Bill Text: IL HB3376 | 2011-2012 | 97th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Chicago Police Article of the Illinois Pension Code. Makes changes concerning annual increases to the monthly annuities of persons who first become a policeman on or after the effective date of the amendatory Act and deletes repetitive language concerning annual increases in survivor's annuities for new hires. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2011-08-12 - Public Act . . . . . . . . . 97-0344 [HB3376 Detail]
Download: Illinois-2011-HB3376-Introduced.html
Bill Title: Amends the Chicago Police Article of the Illinois Pension Code. Makes changes concerning annual increases to the monthly annuities of persons who first become a policeman on or after the effective date of the amendatory Act and deletes repetitive language concerning annual increases in survivor's annuities for new hires. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2011-08-12 - Public Act . . . . . . . . . 97-0344 [HB3376 Detail]
Download: Illinois-2011-HB3376-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Section 5-167.1 as follows:
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6 | (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
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7 | Sec. 5-167.1. Automatic increase in annuity; retirement | ||||||||||||||||||||||||
8 | from service
after September 1, 1967. | ||||||||||||||||||||||||
9 | (a) A policeman who retires from service after September 1, | ||||||||||||||||||||||||
10 | 1967
with at least 20 years of service credit shall, upon | ||||||||||||||||||||||||
11 | either the first
of the month following the first anniversary | ||||||||||||||||||||||||
12 | of his date of retirement
if he is age 60 (age 55 if born before | ||||||||||||||||||||||||
13 | January 1, 1955)
or over on that anniversary date, or upon the | ||||||||||||||||||||||||
14 | first of the month following
his attainment of age 60 (age 55 | ||||||||||||||||||||||||
15 | if born before January 1, 1955)
if it occurs after the first | ||||||||||||||||||||||||
16 | anniversary of his retirement date, have his
then fixed and | ||||||||||||||||||||||||
17 | payable monthly annuity increased by 1 1/2% and such first
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18 | fixed annuity as granted at retirement increased by an | ||||||||||||||||||||||||
19 | additional 1 1/2% in
January of each year thereafter up to a | ||||||||||||||||||||||||
20 | maximum increase of 30%. Beginning
January 1, 1983 for | ||||||||||||||||||||||||
21 | policemen born before January 1, 1930, and beginning
January 1, | ||||||||||||||||||||||||
22 | 1988 for policemen born on or after January 1, 1930 but before
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23 | January 1, 1940, and beginning January 1, 1996 for policemen |
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1 | born on or after
January 1, 1940 but before January 1, 1945, | ||||||
2 | and beginning January 1, 2000
for policemen born on or after | ||||||
3 | January 1, 1945 but before January 1, 1950, and beginning | ||||||
4 | January 1, 2005
for policemen born on or after January 1, 1950 | ||||||
5 | but before January 1, 1955,
such increases shall be 3% and such | ||||||
6 | policemen shall not be subject to the
30% maximum increase.
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7 | Any policeman born before January 1, 1945 who qualifies for | ||||||
8 | a minimum
annuity and retires after September 1, 1967 but has | ||||||
9 | not received the initial
increase under this subsection before | ||||||
10 | January 1, 1996 is entitled to receive
the initial increase | ||||||
11 | under this subsection on (1) January 1, 1996, (2) the
first | ||||||
12 | anniversary of the date of retirement, or (3) attainment of age | ||||||
13 | 55,
whichever occurs last. The changes to this Section made by | ||||||
14 | Public Act
89-12 apply beginning January 1, 1996 and
without | ||||||
15 | regard to whether the policeman or annuitant terminated service | ||||||
16 | before
the effective date of that Act.
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17 | Any policeman born before January 1, 1950 who qualifies for | ||||||
18 | a minimum
annuity and retires after September 1, 1967 but has | ||||||
19 | not received the initial
increase under this subsection before | ||||||
20 | January 1, 2000 is entitled to receive
the initial increase | ||||||
21 | under this subsection on (1) January 1, 2000, (2) the
first | ||||||
22 | anniversary of the date of retirement, or (3) attainment of age | ||||||
23 | 55,
whichever occurs last. The changes to this Section made by | ||||||
24 | this amendatory
Act of the 92nd General Assembly apply without | ||||||
25 | regard to whether the policeman
or annuitant terminated service | ||||||
26 | before the effective date of this amendatory
Act.
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1 | Any policeman born before January 1, 1955 who qualifies for | ||||||
2 | a minimum
annuity and retires after September 1, 1967 but has | ||||||
3 | not received the initial
increase under this subsection before | ||||||
4 | January 1, 2005 is entitled to receive
the initial increase | ||||||
5 | under this subsection on (1) January 1, 2005, (2) the
first | ||||||
6 | anniversary of the date of retirement, or (3) attainment of age | ||||||
7 | 55,
whichever occurs last. The changes to this Section made by | ||||||
8 | this amendatory
Act of the 94th General Assembly apply without | ||||||
9 | regard to whether the policeman
or annuitant terminated service | ||||||
10 | before the effective date of this amendatory
Act.
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11 | (b) Subsection (a) of this Section is
not applicable to an | ||||||
12 | employee receiving a term annuity.
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13 | (c) To help defray the cost of such increases in annuity, | ||||||
14 | there shall
be deducted, beginning September 1, 1967, from each | ||||||
15 | payment of salary to a
policeman, 1/2 of 1% of each salary | ||||||
16 | payment concurrently with and in addition
to the salary | ||||||
17 | deductions otherwise made for annuity purposes.
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18 | The city, in addition to the contributions otherwise made | ||||||
19 | by it for
annuity purposes under other provisions of this | ||||||
20 | Article, shall make
matching contributions concurrently with | ||||||
21 | such salary deductions.
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22 | Each such 1/2 of 1% deduction from salary and each such | ||||||
23 | contribution
by the city of 1/2 of 1% of salary shall be | ||||||
24 | credited to the Automatic
Increase Reserve, to be used to | ||||||
25 | defray the cost of the 1 1/2% annuity
increase provided by this | ||||||
26 | Section. Any balance in such reserve as of the
beginning of |
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1 | each calendar year shall be credited with interest at the
rate | ||||||
2 | of 3% per annum.
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3 | Such deductions from salary and city contributions shall | ||||||
4 | continue
while the policeman is in service.
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5 | The salary deductions provided in this Section are not | ||||||
6 | subject to
refund, except to the policeman himself, in any case | ||||||
7 | in which a
policeman withdraws prior to qualification for | ||||||
8 | minimum annuity and
applies for refund or applies for annuity, | ||||||
9 | and also where a term annuity
becomes payable. In such cases, | ||||||
10 | the total of such salary deductions
shall be refunded to the | ||||||
11 | policeman, without interest, and charged to the
Automatic | ||||||
12 | Increase Reserve.
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13 | (d) Notwithstanding any other provision of this Article, | ||||||
14 | the monthly annuity of a
person who first becomes a policeman | ||||||
15 | under this Article on or after the effective date of this | ||||||
16 | amendatory Act of the 97th General Assembly shall be increased | ||||||
17 | on the January 1 occurring either on or after the attainment of | ||||||
18 | age 60 or the first anniversary of the annuity start date, | ||||||
19 | whichever is later. Each annual increase shall be calculated at | ||||||
20 | 3% or one-half the annual unadjusted percentage increase (but | ||||||
21 | not less than zero) in the consumer price index-u for the 12 | ||||||
22 | months ending with the September preceding each November 1, | ||||||
23 | whichever is less, of the originally granted retirement | ||||||
24 | annuity. If the annual unadjusted percentage change in the | ||||||
25 | consumer price index-u for a 12-month period ending in | ||||||
26 | September is zero or, when compared with the preceding period, |
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1 | decreases, then the annuity shall not be increased. | ||||||
2 | Notwithstanding any other provision of this Article, for a | ||||||
3 | person who first becomes a policeman under this Article on or | ||||||
4 | after January 1, 2011, the annuity to which the survivor is | ||||||
5 | entitled under this subsection (d) shall be in the amount of 66 | ||||||
6 | 2/3% of the policeman's earned annuity at the date of death. | ||||||
7 | Nothing in this subsection (d) shall act to diminish the | ||||||
8 | survivor's
benefits described in this Section. | ||||||
9 | Notwithstanding any other provision of this Article, the | ||||||
10 | monthly annuity
of a survivor of a person who first becomes a | ||||||
11 | policeman under this Article on or after January 1, 2011 shall | ||||||
12 | be increased on the January 1 after attainment of age 60 by the | ||||||
13 | recipient of the survivor's annuity and
each January 1 | ||||||
14 | thereafter by 3% or one-half the annual unadjusted percentage | ||||||
15 | increase (but not less than zero) in the consumer price index-u | ||||||
16 | for the
12 months ending with the September preceding each | ||||||
17 | November 1, whichever is less, of the originally granted | ||||||
18 | annuity. If the annual unadjusted percentage change in
the | ||||||
19 | consumer price index-u for a 12-month period ending in | ||||||
20 | September is zero or, when compared with the preceding period, | ||||||
21 | decreases, then the annuity shall not
be increased. | ||||||
22 | For the purposes of this subsection (d), "consumer price | ||||||
23 | index-u" means the index published by the Bureau of Labor | ||||||
24 | Statistics of the United States Department of Labor that | ||||||
25 | measures the average change in prices of goods and services | ||||||
26 | purchased by all urban consumers, United States city average, |
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1 | all items, 1982-84 = 100. The new amount resulting from each | ||||||
2 | annual adjustment shall be determined by the Public Pension | ||||||
3 | Division of the Department of Insurance and made available to | ||||||
4 | the boards of the pension funds. | ||||||
5 | (Source: P.A. 96-1495, eff. 1-1-11.)
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6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.
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