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| Public Act 103-0579
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| SB1629 Enrolled | LRB103 27800 RPS 54178 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by |
changing Section 6-229 as follows:
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(40 ILCS 5/6-229) |
Sec. 6-229. Provisions applicable to new hires; Tier 2. |
(a) Notwithstanding any other provision of this Article,
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the provisions of this Section apply to a person who first
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becomes a fireman under this Article on or after January 1, |
2011, and to certain qualified survivors of such a fireman. |
Such persons, and the benefits and restrictions that apply |
specifically to them under this Article, may be referred to as |
"Tier 2". |
(b) A fireman who has withdrawn from service, has attained |
age 50 or more, and has 10 or more years of service in that |
capacity shall be entitled, upon proper application being |
received by the Fund, to receive a Tier 2 monthly retirement |
annuity for his service as a fireman. The Tier 2 monthly |
retirement annuity shall be computed by multiplying 2.5% for |
each year of such service by his or her final average salary, |
subject to an annuity reduction factor of one-half of 1% for |
each month that the fireman's age at retirement is under age |
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55. The Tier 2 monthly retirement annuity is in lieu of any age |
and service annuity or other form of retirement annuity under |
this Article. |
The maximum retirement annuity under this subsection (b) |
shall be 75%
of final average salary. |
For the purposes of this subsection (b), "final average |
salary" means the greater of (1) the average monthly salary |
obtained by dividing the total salary of the fireman during |
the 96 consecutive months of service within the last 120 |
months of service in which the total salary was the highest by |
the number of months of service in that period or (2) the |
average monthly salary obtained by dividing the total salary |
of the fireman during the 48 consecutive months of service |
within the last 60 months of service in which the total salary |
was the highest by the number of months of service in that |
period. |
Beginning on January 1, 2011, for all purposes under
this |
Code (including without limitation the calculation of
benefits |
and employee contributions), the annual salary
based on the |
plan year of a member or participant to whom this Section |
applies shall not exceed $106,800; however, that amount shall |
annually thereafter be increased by the lesser of (i) 3% of |
that amount, including all previous adjustments, or (ii) |
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, including |
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all previous adjustments. |
(b-5) For the purposes of this Section, "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 retirement systems and pension funds by |
November 1 of each year. |
(c) Notwithstanding any other provision of this Article, |
for a person who first becomes a fireman under this Article on |
or after January 1, 2011, eligibility for and the amount of the |
annuity to which the qualified surviving spouse, children, and |
parents of the fireman are entitled under this subsection (c) |
shall be determined as follows: |
(1) The surviving spouse of a deceased fireman to whom |
this Section applies shall be deemed qualified to receive |
a Tier 2 surviving spouse's annuity under this paragraph |
(1) if: (i) the deceased fireman meets the requirements |
specified under subdivision (A), (B), (C), or (D) of this |
paragraph (1); and (ii) the surviving spouse would not |
otherwise be excluded from receiving a widow's annuity |
under the eligibility requirements for a widow's annuity |
set forth in Section 6-142. The Tier 2 surviving spouse's |
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annuity is in lieu of the widow's annuity determined under |
any other Section of this Article and is subject to the |
requirements of Section 6-143.2. |
As used in this subsection (c), "earned pension" means |
a Tier 2 monthly retirement annuity determined under |
subsection (b) of this Section, including any increases |
the fireman had received pursuant to Section 6-164. |
(A) If the deceased fireman was receiving an |
earned pension at the date of his or her death, the |
Tier 2 surviving spouse's annuity under this paragraph |
(1) shall be in the amount of 66 2/3% of the fireman's |
earned pension at the date of death. |
(B) If the deceased fireman was not receiving an |
earned pension but had at least 10 years of service at |
the time of death, the Tier 2 surviving spouse's |
annuity under this paragraph (1) shall be the greater |
of: (i) 30% of the salary attached to the rank of first
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class firefighter in the classified career service at
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the time of the fireman's death; or (ii) 66 2/3% of the |
Tier 2 monthly retirement annuity that the deceased |
fireman would have been eligible to receive under |
subsection (b) of this Section, based upon the actual |
service accrued through the day before the fireman's |
death, but determined as though the fireman was at |
least age 55 on the day before his or her death and |
retired on that day. |
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(C) If the deceased fireman was an active fireman |
with at least 1 1/2 but less than 10 years of service |
at the time of death, the Tier 2 surviving spouse's |
annuity under this paragraph (1) shall be in the |
amount of 30% of the salary attached to the rank of |
first
class firefighter in the classified career |
service at
the time of the fireman's death. |
(D) Notwithstanding subdivisions (A), (B), and (C) |
of this paragraph (1), if the performance of an act or |
acts of duty results directly in the death of a fireman |
subject to this Section, or prevents him from |
subsequently resuming active service in the fire |
department, then a surviving spouse who would |
otherwise meet the eligibility requirements for a |
death in the line of duty widow's annuity granted |
under Section 6-140 shall be deemed to be qualified |
for a Tier 2 surviving spouse's annuity under this |
subdivision (D); except that no such annuity shall be |
paid to the
surviving spouse of a fireman who dies |
while in
receipt of disability benefits when the |
fireman's
death was caused by an intervening illness |
or injury unrelated to the illness or injury that had |
prevented him from subsequently resuming active |
service in the fire department. The Tier 2 surviving |
spouse's annuity calculated under this subdivision (D) |
shall be in lieu
of, but in the same amount and paid in |
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the same manner
as, the widow's annuity provided under |
Section 6-140; except that the salary used for |
computing a Tier 2 surviving spouse's annuity under |
this subdivision (D) shall be subject to the Tier 2 |
salary cap provided under subsection (b) of this |
Section. |
(E) Notwithstanding any other provision of this |
Article, the monthly Tier 2 surviving spouse's annuity |
under subdivision (A) or (B) of this paragraph (1)
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shall be increased on the January 1 next occurring |
after (i) attainment of age 60 by the recipient of the |
Tier 2 surviving spouse's annuity or (ii) the first |
anniversary of the Tier 2 surviving spouse's annuity |
start date, whichever is later, and on
each January 1 |
thereafter, by 3% or one-half the annual unadjusted |
percentage increase in the consumer price index-u for |
the
12 months ending with September preceding each |
November 1, whichever is less, of the originally |
granted Tier 2 surviving spouse's 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.
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(F) Notwithstanding the other provisions of this |
paragraph (1), for a qualified surviving spouse who is |
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entitled to a Tier 2 surviving spouse's annuity under |
subdivision (A), (B), (C), or (D) of this paragraph |
(1), that Tier 2 surviving spouse's annuity shall not |
be less than the amount of the minimum widow's annuity |
established from time to time under Section 6-128.4. |
(2) Surviving children of a deceased fireman subject |
to this Section who would otherwise meet the eligibility |
requirements for a child's annuity set forth in Sections |
6-147 and 6-148 shall be deemed qualified to receive a |
Tier 2 child's annuity under this subsection (c), which |
shall be in lieu of, but in the same amount and paid in the |
same manner as, the child's annuity provided under those |
Sections; except that any salary used for computing a Tier |
2 child's annuity shall be subject to the Tier 2 salary cap |
provided under subsection (b) of this Section. For |
purposes of determining any pro rata reduction in child's |
annuities under this subsection (c), references in Section |
6-148 to the combined annuities of the family shall be |
deemed to refer to the combined Tier 2 surviving spouse's |
annuity, if any, and the Tier 2 child's annuities payable |
under this subsection (c). |
(3) Surviving parents of a deceased fireman subject to |
this Section who would otherwise meet the eligibility |
requirements for a parent's annuity set forth in Section |
6-149 shall be deemed qualified to receive a Tier 2 |
parent's annuity under this subsection (c), which shall be |
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in lieu of, but in the same amount and paid in the same |
manner as, the parent's annuity provided under Section |
6-149; except that any salary used for computing a Tier 2 |
parent's annuity shall be subject to the Tier 2 salary cap |
provided under subsection (b) of this Section. For the |
purposes of this Section, a reference to "annuity" in |
Section 6-149 includes: (i) in the context of a widow, a |
Tier 2 surviving spouse's annuity and (ii) in the context |
of a child, a Tier 2 child's annuity. |
(d) The General Assembly finds and declares that the |
provisions of this Section, as enacted by Public Act 96-1495, |
require clarification relating to necessary eligibility |
standards and the manner of determining and paying the |
intended Tier 2 benefits and contributions in order to enable |
the Fund to unambiguously implement and administer benefits |
for Tier 2 members. The changes to this Section and the |
conforming changes to Sections 6-150, 6-158, 6-164 (except for |
the changes to subsection (a) of that Section), 6-166, and |
6-167 made by this amendatory Act of the 99th
General Assembly |
are enacted to clarify the provisions of this Section as |
enacted by Public Act 96-1495, and are hereby declared to |
represent and be consistent with the original and continuing |
intent of this Section and Public Act 96-1495. |
(e) The changes to Sections 6-150, 6-158, 6-164 (except |
for the changes to subsection (a) of that Section), 6-166, and |
6-167 made by this amendatory Act of the 99th General Assembly |
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are intended to be retroactive to January 1, 2011 (the |
effective date of Public Act 96-1495) and, for the purposes of |
Section 1-103.1 of this Code, they apply without regard to |
whether the relevant fireman
was in service on or after the |
effective date of this amendatory Act of the 99th General |
Assembly. |
(Source: P.A. 99-905, eff. 11-29-16.)
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Section 90. The State Mandates Act is amended by adding |
Section 8.47 as follows:
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(30 ILCS 805/8.47 new) |
Sec. 8.47. 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 103rd General Assembly.
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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