40 ILCS 5/6-164
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)Sec. 6-164. Automatic annual increase; retirement after September 1, 1959.(a) A fireman qualifying for a minimum annuity who retires from service  after September 1, 1959 shall, upon either the first of the month following the  first anniversary of his date of retirement if he is age 55 or over on that anniversary date, or upon  the first of the month following his attainment of age 55 if that 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 July 1, 1982 for firemen born before January 1, 1930, and beginning  January 1, 1990 for firemen born after December 31, 1929 and before January 1,  1940, and beginning January 1, 1996 for firemen born after December 31, 1939  but before January 1, 1945, and beginning January 1, 2004, for firemen born  after December 31, 1944 but before January 1, 1955, and beginning January 1, 2017, for firemen born after December 31, 1954,  such increases shall be  3% and such firemen shall not be subject to the 30% maximum increase.Any fireman 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 this amendatory Act of 1995  apply beginning January 1, 1996 and apply without regard to whether the fireman  or annuitant terminated service before the effective date of this amendatory  Act of 1995.Any fireman 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, 2004 is entitled to receive  the initial increase under this subsection on (1) January 1, 2004, (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 93rd General Assembly apply without regard to whether the fireman  or annuitant terminated service before the effective date of this amendatory  Act.Any fireman born after December 31, 1954 but before January 1, 1966 who qualifies for  a minimum annuity and retires after  September 1, 1967 is entitled to  receive an 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 an increase of 3% of his then fixed and payable monthly annuity upon the first of the month following the first anniversary of his date of retirement if he is age 55 or over on that anniversary date or upon the first of the month following his attainment of age 55 if that date occurs after the first anniversary of his retirement date and such first fixed annuity as granted at retirement shall be increased by an additional 3% in January of each year thereafter. In the case of a fireman born after December 31, 1954 but before January 1, 1966 who received an increase in any year of 1.5%, that fireman shall receive an increase for any such year so that the total increase is equal to 3% for each year the fireman would have been otherwise eligible had the fireman not received any increase. The changes to this subsection made by this amendatory  Act of the 99th General Assembly apply without regard to whether the fireman  or annuitant terminated service before the effective date of this amendatory  Act. The changes to this subsection made by this amendatory Act of the 100th General Assembly are a declaration of existing law and shall not be construed as a new enactment.Any fireman who qualifies for  a minimum annuity and retires after  September 1, 1967 is entitled to  receive an increase under this subsection on (1)  January 1, 2020, (2) the first anniversary of the date of  retirement, or (3) attainment of age 55, whichever occurs last, in an amount equal to an increase of 3% of his or her then fixed and payable monthly annuity upon the first of the month following the first anniversary of his or her date of retirement if he or she is age 55 or over on that anniversary date or upon the first of the month following his or her attainment of age 55 if that date occurs after the first anniversary of his or her retirement date and such first fixed annuity as granted at retirement shall be increased by an additional 3% in January of each year thereafter. In the case of a fireman who received an increase in any year of 1.5%, that fireman shall receive an increase for any such year so that the total increase is equal to 3% for each year the fireman would have been otherwise eligible had the fireman not received any increase. The changes to this subsection made by this amendatory  Act of the 101st General Assembly apply without regard to whether the fireman  or annuitant terminated service before the effective date of this amendatory  Act of the 101st General Assembly.(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, 1959, from each payment of salary  to a fireman, 1/8 of 1% of each such salary payment and an additional 1/8  of 1% beginning on September 1, 1961, and September 1, 1963, respectively,  concurrently with and in addition to the salary deductions otherwise made  for annuity purposes.Each such additional 1/8 of 1% deduction from salary which shall, on  September 1, 1963, result in a total increase of 3/8 of 1% of salary,  shall be credited to the Automatic Increase Reserve, to be used,  together with city contributions as provided in this Article, to defray  the cost of the annuity increments specified in 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.The salary deductions provided in this Section are not subject to  refund, except to the fireman himself in any case in which: (i) the fireman  withdraws prior to qualification for minimum annuity or Tier 2 monthly retirement annuity and applies for  refund, (ii) the fireman 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 fireman, without interest, and charged to the  aforementioned reserve.(d) Notwithstanding any other provision of this Article, the Tier 2 monthly retirement annuity of a  person who first becomes a fireman under this Article on or after January 1, 2011 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. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17; 101-673, eff. 4-5-21.)