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90_HB0770
40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164
30 ILCS 805/8.21 new
Amends the Chicago Firefighter Article of the Pension
Code to extend the 3% annual increase to all persons who
retire after December 31, 1997, beginning at age 55.
Compounds the annual increase for all retirement annuitants
beginning at age 65. Amends the State Mandates Act to
require implementation without reimbursement. Effective
immediately.
LRB9003877EGfg
LRB9003877EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 6-164 and to amend the State Mandates Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 6-164 as follows:
7 (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
8 Sec. 6-164. Automatic annual increase; retirement after
9 September 1, 1959.
10 (a) This subsection (a) applies only to persons who
11 retire before January 1, 1998. A fireman qualifying for a
12 minimum annuity who retires from service after September 1,
13 1959 shall, upon either the first of the month following the
14 first anniversary of his date of retirement if he is age 60
15 (age 55 if born before January 1, 1945) or over on that
16 anniversary date, or upon the first of the month following
17 his attainment of age 60 (age 55 if born before January 1,
18 1945) if that occurs after the first anniversary of his
19 retirement date, have his then fixed and payable monthly
20 annuity increased by 1 1/2%, and such first fixed annuity as
21 granted at retirement increased by an additional 1 1/2% in
22 January of each year thereafter up to a maximum increase of
23 30%. Beginning July 1, 1982 for firemen born before January
24 1, 1930, and beginning January 1, 1990 for firemen born after
25 December 31, 1929 and before January 1, 1940, and beginning
26 January 1, 1996 for firemen born after December 31, 1939 but
27 before January 1, 1945, such increases shall be 3% and such
28 firemen shall not be subject to the 30% maximum increase.
29 Any fireman born before January 1, 1945 who qualifies for
30 a minimum annuity and retires after September 1, 1967 but has
31 not received the initial increase under this subsection
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1 before January 1, 1996 is entitled to receive the initial
2 increase under this subsection on (1) January 1, 1996, (2)
3 the first anniversary of the date of retirement, or (3)
4 attainment of age 55, whichever occurs last. The changes to
5 this Section made by this amendatory Act of 1995 apply
6 beginning January 1, 1996 and apply without regard to whether
7 the fireman or annuitant terminated service before the
8 effective date of this amendatory Act of 1995.
9 Beginning January 1, 1998, for annuitants who have
10 attained age 65 the increases payable under this subsection
11 (a) shall be based on a percentage of the total annuity
12 payable, including any increases previously received under
13 this Section, rather than the original fixed amount of the
14 annuity. The changes to this subsection (a) made by this
15 amendatory Act of 1997 apply without regard to whether the
16 annuitant withdrew from service before the effective date of
17 this amendatory Act of 1997.
18 (a-5) In lieu of the increases provided under subsection
19 (a), on (1) the first anniversary of the date of retirement
20 or (2) the annuitant's attainment of age 55, whichever occurs
21 later, and in each January thereafter for so long as the
22 annuity is payable, the monthly retirement annuity of any
23 fireman who qualifies for a minimum annuity and retires after
24 December 31, 1997 shall be increased by 3% of (i) the
25 original amount of the annuity, if the annuitant is not yet
26 age 65, or (ii) the current amount of the annuity, including
27 any previous increases under this Section, if the annuitant
28 is age 65 or older. This subsection (a-5) is not limited to
29 persons in service on or after the effective date of this
30 amendatory Act of 1997.
31 (b) Subsections (a) and (a-5) Subsection (a) of this
32 Section are is not applicable to an employee receiving a term
33 annuity.
34 (c) To help defray the cost of such increases in
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1 annuity, there shall be deducted, beginning September 1,
2 1959, from each payment of salary to a fireman, 1/8 of 1% of
3 each such salary payment and an additional 1/8 of 1%
4 beginning on September 1, 1961, and September 1, 1963,
5 respectively, concurrently with and in addition to the salary
6 deductions otherwise made for annuity purposes.
7 Each such additional 1/8 of 1% deduction from salary
8 which shall, on September 1, 1963, result in a total increase
9 of 3/8 of 1% of salary, shall be credited to the Automatic
10 Increase Reserve, to be used, together with city
11 contributions as provided in this Article, to defray the cost
12 of the 1 1/2% annuity increments herein specified. Any
13 balance in such reserve as of the beginning of each calendar
14 year shall be credited with interest at the rate of 3% per
15 annum.
16 The salary deductions provided in this Section are not
17 subject to refund, except to the fireman himself, in any case
18 in which a fireman withdraws prior to qualification for
19 minimum annuity and applies for refund, or applies for
20 annuity, and also where a term annuity becomes payable. In
21 such cases, the total of such salary deductions shall be
22 refunded to the fireman, without interest, and charged to the
23 aforementioned reserve.
24 (Source: P.A. 89-136, eff. 7-14-95.)
25 Section 90. The State Mandates Act is amended by adding
26 Section 8.21 as follows:
27 (30 ILCS 805/8.21 new)
28 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
29 and 8 of this Act, no reimbursement by the State is required
30 for the implementation of any mandate created by this
31 amendatory Act of 1997.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.