Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1956 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0582
2	1		SB1956 EnrolledLRB103 25834 RPS 52185 b SB1956 Enrolled LRB103 25834 RPS 52185 b
3	2		SB1956 Enrolled LRB103 25834 RPS 52185 b
4		-	AN ACT concerning public employee benefits.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Illinois Pension Code is amended by
8		-	changing Section 5-167.1 as follows:
9		-	(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
10		-	Sec. 5-167.1. Automatic increase in annuity; retirement
11		-	from service after September 1, 1967.
12		-	(a) A policeman who retires from service after September
13		-	1, 1967 with at least 20 years of service credit shall, upon
14		-	either the first of the month following the first anniversary
15		-	of his date of retirement if he is age 55 60 (age 55 if born
16		-	before January 1, 1966) or over on that anniversary date, or
17		-	upon the first of the month following his attainment of age 55
18		-	60 (age 55 if born before January 1, 1966) if it occurs after
19		-	the first anniversary of his retirement date, have his then
20		-	fixed and payable monthly annuity increased by 3% 1 1/2% and
21		-	such first fixed annuity as granted at retirement increased by
22		-	an additional 3% 1 1/2% in January of each year thereafter up
23		-	to a maximum increase of 30%. Beginning January 1, 1983 for
24		-	policemen born before January 1, 1930, and beginning January
25		-	1, 1988 for policemen born on or after January 1, 1930 but
26		-	before January 1, 1940, and beginning January 1, 1996 for
	3	+	1 AN ACT concerning public employee benefits.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Illinois Pension Code is amended by
	7	+	5 changing Section 5-167.1 as follows:
	8	+	6 (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
	9	+	7 Sec. 5-167.1. Automatic increase in annuity; retirement
	10	+	8 from service after September 1, 1967.
	11	+	9 (a) A policeman who retires from service after September
	12	+	10 1, 1967 with at least 20 years of service credit shall, upon
	13	+	11 either the first of the month following the first anniversary
	14	+	12 of his date of retirement if he is age 55 60 (age 55 if born
	15	+	13 before January 1, 1966) or over on that anniversary date, or
	16	+	14 upon the first of the month following his attainment of age 55
	17	+	15 60 (age 55 if born before January 1, 1966) if it occurs after
	18	+	16 the first anniversary of his retirement date, have his then
	19	+	17 fixed and payable monthly annuity increased by 3% 1 1/2% and
	20	+	18 such first fixed annuity as granted at retirement increased by
	21	+	19 an additional 3% 1 1/2% in January of each year thereafter up
	22	+	20 to a maximum increase of 30%. Beginning January 1, 1983 for
	23	+	21 policemen born before January 1, 1930, and beginning January
	24	+	22 1, 1988 for policemen born on or after January 1, 1930 but
	25	+	23 before January 1, 1940, and beginning January 1, 1996 for
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33		-	policemen born on or after January 1, 1940 but before January
34		-	1, 1945, and beginning January 1, 2000 for policemen born on or
35		-	after January 1, 1945 but before January 1, 1950, and
36		-	beginning January 1, 2005 for policemen born on or after
37		-	January 1, 1950 but before January 1, 1955, and beginning
38		-	January 1, 2017 for policemen born on or after January 1, 1955
39		-	but before January 1, 1966, such increases shall be 3% and such
40		-	policemen shall not be subject to the 30% maximum increase.
41		-	Any policeman born before January 1, 1945 who qualifies
42		-	for a minimum annuity and retires after September 1, 1967 but
43		-	has not received the initial increase under this subsection
44		-	before January 1, 1996 is entitled to receive the initial
45		-	increase under this subsection on (1) January 1, 1996, (2) the
46		-	first anniversary of the date of retirement, or (3) attainment
47		-	of age 55, whichever occurs last. The changes to this Section
48		-	made by Public Act 89-12 apply beginning January 1, 1996 and
49		-	without regard to whether the policeman or annuitant
50		-	terminated service before the effective date of that Act.
51		-	Any policeman born before January 1, 1950 who qualifies
52		-	for a minimum annuity and retires after September 1, 1967 but
53		-	has not received the initial increase under this subsection
54		-	before January 1, 2000 is entitled to receive the initial
55		-	increase under this subsection on (1) January 1, 2000, (2) the
56		-	first anniversary of the date of retirement, or (3) attainment
57		-	of age 55, whichever occurs last. The changes to this Section
58		-	made by this amendatory Act of the 92nd General Assembly apply
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	34	+	1 policemen born on or after January 1, 1940 but before January
	35	+	2 1, 1945, and beginning January 1, 2000 for policemen born on or
	36	+	3 after January 1, 1945 but before January 1, 1950, and
	37	+	4 beginning January 1, 2005 for policemen born on or after
	38	+	5 January 1, 1950 but before January 1, 1955, and beginning
	39	+	6 January 1, 2017 for policemen born on or after January 1, 1955
	40	+	7 but before January 1, 1966, such increases shall be 3% and such
	41	+	8 policemen shall not be subject to the 30% maximum increase.
	42	+	9 Any policeman born before January 1, 1945 who qualifies
	43	+	10 for a minimum annuity and retires after September 1, 1967 but
	44	+	11 has not received the initial increase under this subsection
	45	+	12 before January 1, 1996 is entitled to receive the initial
	46	+	13 increase under this subsection on (1) January 1, 1996, (2) the
	47	+	14 first anniversary of the date of retirement, or (3) attainment
	48	+	15 of age 55, whichever occurs last. The changes to this Section
	49	+	16 made by Public Act 89-12 apply beginning January 1, 1996 and
	50	+	17 without regard to whether the policeman or annuitant
	51	+	18 terminated service before the effective date of that Act.
	52	+	19 Any policeman born before January 1, 1950 who qualifies
	53	+	20 for a minimum annuity and retires after September 1, 1967 but
	54	+	21 has not received the initial increase under this subsection
	55	+	22 before January 1, 2000 is entitled to receive the initial
	56	+	23 increase under this subsection on (1) January 1, 2000, (2) the
	57	+	24 first anniversary of the date of retirement, or (3) attainment
	58	+	25 of age 55, whichever occurs last. The changes to this Section
	59	+	26 made by this amendatory Act of the 92nd General Assembly apply
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61		-	without regard to whether the policeman or annuitant
62		-	terminated service before the effective date of this
63		-	amendatory Act.
64		-	Any policeman born before January 1, 1955 who qualifies
65		-	for a minimum annuity and retires after September 1, 1967 but
66		-	has not received the initial increase under this subsection
67		-	before January 1, 2005 is entitled to receive the initial
68		-	increase under this subsection on (1) January 1, 2005, (2) the
69		-	first anniversary of the date of retirement, or (3) attainment
70		-	of age 55, whichever occurs last. The changes to this Section
71		-	made by this amendatory Act of the 94th General Assembly apply
72		-	without regard to whether the policeman or annuitant
73		-	terminated service before the effective date of this
74		-	amendatory Act.
75		-	Any policeman born before January 1, 1966 who qualifies
76		-	for a minimum annuity and retires after September 1, 1967 but
77		-	has not received the initial increase under this subsection
78		-	before January 1, 2017 is entitled to receive an initial
79		-	increase under this subsection on (1) January 1, 2017, (2) the
80		-	first anniversary of the date of retirement, or (3) attainment
81		-	of age 55, whichever occurs last, in an amount equal to 3% for
82		-	each complete year following the date of retirement or
83		-	attainment of age 55, whichever occurs later. The changes to
84		-	this subsection made by this amendatory Act of the 99th
85		-	General Assembly apply without regard to whether the policeman
86		-	or annuitant terminated service before the effective date of
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89		-	this amendatory Act.
90		-	Any policeman born on or after January 1, 1966 who
91		-	qualifies for a minimum annuity and retires after September 1,
92		-	1967 but has not received the initial increase under this
93		-	subsection before January 1, 2023 is entitled to receive the
94		-	initial increase under this subsection on (1) January 1, 2023,
95		-	(2) the first anniversary of the date of retirement, or (3)
96		-	attainment of age 55, whichever occurs last. The changes to
97		-	this Section made by this amendatory Act of the 103rd General
98		-	Assembly apply without regard to whether the policeman or
99		-	annuitant terminated service before the effective date of this
100		-	amendatory Act of the 103rd General Assembly.
101		-	(b) Subsection (a) of this Section is not applicable to an
102		-	employee receiving a term annuity.
103		-	(c) To help defray the cost of such increases in annuity,
104		-	there shall be deducted, beginning September 1, 1967, from
105		-	each payment of salary to a policeman, 1/2 of 1% of each salary
106		-	payment concurrently with and in addition to the salary
107		-	deductions otherwise made for annuity purposes.
108		-	The city, in addition to the contributions otherwise made
109		-	by it for annuity purposes under other provisions of this
110		-	Article, shall make matching contributions concurrently with
111		-	such salary deductions.
112		-	Each such 1/2 of 1% deduction from salary and each such
113		-	contribution by the city of 1/2 of 1% of salary shall be
114		-	credited to the Automatic Increase Reserve, to be used to
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117		-	defray the cost of the annuity increase provided by this
118		-	Section. Any balance in such reserve as of the beginning of
119		-	each calendar year shall be credited with interest at the rate
120		-	of 3% per annum.
121		-	Such deductions from salary and city contributions shall
122		-	continue while the policeman is in service.
123		-	The salary deductions provided in this Section are not
124		-	subject to refund, except to the policeman himself, in any
125		-	case in which: (i) the policeman withdraws prior to
126		-	qualification for minimum annuity or Tier 2 monthly retirement
127		-	annuity and applies for refund, (ii) the policeman applies for
128		-	an annuity of a type that is not subject to annual increases
129		-	under this Section, or (iii) a term annuity becomes payable.
130		-	In such cases, the total of such salary deductions shall be
131		-	refunded to the policeman, without interest, and charged to
132		-	the Automatic Increase Reserve.
133		-	(d) Notwithstanding any other provision of this Article,
134		-	the Tier 2 monthly retirement annuity of a person who first
135		-	becomes a policeman under this Article on or after the
136		-	effective date of this amendatory Act of the 97th General
137		-	Assembly shall be increased on the January 1 occurring either
138		-	on or after (i) the attainment of age 60 or (ii) the first
139		-	anniversary of the annuity start date, whichever is later.
140		-	Each annual increase shall be calculated at 3% or one-half the
141		-	annual unadjusted percentage increase (but not less than zero)
142		-	in the consumer price index-u for the 12 months ending with the
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	70	+	1 without regard to whether the policeman or annuitant
	71	+	2 terminated service before the effective date of this
	72	+	3 amendatory Act.
	73	+	4 Any policeman born before January 1, 1955 who qualifies
	74	+	5 for a minimum annuity and retires after September 1, 1967 but
	75	+	6 has not received the initial increase under this subsection
	76	+	7 before January 1, 2005 is entitled to receive the initial
	77	+	8 increase under this subsection on (1) January 1, 2005, (2) the
	78	+	9 first anniversary of the date of retirement, or (3) attainment
	79	+	10 of age 55, whichever occurs last. The changes to this Section
	80	+	11 made by this amendatory Act of the 94th General Assembly apply
	81	+	12 without regard to whether the policeman or annuitant
	82	+	13 terminated service before the effective date of this
	83	+	14 amendatory Act.
	84	+	15 Any policeman born before January 1, 1966 who qualifies
	85	+	16 for a minimum annuity and retires after September 1, 1967 but
	86	+	17 has not received the initial increase under this subsection
	87	+	18 before January 1, 2017 is entitled to receive an initial
	88	+	19 increase under this subsection on (1) January 1, 2017, (2) the
	89	+	20 first anniversary of the date of retirement, or (3) attainment
	90	+	21 of age 55, whichever occurs last, in an amount equal to 3% for
	91	+	22 each complete year following the date of retirement or
	92	+	23 attainment of age 55, whichever occurs later. The changes to
	93	+	24 this subsection made by this amendatory Act of the 99th
	94	+	25 General Assembly apply without regard to whether the policeman
	95	+	26 or annuitant terminated service before the effective date of
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145		-	September preceding each November 1, whichever is less, of the
146		-	originally granted retirement annuity. If the annual
147		-	unadjusted percentage change in the consumer price index-u for
148		-	a 12-month period ending in September is zero or, when
149		-	compared with the preceding period, decreases, then the
150		-	annuity shall not be increased.
151		-	For the purposes of this subsection (d), "consumer price
152		-	index-u" means the index published by the Bureau of Labor
153		-	Statistics of the United States Department of Labor that
154		-	measures the average change in prices of goods and services
155		-	purchased by all urban consumers, United States city average,
156		-	all items, 1982-84 = 100. The new amount resulting from each
157		-	annual adjustment shall be determined by the Public Pension
158		-	Division of the Department of Insurance and made available to
159		-	the boards of the pension funds by November 1 of each year.
160		-	(Source: P.A. 99-905, eff. 11-29-16.)
161		-	Section 90. The State Mandates Act is amended by adding
162		-	Section 8.47 as follows:
163		-	(30 ILCS 805/8.47 new)
164		-	Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
165		-	8 of this Act, no reimbursement by the State is required for
166		-	the implementation of any mandate created by this amendatory
167		-	Act of the 103rd General Assembly.
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	106	+	1 this amendatory Act.
	107	+	2 Any policeman born on or after January 1, 1966 who
	108	+	3 qualifies for a minimum annuity and retires after September 1,
	109	+	4 1967 but has not received the initial increase under this
	110	+	5 subsection before January 1, 2023 is entitled to receive the
	111	+	6 initial increase under this subsection on (1) January 1, 2023,
	112	+	7 (2) the first anniversary of the date of retirement, or (3)
	113	+	8 attainment of age 55, whichever occurs last. The changes to
	114	+	9 this Section made by this amendatory Act of the 103rd General
	115	+	10 Assembly apply without regard to whether the policeman or
	116	+	11 annuitant terminated service before the effective date of this
	117	+	12 amendatory Act of the 103rd General Assembly.
	118	+	13 (b) Subsection (a) of this Section is not applicable to an
	119	+	14 employee receiving a term annuity.
	120	+	15 (c) To help defray the cost of such increases in annuity,
	121	+	16 there shall be deducted, beginning September 1, 1967, from
	122	+	17 each payment of salary to a policeman, 1/2 of 1% of each salary
	123	+	18 payment concurrently with and in addition to the salary
	124	+	19 deductions otherwise made for annuity purposes.
	125	+	20 The city, in addition to the contributions otherwise made
	126	+	21 by it for annuity purposes under other provisions of this
	127	+	22 Article, shall make matching contributions concurrently with
	128	+	23 such salary deductions.
	129	+	24 Each such 1/2 of 1% deduction from salary and each such
	130	+	25 contribution by the city of 1/2 of 1% of salary shall be
	131	+	26 credited to the Automatic Increase Reserve, to be used to
	132	+
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	142	+	1 defray the cost of the annuity increase provided by this
	143	+	2 Section. Any balance in such reserve as of the beginning of
	144	+	3 each calendar year shall be credited with interest at the rate
	145	+	4 of 3% per annum.
	146	+	5 Such deductions from salary and city contributions shall
	147	+	6 continue while the policeman is in service.
	148	+	7 The salary deductions provided in this Section are not
	149	+	8 subject to refund, except to the policeman himself, in any
	150	+	9 case in which: (i) the policeman withdraws prior to
	151	+	10 qualification for minimum annuity or Tier 2 monthly retirement
	152	+	11 annuity and applies for refund, (ii) the policeman applies for
	153	+	12 an annuity of a type that is not subject to annual increases
	154	+	13 under this Section, or (iii) a term annuity becomes payable.
	155	+	14 In such cases, the total of such salary deductions shall be
	156	+	15 refunded to the policeman, without interest, and charged to
	157	+	16 the Automatic Increase Reserve.
	158	+	17 (d) Notwithstanding any other provision of this Article,
	159	+	18 the Tier 2 monthly retirement annuity of a person who first
	160	+	19 becomes a policeman under this Article on or after the
	161	+	20 effective date of this amendatory Act of the 97th General
	162	+	21 Assembly shall be increased on the January 1 occurring either
	163	+	22 on or after (i) the attainment of age 60 or (ii) the first
	164	+	23 anniversary of the annuity start date, whichever is later.
	165	+	24 Each annual increase shall be calculated at 3% or one-half the
	166	+	25 annual unadjusted percentage increase (but not less than zero)
	167	+	26 in the consumer price index-u for the 12 months ending with the
	168	+
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	170	+
	171	+
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	178	+	1 September preceding each November 1, whichever is less, of the
	179	+	2 originally granted retirement annuity. If the annual
	180	+	3 unadjusted percentage change in the consumer price index-u for
	181	+	4 a 12-month period ending in September is zero or, when
	182	+	5 compared with the preceding period, decreases, then the
	183	+	6 annuity shall not be increased.
	184	+	7 For the purposes of this subsection (d), "consumer price
	185	+	8 index-u" means the index published by the Bureau of Labor
	186	+	9 Statistics of the United States Department of Labor that
	187	+	10 measures the average change in prices of goods and services
	188	+	11 purchased by all urban consumers, United States city average,
	189	+	12 all items, 1982-84 = 100. The new amount resulting from each
	190	+	13 annual adjustment shall be determined by the Public Pension
	191	+	14 Division of the Department of Insurance and made available to
	192	+	15 the boards of the pension funds by November 1 of each year.
	193	+	16 (Source: P.A. 99-905, eff. 11-29-16.)
	194	+	17 Section 90. The State Mandates Act is amended by adding
	195	+	18 Section 8.47 as follows:
	196	+	19 (30 ILCS 805/8.47 new)
	197	+	20 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
	198	+	21 8 of this Act, no reimbursement by the State is required for
	199	+	22 the implementation of any mandate created by this amendatory
	200	+	23 Act of the 103rd General Assembly.
	201	+	24 Section 999. Effective date. This Act takes effect upon
	202	+
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