Public Act 097-0344
 
HB3376 EnrolledLRB097 08172 JDS 48296 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 60 (age 55 if born before 
January 1, 1955)
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, 1955)
if it 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
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,
 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.

    (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 1 1/2% 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 a
policeman withdraws prior to qualification for 
minimum annuity and
applies for refund or applies for annuity, 
and also where 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 monthly 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 the attainment of 
age 60 or 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. 
    Notwithstanding any other provision of this Article, for a 
person who first becomes a policeman under this Article on or 
after January 1, 2011, the annuity to which the survivor is 
entitled under this subsection (d) shall be in the amount of 66 
2/3% of the policeman's earned annuity at the date of death. 
Nothing in this subsection (d) shall act to diminish the 
survivor's
benefits described in this Section.
    Notwithstanding any other provision of this Article, the 
monthly annuity
of a survivor of a person who first becomes a 
policeman under this Article on or after January 1, 2011 shall 
be increased on the January 1 after attainment of age 60 by the 
recipient of the survivor's annuity and
each January 1 
thereafter by 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 
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. 
(Source: P.A. 96-1495, eff. 1-1-11.)

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