40 ILCS 5/3-111.1
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 3 - Police Pension Fund - Municipalities 500,000 And Under

 (from Ch. 108 1/2, par. 3-111.1)Sec. 3-111.1. Increase in pension.(a) Except as provided in subsection (e), the monthly pension of a  police officer who retires after July 1, 1971, and prior to January 1, 1986,  shall be increased, upon either the first of the month following the first  anniversary of the date of retirement if the officer is 60 years of age or over  at retirement date, or upon the first day of the month following attainment of  age 60 if it occurs after the first anniversary of retirement, by 3% of the  originally granted pension and by an additional 3% of the originally granted  pension in January of each year thereafter.(b) The monthly pension of a police officer who retired from service  with 20 or more years of service, on or before July 1, 1971, shall be  increased in January of the year following the year of attaining age 65 or  in January of 1972, if then over age 65, by 3% of the originally granted  pension for each year the police officer received pension payments. In each  January thereafter, he or she shall receive an additional increase of 3% of  the original pension.(c) The monthly pension of a police officer who retires on disability or  is retired for disability shall be increased in January of the year  following the year of attaining age 60, by 3% of the original grant of  pension for each year he or she received pension payments.  In each January  thereafter, the police officer shall receive an additional increase of 3%  of the original pension.(d) The monthly pension of a police officer who retires after January  1, 1986, shall be increased, upon either the first of the month following  the first anniversary of the date of retirement if the officer is 55 years  of age or over, or upon the first day of the month  following attainment of age 55 if it occurs after the first anniversary of  retirement, by 1/12 of 3% of the originally granted pension for each full  month that has elapsed since the pension began, and by an  additional 3% of the originally granted pension in January of each year  thereafter.The changes made to this subsection (d) by this amendatory Act of the 91st  General Assembly apply to all initial increases that become payable under this  subsection on or after January 1, 1999.  All initial increases that became  payable under this subsection on or after January 1, 1999 and before the  effective date of this amendatory Act shall be recalculated and the additional  amount accruing for that period, if any, shall be payable to the pensioner in a  lump sum.(e) Notwithstanding the provisions of subsection (a), upon the first  day of the month following (1) the first anniversary of the date of  retirement, or (2) the attainment of age 55, or (3) July 1, 1987, whichever  occurs latest, the monthly pension of a police officer who retired on or after  January 1, 1977 and on or before January 1, 1986, and did not receive an  increase under subsection (a) before July 1, 1987, shall be increased by 3% of  the originally granted monthly pension for each full year that has elapsed  since the pension began, and by an additional 3% of the originally granted  pension in each January thereafter. The increases provided under this  subsection are in lieu of the increases provided in subsection (a).(f) Notwithstanding the other provisions of this Section, beginning  with increases granted on or after July 1, 1993, the second and all  subsequent automatic annual increases granted under subsection (a), (b),  (d), or (e) of this Section shall be calculated as 3% of the amount of  pension payable at the time of the increase, including any increases  previously granted under this Section, rather than 3% of the originally  granted pension amount.  Section 1-103.1 does not apply to this subsection  (f).(g) Notwithstanding any other provision of this Article, the monthly pension of a  person who first becomes a police officer under this Article on or after January 1, 2011 shall be increased on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later.  Each annual increase shall be calculated at 3% or one-half 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, whichever is less, of the originally granted pension.  If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the pension shall not be increased.For the purposes of this subsection (g), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds. (Source: P.A. 96-1495, eff. 1-1-11.)