Public Act 100-0539
 
SB0419 EnrolledLRB100 05036 AWJ 15046 b



    AN ACT concerning local government.

 
    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 
Sections 4-108.5 and 6-164 as follows:
 
    (40 ILCS 5/4-108.5)
    Sec. 4-108.5. Service for providing certain fire 
protection services.

    (a) A firefighter for a participating municipality who was 
employed as  an active firefighter providing fire protection for 
a village or incorporated town with a population of greater 
than 10,000 but less than 11,000 located in a county with a 
population  of greater than 600,000 and less than 700,000, as 
estimated by the United States Census on July 1, 2004, may 
elect to establish creditable service for periods of that 
employment in which the firefighter provided fire protection 
services for the participating municipality if, by May 1, 2007, 
the firefighter (i) makes written application to the Board and 
(ii) pays into the pension fund the amount that the person 
would have contributed had deductions from salary been made for 
this purpose at the time the service was rendered, plus 
interest thereon at 6% per annum compounded annually from the 
time the service was rendered until the date of payment.
    (b) Time spent providing fire protection on a part-time 
basis for a village or incorporated town with a population of 
greater than 10,000 but less than 11,000 located in a county 
with a population  of greater than 600,000 and less than 
700,000, as estimated by the United States Census on July 1, 
2004, shall be calculated at the rate of one year of creditable 
service for each 5 years of time spent providing such fire 
protection, if the firefighter (i) has at least 5 years of 
creditable service as an active firefighter, (ii) has at least 
5 years of such  service with a qualifying village or 
incorporated town, (iii) applies for the creditable service 
within 30 days after the effective date of this amendatory Act 
of the 94th General Assembly, and (iv) contributes to the Fund 
an amount representing employee contributions for the number of 
years of creditable service granted under this subsection (b) 
based on the salary and contribution rate in effect for the 
firefighter at the date of entry into the fund, as determined 
by the Board. The amount of creditable service granted under 
this subsection (b) may not exceed 3 years.


    (c) This subsection applies only to a person who was first 
employed by a municipality in 2008 to provide fire protection 
services on a full-time basis as a  firefighter or fire chief, 
but was prevented from
participating in a pension fund  under 
this Article until 2015 by reason of the employing 
municipality's delay in establishing a pension fund as required 
under this Article. Such a person may elect to
establish 
creditable service for periods of such employment by that 
municipality during
which he or she did not participate, by 
applying to the board in writing  and paying to the pension fund  
the employee contributions that he or she would have made had 
deductions from
salary been made for employee contributions at 
the time the service was rendered,
together with interest 
thereon at the rate of 6% per annum, compounded annually, from 
the
time the service was rendered to the date of payment; 
except that the granting of such creditable service is 
contingent upon   the consent of the governing body of the 
municipality and payment to the pension fund by the 
municipality of the corresponding employer contributions, plus 
interest.
    For the purposes of Sections 4-109, 4-109.1, and 4-114, and 
notwithstanding any other provision of this Article, for a 
person who establishes creditable service under this 
subsection (c), the date upon which the person first became a 
participating firefighter under this Article shall be deemed to 
be no later than the first day of employment for which such 
creditable service has been granted. 
(Source: P.A. 97-813, eff. 7-13-12.)
 



    (40 ILCS 5/6-164)
  (from Ch. 108 1/2, par. 6-164)



    Sec. 6-164. Automatic annual increase; retirement after 
September 1, 1959. 

    (a) A fireman qualifying for a minimum annuity who retires 
from service
after September 1, 1959 shall, upon either the 
first of the month following the
first anniversary of his date 
of retirement if he is age 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 60 (age 55 if born

before January 1, 1966) if that occurs after the first 
anniversary
of his retirement date, have his then fixed and 
payable monthly annuity
increased by 1 1/2%, and such first 
fixed annuity as granted at retirement
increased by an 
additional 1 1/2% in January of each year thereafter up to a

maximum increase of 30%.
Beginning July 1, 1982 for firemen 
born before January 1, 1930, and beginning
January 1, 1990 for 
firemen born after December 31, 1929 and before January 1,

1940, and beginning January 1, 1996 for firemen born after 
December 31, 1939
but before January 1, 1945, and beginning 
January 1, 2004, for firemen born
after December 31, 1944 but 
before January 1, 1955, and beginning January 1, 2017, for 
firemen born after December 31, 1954 but before January 1, 
1966,  such increases shall be
3% and such firemen shall not be 
subject to the 30% maximum increase.

    Any fireman 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 
this amendatory Act of 1995
apply beginning January 1, 1996 and 
apply without regard to whether the fireman
or annuitant 
terminated service before the effective date of this amendatory

Act of 1995.

    Any fireman 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, 2004 is entitled to receive
the initial increase 
under this subsection on (1) January 1, 2004, (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 93rd General Assembly apply without 
regard to whether the fireman
or annuitant terminated service 
before the effective date of this amendatory
Act.

    Any fireman born after December 31, 1954 but 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 an increase of 3% of his then fixed and 
payable monthly annuity upon the first of the month following 
the first anniversary of his date of retirement if he is age 55 
or over on that anniversary date or upon the first of the month 
following his attainment of age 55 if that date occurs after 
the first anniversary of his retirement date and such first 
fixed annuity as granted at retirement shall be increased by an 
additional 3% in January of each year thereafter. In the case 
of a fireman born after December 31, 1954 but before January 1, 
1966 who received an increase in any year of 1.5%, that fireman 
shall receive an increase for any such year so that the total 
increase is equal to 3% for each year the fireman would have 
been otherwise eligible had the fireman not received any 
increase 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 
fireman
or annuitant terminated service before the effective 
date of this amendatory
Act. The changes to this subsection 
made by this amendatory Act of the 100th General Assembly are a 
declaration of existing law and shall not be construed as a new 
enactment. 
    (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, 1959, from each 
payment of salary
to a fireman, 1/8 of 1% of each such salary 
payment and an additional 1/8
of 1% beginning on September 1, 
1961, and September 1, 1963, respectively,
concurrently with 
and in addition to the salary deductions otherwise made
for 
annuity purposes.

    Each such additional 1/8 of 1% deduction from salary which 
shall, on
September 1, 1963, result in a total increase of 3/8 
of 1% of salary,
shall be credited to the Automatic Increase 
Reserve, to be used,
together with city contributions as 
provided in this Article, to defray
the cost of the annuity 
increments specified in 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.

    The salary deductions provided in this Section are not 
subject to
refund, except to the fireman himself in any case in 
which: (i) the fireman
withdraws prior to qualification for 
minimum annuity or Tier 2 monthly retirement annuity and 
applies for
refund, (ii) the fireman 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 fireman, without interest, and charged to the

aforementioned reserve.

    (d) Notwithstanding any other provision of this Article, 
the Tier 2 monthly retirement annuity of a
person who first 
becomes a fireman under this Article on or after January 1, 
2011 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 99. Effective date. This Act takes effect upon 
becoming law.