Bill Text: IL SB3614 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Chicago Police and Chicago Firefighter Articles of the Illinois Pension Code. Provides that the Tier 2 monthly retirement annuity shall be increased on the January 1 occurring either on or after (i) the attainment of age 55 (instead of age 60) or (ii) the first anniversary of the annuity start date, whichever is later. Provides that each annual increase shall be calculated at 3% (instead of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u, whichever is less) of the originally granted retirement annuity. In a provision specifying an annuity reduction factor for each year a retiring Tier 2 policeman or fireman is under the age of 55, provides that the retirement annuity of a policeman or fireman who is retiring after attaining age 50 with 20 or more years of service shall not be reduced. Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [SB3614 Detail]

Download: Illinois-2023-SB3614-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3614 Introduced 2/9/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
40 ILCS 5/5-238
40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164
40 ILCS 5/6-229
30 ILCS 805/8.48 new
Amends the Chicago Police and Chicago Firefighter Articles of the Illinois Pension Code. Provides that the Tier 2 monthly retirement annuity shall be increased on the January 1 occurring either on or after (i) the attainment of age 55 (instead of age 60) or (ii) the first anniversary of the annuity start date, whichever is later. Provides that each annual increase shall be calculated at 3% (instead of 3% or one-half the annual unadjusted percentage increase in the consumer price index-u, whichever is less) of the originally granted retirement annuity. In a provision specifying an annuity reduction factor for each year a retiring Tier 2 policeman or fireman is under the age of 55, provides that the retirement annuity of a policeman or fireman who is retiring after attaining age 50 with 20 or more years of service shall not be reduced. Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement.
LRB103 38585 RPS 68721 b
A BILL FOR
SB3614 LRB103 38585 RPS 68721 b
AN ACT concerning 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 Sections 5-167.1, 5-238, 6-229, and 6-164 as follows:
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
Sec. 5-167.1. Automatic increase in annuity; retirement
from service after September 1, 1967.
(a) A policeman who retires from service after September
1, 1967 with at least 20 years of service credit shall, upon
either the first of the month following the first anniversary
of his date of retirement if he is age 55 or over on that
anniversary date, or upon the first of the month following his
attainment of age 55 if it occurs after the first anniversary
of his retirement date, have his then fixed and payable
monthly annuity increased by 3% and such first fixed annuity
as granted at retirement increased by an additional 3% in
January of each year thereafter.
Any policeman born before January 1, 1945 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 1996 is entitled to receive the initial
increase under this subsection on (1) January 1, 1996, (2) the

SB3614 - 2 - LRB103 38585 RPS 68721 b
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by Public Act 89-12 apply beginning January 1, 1996 and
without regard to whether the policeman or annuitant
terminated service before the effective date of that Act.
Any policeman born before January 1, 1950 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2000 is entitled to receive the initial
increase under this subsection on (1) January 1, 2000, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 92nd General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1955 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2005 is entitled to receive the initial
increase under this subsection on (1) January 1, 2005, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 94th General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this

SB3614 - 3 - LRB103 38585 RPS 68721 b
amendatory Act.
Any policeman born before January 1, 1966 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2017 is entitled to receive an initial
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to 3% for
each complete year following the date of retirement or
attainment of age 55, whichever occurs later. The changes to
this subsection made by this amendatory Act of the 99th
General Assembly apply without regard to whether the policeman
or annuitant terminated service before the effective date of
this amendatory Act.
Any policeman born on or after January 1, 1966 who
qualifies for a minimum annuity and retires after September 1,
1967 but has not received the initial increase under this
subsection before January 1, 2023 is entitled to receive the
initial increase under this subsection on (1) January 1, 2023,
(2) the first anniversary of the date of retirement, or (3)
attainment of age 55, whichever occurs last. The changes to
this Section made by this amendatory Act of the 103rd General
Assembly apply without regard to whether the policeman or
annuitant terminated service before the effective date of this
amendatory Act of the 103rd General Assembly.
(b) Subsection (a) of this Section is not applicable to an

SB3614 - 4 - LRB103 38585 RPS 68721 b
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1967, from
each payment of salary to a policeman, 1/2 of 1% of each salary
payment concurrently with and in addition to the salary
deductions otherwise made for annuity purposes.
The city, in addition to the contributions otherwise made
by it for annuity purposes under other provisions of this
Article, shall make matching contributions concurrently with
such salary deductions.
Each such 1/2 of 1% deduction from salary and each such
contribution by the city of 1/2 of 1% of salary shall be
credited to the Automatic Increase Reserve, to be used to
defray the cost of the annuity increase provided by this
Section. Any balance in such reserve as of the beginning of
each calendar year shall be credited with interest at the rate
of 3% per annum.
Such deductions from salary and city contributions shall
continue while the policeman is in service.
The salary deductions provided in this Section are not
subject to refund, except to the policeman himself, in any
case in which: (i) the policeman withdraws prior to
qualification for minimum annuity or Tier 2 monthly retirement
annuity and applies for refund, (ii) the policeman applies for
an annuity of a type that is not subject to annual increases
under this Section, or (iii) a term annuity becomes payable.

SB3614 - 5 - LRB103 38585 RPS 68721 b
In such cases, the total of such salary deductions shall be
refunded to the policeman, without interest, and charged to
the Automatic Increase Reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a policeman under this Article on or after the
effective date of this amendatory Act of the 97th General
Assembly shall be increased on the January 1 occurring either
on or after (i) the attainment of age 55 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or 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, whichever is less, of the
originally granted retirement 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.
For the purposes of this subsection (d), "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

SB3614 - 6 - LRB103 38585 RPS 68721 b
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
(Source: P.A. 103-582, eff. 12-8-23.)
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011, and to certain qualified survivors of such a policeman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A policeman who has withdrawn from service, has
attained age 50 or more, and has 10 or more years, but less
than 20 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 police
officer. 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
police officer's age at retirement is under age 55. The Tier 2
monthly retirement annuity of a policeman who is retiring
after attaining age 50 with 20 or more years of creditable
service shall not be reduced. The Tier 2 monthly retirement

SB3614 - 7 - LRB103 38585 RPS 68721 b
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 average monthly salary obtained by dividing
the total salary of the policeman 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.
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
all previous adjustments.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a policeman 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 are entitled under this subsection (c) shall be

SB3614 - 8 - LRB103 38585 RPS 68721 b
determined as follows:
(1) The surviving spouse of a deceased policeman 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 policeman 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 5-146. The Tier 2 surviving
spouse's 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 5-147.1.
As used in this subsection (c), "earned annuity" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the policeman had received pursuant to Section 5-167.1.
(A) If the deceased policeman was receiving an
earned annuity 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
policeman's earned annuity at the date of death.
(B) If the deceased policeman was not receiving an
earned annuity 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

SB3614 - 9 - LRB103 38585 RPS 68721 b
of: (i) 30% of the annual maximum salary attached to
the classified civil service position of a first class
patrolman at the time of his death; or (ii) 66 2/3% of
the Tier 2 monthly retirement annuity that the
deceased policeman would have been eligible to receive
under subsection (b) of this Section, based upon the
actual service accrued through the day before the
policeman's death, but determined as though the
policeman was at least age 55 on the day before his or
her death and retired on that day.
(C) If the deceased policeman was an active
policeman 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 annual maximum salary
attached to the classified civil service position of a
first class patrolman at the time of his death.
(D) If the performance of an act or acts of duty
results directly in the death of a policeman subject
to this Section, or prevents him from subsequently
resuming active service in the police department, and
if the policeman's Tier 2 surviving spouse would
otherwise meet the eligibility requirements for a
compensation annuity or supplemental annuity granted
under Section 5-144, then in addition to the Tier 2
surviving spouse's annuity provided under subdivision

SB3614 - 10 - LRB103 38585 RPS 68721 b
(A), (B), or (C) of this paragraph (1), whichever
applies, the Tier 2 surviving spouse shall be
qualified to receive compensation annuity or
supplemental annuity, as would be provided under
Section 5-144, in order to bring the total benefit up
to the applicable 75% salary limitation provided in
that Section, but subject to the Tier 2 salary cap
provided under subsection (b) of this Section; except
that no such annuity shall be paid to the surviving
spouse of a policeman who dies while in receipt of
disability benefits when the policeman'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 police
department.
(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)
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 (but not less than zero) in the
consumer price index-u for the 12 months ending with

SB3614 - 11 - LRB103 38585 RPS 68721 b
the September preceding each November 1, whichever is
less, of the originally granted Tier 2 surviving
spouse's annuity. If the 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.
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 pension funds.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
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 5-167.4.
(2) Surviving children of a deceased policeman subject
to this Section who would otherwise meet the eligibility

SB3614 - 12 - LRB103 38585 RPS 68721 b
requirements for a child's annuity set forth in Sections
5-151 and 5-152 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
5-152 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 policeman subject
to this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
5-152 shall be deemed qualified to receive a Tier 2
parent'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 parent's annuity provided under Section
5-152.1; 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 5-152.1 includes: (i) in the context of a widow, a

SB3614 - 13 - LRB103 38585 RPS 68721 b
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 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 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 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly 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 policeman 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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(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after
September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires
from service after September 1, 1959 shall, upon either the
first of the month following the first anniversary of his date
of retirement if he is age 55 or over on that anniversary date,
or upon the first of the month following his attainment of age
55 if that occurs after the first anniversary of his
retirement date, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by an additional 1 1/2% in
January of each year thereafter up to a maximum increase of
30%. Beginning July 1, 1982 for firemen born before January 1,
1930, and beginning January 1, 1990 for firemen born after
December 31, 1929 and before January 1, 1940, and beginning
January 1, 1996 for firemen born after December 31, 1939 but
before January 1, 1945, and beginning January 1, 2004, for
firemen born after December 31, 1944 but before January 1,
1955, and beginning January 1, 2017, for firemen born after
December 31, 1954, such increases shall be 3% and such firemen
shall not be subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before

SB3614 - 15 - LRB103 38585 RPS 68721 b
January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of 1995 apply beginning January 1,
1996 and apply without regard to whether the fireman or
annuitant terminated service before the effective date of this
amendatory Act of 1995.
Any fireman born before January 1, 1955 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2004 is entitled to receive the initial increase
under this subsection on (1) January 1, 2004, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 93rd General Assembly apply
without regard to whether the fireman or annuitant terminated
service before the effective date of this amendatory Act.
Any fireman born after December 31, 1954 but before
January 1, 1966 who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his then fixed and payable monthly annuity
upon the first of the month following the first anniversary of

SB3614 - 16 - LRB103 38585 RPS 68721 b
his date of retirement if he is age 55 or over on that
anniversary date or upon the first of the month following his
attainment of age 55 if that date occurs after the first
anniversary of his retirement date and such first fixed
annuity as granted at retirement shall be increased by an
additional 3% in January of each year thereafter. In the case
of a fireman born after December 31, 1954 but before January 1,
1966 who received an increase in any year of 1.5%, that fireman
shall receive an increase for any such year so that the total
increase is equal to 3% for each year the fireman would have
been otherwise eligible had the fireman not received any
increase. The changes to this subsection made by this
amendatory Act of the 99th General Assembly apply without
regard to whether the fireman or annuitant terminated service
before the effective date of this amendatory Act. The changes
to this subsection made by this amendatory Act of the 100th
General Assembly are a declaration of existing law and shall
not be construed as a new enactment.
Any fireman who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2020, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his or her then fixed and payable monthly
annuity upon the first of the month following the first
anniversary of his or her date of retirement if he or she is

SB3614 - 17 - LRB103 38585 RPS 68721 b
age 55 or over on that anniversary date or upon the first of
the month following his or her attainment of age 55 if that
date occurs after the first anniversary of his or her
retirement date and such first fixed annuity as granted at
retirement shall be increased by an additional 3% in January
of each year thereafter. In the case of a fireman who received
an increase in any year of 1.5%, that fireman shall receive an
increase for any such year so that the total increase is equal
to 3% for each year the fireman would have been otherwise
eligible had the fireman not received any increase. The
changes to this subsection made by this amendatory Act of the
101st General Assembly apply without regard to whether the
fireman or annuitant terminated service before the effective
date of this amendatory Act of the 101st General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1959, from
each payment of salary to a fireman, 1/8 of 1% of each such
salary payment and an additional 1/8 of 1% beginning on
September 1, 1961, and September 1, 1963, respectively,
concurrently with and in addition to the salary deductions
otherwise made for annuity purposes.
Each such additional 1/8 of 1% deduction from salary which
shall, on September 1, 1963, result in a total increase of 3/8
of 1% of salary, shall be credited to the Automatic Increase

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Reserve, to be used, together with city contributions as
provided in this Article, to defray the cost of the annuity
increments specified in this Section. Any balance in such
reserve as of the beginning of each calendar year shall be
credited with interest at the rate of 3% per annum.
The salary deductions provided in this Section are not
subject to refund, except to the fireman himself in any case in
which: (i) the fireman withdraws prior to qualification for
minimum annuity or Tier 2 monthly retirement annuity and
applies for refund, (ii) the fireman applies for an annuity of
a type that is not subject to annual increases under this
Section, or (iii) a term annuity becomes payable. In such
cases, the total of such salary deductions shall be refunded
to the fireman, without interest, and charged to the
aforementioned reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a fireman under this Article on or after January 1,
2011 shall be increased on the January 1 occurring either on or
after (i) the attainment of age 55 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or 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, whichever is less, of the
originally granted retirement annuity. If the annual

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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.
For the purposes of this subsection (d), "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 pension funds by November 1 of each year.
(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17;
101-673, eff. 4-5-21.)
(40 ILCS 5/6-229)
Sec. 6-229. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
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

SB3614 - 20 - LRB103 38585 RPS 68721 b
age 50 or more, and has 10 or more years, but less than 20
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 55. The Tier 2 monthly
retirement annuity of a fireman who is retiring after
attaining age 50 with 20 or more years of creditable service
shall not be reduced. 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

SB3614 - 21 - LRB103 38585 RPS 68721 b
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
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

SB3614 - 22 - LRB103 38585 RPS 68721 b
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
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

SB3614 - 23 - LRB103 38585 RPS 68721 b
annuity under this paragraph (1) shall be the greater
of: (i) 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; 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.
(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

SB3614 - 24 - LRB103 38585 RPS 68721 b
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
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)
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

SB3614 - 25 - LRB103 38585 RPS 68721 b
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.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
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

SB3614 - 26 - LRB103 38585 RPS 68721 b
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
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

SB3614 - 27 - LRB103 38585 RPS 68721 b
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
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. 103-579, eff. 12-8-23.)
Section 90. The State Mandates Act is amended by adding
Section 8.48 as follows:
(30 ILCS 805/8.48 new)
Sec. 8.48. 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

SB3614 - 28 - LRB103 38585 RPS 68721 b