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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1952 Introduced 2/9/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
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| 40 ILCS 5/6-229 | | 30 ILCS 805/8.47 new | |
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Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u (instead of the lesser of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u) for the 12 months ending with the September preceding each November 1, including all previous adjustments. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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| | | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY
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| | A BILL FOR |
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| | SB1952 | | LRB103 25057 RPS 51392 b |
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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 |
| 5 | | changing Section 6-229 as follows:
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| 6 | | (40 ILCS 5/6-229) |
| 7 | | Sec. 6-229. Provisions applicable to new hires; Tier 2. |
| 8 | | (a) Notwithstanding any other provision of this Article,
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| 9 | | the provisions of this Section apply to a person who first
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| 10 | | becomes a fireman under this Article on or after January 1, |
| 11 | | 2011, and to certain qualified survivors of such a fireman. |
| 12 | | Such persons, and the benefits and restrictions that apply |
| 13 | | specifically to them under this Article, may be referred to as |
| 14 | | "Tier 2". |
| 15 | | (b) A fireman who has withdrawn from service, has attained |
| 16 | | age 50 or more, and has 10 or more years of service in that |
| 17 | | capacity shall be entitled, upon proper application being |
| 18 | | received by the Fund, to receive a Tier 2 monthly retirement |
| 19 | | annuity for his service as a fireman. The Tier 2 monthly |
| 20 | | retirement annuity shall be computed by multiplying 2.5% for |
| 21 | | each year of such service by his or her final average salary, |
| 22 | | subject to an annuity reduction factor of one-half of 1% for |
| 23 | | each month that the fireman's age at retirement is under age |
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| | SB1952 | - 2 - | LRB103 25057 RPS 51392 b |
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| 1 | | 55. The Tier 2 monthly retirement annuity is in lieu of any age |
| 2 | | and service annuity or other form of retirement annuity under |
| 3 | | this Article. |
| 4 | | The maximum retirement annuity under this subsection (b) |
| 5 | | shall be 75%
of final average salary. |
| 6 | | For the purposes of this subsection (b), "final average |
| 7 | | salary" means the average monthly salary obtained by dividing |
| 8 | | the total salary of the fireman during the 96 consecutive |
| 9 | | months of service within the last 120 months of service in |
| 10 | | which the total salary was the highest by the number of months |
| 11 | | of service in that period. |
| 12 | | Beginning on January 1, 2011, for all purposes under
this |
| 13 | | Code (including without limitation the calculation of
benefits |
| 14 | | and employee contributions), the annual salary
based on the |
| 15 | | plan year of a member or participant to whom this Section |
| 16 | | applies shall not exceed $106,800; however, until 2023, that |
| 17 | | amount shall annually thereafter be increased by the lesser of |
| 18 | | (i) 3% of that amount, including all previous adjustments, or |
| 19 | | (ii) one-half the annual unadjusted percentage increase (but |
| 20 | | not less than zero) in the consumer price index-u for the 12 |
| 21 | | months ending with the September preceding each November 1, |
| 22 | | including all previous adjustments; however, beginning in |
| 23 | | 2024, that amount shall annually thereafter be increased by |
| 24 | | the annual unadjusted percentage increase (but not less than |
| 25 | | zero) in the consumer price index-u for the 12 months ending |
| 26 | | with the September preceding each November 1, including all |
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| | SB1952 | - 3 - | LRB103 25057 RPS 51392 b |
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| 1 | | previous adjustments. |
| 2 | | (b-5) For the purposes of this Section, "consumer price |
| 3 | | index-u" means the index published by the Bureau of Labor |
| 4 | | Statistics of the United States Department of Labor that |
| 5 | | measures the average change in prices of goods and services |
| 6 | | purchased by all urban consumers, United States city average, |
| 7 | | all items, 1982-84 = 100. The new amount resulting from each |
| 8 | | annual adjustment shall be determined by the Public Pension |
| 9 | | Division of the Department of Insurance and made available to |
| 10 | | the boards of the retirement systems and pension funds by |
| 11 | | November 1 of each year. |
| 12 | | (c) Notwithstanding any other provision of this Article, |
| 13 | | for a person who first becomes a fireman under this Article on |
| 14 | | or after January 1, 2011, eligibility for and the amount of the |
| 15 | | annuity to which the qualified surviving spouse, children, and |
| 16 | | parents of the fireman are entitled under this subsection (c) |
| 17 | | shall be determined as follows: |
| 18 | | (1) The surviving spouse of a deceased fireman to whom |
| 19 | | this Section applies shall be deemed qualified to receive |
| 20 | | a Tier 2 surviving spouse's annuity under this paragraph |
| 21 | | (1) if: (i) the deceased fireman meets the requirements |
| 22 | | specified under subdivision (A), (B), (C), or (D) of this |
| 23 | | paragraph (1); and (ii) the surviving spouse would not |
| 24 | | otherwise be excluded from receiving a widow's annuity |
| 25 | | under the eligibility requirements for a widow's annuity |
| 26 | | set forth in Section 6-142. The Tier 2 surviving spouse's |
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| | SB1952 | - 4 - | LRB103 25057 RPS 51392 b |
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| 1 | | annuity is in lieu of the widow's annuity determined under |
| 2 | | any other Section of this Article and is subject to the |
| 3 | | requirements of Section 6-143.2. |
| 4 | | As used in this subsection (c), "earned pension" means |
| 5 | | a Tier 2 monthly retirement annuity determined under |
| 6 | | subsection (b) of this Section, including any increases |
| 7 | | the fireman had received pursuant to Section 6-164. |
| 8 | | (A) If the deceased fireman was receiving an |
| 9 | | earned pension at the date of his or her death, the |
| 10 | | Tier 2 surviving spouse's annuity under this paragraph |
| 11 | | (1) shall be in the amount of 66 2/3% of the fireman's |
| 12 | | earned pension at the date of death. |
| 13 | | (B) If the deceased fireman was not receiving an |
| 14 | | earned pension but had at least 10 years of service at |
| 15 | | the time of death, the Tier 2 surviving spouse's |
| 16 | | annuity under this paragraph (1) shall be the greater |
| 17 | | of: (i) 30% of the salary attached to the rank of first
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| 18 | | class firefighter in the classified career service at
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| 19 | | the time of the fireman's death; or (ii) 66 2/3% of the |
| 20 | | Tier 2 monthly retirement annuity that the deceased |
| 21 | | fireman would have been eligible to receive under |
| 22 | | subsection (b) of this Section, based upon the actual |
| 23 | | service accrued through the day before the fireman's |
| 24 | | death, but determined as though the fireman was at |
| 25 | | least age 55 on the day before his or her death and |
| 26 | | retired on that day. |
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| | SB1952 | - 5 - | LRB103 25057 RPS 51392 b |
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| 1 | | (C) If the deceased fireman was an active fireman |
| 2 | | with at least 1 1/2 but less than 10 years of service |
| 3 | | at the time of death, the Tier 2 surviving spouse's |
| 4 | | annuity under this paragraph (1) shall be in the |
| 5 | | amount of 30% of the salary attached to the rank of |
| 6 | | first
class firefighter in the classified career |
| 7 | | service at
the time of the fireman's death. |
| 8 | | (D) Notwithstanding subdivisions (A), (B), and (C) |
| 9 | | of this paragraph (1), if the performance of an act or |
| 10 | | acts of duty results directly in the death of a fireman |
| 11 | | subject to this Section, or prevents him from |
| 12 | | subsequently resuming active service in the fire |
| 13 | | department, then a surviving spouse who would |
| 14 | | otherwise meet the eligibility requirements for a |
| 15 | | death in the line of duty widow's annuity granted |
| 16 | | under Section 6-140 shall be deemed to be qualified |
| 17 | | for a Tier 2 surviving spouse's annuity under this |
| 18 | | subdivision (D); except that no such annuity shall be |
| 19 | | paid to the
surviving spouse of a fireman who dies |
| 20 | | while in
receipt of disability benefits when the |
| 21 | | fireman's
death was caused by an intervening illness |
| 22 | | or injury unrelated to the illness or injury that had |
| 23 | | prevented him from subsequently resuming active |
| 24 | | service in the fire department. The Tier 2 surviving |
| 25 | | spouse's annuity calculated under this subdivision (D) |
| 26 | | shall be in lieu
of, but in the same amount and paid in |
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| 1 | | the same manner
as, the widow's annuity provided under |
| 2 | | Section 6-140; except that the salary used for |
| 3 | | computing a Tier 2 surviving spouse's annuity under |
| 4 | | this subdivision (D) shall be subject to the Tier 2 |
| 5 | | salary cap provided under subsection (b) of this |
| 6 | | Section. |
| 7 | | (E) Notwithstanding any other provision of this |
| 8 | | Article, the monthly Tier 2 surviving spouse's annuity |
| 9 | | under subdivision (A) or (B) of this paragraph (1)
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| 10 | | shall be increased on the January 1 next occurring |
| 11 | | after (i) attainment of age 60 by the recipient of the |
| 12 | | Tier 2 surviving spouse's annuity or (ii) the first |
| 13 | | anniversary of the Tier 2 surviving spouse's annuity |
| 14 | | start date, whichever is later, and on
each January 1 |
| 15 | | thereafter, by 3% or one-half the annual unadjusted |
| 16 | | percentage increase in the consumer price index-u for |
| 17 | | the
12 months ending with September preceding each |
| 18 | | November 1, whichever is less, of the originally |
| 19 | | granted Tier 2 surviving spouse's annuity. If the |
| 20 | | annual unadjusted percentage change in
the consumer |
| 21 | | price index-u for a 12-month period ending in |
| 22 | | September is zero or, when compared with the preceding |
| 23 | | period, decreases, then the annuity shall not
be |
| 24 | | increased.
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| 25 | | (F) Notwithstanding the other provisions of this |
| 26 | | paragraph (1), for a qualified surviving spouse who is |
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| 1 | | entitled to a Tier 2 surviving spouse's annuity under |
| 2 | | subdivision (A), (B), (C), or (D) of this paragraph |
| 3 | | (1), that Tier 2 surviving spouse's annuity shall not |
| 4 | | be less than the amount of the minimum widow's annuity |
| 5 | | established from time to time under Section 6-128.4. |
| 6 | | (2) Surviving children of a deceased fireman subject |
| 7 | | to this Section who would otherwise meet the eligibility |
| 8 | | requirements for a child's annuity set forth in Sections |
| 9 | | 6-147 and 6-148 shall be deemed qualified to receive a |
| 10 | | Tier 2 child's annuity under this subsection (c), which |
| 11 | | shall be in lieu of, but in the same amount and paid in the |
| 12 | | same manner as, the child's annuity provided under those |
| 13 | | Sections; except that any salary used for computing a Tier |
| 14 | | 2 child's annuity shall be subject to the Tier 2 salary cap |
| 15 | | provided under subsection (b) of this Section. For |
| 16 | | purposes of determining any pro rata reduction in child's |
| 17 | | annuities under this subsection (c), references in Section |
| 18 | | 6-148 to the combined annuities of the family shall be |
| 19 | | deemed to refer to the combined Tier 2 surviving spouse's |
| 20 | | annuity, if any, and the Tier 2 child's annuities payable |
| 21 | | under this subsection (c). |
| 22 | | (3) Surviving parents of a deceased fireman subject to |
| 23 | | this Section who would otherwise meet the eligibility |
| 24 | | requirements for a parent's annuity set forth in Section |
| 25 | | 6-149 shall be deemed qualified to receive a Tier 2 |
| 26 | | parent's annuity under this subsection (c), which shall be |
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| 1 | | in lieu of, but in the same amount and paid in the same |
| 2 | | manner as, the parent's annuity provided under Section |
| 3 | | 6-149; except that any salary used for computing a Tier 2 |
| 4 | | parent's annuity shall be subject to the Tier 2 salary cap |
| 5 | | provided under subsection (b) of this Section. For the |
| 6 | | purposes of this Section, a reference to "annuity" in |
| 7 | | Section 6-149 includes: (i) in the context of a widow, a |
| 8 | | Tier 2 surviving spouse's annuity and (ii) in the context |
| 9 | | of a child, a Tier 2 child's annuity. |
| 10 | | (d) The General Assembly finds and declares that the |
| 11 | | provisions of this Section, as enacted by Public Act 96-1495, |
| 12 | | require clarification relating to necessary eligibility |
| 13 | | standards and the manner of determining and paying the |
| 14 | | intended Tier 2 benefits and contributions in order to enable |
| 15 | | the Fund to unambiguously implement and administer benefits |
| 16 | | for Tier 2 members. The changes to this Section and the |
| 17 | | conforming changes to Sections 6-150, 6-158, 6-164 (except for |
| 18 | | the changes to subsection (a) of that Section), 6-166, and |
| 19 | | 6-167 made by this amendatory Act of the 99th
General Assembly |
| 20 | | are enacted to clarify the provisions of this Section as |
| 21 | | enacted by Public Act 96-1495, and are hereby declared to |
| 22 | | represent and be consistent with the original and continuing |
| 23 | | intent of this Section and Public Act 96-1495. |
| 24 | | (e) The changes to Sections 6-150, 6-158, 6-164 (except |
| 25 | | for the changes to subsection (a) of that Section), 6-166, and |
| 26 | | 6-167 made by this amendatory Act of the 99th General Assembly |
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| | SB1952 | - 9 - | LRB103 25057 RPS 51392 b |
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| 1 | | are intended to be retroactive to January 1, 2011 (the |
| 2 | | effective date of Public Act 96-1495) and, for the purposes of |
| 3 | | Section 1-103.1 of this Code, they apply without regard to |
| 4 | | whether the relevant fireman
was in service on or after the |
| 5 | | effective date of this amendatory Act of the 99th General |
| 6 | | Assembly. |
| 7 | | (Source: P.A. 99-905, eff. 11-29-16.)
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| 8 | | Section 90. The State Mandates Act is amended by adding |
| 9 | | Section 8.47 as follows:
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| 10 | | (30 ILCS 805/8.47 new) |
| 11 | | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and |
| 12 | | 8 of this Act, no reimbursement by the State is required for |
| 13 | | the implementation of any mandate created by this amendatory |
| 14 | | Act of the 103rd General Assembly.
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| 15 | | Section 99. Effective date. This Act takes effect upon |
| 16 | | becoming law.
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