99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB3496

Introduced , by Rep. Kelly Burke

SYNOPSIS AS INTRODUCED:

40 ILCS 5/6-229

Amends the Chicago Firefighter Article of the Illinois Pension Code.

In a Section relating to a person who first
becomes a fireman on or after

January 1, 2011, provides for payment of an ordinary death benefit. Effective immediately.

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FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning public employee benefits.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Illinois Pension Code is amended by changing

5 Section 6-229 as follows:

6 (40 ILCS 5/6-229)

7 Sec. 6-229. Provisions applicable to new hires.

8 (a) Notwithstanding any other provision of this Article,

9 the provisions of this Section apply to a person who first

10 becomes a fireman under this Article on or after January 1,

11 2011.

12 (b) A fireman age 55 or more who has 10 or more years of

13 service in that capacity shall be entitled at his or her option

14 to receive a monthly retirement annuity for his or her service

15 as a fireman computed by multiplying 2.5% for each year of such

16 service by his or her final average salary.

17 The retirement annuity of a fireman who is retiring after

18 attaining age 50 with 10 or more years of creditable service

19 shall be reduced by one-half of 1% for each month that the

20 fireman's age is under age 55.

21 The maximum retirement annuity under this subsection (b)

22 shall be 75% of final average salary.

23 For the purposes of this subsection (b), "final average

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1 salary" means the average monthly salary obtained by dividing

2 the total salary of the fireman during the 96 consecutive

3 months of service within the last 120 months of service in

4 which the total salary was the highest by the number of months

5 of service in that period.

6 Beginning on January 1, 2011, for all purposes under this

7 Code (including without limitation the calculation of benefits

8 and employee contributions), the annual salary based on the

9 plan year of a member or participant to whom this Section

10 applies shall not exceed $106,800; however, that amount shall

11 annually thereafter be increased by the lesser of (i) 3% of

12 that amount, including all previous adjustments, or (ii)

13 one-half the annual unadjusted percentage increase (but not

14 less than zero) in the consumer price index-u for the 12 months

15 ending with the September preceding each November 1, including

16 all previous adjustments.

17 (b-5) An ordinary death benefit shall be payable on account

18 of the death of any fireman who first becomes a fireman under

19 this Article on or after January 1, 2011, and this death

20 benefit shall be payable upon the death of the fireman pursuant

21 to the provisions of Section 6-150; except that for purposes of

22 this Section 6-229, the first clause of subdivision (a)(5) of

23 Section 6-150 shall be deemed to include, in addition to the

24 annuities specified in that subdivision, any other annuity or

25 pension governed by subsection (b) of this Section that the

26 fireman was in receipt of at the time of his or her death.

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1 (c) Notwithstanding any other provision of this Article,

2 for a person who first becomes a fireman under this Article on

3 or after January 1, 2011, the annuity to which the surviving

4 spouse, children, or parents are entitled under this subsection

5 (c) shall be in the amount of 66 2/3% of the fireman's earned

6 pension at the date of death.

7 Notwithstanding any other provision of this Article, the

8 monthly annuity of a survivor of a person who first becomes a

9 fireman under this Article on or after January 1, 2011 shall be

10 increased on the January 1 after attainment of age 60 by the

11 recipient of the survivor's pension and each January 1

12 thereafter by 3% or one-half the annual unadjusted percentage

13 increase in the consumer price index-u for the 12 months ending

14 with September preceding each November 1, whichever is less, of

15 the originally granted survivor's annuity. If the annual

16 unadjusted percentage change in the consumer price index-u for

17 a 12-month period ending in September is zero or, when compared

18 with the preceding period, decreases, then the annuity shall

19 not be increased.

20 (Source: P.A. 96-1495, eff. 1-1-11.)

21 Section 99. Effective date. This Act takes effect upon

22 becoming law.