40 ILCS 5/6-164.1
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 6 - Firemen's Annuity And Benefit Fund--Cities Over 500,000

 (from Ch. 108 1/2, par. 6-164.1)Sec. 6-164.1.         Automatic annual increase; retirement on or before  September 1, 1959.(a) A retired fireman, qualifying for minimum annuity  or who retired from service with 20 or more years of service,  on or before September 1, 1959, at age 50 or over shall  have, in January of the year following the year he attains  the age of 65, or in January, 1970, if he is then over age 65, his then  fixed and payable monthly annuity increased by an amount equal to 2% of the  original grant of annuity, for each year he received annuity payments after  the year in which he attains age 65.  An additional 2% increase in such  fixed and payable original granted annuity shall accrue in each January  thereafter.However, beginning January 1, 1996, the increases payable under this  subsection (a) to a fireman born before January 1, 1945 shall be at the rate of  3% of the originally granted annuity amount, notwithstanding that the fireman  terminated service prior to the effective date of this amendatory Act of  1995.(b) The provisions of subsection (a) of  this Section apply only to a retired fireman eligible for such  increases in his annuity if he contributed to the fund a sum equal to 1% of  the final average monthly salary used in the computation of the annuity for  each full year of credited service upon which his annuity was computed.  All  such sums contributed shall be placed in a Supplementary Payment Reserve  and used for the purposes of such fund account.(c) Beginning with the monthly annuity payment due in July, 1982,  the monthly annuity payment for any fireman who retired from the service  before September 1, 1976 at age 50 or over with 20 or more years of service  or who was granted duty disability benefits prior to September 1, 1957 and  entitled to an annuity or duty disability benefits on July 1, 1975 shall be  not less than $400.(d) The difference in amount between the minimum monthly annuity  specified in subsection (c) and the minimum  monthly annuity to which the fireman was entitled before July 1, 1975, in  accordance with the provisions of Section 6-128.1, shall be paid as a  supplement in the manner set forth in subsection (e).(e) To defray the annual cost of the increases indicated in the  preceding part of this Section, the annual income accruing from  investments held by this fund, above 4% a year, to the extent  necessary and available to finance the cost of such increases for the  following year, shall be transferred each year beginning with the year 1969  to a fund account designated as the Supplementary Payment Reserve from the  Interest and Investment Reserve set forth in Section 6-203.If the money in the Supplementary Payment Reserve in any year arising  from interest income above 4% a year as defined in this Section accruing in  the preceding year; and the contributions by retired persons, are  insufficient to make the total payments to all persons entitled to the  annuity under this Section; and any investment earnings over 4% a year  beginning with the year 1969 not previously used to finance such increases  and transferred to the Prior Service Annuity Reserve, may be used to the  extent necessary and available to provide sufficient funds to finance such  increases for the current year.  Such sums shall be transferred from the  Prior Service Annuity Reserve.  If the total money available in the  Supplementary Payment Reserve from such sources are insufficient to make  the total payments to all persons entitled to such increases for the year,  a proportionate amount computed as the ratio of the money available to the  total of all the payments specified for that year shall be paid to each  person for that year.No part of any such increase under this Section is an obligation of the  fund otherwise established under this Article 6.    (Source: P.A. 89-136, eff. 7-14-95.)