99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 SB0962

Introduced 2/11/2015, by Sen. Christine Radogno

SYNOPSIS AS INTRODUCED:

40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109

Amends the Downstate Firefighter Article of the Illinois Pension Code. Makes a technical change in a Section concerning retirement pensions.

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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 4-109 as follows:

6 (40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)

7 Sec. 4-109. Pension.

8 (a) A firefighter age 50 or more with 20 or more years of

9 creditable service, who is no longer in service as a

10 firefighter, shall receive a monthly pension of 1/2the~~the~~

11 monthly salary attached to the rank held by him or her in the

12 fire service at the date of retirement.

13 The monthly pension shall be increased by 1/12 of 2.5% of

14 such monthly salary for each additional month over 20 years of

15 service through 30 years of service, to a maximum of 75% of

16 such monthly salary.

17 The changes made to this subsection (a) by this amendatory

18 Act of the 91st General Assembly apply to all pensions that

19 become payable under this subsection on or after January 1,

20 1999. All pensions payable under this subsection that began on

21 or after January 1, 1999 and before the effective date of this

22 amendatory Act shall be recalculated, and the amount of the

23 increase accruing for that period shall be payable to the

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1 pensioner in a lump sum.

2 (b) A firefighter who retires or is separated from service

3 having at least 10 but less than 20 years of creditable

4 service, who is not entitled to receive a disability pension,

5 and who did not apply for a refund of contributions at his or

6 her last separation from service shall receive a monthly

7 pension upon attainment of age 60 based on the monthly salary

8 attached to his or her rank in the fire service on the date of

9 retirement or separation from service according to the

10 following schedule:

11 For 10 years of service, 15% of salary;

12 For 11 years of service, 17.6% of salary;

13 For 12 years of service, 20.4% of salary;

14 For 13 years of service, 23.4% of salary;

15 For 14 years of service, 26.6% of salary;

16 For 15 years of service, 30% of salary;

17 For 16 years of service, 33.6% of salary;

18 For 17 years of service, 37.4% of salary;

19 For 18 years of service, 41.4% of salary;

20 For 19 years of service, 45.6% of salary.

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

22 the provisions of this subsection (c) apply to a person who

23 first becomes a firefighter under this Article on or after

24 January 1, 2011.

25 A firefighter age 55 or more who has 10 or more years of

26 service in that capacity shall be entitled at his option to

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1 receive a monthly pension for his service as a firefighter

2 computed by multiplying 2.5% for each year of such service by

3 his or her final average salary.

4 The pension of a firefighter who is retiring after

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

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

7 firefighter's age is under age 55.

8 The maximum pension under this subsection (c) shall be 75%

9 of final average salary.

10 For the purposes of this subsection (c), "final average

11 salary" means the average monthly salary obtained by dividing

12 the total salary of the firefighter during the 96 consecutive

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

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

15 of service in that period.

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

17 Code (including without limitation the calculation of benefits

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

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

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

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

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

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

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

25 ending with the September preceding each November 1, including

26 all previous adjustments.

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