Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1711 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1711 Introduced 2/5/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/6-22930 ILCS 805/8.49 new Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that, beginning in 2026, the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the lesser of (i) 3% or (ii) 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. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 10762 RPS 20842 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1711 Introduced 2/5/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/6-22930 ILCS 805/8.49 new 40 ILCS 5/6-229 30 ILCS 805/8.49 new Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that, beginning in 2026, the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the lesser of (i) 3% or (ii) 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. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 10762 RPS 20842 b LRB104 10762 RPS 20842 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1711 Introduced 2/5/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/6-22930 ILCS 805/8.49 new 40 ILCS 5/6-229 30 ILCS 805/8.49 new
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66 Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that, beginning in 2026, the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the lesser of (i) 3% or (ii) 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. 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 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1711 Introduced 2/5/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
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4444 Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that, beginning in 2026, the limit on salary for all purposes under the Code for Tier 2 firemen shall annually be increased by the lesser of (i) 3% or (ii) 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. 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 60 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, through 2025, that
100100 22 amount shall annually thereafter be increased by the lesser of
101101 23 (i) 3% of that amount, including all previous adjustments, or
102102 24 (ii) one-half the annual unadjusted percentage increase (but
103103 25 not less than zero) in the consumer price index-u for the 12
104104 26 months ending with the September preceding each November 1,
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115115 1 including all previous adjustments; however, beginning in
116116 2 2026, that amount shall annually thereafter be increased by
117117 3 the lesser of (i) 3% of that amount, including all previous
118118 4 adjustments, or (ii) the annual unadjusted percentage increase
119119 5 (but not less than zero) in the consumer price index-u for the
120120 6 12 months ending with the September preceding each November 1,
121121 7 including all previous adjustments.
122122 8 (b-5) For the purposes of this Section, "consumer price
123123 9 index-u" means the index published by the Bureau of Labor
124124 10 Statistics of the United States Department of Labor that
125125 11 measures the average change in prices of goods and services
126126 12 purchased by all urban consumers, United States city average,
127127 13 all items, 1982-84 = 100. The new amount resulting from each
128128 14 annual adjustment shall be determined by the Public Pension
129129 15 Division of the Department of Insurance and made available to
130130 16 the boards of the retirement systems and pension funds by
131131 17 November 1 of each year.
132132 18 (c) Notwithstanding any other provision of this Article,
133133 19 for a person who first becomes a fireman under this Article on
134134 20 or after January 1, 2011, eligibility for and the amount of the
135135 21 annuity to which the qualified surviving spouse, children, and
136136 22 parents of the fireman are entitled under this subsection (c)
137137 23 shall be determined as follows:
138138 24 (1) The surviving spouse of a deceased fireman to whom
139139 25 this Section applies shall be deemed qualified to receive
140140 26 a Tier 2 surviving spouse's annuity under this paragraph
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151151 1 (1) if: (i) the deceased fireman meets the requirements
152152 2 specified under subdivision (A), (B), (C), or (D) of this
153153 3 paragraph (1); and (ii) the surviving spouse would not
154154 4 otherwise be excluded from receiving a widow's annuity
155155 5 under the eligibility requirements for a widow's annuity
156156 6 set forth in Section 6-142. The Tier 2 surviving spouse's
157157 7 annuity is in lieu of the widow's annuity determined under
158158 8 any other Section of this Article and is subject to the
159159 9 requirements of Section 6-143.2.
160160 10 As used in this subsection (c), "earned pension" means
161161 11 a Tier 2 monthly retirement annuity determined under
162162 12 subsection (b) of this Section, including any increases
163163 13 the fireman had received pursuant to Section 6-164.
164164 14 (A) If the deceased fireman was receiving an
165165 15 earned pension at the date of his or her death, the
166166 16 Tier 2 surviving spouse's annuity under this paragraph
167167 17 (1) shall be in the amount of 66 2/3% of the fireman's
168168 18 earned pension at the date of death.
169169 19 (B) If the deceased fireman was not receiving an
170170 20 earned pension but had at least 10 years of service at
171171 21 the time of death, the Tier 2 surviving spouse's
172172 22 annuity under this paragraph (1) shall be the greater
173173 23 of: (i) 30% of the salary attached to the rank of first
174174 24 class firefighter in the classified career service at
175175 25 the time of the fireman's death; or (ii) 66 2/3% of the
176176 26 Tier 2 monthly retirement annuity that the deceased
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187187 1 fireman would have been eligible to receive under
188188 2 subsection (b) of this Section, based upon the actual
189189 3 service accrued through the day before the fireman's
190190 4 death, but determined as though the fireman was at
191191 5 least age 55 on the day before his or her death and
192192 6 retired on that day.
193193 7 (C) If the deceased fireman was an active fireman
194194 8 with at least 1 1/2 but less than 10 years of service
195195 9 at the time of death, the Tier 2 surviving spouse's
196196 10 annuity under this paragraph (1) shall be in the
197197 11 amount of 30% of the salary attached to the rank of
198198 12 first class firefighter in the classified career
199199 13 service at the time of the fireman's death.
200200 14 (D) Notwithstanding subdivisions (A), (B), and (C)
201201 15 of this paragraph (1), if the performance of an act or
202202 16 acts of duty results directly in the death of a fireman
203203 17 subject to this Section, or prevents him from
204204 18 subsequently resuming active service in the fire
205205 19 department, then a surviving spouse who would
206206 20 otherwise meet the eligibility requirements for a
207207 21 death in the line of duty widow's annuity granted
208208 22 under Section 6-140 shall be deemed to be qualified
209209 23 for a Tier 2 surviving spouse's annuity under this
210210 24 subdivision (D); except that no such annuity shall be
211211 25 paid to the surviving spouse of a fireman who dies
212212 26 while in receipt of disability benefits when the
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223223 1 fireman's death was caused by an intervening illness
224224 2 or injury unrelated to the illness or injury that had
225225 3 prevented him from subsequently resuming active
226226 4 service in the fire department. The Tier 2 surviving
227227 5 spouse's annuity calculated under this subdivision (D)
228228 6 shall be in lieu of, but in the same amount and paid in
229229 7 the same manner as, the widow's annuity provided under
230230 8 Section 6-140; except that the salary used for
231231 9 computing a Tier 2 surviving spouse's annuity under
232232 10 this subdivision (D) shall be subject to the Tier 2
233233 11 salary cap provided under subsection (b) of this
234234 12 Section.
235235 13 (E) Notwithstanding any other provision of this
236236 14 Article, the monthly Tier 2 surviving spouse's annuity
237237 15 under subdivision (A) or (B) of this paragraph (1)
238238 16 shall be increased on the January 1 next occurring
239239 17 after (i) attainment of age 60 by the recipient of the
240240 18 Tier 2 surviving spouse's annuity or (ii) the first
241241 19 anniversary of the Tier 2 surviving spouse's annuity
242242 20 start date, whichever is later, and on each January 1
243243 21 thereafter, by 3% or one-half the annual unadjusted
244244 22 percentage increase in the consumer price index-u for
245245 23 the 12 months ending with September preceding each
246246 24 November 1, whichever is less, of the originally
247247 25 granted Tier 2 surviving spouse's annuity. If the
248248 26 annual unadjusted percentage change in the consumer
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259259 1 price index-u for a 12-month period ending in
260260 2 September is zero or, when compared with the preceding
261261 3 period, decreases, then the annuity shall not be
262262 4 increased.
263263 5 (F) Notwithstanding the other provisions of this
264264 6 paragraph (1), for a qualified surviving spouse who is
265265 7 entitled to a Tier 2 surviving spouse's annuity under
266266 8 subdivision (A), (B), (C), or (D) of this paragraph
267267 9 (1), that Tier 2 surviving spouse's annuity shall not
268268 10 be less than the amount of the minimum widow's annuity
269269 11 established from time to time under Section 6-128.4.
270270 12 (2) Surviving children of a deceased fireman subject
271271 13 to this Section who would otherwise meet the eligibility
272272 14 requirements for a child's annuity set forth in Sections
273273 15 6-147 and 6-148 shall be deemed qualified to receive a
274274 16 Tier 2 child's annuity under this subsection (c), which
275275 17 shall be in lieu of, but in the same amount and paid in the
276276 18 same manner as, the child's annuity provided under those
277277 19 Sections; except that any salary used for computing a Tier
278278 20 2 child's annuity shall be subject to the Tier 2 salary cap
279279 21 provided under subsection (b) of this Section. For
280280 22 purposes of determining any pro rata reduction in child's
281281 23 annuities under this subsection (c), references in Section
282282 24 6-148 to the combined annuities of the family shall be
283283 25 deemed to refer to the combined Tier 2 surviving spouse's
284284 26 annuity, if any, and the Tier 2 child's annuities payable
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295295 1 under this subsection (c).
296296 2 (3) Surviving parents of a deceased fireman subject to
297297 3 this Section who would otherwise meet the eligibility
298298 4 requirements for a parent's annuity set forth in Section
299299 5 6-149 shall be deemed qualified to receive a Tier 2
300300 6 parent's annuity under this subsection (c), which shall be
301301 7 in lieu of, but in the same amount and paid in the same
302302 8 manner as, the parent's annuity provided under Section
303303 9 6-149; except that any salary used for computing a Tier 2
304304 10 parent's annuity shall be subject to the Tier 2 salary cap
305305 11 provided under subsection (b) of this Section. For the
306306 12 purposes of this Section, a reference to "annuity" in
307307 13 Section 6-149 includes: (i) in the context of a widow, a
308308 14 Tier 2 surviving spouse's annuity and (ii) in the context
309309 15 of a child, a Tier 2 child's annuity.
310310 16 (d) The General Assembly finds and declares that the
311311 17 provisions of this Section, as enacted by Public Act 96-1495,
312312 18 require clarification relating to necessary eligibility
313313 19 standards and the manner of determining and paying the
314314 20 intended Tier 2 benefits and contributions in order to enable
315315 21 the Fund to unambiguously implement and administer benefits
316316 22 for Tier 2 members. The changes to this Section and the
317317 23 conforming changes to Sections 6-150, 6-158, 6-164 (except for
318318 24 the changes to subsection (a) of that Section), 6-166, and
319319 25 6-167 made by this amendatory Act of the 99th General Assembly
320320 26 are enacted to clarify the provisions of this Section as
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331331 1 enacted by Public Act 96-1495, and are hereby declared to
332332 2 represent and be consistent with the original and continuing
333333 3 intent of this Section and Public Act 96-1495.
334334 4 (e) The changes to Sections 6-150, 6-158, 6-164 (except
335335 5 for the changes to subsection (a) of that Section), 6-166, and
336336 6 6-167 made by this amendatory Act of the 99th General Assembly
337337 7 are intended to be retroactive to January 1, 2011 (the
338338 8 effective date of Public Act 96-1495) and, for the purposes of
339339 9 Section 1-103.1 of this Code, they apply without regard to
340340 10 whether the relevant fireman was in service on or after the
341341 11 effective date of this amendatory Act of the 99th General
342342 12 Assembly.
343343 13 (Source: P.A. 103-579, eff. 12-8-23.)
344344 14 Section 90. The State Mandates Act is amended by adding
345345 15 Section 8.49 as follows:
346346 16 (30 ILCS 805/8.49 new)
347347 17 Sec. 8.49. Exempt mandate. Notwithstanding Sections 6 and
348348 18 8 of this Act, no reimbursement by the State is required for
349349 19 the implementation of any mandate created by this amendatory
350350 20 Act of the 104th General Assembly.
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