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HB3657 Enrolled                     LRB104 08622 RPS 18674 b

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

5 changing Sections 5-238 and 6-229 as follows:

6   (40 ILCS 5/5-238)

7   Sec. 5-238. Provisions applicable to new hires; Tier 2.

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

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

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

11 2011, and to certain qualified survivors of such a policeman.

12 Such persons, and the benefits and restrictions that apply

13 specifically to them under this Article, may be referred to as

14 "Tier 2".

15  (b) A policeman who has withdrawn from service, has

16 attained age 50 or more, and has 10 or more years of service in

17 that capacity shall be entitled, upon proper application being

18 received by the Fund, to receive a Tier 2 monthly retirement

19 annuity for his service as a police officer. The Tier 2 monthly

20 retirement annuity shall be computed by multiplying 2.5% for

21 each year of such service by his or her final average salary,

22 subject to an annuity reduction factor of one-half of 1% for

23 each month that the police officer's age at retirement is
    HB3657 Enrolled            -2-       LRB104 08622 RPS 18674 b

1 under age 55. The Tier 2 monthly retirement annuity is in lieu

2 of any age and service annuity or other form of retirement

3 annuity under this Article.

4   The maximum retirement annuity under this subsection (b)

5 shall be 75% of final average salary.

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

7 salary" means the greater of: (i) the average monthly salary

8 obtained by dividing the total salary of the policeman during

9 the 96 consecutive months of service within the last 120

10 months of service in which the total salary was the highest by

11 the number of months of service in that period; or (ii) the

12 average monthly salary obtained by dividing the total salary

13 of the policeman during the 48 consecutive months of service

14 within the last 60 months of service in which the total salary

15 was the highest by the number of months of service in that

16 period.

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

18 Code (including without limitation the calculation of benefits

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

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

21 applies shall not exceed $106,800; however, beginning July 1,

22 2025, the annual salary shall not exceed $141,407.74 and that

23 amount shall annually thereafter be increased by the lesser of

24 (i) 3% of that amount, including all previous adjustments, or

25 (ii) one-half the annual unadjusted percentage increase (but

26 not less than zero) in the consumer price index-u for the 12
    HB3657 Enrolled        -3-         LRB104 08622 RPS 18674 b

1 months ending with the September preceding each November 1,

2 including all previous adjustments.

3   Nothing in this amendatory Act of the 104th General

4 Assembly shall cause or otherwise result in any retroactive

5 adjustment of any employee contributions.

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

7 for a person who first becomes a policeman under this Article

8 on or after January 1, 2011, eligibility for and the amount of

9 the annuity to which the qualified surviving spouse, children,

10 and parents are entitled under this subsection (c) shall be

11 determined as follows:

12  (1) The surviving spouse of a deceased policeman to

13  whom this Section applies shall be deemed qualified to

14  receive a Tier 2 surviving spouse's annuity under this

15  paragraph (1) if: (i) the deceased policeman meets the

16  requirements specified under subdivision (A), (B), (C), or

17  (D) of this paragraph (1); and (ii) the surviving spouse

18  would not otherwise be excluded from receiving a widow's

19  annuity under the eligibility requirements for a widow's

20  annuity set forth in Section 5-146. The Tier 2 surviving

21  spouse's annuity is in lieu of the widow's annuity

22  determined under any other Section of this Article and is

23  subject to the requirements of Section 5-147.1.

24  As used in this subsection (c), "earned annuity" means

25  a Tier 2 monthly retirement annuity determined under

26  subsection (b) of this Section, including any increases
    HB3657 Enrolled  -4-  LRB104 08622 RPS 18674 b

1   the policeman had received pursuant to Section 5-167.1.

2   (A) If the deceased policeman was receiving an

3   earned annuity at the date of his or her death, the

4   Tier 2 surviving spouse's annuity under this paragraph

5   (1) shall be in the amount of 66 2/3% of the

6   policeman's earned annuity at the date of death.

7   If the deceased policeman was a parent of a child

8   or children, including any child who has been

9   conceived but not yet born, and there is a surviving

10  spouse, 12% of the policeman's earned annuity at the

11  date of death shall be granted to the guardian of any

12  such minor child or children for each such child until

13  attainment of age 18. Upon the death of the surviving

14  spouse leaving one or more children under the age of

15  18, or upon the death of a policeman leaving one or

16  more children under the age of 18 but no surviving

17  spouse, a monthly pension of 20% of the policeman's

18  monthly salary at the date of death shall be granted to

19  the duly appointed guardian of each such child for the

20  support and maintenance of each such child until the

21  child reaches age 18. The benefit in this paragraph is

22  in lieu of a benefit under paragraph (2) of this

23  subsection (c) but does not apply if the beneficiary

24  is entitled to receive a greater benefit under

25  paragraph (2) of this subsection (c).

26  (B) If the deceased policeman was not receiving an
    HB3657 Enrolled  -5-  LRB104 08622 RPS 18674 b

1   earned annuity but had at least 10 years of service at

2   the time of death, the Tier 2 surviving spouse's

3   annuity under this paragraph (1) shall be the greater

4   of: (i) 30% of the annual maximum salary attached to

5   the classified civil service position of a first class

6   patrolman at the time of his death; (ii) 54% of the

7   policeman's monthly salary at the time of the

8   policeman's death; or (iii) (ii) 66 2/3% of the Tier 2

9   monthly retirement annuity that the deceased policeman

10  would have been eligible to receive under subsection

11  (b) of this Section, based upon the actual service

12  accrued through the day before the policeman's death,

13  but determined as though the policeman was at least

14  age 55 on the day before his or her death and retired

15  on that day.

16  If the deceased policeman was a parent of a child

17  or children, including any child who has been

18  conceived but not yet born, and there is a surviving

19  spouse, 12% of the policeman's monthly salary at the

20  date of death shall be granted to the guardian of any

21  such minor child or children for each such child until

22  attainment of age 18. Upon the death of the surviving

23  spouse leaving one or more children under the age of

24  18, or upon the death of a policeman leaving one or

25  more children under the age of 18 but no surviving

26  spouse, a monthly pension of 20% of the policeman's
    HB3657 Enrolled  -6-  LRB104 08622 RPS 18674 b

1   monthly salary at the date of death shall be granted to

2   the duly appointed guardian of each such child for the

3   support and maintenance of each such child until the

4   child reaches age 18. The benefit in this paragraph is

5   in lieu of a benefit under paragraph (2) of this

6   subsection (c) but does not apply if the beneficiary

7   is entitled to receive a greater benefit under

8   paragraph (2) of this subsection (c).

9   (C) If the deceased policeman was an active

10  policeman with at least 1 1/2 but less than 10 years of

11  service at the time of death, the Tier 2 surviving

12  spouse's annuity under this paragraph (1) shall be the

13  greater of: (i) in the amount of 30% of the annual

14  maximum salary attached to the classified civil

15  service position of a first class patrolman at the

16  time of his death; or (ii) 54% of the policeman's

17  monthly salary at the time of the policeman's death.

18  If the deceased policeman was a parent of a child

19  or children, including any child who has been

20  conceived but not yet born, and there is a surviving

21  spouse, 12% of the policeman's monthly salary at the

22  date of death shall be granted to the guardian of any

23  such minor child or children for each such child until

24  attainment of age 18. Upon the death of the surviving

25  spouse leaving one or more children under the age of

26  18, or upon the death of a policeman leaving one or
    HB3657 Enrolled  -7-  LRB104 08622 RPS 18674 b

1   more children under the age of 18 but no surviving

2   spouse, a monthly pension of 20% of the policeman's

3   monthly salary at the date of death shall be granted to

4   the duly appointed guardian of each such child for the

5   support and maintenance of each such child until the

6   child reaches age 18. The benefit in this paragraph is

7   in lieu of a benefit under paragraph (2) of this

8   subsection (c) but does not apply if the beneficiary

9   is entitled to receive a greater benefit under

10  paragraph (2) of this subsection (c).

11  (D) If the performance of an act or acts of duty

12  results directly in the death of a policeman subject

13  to this Section, or prevents him from subsequently

14  resuming active service in the police department, and

15  if the policeman's Tier 2 surviving spouse would

16  otherwise meet the eligibility requirements for a

17  compensation annuity or supplemental annuity granted

18  under Section 5-144, then in addition to the Tier 2

19  surviving spouse's annuity provided under subdivision

20  (A), (B), or (C) of this paragraph (1), whichever

21  applies, the Tier 2 surviving spouse shall be

22  qualified to receive compensation annuity or

23  supplemental annuity, as would be provided under

24  Section 5-144, in order to bring the total benefit up

25  to the applicable 75% salary limitation provided in

26  that Section, but subject to the Tier 2 salary cap
    HB3657 Enrolled    -8-  LRB104 08622 RPS 18674 b

1   provided under subsection (b) of this Section; except

2   that no such annuity shall be paid to the surviving

3   spouse of a policeman who dies while in receipt of

4   disability benefits when the policeman's death was

5   caused by an intervening illness or injury unrelated

6   to the illness or injury that had prevented him from

7   subsequently resuming active service in the police

8   department.

9   (E) Notwithstanding any other provision of this

10  Article, the monthly Tier 2 surviving spouse's annuity

11  under subdivision (A) or (B) of this paragraph (1)

12  shall be increased on the January 1 next occurring

13  after (i) attainment of age 60 by the recipient of the

14  Tier 2 surviving spouse's annuity or (ii) the first

15  anniversary of the Tier 2 surviving spouse's annuity

16  start date, whichever is later, and on each January 1

17  thereafter, by 3% or one-half the annual unadjusted

18  percentage increase (but not less than zero) in the

19  consumer price index-u for the 12 months ending with

20  the September preceding each November 1, whichever is

21  less, of the originally granted Tier 2 surviving

22  spouse's annuity. If the unadjusted percentage change

23  in the consumer price index-u for a 12-month period

24  ending in September is zero or, when compared with the

25  preceding period, decreases, then the annuity shall

26  not be increased.
    HB3657 Enrolled  -9-          LRB104 08622 RPS 18674 b

1   For the purposes of this Section, "consumer price

2   index-u" means the index published by the Bureau of

3   Labor Statistics of the United States Department of

4   Labor that measures the average change in prices of

5   goods and services purchased by all urban consumers,

6   United States city average, all items, 1982-84 = 100.

7   The new amount resulting from each annual adjustment

8   shall be determined by the Public Pension Division of

9   the Department of Insurance and made available to the

10  boards of the pension funds.

11  (F) Notwithstanding the other provisions of this

12  paragraph (1), for a qualified surviving spouse who is

13  entitled to a Tier 2 surviving spouse's annuity under

14  subdivision (A), (B), (C), or (D) of this paragraph

15  (1), that Tier 2 surviving spouse's annuity shall not

16  be less than the amount of the minimum widow's annuity

17  established from time to time under Section 5-167.4.

18  (2) Surviving children of a deceased policeman subject

19  to this Section who would otherwise meet the eligibility

20  requirements for a child's annuity set forth in Sections

21  5-151 and 5-152 shall be deemed qualified to receive a

22  Tier 2 child's annuity under this subsection (c), which

23  shall be in lieu of, but in the same amount and paid in the

24  same manner as, the child's annuity provided under those

25  Sections; except that any salary used for computing a Tier

26  2 child's annuity shall be subject to the Tier 2 salary cap
    HB3657 Enrolled  - 10 - LRB104 08622 RPS 18674 b

1   provided under subsection (b) of this Section. For

2   purposes of determining any pro rata reduction in child's

3   annuities under this subsection (c), references in Section

4   5-152 to the combined annuities of the family shall be

5   deemed to refer to the combined Tier 2 surviving spouse's

6   annuity, if any, and the Tier 2 child's annuities payable

7   under this subsection (c).

8   (3) Surviving parents of a deceased policeman subject

9   to this Section who would otherwise meet the eligibility

10  requirements for a parent's annuity set forth in Section

11  5-152 shall be deemed qualified to receive a Tier 2

12  parent's annuity under this subsection (c), which shall be

13  in lieu of, but in the same amount and paid in the same

14  manner as, the parent's annuity provided under Section

15  5-152.1; except that any salary used for computing a Tier

16  2 parent's annuity shall be subject to the Tier 2 salary

17  cap provided under subsection (b) of this Section. For the

18  purposes of this Section, a reference to "annuity" in

19  Section 5-152.1 includes: (i) in the context of a widow, a

20  Tier 2 surviving spouse's annuity and (ii) in the context

21  of a child, a Tier 2 child's annuity.

22  Notwithstanding Section 1-103.1, the changes made to this

23 subsection by this amendatory Act of the 104th General

24 Assembly apply without regard to whether the deceased

25 policeman was in service on or after the effective date of this

26 amendatory Act of the 104th General Assembly. The changes made
    HB3657 Enrolled   - 11 - LRB104 08622 RPS 18674 b

1 by this amendatory Act of the 104th General Assembly shall not

2 diminish the survivor's benefits described in this Section.

3   (d) The General Assembly finds and declares that the

4 provisions of this Section, as enacted by Public Act 96-1495,

5 require clarification relating to necessary eligibility

6 standards and the manner of determining and paying the

7 intended Tier 2 benefits and contributions in order to enable

8 the Fund to unambiguously implement and administer benefits

9 for Tier 2 members. The changes to this Section and the

10 conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1

11 (except for the changes to subsection (a) of that Section),

12 5-169, and 5-170 made by this amendatory Act of the 99th

13 General Assembly are enacted to clarify the provisions of this

14 Section as enacted by Public Act 96-1495, and are hereby

15 declared to represent and be consistent with the original and

16 continuing intent of this Section and Public Act 96-1495.

17  (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1

18 (except for the changes to subsection (a) of that Section),

19 5-169, and 5-170 made by this amendatory Act of the 99th

20 General Assembly are intended to be retroactive to January 1,

21 2011 (the effective date of Public Act 96-1495) and, for the

22 purposes of Section 1-103.1 of this Code, they apply without

23 regard to whether the relevant policeman was in service on or

24 after the effective date of this amendatory Act of the 99th

25 General Assembly.

26 (Source: P.A. 99-905, eff. 11-29-16.)
    HB3657 Enrolled    - 12 - LRB104 08622 RPS 18674 b

1   (40 ILCS 5/6-229)

2   Sec. 6-229. Provisions applicable to new hires; Tier 2.

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

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

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

6 2011, and to certain qualified survivors of such a fireman.

7 Such persons, and the benefits and restrictions that apply

8 specifically to them under this Article, may be referred to as

9 "Tier 2".

10  (b) A fireman who has withdrawn from service, has attained

11 age 50 or more, and has 10 or more years of service in that

12 capacity shall be entitled, upon proper application being

13 received by the Fund, to receive a Tier 2 monthly retirement

14 annuity for his service as a fireman. The Tier 2 monthly

15 retirement annuity shall be computed by multiplying 2.5% for

16 each year of such service by his or her final average salary,

17 subject to an annuity reduction factor of one-half of 1% for

18 each month that the fireman's age at retirement is under age

19 55. The Tier 2 monthly retirement annuity is in lieu of any age

20 and service annuity or other form of retirement annuity under

21 this Article.

22  The maximum retirement annuity under this subsection (b)

23 shall be 75% of final average salary.

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

25 salary" means the greater of (1) the average monthly salary
    HB3657 Enrolled  - 13 - LRB104 08622 RPS 18674 b

1 obtained by dividing the total salary of the fireman during

2 the 96 consecutive months of service within the last 120

3 months of service in which the total salary was the highest by

4 the number of months of service in that period or (2) the

5 average monthly salary obtained by dividing the total salary

6 of the fireman during the 48 consecutive months of service

7 within the last 60 months of service in which the total salary

8 was the highest by the number of months of service in that

9 period.

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

11 Code (including without limitation the calculation of benefits

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

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

14 applies shall not exceed $106,800; however, beginning July 1,

15 2025, the annual salary shall not exceed $141,407.74 and that

16 amount shall annually thereafter be increased by the lesser of

17 (i) 3% of that amount, including all previous adjustments, or

18 (ii) one-half the annual unadjusted percentage increase (but

19 not less than zero) in the consumer price index-u for the 12

20 months ending with the September preceding each November 1,

21 including all previous adjustments.

22  Nothing in this amendatory Act of the 104th General

23 Assembly shall cause or otherwise result in any retroactive

24 adjustment of any employee contributions.

25  (b-5) For the purposes of this Section, "consumer price

26 index-u" means the index published by the Bureau of Labor
    HB3657 Enrolled         - 14 - LRB104 08622 RPS 18674 b

1 Statistics of the United States Department of Labor that

2 measures the average change in prices of goods and services

3 purchased by all urban consumers, United States city average,

4 all items, 1982-84 = 100. The new amount resulting from each

5 annual adjustment shall be determined by the Public Pension

6 Division of the Department of Insurance and made available to

7 the boards of the retirement systems and pension funds by

8 November 1 of each year.

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

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

11 or after January 1, 2011, eligibility for and the amount of the

12 annuity to which the qualified surviving spouse, children, and

13 parents of the fireman are entitled under this subsection (c)

14 shall be determined as follows:

15  (1) The surviving spouse of a deceased fireman to whom

16  this Section applies shall be deemed qualified to receive

17  a Tier 2 surviving spouse's annuity under this paragraph

18  (1) if: (i) the deceased fireman meets the requirements

19  specified under subdivision (A), (B), (C), or (D) of this

20  paragraph (1); and (ii) the surviving spouse would not

21  otherwise be excluded from receiving a widow's annuity

22  under the eligibility requirements for a widow's annuity

23  set forth in Section 6-142. The Tier 2 surviving spouse's

24  annuity is in lieu of the widow's annuity determined under

25  any other Section of this Article and is subject to the

26  requirements of Section 6-143.2.
    HB3657 Enrolled  - 15 - LRB104 08622 RPS 18674 b

1   As used in this subsection (c), "earned pension" means

2   a Tier 2 monthly retirement annuity determined under

3   subsection (b) of this Section, including any increases

4   the fireman had received pursuant to Section 6-164.

5   (A) If the deceased fireman was receiving an

6   earned pension at the date of his or her death, the

7   Tier 2 surviving spouse's annuity under this paragraph

8   (1) shall be in the amount of 66 2/3% of the fireman's

9   earned pension at the date of death.

10  If the deceased fireman was a parent of a child or

11  children, including any child who has been conceived

12  but not yet born, and there is a surviving spouse, 12%

13  of the fireman's earned annuity at the date of death

14  shall be granted to the guardian of any such minor

15  child or children for each such child until attainment

16  of age 18. Upon the death of the surviving spouse

17  leaving one or more children under the age of 18, or

18  upon the death of a fireman leaving one or more

19  children under the age of 18 but no surviving spouse, a

20  monthly pension of 20% of the fireman's monthly salary

21  at the date of death shall be granted to the duly

22  appointed guardian of each such child for the support

23  and maintenance of each such child until the child

24  reaches age 18. The benefit in this paragraph is in

25  lieu of a benefit under paragraph (2) of this

26  subsection (c) but does not apply if the beneficiary
    HB3657 Enrolled  - 16 - LRB104 08622 RPS 18674 b

1   is entitled to receive a greater benefit under

2   paragraph (2) of this subsection (c).

3   (B) If the deceased fireman was not receiving an

4   earned pension but had at least 10 years of service at

5   the time of death, the Tier 2 surviving spouse's

6   annuity under this paragraph (1) shall be the greater

7   of: (i) 30% of the salary attached to the rank of first

8   class firefighter in the classified career service at

9   the time of the fireman's death; (ii) 54% of the

10  fireman's monthly salary at the time of the fireman's

11  death; or (iii) (ii) 66 2/3% of the Tier 2 monthly

12  retirement annuity that the deceased fireman would

13  have been eligible to receive under subsection (b) of

14  this Section, based upon the actual service accrued

15  through the day before the fireman's death, but

16  determined as though the fireman was at least age 55 on

17  the day before his or her death and retired on that

18  day.

19  If the deceased fireman was a parent of a child or

20  children, including any child who has been conceived

21  but not yet born, and there is a surviving spouse, 12%

22  of the fireman's monthly salary at the date of death

23  shall be granted to the guardian of any such minor

24  child or children for each such child until attainment

25  of age 18. Upon the death of the surviving spouse

26  leaving one or more children under the age of 18, or
    HB3657 Enrolled       - 17 - LRB104 08622 RPS 18674 b

1   upon the death of a fireman leaving one or more

2   children under the age of 18 but no surviving spouse, a

3   monthly pension of 20% of the fireman's monthly salary

4   at the date of death shall be granted to the duly

5   appointed guardian of each such child for the support

6   and maintenance of each such child until the child

7   reaches age 18. The benefit in this paragraph is in

8   lieu of a benefit under paragraph (2) of this

9   subsection (c) but does not apply if the beneficiary

10  is entitled to receive a greater benefit under

11  paragraph (2) of this subsection (c).

12  (C) If the deceased fireman was an active fireman

13  with at least 1 1/2 but less than 10 years of service

14  at the time of death, the Tier 2 surviving spouse's

15  annuity under this paragraph (1) shall be the greater

16  of: (i) in the amount of 30% of the salary attached to

17  the rank of first class firefighter in the classified

18  career service at the time of the fireman's death; or

19  (ii) 54% of the fireman's monthly salary at the time of

20  the fireman's death.

21  If the deceased fireman was a parent of a child or

22  children, including any child who has been conceived

23  but not yet born, and there is a surviving spouse, 12%

24  of the fireman's monthly salary at the date of death

25  shall be granted to the guardian of any such minor

26  child or children for each such child until attainment
    HB3657 Enrolled  - 18 - LRB104 08622 RPS 18674 b

1   of age 18. Upon the death of the surviving spouse

2   leaving one or more children under the age of 18, or

3   upon the death of a fireman leaving one or more

4   children under the age of 18 but no surviving spouse, a

5   monthly pension of 20% of the fireman's monthly salary

6   at the date of death shall be granted to the duly

7   appointed guardian of each such child for the support

8   and maintenance of each such child until the child

9   reaches age 18. The benefit in this paragraph is in

10  lieu of a benefit under paragraph (2) of this

11  subsection (c) but does not apply if the beneficiary

12  is entitled to receive a greater benefit under

13  paragraph (2) of this subsection (c).

14  (D) Notwithstanding subdivisions (A), (B), and (C)

15  of this paragraph (1), if the performance of an act or

16  acts of duty results directly in the death of a fireman

17  subject to this Section, or prevents him from

18  subsequently resuming active service in the fire

19  department, then a surviving spouse who would

20  otherwise meet the eligibility requirements for a

21  death in the line of duty widow's annuity granted

22  under Section 6-140 shall be deemed to be qualified

23  for a Tier 2 surviving spouse's annuity under this

24  subdivision (D); except that no such annuity shall be

25  paid to the surviving spouse of a fireman who dies

26  while in receipt of disability benefits when the
    HB3657 Enrolled  - 19 - LRB104 08622 RPS 18674 b

1   fireman's death was caused by an intervening illness

2   or injury unrelated to the illness or injury that had

3   prevented him from subsequently resuming active

4   service in the fire department. The Tier 2 surviving

5   spouse's annuity calculated under this subdivision (D)

6   shall be in lieu of, but in the same amount and paid in

7   the same manner as, the widow's annuity provided under

8   Section 6-140; except that the salary used for

9   computing a Tier 2 surviving spouse's annuity under

10  this subdivision (D) shall be subject to the Tier 2

11  salary cap provided under subsection (b) of this

12  Section.

13  (E) Notwithstanding any other provision of this

14  Article, the monthly Tier 2 surviving spouse's annuity

15  under subdivision (A) or (B) of this paragraph (1)

16  shall be increased on the January 1 next occurring

17  after (i) attainment of age 60 by the recipient of the

18  Tier 2 surviving spouse's annuity or (ii) the first

19  anniversary of the Tier 2 surviving spouse's annuity

20  start date, whichever is later, and on each January 1

21  thereafter, by 3% or one-half the annual unadjusted

22  percentage increase in the consumer price index-u for

23  the 12 months ending with September preceding each

24  November 1, whichever is less, of the originally

25  granted Tier 2 surviving spouse's annuity. If the

26  annual unadjusted percentage change in the consumer
    HB3657 Enrolled  - 20 - LRB104 08622 RPS 18674 b

1   price index-u for a 12-month period ending in

2   September is zero or, when compared with the preceding

3   period, decreases, then the annuity shall not be

4   increased.

5   (F) Notwithstanding the other provisions of this

6   paragraph (1), for a qualified surviving spouse who is

7   entitled to a Tier 2 surviving spouse's annuity under

8   subdivision (A), (B), (C), or (D) of this paragraph

9   (1), that Tier 2 surviving spouse's annuity shall not

10  be less than the amount of the minimum widow's annuity

11  established from time to time under Section 6-128.4.

12  (2) Surviving children of a deceased fireman subject

13  to this Section who would otherwise meet the eligibility

14  requirements for a child's annuity set forth in Sections

15  6-147 and 6-148 shall be deemed qualified to receive a

16  Tier 2 child's annuity under this subsection (c), which

17  shall be in lieu of, but in the same amount and paid in the

18  same manner as, the child's annuity provided under those

19  Sections; except that any salary used for computing a Tier

20  2 child's annuity shall be subject to the Tier 2 salary cap

21  provided under subsection (b) of this Section. For

22  purposes of determining any pro rata reduction in child's

23  annuities under this subsection (c), references in Section

24  6-148 to the combined annuities of the family shall be

25  deemed to refer to the combined Tier 2 surviving spouse's

26  annuity, if any, and the Tier 2 child's annuities payable
    HB3657 Enrolled  - 21 - LRB104 08622 RPS 18674 b

1   under this subsection (c).

2   (3) Surviving parents of a deceased fireman subject to

3   this Section who would otherwise meet the eligibility

4   requirements for a parent's annuity set forth in Section

5   6-149 shall be deemed qualified to receive a Tier 2

6   parent's annuity under this subsection (c), which shall be

7   in lieu of, but in the same amount and paid in the same

8   manner as, the parent's annuity provided under Section

9   6-149; except that any salary used for computing a Tier 2

10  parent's annuity shall be subject to the Tier 2 salary cap

11  provided under subsection (b) of this Section. For the

12  purposes of this Section, a reference to "annuity" in

13  Section 6-149 includes: (i) in the context of a widow, a

14  Tier 2 surviving spouse's annuity and (ii) in the context

15  of a child, a Tier 2 child's annuity.

16  Notwithstanding Section 1-103.1, the changes made to this

17 subsection by this amendatory Act of the 104th General

18 Assembly apply without regard to whether the deceased fireman

19 was in service on or after the effective date of this

20 amendatory Act of the 104th General Assembly. The changes made

21 by this amendatory Act of the 104th General Assembly shall not

22 diminish the survivor's benefits described in this Section.

23  (d) The General Assembly finds and declares that the

24 provisions of this Section, as enacted by Public Act 96-1495,

25 require clarification relating to necessary eligibility

26 standards and the manner of determining and paying the
    HB3657 Enrolled          - 22 - LRB104 08622 RPS 18674 b

1 intended Tier 2 benefits and contributions in order to enable

2 the Fund to unambiguously implement and administer benefits

3 for Tier 2 members. The changes to this Section and the

4 conforming changes to Sections 6-150, 6-158, 6-164 (except for

5 the changes to subsection (a) of that Section), 6-166, and

6 6-167 made by this amendatory Act of the 99th General Assembly

7 are enacted to clarify the provisions of this Section as

8 enacted by Public Act 96-1495, and are hereby declared to

9 represent and be consistent with the original and continuing

10 intent of this Section and Public Act 96-1495.

11  (e) The changes to Sections 6-150, 6-158, 6-164 (except

12 for the changes to subsection (a) of that Section), 6-166, and

13 6-167 made by this amendatory Act of the 99th General Assembly

14 are intended to be retroactive to January 1, 2011 (the

15 effective date of Public Act 96-1495) and, for the purposes of

16 Section 1-103.1 of this Code, they apply without regard to

17 whether the relevant fireman was in service on or after the

18 effective date of this amendatory Act of the 99th General

19 Assembly.

20 (Source: P.A. 103-579, eff. 12-8-23.)

21  Section 90. The State Mandates Act is amended by adding

22 Section 8.49 as follows:

23  (30 ILCS 805/8.49 new)

24  Sec. 8.49. Exempt mandate. Notwithstanding Sections 6 and
   HB3657 Enrolled  - 23 - LRB104 08622 RPS 18674 b

1 8 of this Act, no reimbursement by the State is required for
2 the implementation of any mandate created by this amendatory
3 Act of the 104th General Assembly.

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

5 becoming law.
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