Bill Text: IL HB3161 | 2023-2024 | 103rd General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Pension Code. Restores the Chicago Municipal Article to the form in which it appeared before amendment by Public Act 98-641, which has been held unconstitutional. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2023-08-04 - Public Act . . . . . . . . . 103-0443 [HB3161 Detail]
Download: Illinois-2023-HB3161-Engrossed.html
Bill Title: Amends the Illinois Pension Code. Restores the Chicago Municipal Article to the form in which it appeared before amendment by Public Act 98-641, which has been held unconstitutional. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2023-08-04 - Public Act . . . . . . . . . 103-0443 [HB3161 Detail]
Download: Illinois-2023-HB3161-Engrossed.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 8-137 and 8-137.1 as follows:
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6 | (40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
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7 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
8 | which has been held unconstitutional) | ||||||
9 | Sec. 8-137. Automatic increase in annuity.
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10 | (a) An employee who retired or retires from service after | ||||||
11 | December 31,
1959 and before January 1, 1987, having attained | ||||||
12 | age 60 or more, shall,
in January of the year
after the year in | ||||||
13 | which the first anniversary of retirement occurs, have
the | ||||||
14 | amount of his then fixed and payable monthly annuity increased | ||||||
15 | by 1
1/2%, and such first fixed annuity as granted at | ||||||
16 | retirement increased by
a further 1 1/2% in January of each | ||||||
17 | year thereafter. Beginning with
January of the year 1972, such | ||||||
18 | increases shall be at the rate of 2% in
lieu of the aforesaid | ||||||
19 | specified 1 1/2%, and beginning with January of the
year 1984 | ||||||
20 | such increases shall be at the rate of 3%.
Beginning in January | ||||||
21 | of 1999, such increases
shall be at the rate of 3% of the | ||||||
22 | currently payable monthly annuity,
including any increases | ||||||
23 | previously granted under this Article. An
employee who retires |
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1 | on annuity after December 31, 1959 and before
January 1, 1987, | ||||||
2 | but before age 60, shall receive such
increases beginning in | ||||||
3 | January of the year after the year
in which he attains age 60.
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4 | An employee who retires from service on or after January | ||||||
5 | 1, 1987 shall, upon
the first annuity payment date following | ||||||
6 | the first anniversary of the date of
retirement, or upon the | ||||||
7 | first annuity payment date following attainment of age
60, | ||||||
8 | whichever occurs later, have his then fixed and payable | ||||||
9 | monthly annuity
increased by 3%, and such annuity shall be | ||||||
10 | increased by an additional 3% of the
original fixed annuity on | ||||||
11 | the same date each year thereafter. Beginning in
January of | ||||||
12 | 1999, such increases shall be at the rate of 3% of the | ||||||
13 | currently
payable monthly annuity, including any increases | ||||||
14 | previously granted under this
Article.
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15 | (a-5) Notwithstanding the provisions of subsection (a), | ||||||
16 | upon the first
annuity payment date following (1) the third | ||||||
17 | anniversary of retirement, (2)
the attainment of age 53, or | ||||||
18 | (3) January 1, 2002, whichever
occurs latest,
the
monthly | ||||||
19 | annuity of an employee who retires on annuity prior to the | ||||||
20 | attainment
of age 60 and has not received an increase under | ||||||
21 | subsection (a) shall
be
increased by 3%, and the annuity shall | ||||||
22 | be increased by an additional
3% of the
current payable | ||||||
23 | monthly annuity, including any
increases previously
granted
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24 | under this Article, on the same date each year thereafter. The | ||||||
25 | increases
provided under this subsection are in lieu of the | ||||||
26 | increases provided in
subsection (a).
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1 | (a-6) Notwithstanding the provisions of subsections (a) | ||||||
2 | and (a-5), for all
calendar years following the year in which | ||||||
3 | this amendatory Act of the 93rd
General Assembly takes effect, | ||||||
4 | an increase in annuity under this Section that
would otherwise | ||||||
5 | take effect at any time during the year shall instead take
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6 | effect in January of that year.
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7 | (b) Subsections (a), (a-5), and (a-6) are not
applicable | ||||||
8 | to an employee retiring
and receiving a term annuity, as | ||||||
9 | herein defined, nor to any otherwise
qualified employee who | ||||||
10 | retires before he makes employee contributions (at
the 1/2 of | ||||||
11 | 1% rate as provided in this Act) for this additional
annuity | ||||||
12 | for not less than the equivalent of one full year. Such
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13 | employee, however, shall make arrangement to pay to the fund a | ||||||
14 | balance
of such 1/2 of 1% contributions, based on his final | ||||||
15 | salary, as will
bring such 1/2 of 1% contributions, computed | ||||||
16 | without interest, to the
equivalent of or completion of one | ||||||
17 | year's contributions.
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18 | Beginning with January, 1960, each employee shall | ||||||
19 | contribute by means of
salary deductions 1/2 of 1% of each | ||||||
20 | salary payment, concurrently with
and in addition to the | ||||||
21 | employee contributions otherwise made for annuity
purposes.
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22 | Each such additional contribution shall be credited to an | ||||||
23 | account in
the prior service annuity reserve, to be used, | ||||||
24 | together with city
contributions, to defray the cost of the | ||||||
25 | specified annuity increments.
Any balance in such account at | ||||||
26 | the beginning of each calendar year shall
be credited with |
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1 | interest at the rate of 3% per annum.
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2 | Such additional employee contributions are not refundable, | ||||||
3 | except to
an employee who withdraws and applies for refund | ||||||
4 | under this Article, and
in cases where a term annuity becomes | ||||||
5 | payable. In such cases his
contributions shall be refunded, | ||||||
6 | without interest, and charged to such
account in the prior | ||||||
7 | service annuity reserve.
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8 | (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff.
7-1-02; | ||||||
9 | 93-654, eff. 1-16-04.)
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10 | (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
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11 | (Text of Section WITHOUT the changes made by P.A. 98-641, | ||||||
12 | which has been held unconstitutional) | ||||||
13 | Sec. 8-137.1. Automatic increases in annuity for certain | ||||||
14 | heretofore retired
participants.
A retired municipal employee | ||||||
15 | who (a) is receiving annuity based on a
service credit of 20 or | ||||||
16 | more years regardless of age at retirement or based
on a | ||||||
17 | service credit of 15 or more years with retirement at age 55 or | ||||||
18 | over,
and (b) does not qualify for the automatic increases in | ||||||
19 | annuity provided
for in Section 8-137 of this Article, and (c) | ||||||
20 | elects to make a contribution
to the Fund at a time and manner | ||||||
21 | prescribed by the Retirement Board, of a
sum equal to 1% of the | ||||||
22 | amount of final monthly salary times the number of
full years | ||||||
23 | of service on which the annuity was based in those cases where
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24 | the annuity was computed on the money purchase formula and in | ||||||
25 | those cases
in which the annuity was computed under the |
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1 | minimum annuity formula
provisions of this Article a sum equal | ||||||
2 | to 1% of the average monthly salary
on which the annuity was | ||||||
3 | based times such number of full years of service,
shall have | ||||||
4 | his original fixed and payable monthly amount of annuity
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5 | increased in January of the year following the year in which he | ||||||
6 | attains the
age of 65 years, if such age of 65 years is | ||||||
7 | attained in the year 1969 or
later, by an amount equal to | ||||||
8 | 1-1/2%, and by an equal additional 1-1/2% in
January of each | ||||||
9 | year thereafter. Beginning with January of the year 1972,
such | ||||||
10 | increases shall be at the rate of 2% in lieu of the aforesaid
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11 | specified 1 1/2%, and beginning January of the year 1984 such | ||||||
12 | increases
shall be at the rate of 3%.
Beginning in January of | ||||||
13 | 1999, such increases shall be at the rate of
3% of the | ||||||
14 | currently payable monthly annuity, including any increases | ||||||
15 | previously
granted under this Article.
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16 | Whenever the retired municipal employee receiving annuity | ||||||
17 | has attained
the age of 66 or more in 1969, he shall have such | ||||||
18 | annuity increased in
January, 1970 by an amount equal to | ||||||
19 | 1-1/2% multiplied by the number equal
to the number of months | ||||||
20 | of January elapsing from and including January of
the year | ||||||
21 | immediately following the year he attained the age of 65 if
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22 | retired at or before age 65, or from and including January of | ||||||
23 | the year
immediately following the year of retirement if | ||||||
24 | retired at an age greater
than 65, to and including January, | ||||||
25 | 1970, and by an equal additional 1-1/2%
in January of each year | ||||||
26 | thereafter. Beginning with January of the year
1972, such |
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1 | increases shall be at the rate of 2% in lieu of the aforesaid
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2 | specified 1 1/2%, and beginning January of the year 1984 such | ||||||
3 | increases
shall be at the rate of 3%.
Beginning in January of | ||||||
4 | 1999, such increases shall be at the rate of
3% of the | ||||||
5 | currently payable monthly annuity, including any increases | ||||||
6 | previously
granted under this Article.
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7 | To defray the annual cost of such increases, the annual | ||||||
8 | interest income
of the Fund, accruing from investments held by | ||||||
9 | the Fund, exclusive of gains
or losses on sales or exchanges of | ||||||
10 | assets during the year, over and above
4% a year, shall be used | ||||||
11 | to the extent necessary and available to finance
the cost of | ||||||
12 | such increases for the following year, and such amount shall | ||||||
13 | be
transferred as of the end of each year, beginning with the | ||||||
14 | year 1969, to a
Fund account designated as the Supplementary | ||||||
15 | Payment Reserve from the
Investment and Interest Reserve set | ||||||
16 | forth in Section 8-221. The sums
contributed by annuitants as | ||||||
17 | provided for in this Section shall also be
placed in the | ||||||
18 | aforesaid Supplementary Payment Reserve and shall be applied
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19 | and used for the purposes of such Fund account, together with | ||||||
20 | the aforesaid
interest.
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21 | In the event the monies in the Supplementary Payment | ||||||
22 | Reserve in any year
arising from: (1) the available interest | ||||||
23 | income as defined hereinbefore and
accruing in the preceding | ||||||
24 | year above 4% a year and (2) the contributions by
retired | ||||||
25 | persons, as set forth hereinbefore, are insufficient to make | ||||||
26 | the
total payments to all persons estimated to be entitled to |
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1 | the annuity
increases specified hereinbefore, then (3) any | ||||||
2 | interest earnings over 4% a
year beginning with the year 1969 | ||||||
3 | which were not previously used to finance
such increases and | ||||||
4 | which were transferred to the Prior Service Annuity
Reserve | ||||||
5 | may be used to the extent necessary and available to provide
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6 | sufficient funds to finance such increases for the current | ||||||
7 | year, and such
sums shall be transferred from the Prior | ||||||
8 | Service Annuity Reserve.
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9 | In the event the total monies available in the | ||||||
10 | Supplementary Payment
Reserve from the preceding indicated | ||||||
11 | sources are insufficient to make the
total payments to all | ||||||
12 | persons entitled to such increases for the year, a
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13 | proportionate amount computed as the ratio of the monies | ||||||
14 | available to the
total of the total payments for that year | ||||||
15 | shall be paid to each person for
that year.
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16 | The Fund shall be obligated for the payment of the | ||||||
17 | increases in annuity
as provided for in this Section only to | ||||||
18 | the extent that the assets for such
purpose, as specified | ||||||
19 | herein, are available.
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20 | (Source: P.A. 90-766, eff. 8-14-98.)
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21 | (40 ILCS 5/8-174.2 rep.) | ||||||
22 | Section 10. The Illinois Pension Code is amended by | ||||||
23 | repealing Section 8-174.2.
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
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