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90_HB2185 SEE INDEX Amends the General Provisions Article of the Illinois Pension Code. Requires every retirement system to provide to its members an annual statement of benefits and contributions and an explanation of the system's unfunded liabilities and funding ratio. Establishes certain procedural requirements for denial of a benefit claim. Amends the Chicago Firefighter Article to provide a retirement formula of 2.5% of final average salary per year of service for persons retiring with at least 10 but less than 20 years of service, to begin no earlier than age 63. Eliminates the money purchase annuity for future entrants. Eliminates the refund of widow's contributions for persons who are unmarried at retirement or attainment of age 63. Requires payment of interest on refunds of unused contributions. Increases the death benefit for firemen dying before retirement but after attainment of age 50. Eliminates the residency requirement for persons on disability. Recognizes marriages entered into while on disability. Provides for ordinary disability benefits during the first 30 days of disability, terminates the automatic deduction of contributions from those benefits, and changes provisions relating to service credit for periods of disability. Allows payment of disability benefits until age 70 1/2. Increases the amount of the occupational disease disability benefit and, for some persons, the ordinary disability benefit. Provides a noncompounded 3% annual increase in widow's, child's, and parent's annuity. Increases the annual increase in retirement annuities to 3% (not compounded) and removes the 30% maximum increase limitation. Changes the vote requirement for board action on benefit applications. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB9003843EGfg LRB9003843EGfg 1 AN ACT to amend the Illinois Pension Code and to amend 2 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 Sections 6-128, 6-141.1, 6-142, 6-150, 6-151, 7 6-151.1, 6-152, 6-154, 6-158, 6-162, 6-164, 6-178, and 6-209 8 and adding Sections 1-118, 1-119, and 6-163.1 as follows: 9 (40 ILCS 5/1-118 new) 10 Sec. 1-118. Annual statement to members. Every pension 11 fund or retirement system organized under any of Articles 2 12 through 18 of this Code shall provide to every member who is 13 not yet receiving a retirement annuity an annual statement of 14 the member's benefits and contributions. The annual 15 statement shall also include a statement explaining the total 16 amount of unfunded liabilities of the pension fund or 17 retirement system and its current funding ratio, based on the 18 most recent financial audit and examination of the pension 19 fund or retirement system. 20 (40 ILCS 5/1-119 new) 21 Sec. 1-119. Claim denial procedures. 22 (a) This Section applies to every pension fund or 23 retirement system organized under any of Articles 2 through 24 18 of this Code. This Section does not prohibit the board of 25 trustees of any pension fund or retirement system from 26 adopting its own procedures for handling and reviewing 27 claims; any such procedures must, however, comply with the 28 requirements of this Section. 29 (b) A person whose application for a benefit is denied 30 shall be given a detailed written explanation of the reasons -2- LRB9003843EGfg 1 for that denial. The explanation shall include: (1) the 2 specific reason for the denial; (2) specific citation to the 3 provisions of this Code, the rules adopted under this Code, 4 or the written procedures of the board upon which the denial 5 is based; (3) a description of any additional action or 6 information needed for the person to perfect his or her claim 7 for the benefit and an explanation of why that action or 8 information is needed; (4) an explanation of the means by 9 which the person may seek review of the denial, including the 10 right to a hearing under this Section and the right to seek 11 administrative or judicial review; and (5) an explanation of 12 the time limits for seeking review of the denial and an 13 explanation of the consequences of failing to seek review 14 within those time limits. 15 (c) A person whose application for a benefit was denied 16 before the effective date of this Section and who has not 17 received a written explanation of the denial substantially 18 similar to the explanation provided for in subsection (b) may 19 request an explanation from the board of trustees within 90 20 days after the effective date of this Section. The requested 21 explanation shall be provided by the board within 60 days 22 after the request is received. Requesting an explanation of 23 a denial of benefits under this subsection (c) does not 24 operate to extend any applicable deadlines for requesting 25 review of the original denial. 26 (d) A person whose application for a benefit is denied 27 is entitled, upon a request made within 60 days after that 28 denial (or such longer period as may be established by the 29 board), to a hearing before the board of trustees. The 30 hearing shall be granted promptly and without unreasonable 31 delay after the request is made. At the hearing, the person 32 may be represented by counsel and is entitled to present 33 relevant evidence and the testimony of witnesses. The board 34 of trustees shall issue its findings and determination in -3- LRB9003843EGfg 1 writing, promptly and without unreasonable delay after the 2 hearing. If the board upholds the denial of the benefit, its 3 written determination shall include all of the explanations 4 required under subsection (b). 5 A person whose application for a benefit was refused 6 before the effective date of this Section and who has not 7 been granted a hearing on the matter by the board of trustees 8 may, within 90 days after the effective date of this Section, 9 request a hearing on the denial of the benefit from the board 10 of trustees. 11 The decision of the board after a hearing under this 12 subsection shall be subject to judicial review as a final 13 administrative decision in accordance with the Administrative 14 Review Law. 15 (40 ILCS 5/6-128) (from Ch. 108 1/2, par. 6-128) 16 Sec. 6-128. Alternative retirement annuity. 17 (a) A future entrant who withdraws on or after July 21, 18 1959, after completing at least 23 years of service, and for 19 whom the annuity otherwise provided in this Article is less 20 than that stated in this Section, has a right to receive 21 annuity as follows: 22 If he is age 53 or more on withdrawal, his annuity after 23 withdrawal, shall be equal to 50% of his average salary 24 determined by striking an average of 4 consecutive highest 25 years of salary within the last 10 years of service 26 immediately preceding the date of withdrawal. 27 An employee who reaches compulsory retirement age and who 28 has less than 23 years of service shall be entitled to a 29 minimum annuity equal to an amount determined by the product 30 of (1) his years of service and (2) 2% of his average salary 31 for the 4 consecutive highest years of salary within the last 32 10 years of service immediately prior to his reaching 33 compulsory retirement age. -4- LRB9003843EGfg 1 An employee who remains in service after qualifying for 2 annuity under this section shall have added to this annuity 3 an additional 1% of salary for each completed year of service 4 or fraction thereof rendered until July 21, 1959, and an 5 additional 1% for a total of 2% of salary from July 21, 1959. 6 Each future entrant who has completed 23 years of service 7 before reaching age 53 shall have added to this annuity 1% of 8 salary for each completed year of service or fraction thereof 9 in excess of 23 years up to age 53. "Salary" as referred to 10 in this paragraph shall be determined by striking an average 11 of the 4 consecutive highest years of salary within the last 12 10 years of service immediately preceding withdrawal. 13 (b) In lieu of the annuity provided in the foregoing 14 provisions of this Section any future entrant who withdraws 15 from the service either (i) after December 31, 1983 with at 16 least 22 years of service credit and having attained age 52 17 in the service, or (ii) after December 31, 1984 with at least 18 21 years of service credit and having attained age 51 in the 19 service, or (iii) after December 31, 1985 with at least 20 20 years of service credit and having attained age 50 in the 21 service, or (iv) after December 31, 1990 with at least 20 22 years of service regardless of age, may elect to receive an 23 annuity, to begin not earlier than upon attainment of age 50 24 if under that age at withdrawal, computed as follows: an 25 annuity equal to 50% of the average salary for the 4 highest 26 consecutive years of the last 10 years of service, plus 27 additional annuity equal to 2% of such average salary for 28 each completed year of service or fraction thereof rendered 29 after his completion of the minimum number of years of 30 service required for him to be eligible under this subsection 31 (b). However, the annuity provided under this subsection (b) 32 may not exceed 75% of such average salary. 33 (c) In lieu of any other retirement annuity provided 34 under this Article, a future entrant who withdraws from -5- LRB9003843EGfg 1 service after December 31, 1997 with at least 10 but less 2 than 20 years of service credit may elect to receive an 3 annuity, to begin not earlier than upon attainment of age 63 4 if under that age at withdrawal, equal to 2.5% of the average 5 annual salary for the 4 highest consecutive years of the last 6 10 years of service, for each completed year of service. 7 (Source: P.A. 86-1488.) 8 (40 ILCS 5/6-141.1) (from Ch. 108 1/2, par. 6-141.1) 9 Sec. 6-141.1. Alternative widow's annuity. 10 (a) Notwithstanding the other provisions of this 11 Article, the widow of a fireman who dies on or after June 30, 12 1984, while receiving a retirement annuity or while an active 13 fireman with at least 1 1/2 years of creditable service, may 14 elect to have the amount of widow's annuity calculated in 15 accordance with this Section. 16 (b) If the deceased fireman was an active fireman at the 17 time of his death and had at least 1 1/2 years of creditable 18 service, the widow's annuity shall be the greater of (1) 30% 19 of the salary attached to the rank of first class firefighter 20 in the classified career service at the time of the fireman's 21 death, or (2) 50% of the retirement annuity the deceased 22 fireman would have been eligible to receive if he had retired 23 from service on the day before his death or, if the fireman 24 dies on or after January 1, 1998 without having attained age 25 50, on the day the fireman would have attained age 50. 26 (c) If the deceased fireman was receiving a retirement 27 annuity at the time of his death, the widow's annuity shall 28 be equal to 50% of the amount of such retirement annuity at 29 the time of the fireman's death. 30 (Source: P.A. 84-11.) 31 (40 ILCS 5/6-142) (from Ch. 108 1/2, par. 6-142) 32 Sec. 6-142. Wives and widows not entitled to annuities. -6- LRB9003843EGfg 1 The following wives or widows have no right to annuity from 2 the fund: 3 (a) A wife or widow married subsequent to the effective 4 date of a fireman who dies in service if she was not married 5 to him before he attained age 63; 6 (b) A wife or widow of a fireman who withdraws, whether 7 or not he enters upon annuity, and dies while out of service, 8 if the marriage occurred after the effective date and she was 9 not his wife while he was in service and before he attained 10 age 63; 11 (c) A wife or widow of a fireman who (1) has served 10 12 or more years, (2) dies out of service after he has withdrawn 13 from service, and (3) has withdrawn or applied for refund of 14 the sums to his credit for annuity to which he had a right to 15 refund; 16 (d) A wife or widow of a fireman who dies out of service 17 after he has withdrawn before age 63, and who has not served 18 at least 10 years; 19 (e) A wife whose marriage was dissolved or widow of a 20 fireman whose judgment of dissolution of marriage from her 21 fireman husband is annulled, vacated or set aside by 22 proceedings in court subsequent to the death of the fireman, 23 unless (1) such proceedings are filed within 5 years after 24 the date of the dissolution of marriage and within one year 25 after the death of the fireman and (2) the board is made a 26 party to the proceedings; 27(f) A wife or widow who married the fireman while he was28in receipt of disability benefit or disability pension from29this fund, unless he returned to the service subsequent to30the marriage and remained therein for a period or periods31aggregating one year, or died while in service.32 (Source: P.A. 81-230.) 33 (40 ILCS 5/6-150) (from Ch. 108 1/2, par. 6-150) -7- LRB9003843EGfg 1 Sec. 6-150. Death benefits. 2 (a) Effective January 1, 1962, an ordinary death benefit 3 shall be payable on account of any fireman in service and in 4 receipt of salary on or after such date, which benefit shall 5 be in addition to all other annuities and benefits herein 6 provided. This benefit shall be payable upon death of a 7 fireman: 8 (1) occurring in active service while in receipt of 9 salary; 10 (2) on an authorized and approved leave of absence, 11 without salary, beginning on or after January 1, 1962, if the 12 death occurs within 60 days from the date the fireman was in 13 receipt of salary; 14 (3) receiving duty, occupational disease, or ordinary 15 disability benefit; 16 (4) occurring within 60 days from the date of 17 termination of duty disability, occupational disease 18 disability or ordinary disability benefit payments if 19 re-entry into service had not occurred; 20 (5) occurring on retirement and while in receipt of an 21 age and service, prior service annuity or minimum annuity; 22 provided (a) retirement on such annuity occurred on or after 23 January 1, 1962, and (b) such separation from service was 24 effective on or after the fireman's attainment of age 50, and 25 (c) application for such annuity was made within 60 days 26 after separation from service. 27 (b) The ordinary death benefit shall be payable to such 28 beneficiary or beneficiaries as the fireman has nominated by 29 written direction duly signed and acknowledged before an 30 officer authorized to take acknowledgments, and filed with 31 the board. If no such written direction has been filed or if 32 the designated beneficiaries do not survive the fireman, 33 payment of the benefit shall be made to his estate. 34 (c) Beginning July 1, 1983, if death occurs prior to -8- LRB9003843EGfg 1 retirement on annuity and before the fireman's attainment of 2 age 50, the amount of the benefit payable shall be $12,000. 3 Beginning July 1, 1983, if death occurs prior to retirement 4 and before January 1, 1998, at age 50 or over, the benefit of 5 $12,000 shall be reduced $400 for each year (commencing on 6 the fireman's attainment of age 50 and thereafter on each 7 succeeding birth date) that the fireman's age, at date of 8 death, is more than age 49, but in no event below the amount 9 of $6,000. If death occurs prior to retirement and on or 10 after January 1, 1998, at age 50 or over, the benefit of 11 $12,000 shall not be reduced due to age. 12 (d) Beginning July 1, 1983, if the fireman's death 13 occurs while he is in receipt of an annuity, the benefit 14 shall be $6,000. 15 (Source: P.A. 83-152.) 16 (40 ILCS 5/6-151) (from Ch. 108 1/2, par. 6-151) 17 Sec. 6-151. Duty disability. An active fireman who is or 18 becomes disabled on or after the effective date as the result 19 of a specific injury, or of cumulative injuries, or of 20 specific sickness incurred in or resulting from an act or 21 acts of duty, shall have the right to receive duty disability 22 benefit during any period of such disability for which he 23 does not receive or have a right to receive salary, equal to 24 75% of his salary at the time the disability is allowed. 25 However, beginning January 1, 1994, no duty disability 26 benefit that has been payable under this Section for at least 27 10 years shall be less than 50% of the current salary 28 attached from time to time to the rank and grade held by the 29 fireman at the time of his removal from the Department 30 payroll, regardless of whether that removal occurred before 31 the effective date of this amendatory Act of 1993. 32 Whenever an active fireman is or becomes so injured or 33 sick, as to require medical or hospital attention, the chief -9- LRB9003843EGfg 1 officer of the fire department of the city shall file, or 2 cause to be filed, with the board a report of the nature and 3 cause of his disability, together with the certificate or 4 report of the physician attending or treating, or who 5 attended or treated the fireman, and a copy of any hospital 6 record concerning the disability. Any injury or sickness not 7 reported to the board in time to permit the board's physician 8 to examine the fireman before his recovery, and any injury or 9 sickness for which a physician's report or copy of the 10 hospital record is not on file with the board shall not be 11 considered for the payment of duty disability benefit. 12 Such fireman shall also receive a child's disability 13 benefit of $30 per month on account of each unmarried child, 14 the issue of the fireman or legally adopted by him prior to 15 the date of disability, who is less than 18 years of age or 16 handicapped and dependent upon the fireman for support. The 17 total amount of child's disability benefit shall not exceed 18 25% of his salary at the time the disability is allowed. 19 The first payment of duty disability or child's 20 disability benefit shall be made not later than one month 21 after the benefit is granted. Each subsequent payment shall 22 be made not later than one month after the date of the latest 23 payment. 24 Duty disability benefit shall be payable during the 25 period of the disability until the fireman reaches the age of 26 70 1/2compulsory retirement. Child's disability benefit 27 shall be paid to such a fireman during the period of 28 disability until such child or children attain age 18 or 29 marries, whichever event occurs first; except that attainment 30 of age 18 by a child who is so physically or mentally 31 handicapped as to be dependent upon the fireman for support, 32 shall not render the child ineligible for child's disability 33 benefit. The fireman shall thereafter receive such annuity 34 or annuities as are provided for him in accordance with other -10- LRB9003843EGfg 1 provisions of this Article. 2 (Source: P.A. 88-528.) 3 (40 ILCS 5/6-151.1) (from Ch. 108 1/2, par. 6-151.1) 4 Sec. 6-151.1. The General Assembly finds and declares 5 that service in the Fire Department requires that firemen, in 6 times of stress and danger must perform unusual tasks; that 7 by reason of their occupation, firemen are subject to 8 exposure to great heat and to extreme cold in certain seasons 9 while in performance of their duties; that by reason of their 10 employment firemen are required to work in the midst of and 11 are subject to heavy smoke fumes, and carcinogenic, 12 poisonous, toxic or chemical gases from fires. The General 13 Assembly further finds and declares that all the 14 aforementioned conditions exist and arise out of or in the 15 course of such employment. 16 Any active fireman who has completed ten or more years of 17 service and is unable to perform his duties in the Fire 18 Department by reason of heart disease, tuberculosis or any 19 disease of the lungs or respiratory tract, resulting solely 20 from his service as a fireman, shall be entitled to receive 21 an occupational disease disability benefit during any period 22 of such disability for which he does not have a right to 23 receive salary. 24 Any active fireman who has completed ten or more years of 25 service and is unable to perform his duties in the fire 26 department by reason of a disabling cancer, which develops or 27 manifests itself during a period while the fireman is in the 28 service of the department, shall be entitled to receive an 29 occupational disease disability benefit during any period of 30 such disability for which he does not have a right to receive 31 salary. In order to receive this occupational disease 32 disability benefit, the type of cancer involved must be a 33 type which may be caused by exposure to heat, radiation or a -11- LRB9003843EGfg 1 known carcinogen as defined by the International Agency for 2 Research on Cancer. 3 Any fireman who shall enter the service after the 4 effective date of this amendatory Act shall be examined by 5 one or more practicing physicians appointed by the Board, and 6 if said examination discloses impairment of the heart, lungs 7 or respiratory tract, or the existence of any cancer, such 8 fireman shall not be entitled to receive occupational disease 9 disability benefit unless and until a subsequent examination 10 reveals no such impairment or cancer. 11 The occupational disease disability benefit shall be 75% 1265%of the fireman's salary at the time of his removal from 13 the Department payroll. However, beginning January 1, 1994, 14 no occupational disease disability benefit that has been 15 payable under this Section for at least 10 years shall be 16 less than 50% of the current salary attached from time to 17 time to the rank and grade held by the fireman at the time of 18 his removal from the Department payroll, regardless of 19 whether that removal occurred before the effective date of 20 this amendatory Act of 1993. 21 Such fireman also shall have a right to receive child's 22 disability benefit of $30 per month on account of each 23 unmarried child who is less than 18 years of age or 24 handicapped, dependent upon the fireman for support, and 25 either the issue of the fireman or legally adopted by him. 26 The total amount of child's disability benefit payable to the 27 fireman, when added to his occupational disease disability28benefit,shall not exceed 25%75%of the amount of salary 29 which he was receiving at the time of the grant of 30 occupational disease disability benefit. 31 The first payment of occupational disease disability 32 benefit or child's disability benefit shall be made not later 33 than one month after the benefit is granted. Each subsequent 34 payment shall be made not later than one month after the date -12- LRB9003843EGfg 1 of the latest payment. 2 Occupational disease disability benefit shall be payable 3 during the period of the disability until the fireman reaches 4 the age of 70 1/2compulsory retirement. Child's disability 5 benefit shall be paid to such a fireman during the period of 6 disability until such child or children attain age 18 or 7 marry, whichever event occurs first; except that attainment 8 of age 18 by a child who is so physically or mentally 9 handicapped as to be dependent upon the fireman for support, 10 shall not render the child ineligible for child's disability 11 benefit. The fireman thereafter shall receive such annuity 12 or annuities as are provided for him in accordance with other 13 provisions of this Article. 14 (Source: P.A. 88-528.) 15 (40 ILCS 5/6-152) (from Ch. 108 1/2, par. 6-152) 16 Sec. 6-152. Ordinary disability benefits. Any fireman 17 who is not eligible for minimum annuity, who becomes disabled 18 after the effective date as the result of any cause other 19 than the performance of an act or acts of duty, shall have a 20 right to receive ordinary disability benefit during any 21 period or periods of such disability, after the first 30 days22of disability. Payment of such benefits shall not exceed, in 23 the aggregate, throughout the entire service of the fireman, 24 a period equal to 1/2 of the total service rendered by him 25 prior to the time he became disabled, but not to exceed 5 26 years. In computing such period of service, the time that 27 the fireman received ordinary disability benefit shall not be 28 included. 29 The first payment of the benefit shall be made not later 30 than one month after the benefit is granted and each 31 subsequent payment shall be made not later than one month 32 after the time when the latest payment was made. 33 When a disabled fireman reaches age 70 1/2becomes-13- LRB9003843EGfg 1eligible for minimum annuity, the disability benefit shall 2 cease and he shall thereafter receive such annuity or 3 annuities as are provided for him in accordance with other 4 provisions of this Article. 5 Ordinary disability benefit shall be 50% of the fireman's 6 salary at the time the disability occurs, but not less than 7 the amount of retirement annuity that the fireman would be 8 entitled to if he retired on the date the disability benefit 9 begins.Before any payment is made, a sum ordinarily10deducted from the fireman's salary for annuity purposes11during a period of time equal to that for which such payment12of ordinary disability benefit is to be made shall be13deducted from such payment and credited to him as a deduction14from his salary for such period. The sums so credited shall15be regarded, for annuity and refund purposes, as sums16contributed by the fireman.17 (Source: P.A. 84-11.) 18 (40 ILCS 5/6-154) (from Ch. 108 1/2, par. 6-154) 19 Sec. 6-154. Administration of disability benefits. If a 20 fireman who is granted any type of disability benefit under 21 this Article refuses to submit to examination by any 22 physician appointed by the board, he shall have no further 23 right to receive the benefit. 24 A fireman who has withdrawn while disabled and entered 25 upon annuity, and who re-enters the service on or after the 26 date of withdrawal, and who has not served at least one year 27 subsequent to the date of such re-entry, shall not receive 28 ordinary disability benefit in excess of the amount he has 29 previously received as pension on account of disability, or 30 as annuity, for an equal period of disability. This provision 31 shall apply throughout the duration of any disability 32 incurred by the fireman within one year after his 33 reinstatement resulting from any cause other than the -14- LRB9003843EGfg 1 performance of an act or acts of duty. 2 No disability benefit shall be paid on account of any 3 form of disability for any period of time for which a 4 disabled fireman has a right to receive any part of his 5 salary, under any law or ordinance in effect in the city. 6 If a disabled fireman receives compensation from the city 7 for such disability under the Workers' Compensation Act or 8 Occupational Diseases Act, the disability benefit provided 9 herein shall be reduced by any amount so received, if such 10 amount is less than the amount of the benefit; and if the 11 amount received as compensation exceeds the amount of the 12 disability benefit, the fireman shall not receive such 13 disability benefit until the benefit payable, accumulated at 14 the rate herein stated, equals the amount of such 15 compensation without consideration of interest. 16 If the widow, child or children, or parent or parents (or 17 any of these persons) of any fireman whose death results from 18 an act or acts of duty receives any compensation from the 19 city under the Workers' Compensation Act or Occupational 20 Diseases Act, the annuities herein provided for such 21 beneficiaries shall be reduced by any amounts so received, if 22 such amounts are less than the amount of the annuity or 23 annuities. If the amount or amounts received as compensation 24 exceed the amount or amounts of the annuity or annuities for 25 the widow, child or children, or parent or parents, the 26 annuities shall not be payable until the accumulated value of 27 the annuity or annuities at the rate herein stated equals the 28 amount of such compensation without consideration of 29 interest. In making such adjustment, the annuity to the widow 30 shall first be reduced. 31Disability pension or disability benefit shall not be32paid to any fireman while he resides outside the State of33Illinois, unless such residence is by permission of the34board.-15- LRB9003843EGfg 1 (Source: P.A. 81-992.) 2 (40 ILCS 5/6-158) (from Ch. 108 1/2, par. 6-158) 3 Sec. 6-158. Refund - General. 4 (a) A fireman who withdraws before age 50 and a fireman 5 with less than 10 years of service who withdraws before age 6 57, or any fireman who withdraws and enters the service of 7 another department of the city, has a right to a refund of 8 the entire amount to his credit as of date of withdrawal for 9 age and service annuity and widow's annuity from deductions 10 from salary, plus interest thereon at the rate of 5% per 11 year, compounded annually. 12 (b) Any such fireman shall be entitled to refund until 13 he re-enters service or until his annuity is fixed. 14 (c) A fireman who receives a refund forfeits all rights 15 to any annuity or benefit from the fund, for himself and for 16 any other person who might benefit through him because of his 17 service, provided he shall retain the right to credit for any 18 such service, for the purpose of computing his total service 19 if he re-enters service before age 57, becomes a beneficiary 20 of the fund and makes repayment of the refund with interest. 21 (d) A fireman completing 10 years of service who does 22 not receive a refund, may receive an annuity as provided in 23 this Article. 24 (e) A fireman completing less than 10 years who does not 25 receive a refund has a right to have all amounts to his 26 credit for annuity purposes on the date of withdrawal 27 improved by interest while he is out of service until age 57 28 only, for his benefit and the benefit of any person who may 29 have any right to annuity through him, if he subsequently 30 reenters service and attains a right to annuity. 31 (Source: Laws 1965, p. 2464.) 32 (40 ILCS 5/6-162) (from Ch. 108 1/2, par. 6-162) -16- LRB9003843EGfg 1 Sec. 6-162. Refund - Widows and children. If the amount 2 accumulated in the account of a deceased unmarried fireman 3 from salary deductions for annuity purposes after the 4 effective date, including interest, has not been paid to him 5 or his parent or parents, and in the case of a deceased 6 married fireman to him and his widow, in form of annuity or 7 benefit before the death of the last survivor of such 8 persons, the remaining amount, if any, includingwithout9 interest at the rate of 5% per year, compounded annually, 10 shall be paid in the following order of precedence: (a) to 11 the administrator or executor of the fireman's estate; (b) 12 for burial expenses of the fireman; and (c) to his heirs 13 according to the law pertaining to administration of estates; 14 provided, if any of his children less than age 18 survive, 15 such amount as is necessary to pay children's annuities shall 16 not be refunded, but shall be transferred to the Child's 17 Annuity Reserve, and used for the payment of annuities to 18 children. 19 (Source: P.A. 81-1536.) 20 (40 ILCS 5/6-163.1 new) 21 Sec. 6-163.1. Annual increase in widow's, child's, and 22 parent's annuity. Each widow's annuity, child's annuity, and 23 parent's annuity payable under this Article shall be 24 increased by an amount equal to 3% of the original annuity on 25 January 1, 1998 or the January 1 next following the first 26 anniversary of the day on which the annuity began, whichever 27 is later, and on every January 1 thereafter for so long as 28 the annuity remains payable. This increase is payable 29 without regard to whether the deceased fireman was in service 30 on or after the effective date of this amendatory Act of 31 1997. 32 (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164) -17- LRB9003843EGfg 1 Sec. 6-164. Automatic annual increase; retirement after 2 September 1, 1959. 3 (a) A fireman qualifying for a minimum annuity who 4 retires from service after September 1, 1959 shall, upon 5 either the first of the month following the first anniversary 6 of his date of retirement if he is age 60 (age 55 if born 7 before January 1, 1945) or over on that anniversary date, or 8 upon the first of the month following his attainment of age 9 60 (age 55 if born before January 1, 1945) if that occurs 10 after the first anniversary of his retirement date, have his 11 then fixed and payable monthly annuity increased by 1 1/2%, 12 and such first fixed annuity as granted at retirement 13 increased by an additional 1 1/2% in January of each year 14 thereafter up to a maximum increase of 30%. BeginningJuly151, 1982 for firemen born before January 1, 1930, and16beginning January 1, 1990 for firemen born after December 31,171929 and before January 1, 1940, and beginning January 1,181996 for firemen born after December 31, 1939 but before19 January 1, 19981945, such increases shall be 3% andsuch20firemenshall not be subject to the 30% maximum increase. 21 Any fireman born before January 1, 1945 who qualifies for 22 a minimum annuity and retires after September 1, 1967 but has 23 not received the initial increase under this subsection 24 before January 1, 1996 is entitled to receive the initial 25 increase under this subsection on (1) January 1, 1996, (2) 26 the first anniversary of the date of retirement, or (3) 27 attainment of age 55, whichever occurs last. The changes to 28 this Section made by this amendatory Act of 1995 apply 29 beginning January 1, 1996 and apply without regard to whether 30 the fireman or annuitant terminated service before the 31 effective date of this amendatory Act of 1995. 32 (b) Subsection (a) of this Section is not applicable to 33 an employee receiving a term annuity. 34 (c) To help defray the cost of such increases in -18- LRB9003843EGfg 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 (40 ILCS 5/6-178) (from Ch. 108 1/2, par. 6-178) 26 Sec. 6-178. Board meetings. The board shall hold regular 27 meetings in each month and such other meetings as it deems 28 necessary. A majority of the members shall constitute a 29 quorum for the transaction of business at any meeting; 30 provided, that no pension, annuity, or benefit shall be 31 allowed or granted and no money shall be paid out of the fund 32 unless ordered by the affirmative vote of a majority of the 33totalmembership of the board as shown by roll call entered -19- LRB9003843EGfg 1 upon the official record of proceedings of the meeting at 2 which such action is taken. All board meetings shall be open 3 to the public. 4 (Source: P.A. 86-273.) 5 (40 ILCS 5/6-209) (from Ch. 108 1/2, par. 6-209) 6 Sec. 6-209. Computation of service. In computing the 7 service rendered by a fireman prior to the effective date, 8 the following periods shall be counted, in addition to all 9 periods during which he performed the duties of his position, 10 as periods of service for annuity purposes only: All periods 11 of (a) vacation, (b) leave of absence with whole or part pay, 12 (c) leave of absence without pay which were necessary on 13 account of disability, and (d) leave of absence during which 14 he was engaged in the military or naval service of the United 15 States of America. Service credit shall not be allowed for 16 any period during which a fireman was in receipt of pension 17 on account of disability from any pension fund superseded by 18 this fund. 19 In computing the service rendered by a fireman on and 20 after the effective date, the following periods shall be 21 counted in addition to all periods during which he performed 22 the duties of his position, as periods of service for annuity 23 purposes only: All periods of (a) vacation, (b) leave of 24 absence with whole or part pay, (c) leave of absence during 25 which he was engaged in the military or naval service of the 26 United States of America, (d) disability for which he 27 receives any disability benefit, (e) disability for which he 28 receives whole or part pay, (f) leave of absence, or other 29 authorized relief from active duty, during which he served as 30 president of The Firemen's Association of Chicago, (g) 31 periods of suspension from duty not to exceed a total of one 32 year during the total period of service of the fireman, and 33 (h) a period of time not to exceed 23 days in 1980 in -20- LRB9003843EGfg 1 accordance with an agreement with the City on a settlement of 2 strike; provided that the fireman elects to make 3 contributions to the Fund for the various annuity and benefit 4 purposes according to the provisions of this Article as 5 though he were an active fireman, based upon the salary 6 attached to the civil service rank held by him during such 7 absence from duty, and if the fireman so elects, the city 8 shall make the prescribed concurrent contributions for such 9 annuity and benefit purposes as provided in this Article, all 10 to the end that such fireman shall be entitled to receive the 11 same annuities and benefits for which he would otherwise be 12 eligible if he had continued as an active fireman during the 13 periods of absence from duty. 14In computing service on and after the effective date for15ordinary disability benefit, all periods described in the16preceding paragraph, except any period for which a fireman17receives ordinary disability benefit, shall be counted as18periods of service.19 In computing service for any of the purposes of this 20 Article, credit shall be given for any periods prior to 21 January 9, 1997, during which an active fireman (or fire 22 paramedic) who is a member of the General Assembly is on 23 leave of absence or is otherwise authorized to be absent from 24 duty to enable him to perform his legislative duties, 25 notwithstanding any reduction in salary for such periods and 26 notwithstanding that the contributions paid by the fireman 27 were based on such reduced salary rather than the full amount 28 of salary attached to his civil service rank. 29 In computing service for any of the purposes of this 30 Article, no credit shall be given for any period during which 31 a fireman was not rendering active service because of his 32 discharge from the service, unless proceedings to test the 33 legality of the discharge are filed in a court of competent 34 jurisdiction within one year from the date of discharge and a -21- LRB9003843EGfg 1 final judgment is entered therein declaring the discharge 2 illegal. 3 No overtime or extra service shall be included in 4 computing service of a fireman and not more than one year or 5 a proper fractional part thereof of service shall be allowed 6 for service rendered during any calendar year. 7 (Source: P.A. 86-273; 86-1488; 87-1265.) 8 (40 ILCS 5/6-125 rep.) 9 (40 ILCS 5/6-126 rep.) 10 (40 ILCS 5/6-127 rep.) 11 (40 ILCS 5/6-160 rep.) 12 Section 10. The Illinois Pension Code is amended by 13 repealing Sections 6-125, 6-126, 6-127, and 6-160. 14 Section 90. The State Mandates Act is amended by adding 15 Section 8.21 as follows: 16 (30 ILCS 805/8.21 new) 17 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 18 and 8 of this Act, no reimbursement by the State is required 19 for the implementation of any mandate created by this 20 amendatory Act of 1997. 21 Section 99. Effective date. This Act takes effect upon 22 becoming law. -22- LRB9003843EGfg 1 INDEX 2 Statutes amended in order of appearance 3 40 ILCS 5/1-118 new 4 40 ILCS 5/1-119 new 5 40 ILCS 5/6-128 from Ch. 108 1/2, par. 6-128 6 40 ILCS 5/6-141.1 from Ch. 108 1/2, par. 6-141.1 7 40 ILCS 5/6-142 from Ch. 108 1/2, par. 6-142 8 40 ILCS 5/6-150 from Ch. 108 1/2, par. 6-150 9 40 ILCS 5/6-151 from Ch. 108 1/2, par. 6-151 10 40 ILCS 5/6-151.1 from Ch. 108 1/2, par. 6-151.1 11 40 ILCS 5/6-152 from Ch. 108 1/2, par. 6-152 12 40 ILCS 5/6-154 from Ch. 108 1/2, par. 6-154 13 40 ILCS 5/6-158 from Ch. 108 1/2, par. 6-158 14 40 ILCS 5/6-162 from Ch. 108 1/2, par. 6-162 15 40 ILCS 5/6-163.1 new 16 40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164 17 40 ILCS 5/6-178 from Ch. 108 1/2, par. 6-178 18 40 ILCS 5/6-209 from Ch. 108 1/2, par. 6-209 19 40 ILCS 5/6-125 rep. 20 40 ILCS 5/6-126 rep. 21 40 ILCS 5/6-127 rep. 22 40 ILCS 5/6-160 rep. 23 30 ILCS 805/8.21 new