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Illinois Senate Bill SB1951

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1951 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1951 Introduced 2/9/2023, 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 for Tier 2 firemen, final average salary is 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 120 months of service in which the total salary was the highest by the number of months of service in that period (currently, the final average salary is the average monthly salary obtained by dividing the total salary of the firefighter 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). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 25056 RPS 51391 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1951 Introduced 2/9/2023, 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 for Tier 2 firemen, final average salary is 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 120 months of service in which the total salary was the highest by the number of months of service in that period (currently, the final average salary is the average monthly salary obtained by dividing the total salary of the firefighter 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). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 25056 RPS 51391 b LRB103 25056 RPS 51391 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1951 Introduced 2/9/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
33 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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66 Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that for Tier 2 firemen, final average salary is 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 120 months of service in which the total salary was the highest by the number of months of service in that period (currently, the final average salary is the average monthly salary obtained by dividing the total salary of the firefighter 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). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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1414 1 AN ACT concerning public employee benefits.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 5. The Illinois Pension Code is amended by
1818 5 changing Section 6-229 as follows:
1919 6 (40 ILCS 5/6-229)
2020 7 Sec. 6-229. Provisions applicable to new hires; Tier 2.
2121 8 (a) Notwithstanding any other provision of this Article,
2222 9 the provisions of this Section apply to a person who first
2323 10 becomes a fireman under this Article on or after January 1,
2424 11 2011, and to certain qualified survivors of such a fireman.
2525 12 Such persons, and the benefits and restrictions that apply
2626 13 specifically to them under this Article, may be referred to as
2727 14 "Tier 2".
2828 15 (b) A fireman who has withdrawn from service, has attained
2929 16 age 50 or more, and has 10 or more years of service in that
3030 17 capacity shall be entitled, upon proper application being
3131 18 received by the Fund, to receive a Tier 2 monthly retirement
3232 19 annuity for his service as a fireman. The Tier 2 monthly
3333 20 retirement annuity shall be computed by multiplying 2.5% for
3434 21 each year of such service by his or her final average salary,
3535 22 subject to an annuity reduction factor of one-half of 1% for
3636 23 each month that the fireman's age at retirement is under age
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4040 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1951 Introduced 2/9/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
4141 40 ILCS 5/6-22930 ILCS 805/8.47 new 40 ILCS 5/6-229 30 ILCS 805/8.47 new
4242 40 ILCS 5/6-229
4343 30 ILCS 805/8.47 new
4444 Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that for Tier 2 firemen, final average salary is 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 120 months of service in which the total salary was the highest by the number of months of service in that period (currently, the final average salary is the average monthly salary obtained by dividing the total salary of the firefighter 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). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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7979 1 55. The Tier 2 monthly retirement annuity is in lieu of any age
8080 2 and service annuity or other form of retirement annuity under
8181 3 this Article.
8282 4 The maximum retirement annuity under this subsection (b)
8383 5 shall be 75% of final average salary.
8484 6 For the purposes of this subsection (b), "final average
8585 7 salary" means the greater of (1) the average monthly salary
8686 8 obtained by dividing the total salary of the fireman during
8787 9 the 96 consecutive months of service within the last 120
8888 10 months of service in which the total salary was the highest by
8989 11 the number of months of service in that period or (2) the
9090 12 average monthly salary obtained by dividing the total salary
9191 13 of the fireman during the 48 consecutive months of service
9292 14 within the last 120 months of service in which the total salary
9393 15 was the highest by the number of months of service in that
9494 16 period.
9595 17 Beginning on January 1, 2011, for all purposes under this
9696 18 Code (including without limitation the calculation of benefits
9797 19 and employee contributions), the annual salary based on the
9898 20 plan year of a member or participant to whom this Section
9999 21 applies shall not exceed $106,800; however, that amount shall
100100 22 annually thereafter be increased by the lesser of (i) 3% of
101101 23 that amount, including all previous adjustments, or (ii)
102102 24 one-half the annual unadjusted percentage increase (but not
103103 25 less than zero) in the consumer price index-u for the 12 months
104104 26 ending with the September preceding each November 1, including
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115115 1 all previous adjustments.
116116 2 (b-5) For the purposes of this Section, "consumer price
117117 3 index-u" means the index published by the Bureau of Labor
118118 4 Statistics of the United States Department of Labor that
119119 5 measures the average change in prices of goods and services
120120 6 purchased by all urban consumers, United States city average,
121121 7 all items, 1982-84 = 100. The new amount resulting from each
122122 8 annual adjustment shall be determined by the Public Pension
123123 9 Division of the Department of Insurance and made available to
124124 10 the boards of the retirement systems and pension funds by
125125 11 November 1 of each year.
126126 12 (c) Notwithstanding any other provision of this Article,
127127 13 for a person who first becomes a fireman under this Article on
128128 14 or after January 1, 2011, eligibility for and the amount of the
129129 15 annuity to which the qualified surviving spouse, children, and
130130 16 parents of the fireman are entitled under this subsection (c)
131131 17 shall be determined as follows:
132132 18 (1) The surviving spouse of a deceased fireman to whom
133133 19 this Section applies shall be deemed qualified to receive
134134 20 a Tier 2 surviving spouse's annuity under this paragraph
135135 21 (1) if: (i) the deceased fireman meets the requirements
136136 22 specified under subdivision (A), (B), (C), or (D) of this
137137 23 paragraph (1); and (ii) the surviving spouse would not
138138 24 otherwise be excluded from receiving a widow's annuity
139139 25 under the eligibility requirements for a widow's annuity
140140 26 set forth in Section 6-142. The Tier 2 surviving spouse's
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151151 1 annuity is in lieu of the widow's annuity determined under
152152 2 any other Section of this Article and is subject to the
153153 3 requirements of Section 6-143.2.
154154 4 As used in this subsection (c), "earned pension" means
155155 5 a Tier 2 monthly retirement annuity determined under
156156 6 subsection (b) of this Section, including any increases
157157 7 the fireman had received pursuant to Section 6-164.
158158 8 (A) If the deceased fireman was receiving an
159159 9 earned pension at the date of his or her death, the
160160 10 Tier 2 surviving spouse's annuity under this paragraph
161161 11 (1) shall be in the amount of 66 2/3% of the fireman's
162162 12 earned pension at the date of death.
163163 13 (B) If the deceased fireman was not receiving an
164164 14 earned pension but had at least 10 years of service at
165165 15 the time of death, the Tier 2 surviving spouse's
166166 16 annuity under this paragraph (1) shall be the greater
167167 17 of: (i) 30% of the salary attached to the rank of first
168168 18 class firefighter in the classified career service at
169169 19 the time of the fireman's death; or (ii) 66 2/3% of the
170170 20 Tier 2 monthly retirement annuity that the deceased
171171 21 fireman would have been eligible to receive under
172172 22 subsection (b) of this Section, based upon the actual
173173 23 service accrued through the day before the fireman's
174174 24 death, but determined as though the fireman was at
175175 25 least age 55 on the day before his or her death and
176176 26 retired on that day.
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187187 1 (C) If the deceased fireman was an active fireman
188188 2 with at least 1 1/2 but less than 10 years of service
189189 3 at the time of death, the Tier 2 surviving spouse's
190190 4 annuity under this paragraph (1) shall be in the
191191 5 amount of 30% of the salary attached to the rank of
192192 6 first class firefighter in the classified career
193193 7 service at the time of the fireman's death.
194194 8 (D) Notwithstanding subdivisions (A), (B), and (C)
195195 9 of this paragraph (1), if the performance of an act or
196196 10 acts of duty results directly in the death of a fireman
197197 11 subject to this Section, or prevents him from
198198 12 subsequently resuming active service in the fire
199199 13 department, then a surviving spouse who would
200200 14 otherwise meet the eligibility requirements for a
201201 15 death in the line of duty widow's annuity granted
202202 16 under Section 6-140 shall be deemed to be qualified
203203 17 for a Tier 2 surviving spouse's annuity under this
204204 18 subdivision (D); except that no such annuity shall be
205205 19 paid to the surviving spouse of a fireman who dies
206206 20 while in receipt of disability benefits when the
207207 21 fireman's death was caused by an intervening illness
208208 22 or injury unrelated to the illness or injury that had
209209 23 prevented him from subsequently resuming active
210210 24 service in the fire department. The Tier 2 surviving
211211 25 spouse's annuity calculated under this subdivision (D)
212212 26 shall be in lieu of, but in the same amount and paid in
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223223 1 the same manner as, the widow's annuity provided under
224224 2 Section 6-140; except that the salary used for
225225 3 computing a Tier 2 surviving spouse's annuity under
226226 4 this subdivision (D) shall be subject to the Tier 2
227227 5 salary cap provided under subsection (b) of this
228228 6 Section.
229229 7 (E) Notwithstanding any other provision of this
230230 8 Article, the monthly Tier 2 surviving spouse's annuity
231231 9 under subdivision (A) or (B) of this paragraph (1)
232232 10 shall be increased on the January 1 next occurring
233233 11 after (i) attainment of age 60 by the recipient of the
234234 12 Tier 2 surviving spouse's annuity or (ii) the first
235235 13 anniversary of the Tier 2 surviving spouse's annuity
236236 14 start date, whichever is later, and on each January 1
237237 15 thereafter, by 3% or one-half the annual unadjusted
238238 16 percentage increase in the consumer price index-u for
239239 17 the 12 months ending with September preceding each
240240 18 November 1, whichever is less, of the originally
241241 19 granted Tier 2 surviving spouse's annuity. If the
242242 20 annual unadjusted percentage change in the consumer
243243 21 price index-u for a 12-month period ending in
244244 22 September is zero or, when compared with the preceding
245245 23 period, decreases, then the annuity shall not be
246246 24 increased.
247247 25 (F) Notwithstanding the other provisions of this
248248 26 paragraph (1), for a qualified surviving spouse who is
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259259 1 entitled to a Tier 2 surviving spouse's annuity under
260260 2 subdivision (A), (B), (C), or (D) of this paragraph
261261 3 (1), that Tier 2 surviving spouse's annuity shall not
262262 4 be less than the amount of the minimum widow's annuity
263263 5 established from time to time under Section 6-128.4.
264264 6 (2) Surviving children of a deceased fireman subject
265265 7 to this Section who would otherwise meet the eligibility
266266 8 requirements for a child's annuity set forth in Sections
267267 9 6-147 and 6-148 shall be deemed qualified to receive a
268268 10 Tier 2 child's annuity under this subsection (c), which
269269 11 shall be in lieu of, but in the same amount and paid in the
270270 12 same manner as, the child's annuity provided under those
271271 13 Sections; except that any salary used for computing a Tier
272272 14 2 child's annuity shall be subject to the Tier 2 salary cap
273273 15 provided under subsection (b) of this Section. For
274274 16 purposes of determining any pro rata reduction in child's
275275 17 annuities under this subsection (c), references in Section
276276 18 6-148 to the combined annuities of the family shall be
277277 19 deemed to refer to the combined Tier 2 surviving spouse's
278278 20 annuity, if any, and the Tier 2 child's annuities payable
279279 21 under this subsection (c).
280280 22 (3) Surviving parents of a deceased fireman subject to
281281 23 this Section who would otherwise meet the eligibility
282282 24 requirements for a parent's annuity set forth in Section
283283 25 6-149 shall be deemed qualified to receive a Tier 2
284284 26 parent's annuity under this subsection (c), which shall be
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295295 1 in lieu of, but in the same amount and paid in the same
296296 2 manner as, the parent's annuity provided under Section
297297 3 6-149; except that any salary used for computing a Tier 2
298298 4 parent's annuity shall be subject to the Tier 2 salary cap
299299 5 provided under subsection (b) of this Section. For the
300300 6 purposes of this Section, a reference to "annuity" in
301301 7 Section 6-149 includes: (i) in the context of a widow, a
302302 8 Tier 2 surviving spouse's annuity and (ii) in the context
303303 9 of a child, a Tier 2 child's annuity.
304304 10 (d) The General Assembly finds and declares that the
305305 11 provisions of this Section, as enacted by Public Act 96-1495,
306306 12 require clarification relating to necessary eligibility
307307 13 standards and the manner of determining and paying the
308308 14 intended Tier 2 benefits and contributions in order to enable
309309 15 the Fund to unambiguously implement and administer benefits
310310 16 for Tier 2 members. The changes to this Section and the
311311 17 conforming changes to Sections 6-150, 6-158, 6-164 (except for
312312 18 the changes to subsection (a) of that Section), 6-166, and
313313 19 6-167 made by this amendatory Act of the 99th General Assembly
314314 20 are enacted to clarify the provisions of this Section as
315315 21 enacted by Public Act 96-1495, and are hereby declared to
316316 22 represent and be consistent with the original and continuing
317317 23 intent of this Section and Public Act 96-1495.
318318 24 (e) The changes to Sections 6-150, 6-158, 6-164 (except
319319 25 for the changes to subsection (a) of that Section), 6-166, and
320320 26 6-167 made by this amendatory Act of the 99th General Assembly
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331331 1 are intended to be retroactive to January 1, 2011 (the
332332 2 effective date of Public Act 96-1495) and, for the purposes of
333333 3 Section 1-103.1 of this Code, they apply without regard to
334334 4 whether the relevant fireman was in service on or after the
335335 5 effective date of this amendatory Act of the 99th General
336336 6 Assembly.
337337 7 (Source: P.A. 99-905, eff. 11-29-16.)
338338 8 Section 90. The State Mandates Act is amended by adding
339339 9 Section 8.47 as follows:
340340 10 (30 ILCS 805/8.47 new)
341341 11 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
342342 12 8 of this Act, no reimbursement by the State is required for
343343 13 the implementation of any mandate created by this amendatory
344344 14 Act of the 103rd General Assembly.
345345 15 Section 99. Effective date. This Act takes effect upon
346346 16 becoming law.
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