Bill Text: IL HB1297 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Chicago Police Article of the Illinois Pension Code to base retirement benefits on the highest 36 months, rather than 4 years, of salary within the last 10 years of service, for persons retiring on or after January 1, 2010. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB1297 Detail]

Download: Illinois-2009-HB1297-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB1297 Introduced 2/18/2009, by Rep. Kevin Joyce SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-132 from Ch. 108 1/2, par. 5-132
30 ILCS 805/8.33 new
Amends the Chicago Police Article of the Illinois Pension Code to base retirement benefits on the highest 36 months, rather than 4 years, of salary within the last 10 years of service, for persons retiring on or after January 1, 2010. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB096 06173 AMC 16255 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
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AN ACT in relation to 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 5-132 as follows:
(40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
Sec. 5-132. Minimum annuity.
(1) Any policeman who withdraws on or after July 8, 1957,
or any policeman transferred to the police service of the city
under the Exchange of Functions Act of 1957 who withdraws on or
after July 17, 1959, after completing at least 20 years of
service, for whom the annuity otherwise provided in this
Article is less than that stated in this Section has a right to
receive annuity as follows:
(a) If he is age 55 or more on withdrawal, his annuity
after such withdrawal, shall be equal to 2% of the average
salary for 4 consecutive years of highest salaries within
the last 10 years of service before withdrawal, for each
year of service, together with 1/6 of 1% of such average
salary for each complete month of service of each
fractional year, but not in excess of 75% of the average
annual salary.
(b) If he is age 50 or more but less than age 55 on

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withdrawal, his annuity shall be equal to 2% of the average
salary for the 4 highest consecutive years of the last 10
years of service for each year of service, together with
1/16 of 1% of such average salary for each month of each
fractional year of service, reduced by 1/2 of 1% for each
month that he is less than age 55.
(c) If he is less than age 50 on withdrawal, he may,
upon attainment of age 50 or over, become entitled to the
annuity provided in this Section or, he may, upon
application before age 50, receive a refund of the
deductions from salary, plus interest at 1 1/2% per annum
if he is entitled to refund under Section 5-163.
(d) In lieu of the annuity provided in the foregoing
provisions of this Section 5-132 any policeman who
withdraws from the service after December 31, 1973, after
having attained age 53 in the service with 23 or more years
of service credit shall be entitled to an annuity computed
as follows if such annuity is greater than that provided in
the foregoing paragraphs of this Section 5-132: An annuity
equal to 50% of the average salary for the 4 highest
consecutive years of the last 10 years of service plus
additional annuity equal to 2% of such average salary for
each completed year of service or fraction thereof rendered
after his attainment of age 53 and the completion of 23
years of service.
Any policeman who has completed 23 years of service

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prior to his attainment of age 53 in the service and
continues in the service until his attainment of age 53
shall have added to his annuity, computed as provided in
the immediately preceding paragraph, an additional annuity
equal to 1% of such average salary for each completed year
of service or fraction thereof in excess of 23 years up to
age 53.
(e) In lieu of the annuity provided in the foregoing
provisions of this Section any policeman who withdraws from
the service either (i) after December 31, 1983 with at
least 22 years of service credit and having attained age 52
in the service, or (ii) after December 31, 1984 with at
least 21 years of service credit and having attained age 51
in the service, or (iii) after December 31, 1985 with at
least 20 years of service credit and having attained age 50
in the service, or (iv) after December 31, 1990, with at
least 20 years of service credit regardless of age, shall
be entitled to an annuity to begin not earlier than upon
attainment of age 50 if under such age at withdrawal,
computed as follows: an annuity equal to 50% of the average
salary for the 4 highest consecutive years of the last 10
years of service, plus additional annuity equal to 2% of
such average salary for each completed year of service or
fraction thereof rendered after his completion of the
minimum number of years of service required for him to be
eligible under this subsection (e). In lieu of any annuity

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provided in the foregoing provisions of this Section, any
policeman who withdraws from the service after December 31,
2003, with at least 20 years of service credit regardless
of age, shall be entitled to an annuity to begin not
earlier than upon attainment of age 50, if under that age
at withdrawal, equal to 2.5% of the average salary for the
4 highest consecutive years of the last 10 years of service
for each completed year of service or fraction thereof.
However, the annuity provided under this subsection (e) may
not exceed 75% of such average salary.
(2) (f) A policeman withdrawing after September 1, 1969,
may, in addition, be entitled to the benefits provided by
Section 5-167.1 of this Article if he so qualifies under that
Section.
(3) If, on withdrawal, total service is less than 20 years,
the policeman shall not be entitled to an annuity under this
Section but may receive an annuity under the other provisions
of this Article or, if entitled thereto under Section 5--163, a
refund of the deductions from salary, including, in the case of
policemen transferred to the police service of the city under
the Exchange of Functions Act of 1957, the additional
contribution paid on salary received from August 1, 1957, to
July 17, 1959, as provided in the Park Policemen's Annuity Act,
together with interest at 1 1/2% per annum.
Moneys voluntarily contributed under the Policemen's
Annuity and Benefit Fund Act of the Illinois Municipal Code, or

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the Park Policemen's Annuity Act, shall be refunded to the
contributing policemen who were in service on January 1, 1954,
or in the case of policemen transferred to the police service
of the city under the Exchange of Functions Act of 1957, who
were in service on July 17, 1959.
The age and service annuity formula in this Section shall
not apply to any policeman who, having retired before July 8,
1957, or before July 17, 1959, in the case of a policeman
transferred under the provisions of the Exchange of Functions
Act of 1957, re-enters the police service after such dates,
whichever are applicable.
(4) For the purpose of this Section, "average salary"
means:
(a) for a policeman withdrawing from service before
January 1, 2010, the average of the highest 4 consecutive
years of salary within the last 10 years of service; and
(b) for a policeman withdrawing from service on or
after January 1, 2010, the average of the highest 36
consecutive months of salary within the last 10 years of
service.
(Source: P.A. 93-654, eff. 1-16-04.)
Section 90. The State Mandates Act is amended by adding
Section 8.33 as follows:
(30 ILCS 805/8.33 new)

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Sec. 8.33. 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 96th General Assembly.
Section 99. Effective date. This Act takes effect upon