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91_SB1467
LRB9110680EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 5-167.1 and 5-167.2 and to amend the State Mandates
3 Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 5-167.1 and 5-167.2 as follows:
8 (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
9 Sec. 5-167.1. Automatic increase in annuity; retirement
10 from service after September 1, 1967.
11 (a) A policeman who retires from service after September
12 1, 1967 with at least 20 years of service credit shall, upon
13 either the first of the month following the first anniversary
14 of his date of retirement if he is age 60 (age 55 if born
15 before January 1, 1945) or over on that anniversary date, or
16 upon the first of the month following his attainment of age
17 60 (age 55 if born before January 1, 1945) if it occurs after
18 the first anniversary of his retirement date, have his then
19 fixed and payable monthly annuity increased by 1 1/2% and
20 such first fixed annuity as granted at retirement increased
21 by an additional 1 1/2% in January of each year thereafter up
22 to a maximum increase of 30%. Beginning January 1, 1983 for
23 policemen born before January 1, 1930, and beginning January
24 1, 1988 for policemen born on or after January 1, 1930 but
25 before January 1, 1940, and beginning January 1, 1996 for
26 policemen born on or after January 1, 1940 but before January
27 1, 1945, such increases shall be 3% and such policemen shall
28 not be subject to the 30% maximum increase.
29 Beginning January 1, 2001, all annual increases under
30 this subsection shall be at the rate of 3% of the current
31 amount of the annuity, including any previous increases
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1 granted under this Article, and the 30% maximum no longer
2 applies. The change made to this Section by this amendatory
3 Act of the 91st General Assembly is not limited to persons in
4 service on or after its effective date.
5 Any policeman born before January 1, 1945 who qualifies
6 for a minimum annuity and retires after September 1, 1967 but
7 has not received the initial increase under this subsection
8 before January 1, 1996 is entitled to receive the initial
9 increase under this subsection on (1) January 1, 1996, (2)
10 the first anniversary of the date of retirement, or (3)
11 attainment of age 55, whichever occurs last. The changes to
12 this Section made by this amendatory Act of 1995 apply
13 beginning January 1, 1996 and without regard to whether the
14 policeman or annuitant terminated service before the
15 effective date of this amendatory Act of 1995.
16 (b) Subsection (a) of this Section is not applicable to
17 an employee receiving a term annuity.
18 (c) To help defray the cost of such increases in
19 annuity, there shall be deducted, beginning September 1,
20 1967, from each payment of salary to a policeman, 1/2 of 1%
21 of each salary payment concurrently with and in addition to
22 the salary deductions otherwise made for annuity purposes.
23 The city, in addition to the contributions otherwise made
24 by it for annuity purposes under other provisions of this
25 Article, shall make matching contributions concurrently with
26 such salary deductions.
27 Each such 1/2 of 1% deduction from salary and each such
28 contribution by the city of 1/2 of 1% of salary shall be
29 credited to the Automatic Increase Reserve, to be used to
30 defray the cost of the 1 1/2% annuity increase provided by
31 this Section. Any balance in such reserve as of the
32 beginning of each calendar year shall be credited with
33 interest at the rate of 3% per annum.
34 Such deductions from salary and city contributions shall
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1 continue while the policeman is in service.
2 The salary deductions provided in this Section are not
3 subject to refund, except to the policeman himself, in any
4 case in which a policeman withdraws prior to qualification
5 for minimum annuity and applies for refund or applies for
6 annuity, and also where a term annuity becomes payable. In
7 such cases, the total of such salary deductions shall be
8 refunded to the policeman, without interest, and charged to
9 the Automatic Increase Reserve.
10 (Source: P.A. 89-12, eff. 4-20-95.)
11 (40 ILCS 5/5-167.2) (from Ch. 108 1/2, par. 5-167.2)
12 Sec. 5-167.2. Retirement before September 1, 1967. A
13 retired policeman, qualifying for minimum annuity or who
14 retired from service with 20 or more years of service, before
15 September 1, 1967, shall, in January of the year following
16 the year he attains the age of 65, or in January of the year
17 1970, if then more than 65 years of age, have his then fixed
18 and payable monthly annuity increased by an amount equal to
19 2% of the original grant of annuity, for each year the
20 policeman was in receipt of annuity payments after the year
21 in which he attains, or did attain the age of 63. An
22 additional 2% increase in such then fixed and payable
23 original granted annuity shall accrue in each January
24 thereafter. Beginning January 1, 1986, the rate of such
25 increase shall be 3% instead of 2%. Beginning January 1,
26 2001, all annual increases under this paragraph shall be at
27 the rate of 3% of the current amount of the annuity,
28 including any previous increases granted under this Article.
29 The change made to this Section by this amendatory Act of the
30 91st General Assembly is not limited to persons in service on
31 or after its effective date.
32 The provisions of the preceding paragraph of this Section
33 apply only to a retired policeman eligible for such increases
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1 in his annuity who contributes to the Fund a sum equal to $5
2 for each full year of credited service upon which his annuity
3 was computed. All such sums contributed shall be placed in a
4 Supplementary Payment Reserve and shall be used for the
5 purposes of such Fund account.
6 Beginning with the monthly annuity payment due in July,
7 1982, the fixed and granted monthly annuity payment for any
8 policeman who retired from the service, before September 1,
9 1976, at age 50 or over with 20 or more years of service and
10 entitled to an annuity on January 1, 1974, shall be not less
11 than $400. It is the intent of the General Assembly that the
12 change made in this Section by this amendatory Act of 1982
13 shall apply retroactively to July 1, 1982.
14 Beginning with the monthly annuity payment due on January
15 1, 1986, the fixed and granted monthly annuity payment for
16 any policeman who retired from the service before January 1,
17 1986, at age 50 or over with 20 or more years of service, or
18 any policeman who retired from service due to termination of
19 disability and who is entitled to an annuity on January 1,
20 1986, shall be not less than $475.
21 Beginning with the monthly annuity payment due on January
22 1, 1992, the fixed and granted monthly annuity payment for
23 any policeman who retired from the service before January 1,
24 1992, at age 50 or over with 20 or more years of service, and
25 for any policeman who retired from service due to termination
26 of disability and who is entitled to an annuity on January 1,
27 1992, shall be not less than $650.
28 Beginning with the monthly annuity payment due on January
29 1, 1993, the fixed and granted monthly annuity payment for
30 any policeman who retired from the service before January 1,
31 1993, at age 50 or over with 20 or more years of service, and
32 for any policeman who retired from service due to termination
33 of disability and who is entitled to an annuity on January 1,
34 1993, shall be not less than $750.
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1 Beginning with the monthly annuity payment due on January
2 1, 1994, the fixed and granted monthly annuity payment for
3 any policeman who retired from the service before January 1,
4 1994, at age 50 or over with 20 or more years of service, and
5 for any policeman who retired from service due to termination
6 of disability and who is entitled to an annuity on January 1,
7 1994, shall be not less than $850.
8 The difference in amount between the original fixed and
9 granted monthly annuity of any such policeman on the date of
10 his retirement from the service and the monthly annuity
11 provided for in the immediately preceding paragraph shall be
12 paid as a supplement in the manner set forth in the
13 immediately following paragraph.
14 To defray the annual cost of the increases indicated in
15 the preceding part of this Section, the annual interest
16 income accruing from investments held by this Fund, exclusive
17 of gains or losses on sales or exchanges of assets during the
18 year, over and above 4% a year shall be used to the extent
19 necessary and available to finance the cost of such increases
20 for the following year and such amount shall be transferred
21 as of the end of each year beginning with the year 1969 to a
22 Fund account designated as the Supplementary Payment Reserve
23 from the Interest and Investment Reserve set forth in Section
24 5-207.
25 In the event the funds in the Supplementary Payment
26 Reserve in any year arising from: (1) the interest income
27 accruing in the preceding year above 4% a year and (2) the
28 contributions by retired persons are insufficient to make the
29 total payments to all persons entitled to the annuity
30 specified in this Section and (3) any interest earnings over
31 4% a year beginning with the year 1969 which were not
32 previously used to finance such increases and which were
33 transferred to the Prior Service Annuity Reserve, may be used
34 to the extent necessary and available to provide sufficient
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1 funds to finance such increases for the current year and such
2 sums shall be transferred from the Prior Service Annuity
3 Reserve. In the event the total money available in the
4 Supplementary Payment Reserve from such sources are
5 insufficient to make the total payments to all persons
6 entitled to such increases for the year, a proportionate
7 amount computed as the ratio of the money available to the
8 total of the total payments specified for that year shall be
9 paid to each person for that year.
10 The Fund shall be obligated for the payment of the
11 increases in annuity as provided for in this Section only to
12 the extent that the assets for such purpose are available.
13 (Source: P.A. 91-357, eff. 7-29-99.)
14 Section 90. The State Mandates Act is amended by adding
15 Section 8.24 as follows:
16 (30 ILCS 805/8.24 new)
17 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
18 and 8 of this Act, no reimbursement by the State is required
19 for the implementation of any mandate created by this
20 amendatory Act of the 91st General Assembly.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.