IL
Illinois Senate Bill SB1630

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1630 Compare Versions

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1+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1630 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/6-22930 ILCS 805/8.47 new 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. LRB103 27802 RPS 54180 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1630 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/6-22930 ILCS 805/8.47 new 40 ILCS 5/6-229 30 ILCS 805/8.47 new 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. LRB103 27802 RPS 54180 b LRB103 27802 RPS 54180 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1630 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
3+40 ILCS 5/6-22930 ILCS 805/8.47 new 40 ILCS 5/6-229 30 ILCS 805/8.47 new
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6+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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10+ STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
11+A BILL FOR
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314 1 AN ACT concerning public employee benefits.
415 2 Be it enacted by the People of the State of Illinois,
516 3 represented in the General Assembly:
617 4 Section 5. The Illinois Pension Code is amended by
718 5 changing Section 6-229 as follows:
819 6 (40 ILCS 5/6-229)
920 7 Sec. 6-229. Provisions applicable to new hires; Tier 2.
1021 8 (a) Notwithstanding any other provision of this Article,
1122 9 the provisions of this Section apply to a person who first
1223 10 becomes a fireman under this Article on or after January 1,
1324 11 2011, and to certain qualified survivors of such a fireman.
1425 12 Such persons, and the benefits and restrictions that apply
1526 13 specifically to them under this Article, may be referred to as
1627 14 "Tier 2".
1728 15 (b) A fireman who has withdrawn from service, has attained
1829 16 age 50 or more, and has 10 or more years of service in that
1930 17 capacity shall be entitled, upon proper application being
2031 18 received by the Fund, to receive a Tier 2 monthly retirement
2132 19 annuity for his service as a fireman. The Tier 2 monthly
2233 20 retirement annuity shall be computed by multiplying 2.5% for
2334 21 each year of such service by his or her final average salary,
2435 22 subject to an annuity reduction factor of one-half of 1% for
2536 23 each month that the fireman's age at retirement is under age
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40+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1630 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
41+40 ILCS 5/6-22930 ILCS 805/8.47 new 40 ILCS 5/6-229 30 ILCS 805/8.47 new
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43+30 ILCS 805/8.47 new
44+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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48+ STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
49+A BILL FOR
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3479 1 55. The Tier 2 monthly retirement annuity is in lieu of any age
3580 2 and service annuity or other form of retirement annuity under
3681 3 this Article.
3782 4 The maximum retirement annuity under this subsection (b)
3883 5 shall be 75% of final average salary.
3984 6 For the purposes of this subsection (b), "final average
4085 7 salary" means the average monthly salary obtained by dividing
4186 8 the total salary of the fireman during the 96 consecutive
4287 9 months of service within the last 120 months of service in
4388 10 which the total salary was the highest by the number of months
4489 11 of service in that period.
4590 12 Beginning on January 1, 2011, for all purposes under this
4691 13 Code (including without limitation the calculation of benefits
4792 14 and employee contributions), the annual salary based on the
4893 15 plan year of a member or participant to whom this Section
4994 16 applies shall not exceed $106,800; however, until 2023, that
5095 17 amount shall annually thereafter be increased by the lesser of
5196 18 (i) 3% of that amount, including all previous adjustments, or
5297 19 (ii) one-half the annual unadjusted percentage increase (but
5398 20 not less than zero) in the consumer price index-u for the 12
5499 21 months ending with the September preceding each November 1,
55100 22 including all previous adjustments; however, beginning in
56101 23 2024, that amount shall annually thereafter be increased by
57102 24 the annual unadjusted percentage increase (but not less than
58103 25 zero) in the consumer price index-u for the 12 months ending
59104 26 with the September preceding each November 1, including all
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70115 1 previous adjustments.
71116 2 (b-5) For the purposes of this Section, "consumer price
72117 3 index-u" means the index published by the Bureau of Labor
73118 4 Statistics of the United States Department of Labor that
74119 5 measures the average change in prices of goods and services
75120 6 purchased by all urban consumers, United States city average,
76121 7 all items, 1982-84 = 100. The new amount resulting from each
77122 8 annual adjustment shall be determined by the Public Pension
78123 9 Division of the Department of Insurance and made available to
79124 10 the boards of the retirement systems and pension funds by
80125 11 November 1 of each year.
81126 12 (c) Notwithstanding any other provision of this Article,
82127 13 for a person who first becomes a fireman under this Article on
83128 14 or after January 1, 2011, eligibility for and the amount of the
84129 15 annuity to which the qualified surviving spouse, children, and
85130 16 parents of the fireman are entitled under this subsection (c)
86131 17 shall be determined as follows:
87132 18 (1) The surviving spouse of a deceased fireman to whom
88133 19 this Section applies shall be deemed qualified to receive
89134 20 a Tier 2 surviving spouse's annuity under this paragraph
90135 21 (1) if: (i) the deceased fireman meets the requirements
91136 22 specified under subdivision (A), (B), (C), or (D) of this
92137 23 paragraph (1); and (ii) the surviving spouse would not
93138 24 otherwise be excluded from receiving a widow's annuity
94139 25 under the eligibility requirements for a widow's annuity
95140 26 set forth in Section 6-142. The Tier 2 surviving spouse's
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106151 1 annuity is in lieu of the widow's annuity determined under
107152 2 any other Section of this Article and is subject to the
108153 3 requirements of Section 6-143.2.
109154 4 As used in this subsection (c), "earned pension" means
110155 5 a Tier 2 monthly retirement annuity determined under
111156 6 subsection (b) of this Section, including any increases
112157 7 the fireman had received pursuant to Section 6-164.
113158 8 (A) If the deceased fireman was receiving an
114159 9 earned pension at the date of his or her death, the
115160 10 Tier 2 surviving spouse's annuity under this paragraph
116161 11 (1) shall be in the amount of 66 2/3% of the fireman's
117162 12 earned pension at the date of death.
118163 13 (B) If the deceased fireman was not receiving an
119164 14 earned pension but had at least 10 years of service at
120165 15 the time of death, the Tier 2 surviving spouse's
121166 16 annuity under this paragraph (1) shall be the greater
122167 17 of: (i) 30% of the salary attached to the rank of first
123168 18 class firefighter in the classified career service at
124169 19 the time of the fireman's death; or (ii) 66 2/3% of the
125170 20 Tier 2 monthly retirement annuity that the deceased
126171 21 fireman would have been eligible to receive under
127172 22 subsection (b) of this Section, based upon the actual
128173 23 service accrued through the day before the fireman's
129174 24 death, but determined as though the fireman was at
130175 25 least age 55 on the day before his or her death and
131176 26 retired on that day.
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142187 1 (C) If the deceased fireman was an active fireman
143188 2 with at least 1 1/2 but less than 10 years of service
144189 3 at the time of death, the Tier 2 surviving spouse's
145190 4 annuity under this paragraph (1) shall be in the
146191 5 amount of 30% of the salary attached to the rank of
147192 6 first class firefighter in the classified career
148193 7 service at the time of the fireman's death.
149194 8 (D) Notwithstanding subdivisions (A), (B), and (C)
150195 9 of this paragraph (1), if the performance of an act or
151196 10 acts of duty results directly in the death of a fireman
152197 11 subject to this Section, or prevents him from
153198 12 subsequently resuming active service in the fire
154199 13 department, then a surviving spouse who would
155200 14 otherwise meet the eligibility requirements for a
156201 15 death in the line of duty widow's annuity granted
157202 16 under Section 6-140 shall be deemed to be qualified
158203 17 for a Tier 2 surviving spouse's annuity under this
159204 18 subdivision (D); except that no such annuity shall be
160205 19 paid to the surviving spouse of a fireman who dies
161206 20 while in receipt of disability benefits when the
162207 21 fireman's death was caused by an intervening illness
163208 22 or injury unrelated to the illness or injury that had
164209 23 prevented him from subsequently resuming active
165210 24 service in the fire department. The Tier 2 surviving
166211 25 spouse's annuity calculated under this subdivision (D)
167212 26 shall be in lieu of, but in the same amount and paid in
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178223 1 the same manner as, the widow's annuity provided under
179224 2 Section 6-140; except that the salary used for
180225 3 computing a Tier 2 surviving spouse's annuity under
181226 4 this subdivision (D) shall be subject to the Tier 2
182227 5 salary cap provided under subsection (b) of this
183228 6 Section.
184229 7 (E) Notwithstanding any other provision of this
185230 8 Article, the monthly Tier 2 surviving spouse's annuity
186231 9 under subdivision (A) or (B) of this paragraph (1)
187232 10 shall be increased on the January 1 next occurring
188233 11 after (i) attainment of age 60 by the recipient of the
189234 12 Tier 2 surviving spouse's annuity or (ii) the first
190235 13 anniversary of the Tier 2 surviving spouse's annuity
191236 14 start date, whichever is later, and on each January 1
192237 15 thereafter, by 3% or one-half the annual unadjusted
193238 16 percentage increase in the consumer price index-u for
194239 17 the 12 months ending with September preceding each
195240 18 November 1, whichever is less, of the originally
196241 19 granted Tier 2 surviving spouse's annuity. If the
197242 20 annual unadjusted percentage change in the consumer
198243 21 price index-u for a 12-month period ending in
199244 22 September is zero or, when compared with the preceding
200245 23 period, decreases, then the annuity shall not be
201246 24 increased.
202247 25 (F) Notwithstanding the other provisions of this
203248 26 paragraph (1), for a qualified surviving spouse who is
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214259 1 entitled to a Tier 2 surviving spouse's annuity under
215260 2 subdivision (A), (B), (C), or (D) of this paragraph
216261 3 (1), that Tier 2 surviving spouse's annuity shall not
217262 4 be less than the amount of the minimum widow's annuity
218263 5 established from time to time under Section 6-128.4.
219264 6 (2) Surviving children of a deceased fireman subject
220265 7 to this Section who would otherwise meet the eligibility
221266 8 requirements for a child's annuity set forth in Sections
222267 9 6-147 and 6-148 shall be deemed qualified to receive a
223268 10 Tier 2 child's annuity under this subsection (c), which
224269 11 shall be in lieu of, but in the same amount and paid in the
225270 12 same manner as, the child's annuity provided under those
226271 13 Sections; except that any salary used for computing a Tier
227272 14 2 child's annuity shall be subject to the Tier 2 salary cap
228273 15 provided under subsection (b) of this Section. For
229274 16 purposes of determining any pro rata reduction in child's
230275 17 annuities under this subsection (c), references in Section
231276 18 6-148 to the combined annuities of the family shall be
232277 19 deemed to refer to the combined Tier 2 surviving spouse's
233278 20 annuity, if any, and the Tier 2 child's annuities payable
234279 21 under this subsection (c).
235280 22 (3) Surviving parents of a deceased fireman subject to
236281 23 this Section who would otherwise meet the eligibility
237282 24 requirements for a parent's annuity set forth in Section
238283 25 6-149 shall be deemed qualified to receive a Tier 2
239284 26 parent's annuity under this subsection (c), which shall be
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250295 1 in lieu of, but in the same amount and paid in the same
251296 2 manner as, the parent's annuity provided under Section
252297 3 6-149; except that any salary used for computing a Tier 2
253298 4 parent's annuity shall be subject to the Tier 2 salary cap
254299 5 provided under subsection (b) of this Section. For the
255300 6 purposes of this Section, a reference to "annuity" in
256301 7 Section 6-149 includes: (i) in the context of a widow, a
257302 8 Tier 2 surviving spouse's annuity and (ii) in the context
258303 9 of a child, a Tier 2 child's annuity.
259304 10 (d) The General Assembly finds and declares that the
260305 11 provisions of this Section, as enacted by Public Act 96-1495,
261306 12 require clarification relating to necessary eligibility
262307 13 standards and the manner of determining and paying the
263308 14 intended Tier 2 benefits and contributions in order to enable
264309 15 the Fund to unambiguously implement and administer benefits
265310 16 for Tier 2 members. The changes to this Section and the
266311 17 conforming changes to Sections 6-150, 6-158, 6-164 (except for
267312 18 the changes to subsection (a) of that Section), 6-166, and
268313 19 6-167 made by this amendatory Act of the 99th General Assembly
269314 20 are enacted to clarify the provisions of this Section as
270315 21 enacted by Public Act 96-1495, and are hereby declared to
271316 22 represent and be consistent with the original and continuing
272317 23 intent of this Section and Public Act 96-1495.
273318 24 (e) The changes to Sections 6-150, 6-158, 6-164 (except
274319 25 for the changes to subsection (a) of that Section), 6-166, and
275320 26 6-167 made by this amendatory Act of the 99th General Assembly
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286331 1 are intended to be retroactive to January 1, 2011 (the
287332 2 effective date of Public Act 96-1495) and, for the purposes of
288333 3 Section 1-103.1 of this Code, they apply without regard to
289334 4 whether the relevant fireman was in service on or after the
290335 5 effective date of this amendatory Act of the 99th General
291336 6 Assembly.
292337 7 (Source: P.A. 99-905, eff. 11-29-16.)
293338 8 Section 90. The State Mandates Act is amended by adding
294339 9 Section 8.47 as follows:
295340 10 (30 ILCS 805/8.47 new)
296341 11 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
297342 12 8 of this Act, no reimbursement by the State is required for
298343 13 the implementation of any mandate created by this amendatory
299344 14 Act of the 103rd General Assembly.
300345 15 Section 99. Effective date. This Act takes effect upon
301346 16 becoming law.
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