40 ILCS 5/5-167.1
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 5 - Policemen's Annuity And Benefit Fund--Cities Over 500,000

 (from Ch. 108 1/2, par. 5-167.1)Sec. 5-167.1. Automatic increase in annuity; retirement from service  after September 1, 1967.(a) A policeman who retires from service after September 1, 1967  with at least 20 years of service credit shall, upon either the first  of the month following the first anniversary of his date of retirement  if he is age 60 (age 55 if born before January 1, 1966)  or over on that anniversary date, or upon the first of the month following  his attainment of age 60 (age 55 if born before January 1, 1966)  if it occurs after the first anniversary of his retirement date, have his  then fixed and payable monthly annuity increased by 1 1/2% and such first  fixed annuity as granted at retirement increased by an additional 1 1/2% in  January of each year thereafter up to a maximum increase of 30%.  Beginning  January 1, 1983 for policemen born before January 1, 1930, and beginning  January 1, 1988 for policemen born on or after January 1, 1930 but before  January 1, 1940, and beginning January 1, 1996 for policemen born on or after  January 1, 1940 but before January 1, 1945, and beginning January 1, 2000  for policemen born on or after January 1, 1945 but before January 1, 1950, and beginning January 1, 2005  for policemen born on or after January 1, 1950 but before January 1, 1955, and beginning January 1, 2017  for policemen born on or after January 1, 1955 but before January 1, 1966,   such increases shall be 3% and such policemen shall not be subject to the  30% maximum increase.Any policeman born before January 1, 1945 who qualifies for a minimum  annuity and retires after September 1, 1967 but has not received the initial  increase under this subsection before January 1, 1996 is entitled to receive  the initial increase under this subsection on (1) January 1, 1996, (2) the  first anniversary of the date of retirement, or (3) attainment of age 55,  whichever occurs last.  The changes to this Section made by Public Act  89-12 apply beginning January 1, 1996 and  without regard to whether the policeman or annuitant terminated service before  the effective date of that Act.Any policeman born before January 1, 1950 who qualifies for a minimum  annuity and retires after September 1, 1967 but has not received the initial  increase under this subsection before January 1, 2000 is entitled to receive  the initial increase under this subsection on (1) January 1, 2000, (2) the  first anniversary of the date of retirement, or (3) attainment of age 55,  whichever occurs last.  The changes to this Section made by this amendatory  Act of the 92nd General Assembly apply without regard to whether the policeman  or annuitant terminated service before the effective date of this amendatory  Act.Any policeman born before January 1, 1955 who qualifies for a minimum  annuity and retires after September 1, 1967 but has not received the initial  increase under this subsection before January 1, 2005 is entitled to receive  the initial increase under this subsection on (1) January 1, 2005, (2) the  first anniversary of the date of retirement, or (3) attainment of age 55,  whichever occurs last.  The changes to this Section made by this amendatory  Act of the 94th General Assembly apply without regard to whether the policeman  or annuitant terminated service before the effective date of this amendatory  Act.Any policeman born before January 1, 1966 who qualifies for  a minimum annuity and retires after  September 1, 1967 but has not received the initial increase  under this subsection before January 1, 2017 is entitled to  receive an initial increase under this subsection on (1)  January 1, 2017, (2) the first anniversary of the date of  retirement, or (3) attainment of age 55, whichever occurs last, in an amount equal to 3% for each complete year following the date of retirement or attainment of age 55, whichever occurs later. The changes to this subsection made by this amendatory  Act of the 99th General Assembly apply without regard to whether the policeman  or annuitant terminated service before the effective date of this amendatory  Act.(b) Subsection (a) of this Section is  not applicable to an employee receiving a term annuity.(c) To help defray the cost of such increases in annuity, there shall  be deducted, beginning September 1, 1967, from each payment of salary to a  policeman, 1/2 of 1% of each salary payment concurrently with and in addition  to the salary deductions otherwise made for annuity purposes.The city, in addition to the contributions otherwise made by it for  annuity purposes under other provisions of this Article, shall make  matching contributions concurrently with such salary deductions.Each such 1/2 of 1% deduction from salary and each such contribution  by the city of 1/2 of 1% of salary shall be credited to the Automatic  Increase Reserve, to be used to defray the cost of the annuity  increase provided by this Section.  Any balance in such reserve as of the  beginning of each calendar year shall be credited with interest at the  rate of 3% per annum.Such deductions from salary and city contributions shall continue  while the policeman is in service.The salary deductions provided in this Section are not subject to  refund, except to the policeman himself, in any case in which: (i) the   policeman withdraws prior to qualification for minimum annuity or Tier 2 monthly retirement annuity and  applies for refund, (ii) the policeman applies for an annuity of a type that is not subject to annual increases under this Section, or (iii) a term annuity  becomes payable. In such cases, the total of such salary deductions  shall be refunded to the policeman, without interest, and charged to the  Automatic Increase Reserve.(d) Notwithstanding any other provision of this Article, the Tier 2 monthly retirement annuity of a  person who first becomes a policeman under this Article on or after the effective date of this amendatory Act of the 97th General Assembly shall be increased on the January 1 occurring either on or after (i) the attainment of age 60 or (ii) the first anniversary of the annuity 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 retirement annuity.  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 annuity shall not be increased.For the purposes of this subsection (d), "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 by November 1 of each year.(Source: P.A. 99-905, eff. 11-29-16.)