State of Illinois
90th General Assembly
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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 was
28    in  receipt  of disability benefit or disability pension from
29    this fund, unless he returned to the  service  subsequent  to
30    the  marriage  and  remained  therein for a period or periods
31    aggregating 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 1/2 compulsory 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%
12    65% 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  disability
28    benefit,  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 1/2 compulsory 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 days
22    of 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 1/2  becomes
                            -13-               LRB9003843EGfg
 1    eligible  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  ordinarily
10    deducted from  the  fireman's  salary  for  annuity  purposes
11    during  a period of time equal to that for which such payment
12    of ordinary  disability  benefit  is  to  be  made  shall  be
13    deducted from such payment and credited to him as a deduction
14    from  his  salary for such period. The sums so credited shall
15    be  regarded,  for  annuity  and  refund  purposes,  as  sums
16    contributed 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.
31        Disability  pension  or  disability  benefit shall not be
32    paid to any fireman while he resides  outside  the  State  of
33    Illinois,  unless  such  residence  is  by  permission of the
34    board.
                            -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, including without
 9    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%.   Beginning  July
15    1,  1982  for  firemen  born  before  January  1,  1930,  and
16    beginning January 1, 1990 for firemen born after December 31,
17    1929  and  before  January  1, 1940, and beginning January 1,
18    1996 for firemen born after  December  31,  1939  but  before
19    January  1,  1998  1945,  such increases shall be 3% and such
20    firemen shall 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
33    total membership 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.
14        In computing service on and after the effective date  for
15    ordinary  disability  benefit,  all  periods described in the
16    preceding paragraph, except any period for  which  a  fireman
17    receives  ordinary  disability  benefit,  shall be counted as
18    periods 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

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