Public Act 103-0582
 
SB1956 EnrolledLRB103 25834 RPS 52185 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by 
changing Section 5-167.1 as follows:
 
    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
    Sec. 5-167.1. Automatic increase in annuity; retirement 
from service after September 1, 1967.
    (a) A policeman who retires from service after September 
1, 1967 with at least 20 years of service credit shall, upon 
either the first of the month following the first anniversary 
of his date of retirement if he is age 55 60 (age 55 if born 
before January 1, 1966) or over on that anniversary date, or 
upon the first of the month following his attainment of age 55 
60 (age 55 if born before January 1, 1966) if it occurs after 
the first anniversary of his retirement date, have his then 
fixed and payable monthly annuity increased by 3% 1 1/2% and 
such first fixed annuity as granted at retirement increased by 
an additional 3% 1 1/2% in January of each year thereafter up 
to a maximum increase of 30%. Beginning January 1, 1983 for 
policemen born before January 1, 1930, and beginning January 
1, 1988 for policemen born on or after January 1, 1930 but 
before January 1, 1940, and beginning January 1, 1996 for 
policemen born on or after January 1, 1940 but before January 
1, 1945, and beginning January 1, 2000 for policemen born on or 
after January 1, 1945 but before January 1, 1950, and 
beginning January 1, 2005 for policemen born on or after 
January 1, 1950 but before January 1, 1955, and beginning 
January 1, 2017 for policemen born on or after January 1, 1955 
but before January 1, 1966, such increases shall be 3% and such 
policemen shall not be subject to the 30% maximum increase.
    Any policeman born before January 1, 1945 who qualifies 
for a minimum annuity and retires after September 1, 1967 but 
has not received the initial increase under this subsection 
before January 1, 1996 is entitled to receive the initial 
increase under this subsection on (1) January 1, 1996, (2) the 
first anniversary of the date of retirement, or (3) attainment 
of age 55, whichever occurs last. The changes to this Section 
made by Public Act 89-12 apply beginning January 1, 1996 and 
without regard to whether the policeman or annuitant 
terminated service before the effective date of that Act.
    Any policeman born before January 1, 1950 who qualifies 
for a minimum annuity and retires after September 1, 1967 but 
has not received the initial increase under this subsection 
before January 1, 2000 is entitled to receive the initial 
increase under this subsection on (1) January 1, 2000, (2) the 
first anniversary of the date of retirement, or (3) attainment 
of age 55, whichever occurs last. The changes to this Section 
made by this amendatory Act of the 92nd General Assembly apply 
without regard to whether the policeman or annuitant 
terminated service before the effective date of this 
amendatory Act.
    Any policeman born before January 1, 1955 who qualifies 
for a minimum annuity and retires after September 1, 1967 but 
has not received the initial increase under this subsection 
before January 1, 2005 is entitled to receive the initial 
increase under this subsection on (1) January 1, 2005, (2) the 
first anniversary of the date of retirement, or (3) attainment 
of age 55, whichever occurs last. The changes to this Section 
made by this amendatory Act of the 94th General Assembly apply 
without regard to whether the policeman or annuitant 
terminated service before the effective date of this 
amendatory Act. 
    Any policeman born before January 1, 1966 who qualifies 
for a minimum annuity and retires after September 1, 1967 but 
has not received the initial increase under this subsection 
before January 1, 2017 is entitled to receive an initial 
increase under this subsection on (1) January 1, 2017, (2) the 
first anniversary of the date of retirement, or (3) attainment 
of age 55, whichever occurs last, in an amount equal to 3% for 
each complete year following the date of retirement or 
attainment of age 55, whichever occurs later. The changes to 
this subsection made by this amendatory Act of the 99th 
General Assembly apply without regard to whether the policeman 
or annuitant terminated service before the effective date of 
this amendatory Act. 
    Any policeman born on or after January 1, 1966 who 
qualifies for a minimum annuity and retires after September 1, 
1967 but has not received the initial increase under this 
subsection before January 1, 2023 is entitled to receive the 
initial increase under this subsection on (1) January 1, 2023, 
(2) the first anniversary of the date of retirement, or (3) 
attainment of age 55, whichever occurs last. The changes to 
this Section made by this amendatory Act of the 103rd General 
Assembly apply without regard to whether the policeman or 
annuitant terminated service before the effective date of this 
amendatory Act of the 103rd General Assembly. 
    (b) Subsection (a) of this Section is not applicable to an 
employee receiving a term annuity.
    (c) To help defray the cost of such increases in annuity, 
there shall be deducted, beginning September 1, 1967, from 
each payment of salary to a policeman, 1/2 of 1% of each salary 
payment concurrently with and in addition to the salary 
deductions otherwise made for annuity purposes.
    The city, in addition to the contributions otherwise made 
by it for annuity purposes under other provisions of this 
Article, shall make matching contributions concurrently with 
such salary deductions.
    Each such 1/2 of 1% deduction from salary and each such 
contribution by the city of 1/2 of 1% of salary shall be 
credited to the Automatic Increase Reserve, to be used to 
defray the cost of the annuity increase provided by this 
Section. Any balance in such reserve as of the beginning of 
each calendar year shall be credited with interest at the rate 
of 3% per annum.
    Such deductions from salary and city contributions shall 
continue while the policeman is in service.
    The salary deductions provided in this Section are not 
subject to refund, except to the policeman himself, in any 
case in which: (i) the policeman withdraws prior to 
qualification for minimum annuity or Tier 2 monthly retirement 
annuity and applies for refund, (ii) the policeman applies for 
an annuity of a type that is not subject to annual increases 
under this Section, or (iii) a term annuity becomes payable. 
In such cases, the total of such salary deductions shall be 
refunded to the policeman, without interest, and charged to 
the Automatic Increase Reserve.
    (d) Notwithstanding any other provision of this Article, 
the Tier 2 monthly retirement annuity of a person who first 
becomes a policeman under this Article on or after the 
effective date of this amendatory Act of the 97th General 
Assembly shall be increased on the January 1 occurring either 
on or after (i) the attainment of age 60 or (ii) the first 
anniversary of the annuity start date, whichever is later. 
Each annual increase shall be calculated at 3% or one-half the 
annual unadjusted percentage increase (but not less than zero) 
in the consumer price index-u for the 12 months ending with the 
September preceding each November 1, whichever is less, of the 
originally granted retirement annuity. If the annual 
unadjusted percentage change in the consumer price index-u for 
a 12-month period ending in September is zero or, when 
compared with the preceding period, decreases, then the 
annuity shall not be increased. 
    For the purposes of this subsection (d), "consumer price 
index-u" means the index published by the Bureau of Labor 
Statistics of the United States Department of Labor that 
measures the average change in prices of goods and services 
purchased by all urban consumers, United States city average, 
all items, 1982-84 = 100. The new amount resulting from each 
annual adjustment shall be determined by the Public Pension 
Division of the Department of Insurance and made available to 
the boards of the pension funds by November 1 of each year.
(Source: P.A. 99-905, eff. 11-29-16.)
 
    Section 90. The State Mandates Act is amended by adding 
Section 8.47 as follows:
 
    (30 ILCS 805/8.47 new)
    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and 
8 of this Act, no reimbursement by the State is required for 
the implementation of any mandate created by this amendatory 
Act of the 103rd General Assembly.
 
    Section 999. Effective date. This Act takes effect upon 
becoming law.