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90_SB1849
40 ILCS 5/1-119 new
40 ILCS 5/1-120 new
40 ILCS 5/6-142 from Ch. 108 1/2, par. 6-142
40 ILCS 5/6-150 from Ch. 108 1/2, par. 6-150
40 ILCS 5/6-151 from Ch. 108 1/2, par. 6-151
40 ILCS 5/6-151.1 from Ch. 108 1/2, par. 6-151.1
40 ILCS 5/6-152 from Ch. 108 1/2, par. 6-152
40 ILCS 5/6-154 from Ch. 108 1/2, par. 6-154
40 ILCS 5/6-178 from Ch. 108 1/2, par. 6-178
40 ILCS 5/6-209 from Ch. 108 1/2, par. 6-209
30 ILCS 805/8.22 new
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. 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. Changes the vote requirement for board action on
benefit applications. Amends the State Mandates Act to
require implementation without reimbursement. Effective
immediately.
LRB9011654EGfg
LRB9011654EGfg
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 6-142, 6-150, 6-151, 6-151.1, 6-152, 6-154,
7 6-178, and 6-209 and adding Sections 1-119 and 1-120 as
8 follows:
9 (40 ILCS 5/1-119 new)
10 Sec. 1-119. 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 5/1-120 new)
21 Sec. 1-120. 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
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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
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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 5/6-142) (from Ch. 108 1/2, par. 6-142)
16 Sec. 6-142. Wives and widows not entitled to annuities.
17 The following wives or widows have no right to annuity from
18 the fund:
19 (a) A wife or widow married subsequent to the effective
20 date of a fireman who dies in service if she was not married
21 to him before he attained age 63;
22 (b) A wife or widow of a fireman who withdraws, whether
23 or not he enters upon annuity, and dies while out of service,
24 if the marriage occurred after the effective date and she was
25 not his wife while he was in service and before he attained
26 age 63;
27 (c) A wife or widow of a fireman who (1) has served 10
28 or more years, (2) dies out of service after he has withdrawn
29 from service, and (3) has withdrawn or applied for refund of
30 the sums to his credit for annuity to which he had a right to
31 refund;
32 (d) A wife or widow of a fireman who dies out of service
33 after he has withdrawn before age 63, and who has not served
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1 at least 10 years;
2 (e) A wife whose marriage was dissolved or widow of a
3 fireman whose judgment of dissolution of marriage from her
4 fireman husband is annulled, vacated or set aside by
5 proceedings in court subsequent to the death of the fireman,
6 unless (1) such proceedings are filed within 5 years after
7 the date of the dissolution of marriage and within one year
8 after the death of the fireman and (2) the board is made a
9 party to the proceedings.;
10 (f) A wife or widow who married the fireman while he was
11 in receipt of disability benefit or disability pension from
12 this fund, unless he returned to the service subsequent to
13 the marriage and remained therein for a period or periods
14 aggregating one year, or died while in service.
15 (Source: P.A. 81-230.)
16 (40 ILCS 5/6-150) (from Ch. 108 1/2, par. 6-150)
17 Sec. 6-150. Death benefits.
18 (a) Effective January 1, 1962, an ordinary death benefit
19 shall be payable on account of any fireman in service and in
20 receipt of salary on or after such date, which benefit shall
21 be in addition to all other annuities and benefits herein
22 provided. This benefit shall be payable upon death of a
23 fireman:
24 (1) occurring in active service while in receipt of
25 salary;
26 (2) on an authorized and approved leave of absence,
27 without salary, beginning on or after January 1, 1962, if the
28 death occurs within 60 days from the date the fireman was in
29 receipt of salary;
30 (3) receiving duty, occupational disease, or ordinary
31 disability benefit;
32 (4) occurring within 60 days from the date of
33 termination of duty disability, occupational disease
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1 disability or ordinary disability benefit payments if
2 re-entry into service had not occurred;
3 (5) occurring on retirement and while in receipt of an
4 age and service, prior service annuity or minimum annuity;
5 provided (a) retirement on such annuity occurred on or after
6 January 1, 1962, and (b) such separation from service was
7 effective on or after the fireman's attainment of age 50, and
8 (c) application for such annuity was made within 60 days
9 after separation from service.
10 (b) The ordinary death benefit shall be payable to such
11 beneficiary or beneficiaries as the fireman has nominated by
12 written direction duly signed and acknowledged before an
13 officer authorized to take acknowledgments, and filed with
14 the board. If no such written direction has been filed or if
15 the designated beneficiaries do not survive the fireman,
16 payment of the benefit shall be made to his estate.
17 (c) Beginning July 1, 1983, if death occurs prior to
18 retirement on annuity and before the fireman's attainment of
19 age 50, the amount of the benefit payable shall be $12,000.
20 Beginning July 1, 1983, if death occurs prior to retirement
21 and before January 1, 1999, at age 50 or over, the benefit of
22 $12,000 shall be reduced $400 for each year (commencing on
23 the fireman's attainment of age 50 and thereafter on each
24 succeeding birth date) that the fireman's age, at date of
25 death, is more than age 49, but in no event below the amount
26 of $6,000. If death occurs prior to retirement and on or
27 after January 1, 1999, at age 50 or over, the benefit of
28 $12,000 shall not be reduced due to age.
29 (d) Beginning July 1, 1983, if the fireman's death
30 occurs while he is in receipt of an annuity, the benefit
31 shall be $6,000.
32 (Source: P.A. 83-152.)
33 (40 ILCS 5/6-151) (from Ch. 108 1/2, par. 6-151)
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1 Sec. 6-151. Duty disability. An active fireman who is or
2 becomes disabled on or after the effective date as the result
3 of a specific injury, or of cumulative injuries, or of
4 specific sickness incurred in or resulting from an act or
5 acts of duty, shall have the right to receive duty disability
6 benefit during any period of such disability for which he
7 does not receive or have a right to receive salary, equal to
8 75% of his salary at the time the disability is allowed.
9 However, beginning January 1, 1994, no duty disability
10 benefit that has been payable under this Section for at least
11 10 years shall be less than 50% of the current salary
12 attached from time to time to the rank and grade held by the
13 fireman at the time of his removal from the Department
14 payroll, regardless of whether that removal occurred before
15 the effective date of this amendatory Act of 1993.
16 Whenever an active fireman is or becomes so injured or
17 sick, as to require medical or hospital attention, the chief
18 officer of the fire department of the city shall file, or
19 cause to be filed, with the board a report of the nature and
20 cause of his disability, together with the certificate or
21 report of the physician attending or treating, or who
22 attended or treated the fireman, and a copy of any hospital
23 record concerning the disability. Any injury or sickness not
24 reported to the board in time to permit the board's physician
25 to examine the fireman before his recovery, and any injury or
26 sickness for which a physician's report or copy of the
27 hospital record is not on file with the board shall not be
28 considered for the payment of duty disability benefit.
29 Such fireman shall also receive a child's disability
30 benefit of $30 per month on account of each unmarried child,
31 the issue of the fireman or legally adopted by him prior to
32 the date of disability, who is less than 18 years of age or
33 handicapped and dependent upon the fireman for support. The
34 total amount of child's disability benefit shall not exceed
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1 25% of his salary at the time the disability is allowed.
2 The first payment of duty disability or child's
3 disability benefit shall be made not later than one month
4 after the benefit is granted. Each subsequent payment shall
5 be made not later than one month after the date of the latest
6 payment.
7 Duty disability benefit shall be payable during the
8 period of the disability until the fireman reaches the age of
9 70 1/2 compulsory retirement. Child's disability benefit
10 shall be paid to such a fireman during the period of
11 disability until such child or children attain age 18 or
12 marries, whichever event occurs first; except that attainment
13 of age 18 by a child who is so physically or mentally
14 handicapped as to be dependent upon the fireman for support,
15 shall not render the child ineligible for child's disability
16 benefit. The fireman shall thereafter receive such annuity
17 or annuities as are provided for him in accordance with other
18 provisions of this Article.
19 (Source: P.A. 88-528.)
20 (40 ILCS 5/6-151.1) (from Ch. 108 1/2, par. 6-151.1)
21 Sec. 6-151.1. The General Assembly finds and declares
22 that service in the Fire Department requires that firemen, in
23 times of stress and danger must perform unusual tasks; that
24 by reason of their occupation, firemen are subject to
25 exposure to great heat and to extreme cold in certain seasons
26 while in performance of their duties; that by reason of their
27 employment firemen are required to work in the midst of and
28 are subject to heavy smoke fumes, and carcinogenic,
29 poisonous, toxic or chemical gases from fires. The General
30 Assembly further finds and declares that all the
31 aforementioned conditions exist and arise out of or in the
32 course of such employment.
33 Any active fireman who has completed ten or more years of
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1 service and is unable to perform his duties in the Fire
2 Department by reason of heart disease, tuberculosis or any
3 disease of the lungs or respiratory tract, resulting solely
4 from his service as a fireman, shall be entitled to receive
5 an occupational disease disability benefit during any period
6 of such disability for which he does not have a right to
7 receive salary.
8 Any active fireman who has completed ten or more years of
9 service and is unable to perform his duties in the fire
10 department by reason of a disabling cancer, which develops or
11 manifests itself during a period while the fireman is in the
12 service of the department, shall be entitled to receive an
13 occupational disease disability benefit during any period of
14 such disability for which he does not have a right to receive
15 salary. In order to receive this occupational disease
16 disability benefit, the type of cancer involved must be a
17 type which may be caused by exposure to heat, radiation or a
18 known carcinogen as defined by the International Agency for
19 Research on Cancer.
20 Any fireman who shall enter the service after the
21 effective date of this amendatory Act shall be examined by
22 one or more practicing physicians appointed by the Board, and
23 if said examination discloses impairment of the heart, lungs
24 or respiratory tract, or the existence of any cancer, such
25 fireman shall not be entitled to receive occupational disease
26 disability benefit unless and until a subsequent examination
27 reveals no such impairment or cancer.
28 The occupational disease disability benefit shall be 65%
29 of the fireman's salary at the time of his removal from the
30 Department payroll. However, beginning January 1, 1994, no
31 occupational disease disability benefit that has been payable
32 under this Section for at least 10 years shall be less than
33 50% of the current salary attached from time to time to the
34 rank and grade held by the fireman at the time of his removal
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1 from the Department payroll, regardless of whether that
2 removal occurred before the effective date of this amendatory
3 Act of 1993.
4 Such fireman also shall have a right to receive child's
5 disability benefit of $30 per month on account of each
6 unmarried child who is less than 18 years of age or
7 handicapped, dependent upon the fireman for support, and
8 either the issue of the fireman or legally adopted by him.
9 The total amount of child's disability benefit payable to the
10 fireman, when added to his occupational disease disability
11 benefit, shall not exceed 75% of the amount of salary which
12 he was receiving at the time of the grant of occupational
13 disease disability benefit.
14 The first payment of occupational disease disability
15 benefit or child's disability benefit shall be made not later
16 than one month after the benefit is granted. Each subsequent
17 payment shall be made not later than one month after the date
18 of the latest payment.
19 Occupational disease disability benefit shall be payable
20 during the period of the disability until the fireman reaches
21 the age of 70 1/2 compulsory retirement. Child's disability
22 benefit shall be paid to such a fireman during the period of
23 disability until such child or children attain age 18 or
24 marry, whichever event occurs first; except that attainment
25 of age 18 by a child who is so physically or mentally
26 handicapped as to be dependent upon the fireman for support,
27 shall not render the child ineligible for child's disability
28 benefit. The fireman thereafter shall receive such annuity
29 or annuities as are provided for him in accordance with other
30 provisions of this Article.
31 (Source: P.A. 88-528.)
32 (40 ILCS 5/6-152) (from Ch. 108 1/2, par. 6-152)
33 Sec. 6-152. Ordinary disability benefits. Any fireman
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1 who is not eligible for minimum annuity, who becomes disabled
2 after the effective date as the result of any cause other
3 than the performance of an act or acts of duty, shall have a
4 right to receive ordinary disability benefit during any
5 period or periods of such disability, after the first 30 days
6 of disability. Payment of such benefits shall not exceed, in
7 the aggregate, throughout the entire service of the fireman,
8 a period equal to 1/2 of the total service rendered by him
9 prior to the time he became disabled, but not to exceed 5
10 years. In computing such period of service, the time that
11 the fireman received ordinary disability benefit shall not be
12 included.
13 The first payment of the benefit shall be made not later
14 than one month after the benefit is granted and each
15 subsequent payment shall be made not later than one month
16 after the time when the latest payment was made.
17 When a disabled fireman reaches age 70 1/2 becomes
18 eligible for minimum annuity, the disability benefit shall
19 cease and he shall thereafter receive such annuity or
20 annuities as are provided for him in accordance with other
21 provisions of this Article.
22 Ordinary disability benefit shall be 50% of the fireman's
23 salary at the time the disability occurs. Before any payment
24 is made, a sum ordinarily deducted from the fireman's salary
25 for annuity purposes during a period of time equal to that
26 for which such payment of ordinary disability benefit is to
27 be made shall be deducted from such payment and credited to
28 him as a deduction from his salary for such period. The sums
29 so credited shall be regarded, for annuity and refund
30 purposes, as sums contributed by the fireman.
31 (Source: P.A. 84-11.)
32 (40 ILCS 5/6-154) (from Ch. 108 1/2, par. 6-154)
33 Sec. 6-154. Administration of disability benefits. If a
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1 fireman who is granted any type of disability benefit under
2 this Article refuses to submit to examination by any
3 physician appointed by the board, he shall have no further
4 right to receive the benefit.
5 A fireman who has withdrawn while disabled and entered
6 upon annuity, and who re-enters the service on or after the
7 date of withdrawal, and who has not served at least one year
8 subsequent to the date of such re-entry, shall not receive
9 ordinary disability benefit in excess of the amount he has
10 previously received as pension on account of disability, or
11 as annuity, for an equal period of disability. This provision
12 shall apply throughout the duration of any disability
13 incurred by the fireman within one year after his
14 reinstatement resulting from any cause other than the
15 performance of an act or acts of duty.
16 No disability benefit shall be paid on account of any
17 form of disability for any period of time for which a
18 disabled fireman has a right to receive any part of his
19 salary, under any law or ordinance in effect in the city.
20 If a disabled fireman receives compensation from the city
21 for such disability under the Workers' Compensation Act or
22 Occupational Diseases Act, the disability benefit provided
23 herein shall be reduced by any amount so received, if such
24 amount is less than the amount of the benefit; and if the
25 amount received as compensation exceeds the amount of the
26 disability benefit, the fireman shall not receive such
27 disability benefit until the benefit payable, accumulated at
28 the rate herein stated, equals the amount of such
29 compensation without consideration of interest.
30 If the widow, child or children, or parent or parents (or
31 any of these persons) of any fireman whose death results from
32 an act or acts of duty receives any compensation from the
33 city under the Workers' Compensation Act or Occupational
34 Diseases Act, the annuities herein provided for such
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1 beneficiaries shall be reduced by any amounts so received, if
2 such amounts are less than the amount of the annuity or
3 annuities. If the amount or amounts received as compensation
4 exceed the amount or amounts of the annuity or annuities for
5 the widow, child or children, or parent or parents, the
6 annuities shall not be payable until the accumulated value of
7 the annuity or annuities at the rate herein stated equals the
8 amount of such compensation without consideration of
9 interest. In making such adjustment, the annuity to the widow
10 shall first be reduced.
11 Disability pension or disability benefit shall not be
12 paid to any fireman while he resides outside the State of
13 Illinois, unless such residence is by permission of the
14 board.
15 (Source: P.A. 81-992.)
16 (40 ILCS 5/6-178) (from Ch. 108 1/2, par. 6-178)
17 Sec. 6-178. Board meetings. The board shall hold regular
18 meetings in each month and such other meetings as it deems
19 necessary. A majority of the members shall constitute a
20 quorum for the transaction of business at any meeting;
21 provided, that no pension, annuity, or benefit shall be
22 allowed or granted and no money shall be paid out of the fund
23 unless ordered by the affirmative vote of a majority of the
24 total membership of the board as shown by roll call entered
25 upon the official record of proceedings of the meeting at
26 which such action is taken. All board meetings shall be open
27 to the public.
28 (Source: P.A. 86-273.)
29 (40 ILCS 5/6-209) (from Ch. 108 1/2, par. 6-209)
30 Sec. 6-209. Computation of service. In computing the
31 service rendered by a fireman prior to the effective date,
32 the following periods shall be counted, in addition to all
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1 periods during which he performed the duties of his position,
2 as periods of service for annuity purposes only: All periods
3 of (a) vacation, (b) leave of absence with whole or part pay,
4 (c) leave of absence without pay which were necessary on
5 account of disability, and (d) leave of absence during which
6 he was engaged in the military or naval service of the United
7 States of America. Service credit shall not be allowed for
8 any period during which a fireman was in receipt of pension
9 on account of disability from any pension fund superseded by
10 this fund.
11 In computing the service rendered by a fireman on and
12 after the effective date, the following periods shall be
13 counted in addition to all periods during which he performed
14 the duties of his position, as periods of service for annuity
15 purposes only: All periods of (a) vacation, (b) leave of
16 absence with whole or part pay, (c) leave of absence during
17 which he was engaged in the military or naval service of the
18 United States of America, (d) disability for which he
19 receives any disability benefit, (e) disability for which he
20 receives whole or part pay, (f) leave of absence, or other
21 authorized relief from active duty, during which he served as
22 president of The Firemen's Association of Chicago, (g)
23 periods of suspension from duty not to exceed a total of one
24 year during the total period of service of the fireman, and
25 (h) a period of time not to exceed 23 days in 1980 in
26 accordance with an agreement with the City on a settlement of
27 strike; provided that the fireman elects to make
28 contributions to the Fund for the various annuity and benefit
29 purposes according to the provisions of this Article as
30 though he were an active fireman, based upon the salary
31 attached to the civil service rank held by him during such
32 absence from duty, and if the fireman so elects, the city
33 shall make the prescribed concurrent contributions for such
34 annuity and benefit purposes as provided in this Article, all
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1 to the end that such fireman shall be entitled to receive the
2 same annuities and benefits for which he would otherwise be
3 eligible if he had continued as an active fireman during the
4 periods of absence from duty.
5 In computing service on and after the effective date for
6 ordinary disability benefit, all periods described in the
7 preceding paragraph, except any period for which a fireman
8 receives ordinary disability benefit, shall be counted as
9 periods of service.
10 In computing service for any of the purposes of this
11 Article, credit shall be given for any periods prior to
12 January 9, 1997, during which an active fireman (or fire
13 paramedic) who is a member of the General Assembly is on
14 leave of absence or is otherwise authorized to be absent from
15 duty to enable him to perform his legislative duties,
16 notwithstanding any reduction in salary for such periods and
17 notwithstanding that the contributions paid by the fireman
18 were based on such reduced salary rather than the full amount
19 of salary attached to his civil service rank.
20 In computing service for any of the purposes of this
21 Article, no credit shall be given for any period during which
22 a fireman was not rendering active service because of his
23 discharge from the service, unless proceedings to test the
24 legality of the discharge are filed in a court of competent
25 jurisdiction within one year from the date of discharge and a
26 final judgment is entered therein declaring the discharge
27 illegal.
28 No overtime or extra service shall be included in
29 computing service of a fireman and not more than one year or
30 a proper fractional part thereof of service shall be allowed
31 for service rendered during any calendar year.
32 (Source: P.A. 86-273; 86-1488; 87-1265.)
33 Section 90. The State Mandates Act is amended by adding
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1 Section 8.22 as follows:
2 (30 ILCS 805/8.22 new)
3 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
4 and 8 of this Act, no reimbursement by the State is required
5 for the implementation of any mandate created by this
6 amendatory Act of 1998.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.