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









 











HB1297

LRB096 06173 AMC 16255 b






1
 AN ACT in relation to public employee benefits. 


2
 Be it enacted by the People of the State of Illinois, 
3
represented in the General Assembly: 



4
 Section 5. The Illinois Pension Code is amended by changing 
5
Section 5-132
as follows:






6
 (40 ILCS 5/5-132)
 (from Ch. 108 1/2, par. 5-132)


7
 Sec. 5-132. Minimum annuity. 
8
 (1) Any policeman who withdraws on or after
July 8, 1957, 
9
or any policeman
transferred to the police service of the city 
10
under the Exchange of
Functions Act of 1957 who withdraws on or 
11
after July 17, 1959, after
completing at least 20 years of 
12
service, for whom the
annuity otherwise provided in this 
13
Article is less than that stated in this
Section has a right to 
14
receive annuity as follows:

15
  (a) If he is age 55 or more on withdrawal, his annuity 
16
 after such
withdrawal, shall be equal to 2% of the average 
17
 salary for 4 consecutive
years of highest salaries within 
18
 the last 10 years of service before
withdrawal, for each 
19
 year of service, together with 1/6 of 1% of such
average 
20
 salary for each complete month of service of each 
21
 fractional year,
but not in excess of 75% of the average 
22
 annual salary.

23
  (b) If he is age 50 or more but less than age 55 on 
 


 






HB1297
- 2 -
LRB096 06173 AMC 16255 b





1
 withdrawal, his
annuity shall be equal to 2% of the average 
2
 salary for the 4 highest
consecutive years of the last 10 
3
 years of service for each year of service,
together with 
4
 1/16 of 1% of such average salary for each month of each

5
 fractional year of service, reduced by 1/2 of 1% for each 
6
 month that he is
less than age 55.

7
  (c) If he is less than age 50 on withdrawal, he may, 
8
 upon attainment of
age 50 or over, become entitled to the 
9
 annuity provided in this Section or,
he may, upon 
10
 application before age 50, receive a refund of the 
11
 deductions
from salary, plus interest at 1 1/2% per annum 
12
 if he is entitled to refund
under Section 5-163.

13
  (d) In lieu of the annuity provided in the foregoing 
14
 provisions of this
Section 5-132 any policeman who 
15
 withdraws from the service after December
31, 1973, after 
16
 having attained age 53 in the service with
23 or more years 
17
 of service credit shall be entitled to an
annuity computed 
18
 as follows if such annuity is greater than that provided
in 
19
 the foregoing paragraphs of this Section 5-132: An annuity 
20
 equal to
50% of the average salary for the 4
highest 
21
 consecutive years of the last 10 years of service plus

22
 additional annuity equal to 2% of such average salary for 
23
 each completed
year of service or fraction
thereof rendered 
24
 after his attainment of age 53 and the completion
of 23 
25
 years of service.

26
  Any policeman who has completed 23 years of service 
 


 






HB1297
- 3 -
LRB096 06173 AMC 16255 b





1
 prior to
his attainment of age 53 in the service and 
2
 continues in the
service until his attainment of age 53 
3
 shall have added to his
annuity, computed as provided in 
4
 the immediately preceding paragraph, an
additional annuity 
5
 equal to 1% of such average salary for each
completed year 
6
 of service or fraction thereof in excess of 23
years up to 
7
 age 53.

8
  (e) In lieu of the annuity provided in the foregoing 
9
 provisions of this
Section any policeman who withdraws from 
10
 the service either (i) after
December 31, 1983 with at 
11
 least 22 years of service credit and having
attained age 52 
12
 in the service, or (ii) after December 31, 1984 with at

13
 least 21 years of service credit and having attained age 51 
14
 in the service,
or (iii) after December 31, 1985 with at 
15
 least 20 years of service credit
and having attained age 50 
16
 in the service, or (iv) after December 31,
1990, with at 
17
 least 20 years of service credit regardless of age, shall

18
 be entitled to an annuity to begin not earlier than upon 
19
 attainment of
age 50 if under such age at withdrawal, 
20
 computed as follows: an annuity
equal to 50% of the average 
21
 salary for the 4 highest consecutive years of the
last 10 
22
 years of service, plus additional annuity equal to 2% of 
23
 such average
salary for each completed year of service or 
24
 fraction thereof rendered after
his completion of the 
25
 minimum number of years of service required for him to be

26
 eligible under this subsection (e). In lieu of any annuity 
 


 






HB1297
- 4 -
LRB096 06173 AMC 16255 b





1
 provided in the
foregoing provisions of this Section, any 
2
 policeman who withdraws from the
service after December 31, 
3
 2003, with at least 20 years of service credit
regardless 
4
 of age, shall be entitled to an annuity to begin not 
5
 earlier than
upon attainment of age 50, if under that age 
6
 at withdrawal, equal to 2.5% of
the average salary for the 
7
 4 highest consecutive years of the last 10 years of
service 
8
 for each completed year of service or fraction thereof. 
9
 However,
the annuity provided under this subsection (e) may 
10
 not exceed 75% of such
average salary.

11
 (2)
(f) A policeman withdrawing after September 1, 1969, 
12
may, in addition, be
entitled to the benefits provided by 
13
Section 5-167.1 of this Article if he
so qualifies under that 
14
Section.

15
 (3) If, on withdrawal, total service is less than 20 years, 
16
the policeman
shall not be entitled to an annuity under this 
17
Section but may receive an
annuity under the other provisions 
18
of this Article or, if entitled thereto
under Section 5--163, a 
19
refund of the deductions from salary, including, in
the case of 
20
policemen transferred to the police service of the city under

21
the Exchange of Functions Act of 1957, the additional 
22
contribution paid on
salary received from August 1, 1957, to 
23
July 17, 1959, as provided in the
Park Policemen's Annuity Act, 
24
together with interest at 1 1/2% per annum.

25
 Moneys voluntarily contributed under the Policemen's 
26
Annuity and Benefit
Fund Act of the Illinois Municipal Code, or 
 


 






HB1297
- 5 -
LRB096 06173 AMC 16255 b





1
the Park Policemen's Annuity
Act, shall be refunded to the 
2
contributing policemen who were in service on
January 1, 1954, 
3
or in the case of policemen transferred to the police
service 
4
of the city under the Exchange of Functions Act of 1957, who 
5
were
in service on July 17, 1959.

6
 The age and service annuity formula in this Section shall 
7
not apply to
any policeman who, having retired before July 8, 
8
1957, or before July 17,
1959, in the case of a policeman 
9
transferred under the provisions of the
Exchange of Functions 
10
Act of 1957, re-enters the police service after such
dates, 
11
whichever are applicable.

12
 (4) For the purpose of this Section, "average salary" 
13
means:

14
  (a) for a policeman withdrawing from service before 
15
 January 1, 2010,
the average of the highest 4 consecutive 
16
 years of salary within the last 10
years of service; and

17
  (b) for a policeman withdrawing from service on or 
18
 after January 1,
2010, the average of the highest 36 
19
 consecutive months of salary within the
last 10 years of 
20
 service.

21
(Source: P.A. 93-654, eff. 1-16-04.)



22
 Section 90. The State Mandates Act is amended by adding 
23
Section 8.33 as follows:

24
 (30 ILCS 805/8.33 new)
 


 






HB1297
- 6 -
LRB096 06173 AMC 16255 b





1
 Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 
2
of this Act, no reimbursement by the State is required for the 
3
implementation of any mandate created by this amendatory Act of 
4
the 96th General Assembly.

5
 Section 99. Effective date. This Act takes effect upon 
6