragraph shall be | 8 |
| paid as a supplement in the manner set forth
in the immediately | 9 |
| following paragraph.
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| To defray the annual cost of the increases indicated in the | 11 |
| preceding
part of this Section, the annual interest income | 12 |
| accruing from
investments held by this Fund, exclusive of gains | 13 |
| or losses on sales
or exchanges of assets during the year, over | 14 |
| and above 4% a year shall
be used to the extent necessary and | 15 |
| available to finance the cost of
such increases for the | 16 |
| following year and such amount shall be
transferred as of the | 17 |
| end of each year beginning with the year 1969 to a
Fund account | 18 |
| designated as the Supplementary Payment Reserve from the
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| Interest and Investment Reserve set forth in Section 5-207.
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| In the event the funds in the Supplementary Payment Reserve | 21 |
| in any year
arising from: (1) the interest income accruing in | 22 |
| the preceding year above 4%
a year and (2) the contributions by | 23 |
| retired persons are insufficient to
make the total payments to | 24 |
| all persons entitled
to the annuity specified in this Section | 25 |
| and (3) any interest
earnings over 4% a year beginning with the | 26 |
| year 1969 which were not
previously used to finance such |
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LRB095 06686 AMC 26798 b |
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| increases and which were transferred
to the Prior Service | 2 |
| Annuity Reserve, may be used to the extent necessary
and | 3 |
| available to provide sufficient funds to finance such increases
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| for the current year and such sums shall be transferred from | 5 |
| the Prior
Service Annuity Reserve. In the event the total money | 6 |
| available in
the Supplementary Payment Reserve from such | 7 |
| sources are insufficient
to make the total payments to all | 8 |
| persons entitled to such increases
for the year, a | 9 |
| proportionate amount computed as the ratio of the
money | 10 |
| available to the total of the total payments specified for that
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| year shall be paid to each person for that year.
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| The Fund shall be obligated for the payment of the | 13 |
| increases in
annuity as provided for in this Section only to | 14 |
| the extent that the
assets for such purpose are available.
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| (Source: P.A. 93-654, eff. 1-16-04.)
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| Section 90. The State Mandates Act is amended by adding | 17 |
| Section 8.31 as follows: | 18 |
| (30 ILCS 805/8.31 new) | 19 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 20 |
| of this Act, no reimbursement by the State is required for the | 21 |
| implementation of any mandate created by this amendatory Act of | 22 |
| the 95th General Assembly. | 23 |
| Section 99. Effective date. This Act takes effect upon | 24 |
| becoming law. |
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