State of Illinois
92nd General Assembly
Legislation

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92_HB1862

 
                                               LRB9205429EGfg

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Section 5-167.1 as follows:

 6        (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
 7        Sec. 5-167.1.  Automatic increase in annuity;  retirement
 8    from service after September 1, 1967.
 9        (a)  A policeman who retires from service after September
10    1,  1967 with at least 20 years of service credit shall, upon
11    either the first of the month following the first anniversary
12    of his date of retirement if he is age 60  (age  55  if  born
13    before  January  1,  1950  1945)  or over on that anniversary
14    date, or upon the first of the month following his attainment
15    of age 60 (age 55 if born before January 1, 1950 1945) if  it
16    occurs  after  the  first anniversary of his retirement date,
17    have his then fixed and payable monthly annuity increased  by
18    1 1/2%  and such first fixed annuity as granted at retirement
19    increased by an additional 1 1/2% in  January  of  each  year
20    thereafter  up  to  a  maximum  increase  of  30%.  Beginning
21    January 1, 1983 for policemen born before  January  1,  1930,
22    and  beginning January 1, 1988 for policemen born on or after
23    January 1, 1930 but before January  1,  1940,  and  beginning
24    January  1,  1996  for  policemen born on or after January 1,
25    1940 but before January 1, 1945,  and  beginning  January  1,
26    2000  for  policemen  born  on  or  after January 1, 1945 but
27    before January 1, 1950, such increases shall be 3%  and  such
28    policemen shall not be subject to the 30% maximum increase.
29        Any  policeman  born before January 1, 1945 who qualifies
30    for a minimum annuity and retires after September 1, 1967 but
31    has not received the initial increase under  this  subsection
 
                            -2-                LRB9205429EGfg
 1    before  January  1,  1996  is entitled to receive the initial
 2    increase under this subsection on (1) January  1,  1996,  (2)
 3    the  first  anniversary  of  the  date  of retirement, or (3)
 4    attainment of age 55, whichever occurs last.  The changes  to
 5    this  Section made by Public Act 89-12 this amendatory Act of
 6    1995 apply beginning January 1, 1996 and  without  regard  to
 7    whether  the policeman or annuitant terminated service before
 8    the effective date of that this amendatory Act of 1995.
 9        Any policeman born before January 1, 1950  who  qualifies
10    for a minimum annuity and retires after September 1, 1967 but
11    has  not  received the initial increase under this subsection
12    before January 1, 2000 is entitled  to  receive  the  initial
13    increase  under  this  subsection effective on (1) January 1,
14    2000, (2) the first anniversary of the date of retirement, or
15    (3) attainment of age 55, whichever occurs last.  The changes
16    to this Section made by  this  amendatory  Act  of  the  92nd
17    General   Assembly   apply  without  regard  to  whether  the
18    policeman  or  annuitant  terminated   service   before   the
19    effective date of this amendatory Act.
20        (b)  Subsection  (a) of this Section is not applicable to
21    an employee receiving a term annuity.
22        (c)  To  help  defray  the  cost  of  such  increases  in
23    annuity, there shall  be  deducted,  beginning  September  1,
24    1967,  from  each payment of salary to a policeman, 1/2 of 1%
25    of each salary payment concurrently with and in  addition  to
26    the salary deductions otherwise made for annuity purposes.
27        The city, in addition to the contributions otherwise made
28    by  it  for  annuity  purposes under other provisions of this
29    Article, shall make matching contributions concurrently  with
30    such salary deductions.
31        Each  such  1/2 of 1% deduction from salary and each such
32    contribution by the city of 1/2 of  1%  of  salary  shall  be
33    credited  to  the  Automatic  Increase Reserve, to be used to
34    defray the cost of the 1 1/2% annuity  increase  provided  by
 
                            -3-                LRB9205429EGfg
 1    this  Section.   Any  balance  in  such  reserve  as  of  the
 2    beginning  of  each  calendar  year  shall  be  credited with
 3    interest at the rate of 3% per annum.
 4        Such deductions from salary and city contributions  shall
 5    continue while the policeman is in service.
 6        The  salary  deductions  provided in this Section are not
 7    subject to refund, except to the policeman  himself,  in  any
 8    case  in  which  a policeman withdraws prior to qualification
 9    for minimum annuity and applies for  refund  or  applies  for
10    annuity,  and  also  where a term annuity becomes payable. In
11    such cases, the total of  such  salary  deductions  shall  be
12    refunded  to  the policeman, without interest, and charged to
13    the Automatic Increase Reserve.
14    (Source: P.A. 89-12, eff. 4-20-95.)

15        Section 90.  The State Mandates Act is amended by  adding
16    Section 8.25 as follows:

17        (30 ILCS 805/8.25 new)
18        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
19    and 8 of this Act, no reimbursement by the State is  required
20    for  the  implementation  of  any  mandate  created  by  this
21    amendatory Act of the 92nd General Assembly.

22        Section  99.  Effective date.  This Act takes effect upon
23    becoming law.

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