Bill Text: IL HB5816 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Pension Code. Provides that if a member or participant of a pension fund or retirement system established under the Code is convicted of, or pleads guilty to, intimidation by a public official, bribery, official misconduct, engaging in kickbacks, fraudulently obtaining public moneys reserved for a disadvantaged business enterprise, or certain theft offenses, then none of the benefits that are provided for under the Code and that are attributable to the service of that person shall be paid. Provides that if a member or participant of a pension fund or retirement system established under the Code is receiving an annuity or pension from a pension fund or retirement system established under the Code and is convicted of, or pleads guilty to, a felony (other than intimidation by a public official, bribery, official misconduct, engaging in kickbacks, fraudulently obtaining public moneys reserved for a disadvantaged business enterprise, certain theft offenses, or any other felony requiring the forfeiture of that annuity or pension under the Code), then the board of trustees of that fund or system shall suspend the payment of that annuity or pension during that individual's incarceration for that offense. Provides that, upon completion of the term of incarceration for that offense, the member or participant may seek reinstatement of his or her annuity or pension by filing a request for reinstatement of benefits with the applicable pension fund or retirement system in the manner prescribed by the applicable fund or system.

Spectrum: Bipartisan Bill

Status: (Failed) 2014-12-03 - Session Sine Die [HB5816 Detail]

Download: Illinois-2013-HB5816-Amended.html

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Rep. Darlene J. Senger

Filed: 3/21/2014

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AMENDMENT TO HOUSE BILL 5816
AMENDMENT NO. ______. Amend House Bill 5816 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Pension Code is amended by
changing Sections 2-156, 14-149, 15-187, 16-199, and 18-163 as
follows:
(40 ILCS 5/2-156) (from Ch. 108 1/2, par. 2-156)
Sec. 2-156. Felony conviction.
(a) If a person is convicted of, or pleads guilty to,
violating paragraph (6) of subsection (a) of Section 12-6,
subsection (a) of Section 33-1, Section 33-3, subsection (a) of
Section 33E-7, or subsection (d) of Section 17-10.3 of the
Criminal Code of 2012, or is sentenced for theft of
governmental property under paragraph (4.1), (5.1), or (6.1) of
subsection (b) of Section 16-1 of the Criminal Code of 2012,
then none of the benefits provided under this Article that are

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attributable to the service of that person under this Article
shall be paid.
(b) None of the benefits herein provided for shall be paid
to any person who is convicted of any felony relating to or
arising out of or in connection with his or her service as a
member.
(c) If a person is receiving an annuity from the System and
is convicted of, or pleads guilty to, a felony, other than a
felony requiring the forfeiture of that annuity under
subsection (a) or (b) of this Section, then the Board shall
suspend the payment of the annuity for the duration of that
person's incarceration for that offense. Upon completion of the
term of incarceration for that offense, the person may seek
reinstatement of his or her annuity by filing a request for
reinstatement of benefits with the System in the manner
prescribed by the Board.
(d) A person who forfeits his or her benefits under this
Section is entitled to a refund of his or her unused employee
contributions to the extent that the refund of those
contributions is necessary in order for the System to maintain
qualified plan status under the federal Internal Revenue Code
of 1986.
(e) This Section shall not operate to impair any contract
or vested right acquired prior to July 11, 1955 under any law
or laws continued in this Article, nor to preclude the right to
a refund.

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All participants entering service subsequent to July 11,
1955 shall be deemed to have consented to the provisions of
this Section as a condition of participation.
The changes to this Section made by this amendatory Act of
the 98th General Assembly apply without regard to whether the
person is in active service on or after the effective date of
this amendatory Act.
(Source: P.A. 83-1440.)
(40 ILCS 5/14-149) (from Ch. 108 1/2, par. 14-149)
Sec. 14-149. Felony conviction.
(a) If a person is convicted of, or pleads guilty to,
violating paragraph (6) of subsection (a) of Section 12-6,
subsection (a) of Section 33-1, Section 33-3, subsection (a) of
Section 33E-7, or subsection (d) of Section 17-10.3 of the
Criminal Code of 2012, or is sentenced for theft of
governmental property under paragraph (4.1), (5.1), or (6.1) of
subsection (b) of Section 16-1 of the Criminal Code of 2012,
then none of the benefits provided under this Article that are
attributable to the service of that person under this Article
shall be paid.
(b) None of the benefits herein provided for shall be paid
to any person who is convicted of any felony relating to or
arising out of or in connection with his or her service as an
employee.
(c) If a person is receiving an annuity from the System and

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is convicted of, or pleads guilty to, a felony, other than a
felony requiring the forfeiture of that annuity under
subsection (a) or (b) of this Section, then the Board shall
suspend the payment of the annuity for the duration of that
person's incarceration for that offense. Upon completion of the
term of incarceration for that offense, the person may seek
reinstatement of his or her annuity by filing a request for
reinstatement of benefits with the System in the manner
prescribed by the Board.
(d) A person who forfeits his or her benefits under this
Section is entitled to a refund of his or her unused employee
contributions to the extent that the refund of those
contributions is necessary in order for the System to maintain
qualified plan status under the federal Internal Revenue Code
of 1986.
(e) This Section shall not operate to impair any contract
or vested right heretofore acquired under any law or laws
continued in this Article nor to preclude the right to a
refund.
All future entrants entering service subsequent to July 9,
1955 shall be deemed to have consented to the provisions of
this Section section as a condition of coverage.
The changes to this Section made by this amendatory Act of
the 98th General Assembly apply without regard to whether the
person is in active service on or after the effective date of
this amendatory Act.

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(Source: P.A. 80-841.)
(40 ILCS 5/15-187) (from Ch. 108 1/2, par. 15-187)
Sec. 15-187. Felony conviction.
(a) If a person is convicted of, or pleads guilty to,
violating paragraph (6) of subsection (a) of Section 12-6,
subsection (a) of Section 33-1, Section 33-3, subsection (a) of
Section 33E-7, or subsection (d) of Section 17-10.3 of the
Criminal Code of 2012, or is sentenced for theft of
governmental property under paragraph (4.1), (5.1), or (6.1) of
subsection (b) of Section 16-1 of the Criminal Code of 2012,
then none of the benefits provided under this Article that are
attributable to the service of that person under this Article
shall be paid.
(b) None of the benefits provided under this Article shall
be paid to any person who is convicted of any felony relating
to or arising out of or in connection with the person's service
as an employee.
(c) If a person is receiving an annuity from the System and
is convicted of, or pleads guilty to, a felony, other than a
felony requiring the forfeiture of that annuity under
subsection (a) or (b) of this Section, then the Board shall
suspend the payment of the annuity for the duration of that
person's incarceration for that offense. Upon completion of the
term of incarceration for that offense, the person may seek
reinstatement of his or her annuity by filing a request for

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reinstatement of benefits with the System in the manner
prescribed by the Board.
(d) A person who forfeits his or her benefits under this
Section is entitled to a refund of his or her unused employee
contributions to the extent that the refund of those
contributions is necessary in order for the System to maintain
qualified plan status under the federal Internal Revenue Code
of 1986.
(e) This Section shall not operate to impair any contract
or vested right heretofore acquired under any law or laws
continued in this Article, nor to preclude the right to a
refund. No refund paid to any person who is convicted of a
felony relating to or arising out of or in connection with the
person's service as an employee shall include employer
contributions or interest or, in the case of the self-managed
plan authorized under Section 15-158.2, any employer
contributions or investment return on such employer
contributions.
All persons entering service subsequent to July 9, 1955
shall be deemed to have consented to the provisions of this
Section as a condition of coverage.
The changes to this Section made by this amendatory Act of
the 98th General Assembly apply without regard to whether the
person is in active service on or after the effective date of
this amendatory Act.
(Source: P.A. 93-347, eff. 7-24-03.)

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(40 ILCS 5/16-199) (from Ch. 108 1/2, par. 16-199)
Sec. 16-199. Felony conviction.
(a) If a person is convicted of, or pleads guilty to,
violating paragraph (6) of subsection (a) of Section 12-6,
subsection (a) of Section 33-1, Section 33-3, subsection (a) of
Section 33E-7, or subsection (d) of Section 17-10.3 of the
Criminal Code of 2012, or is sentenced for theft of
governmental property under paragraph (4.1), (5.1), or (6.1) of
subsection (b) of Section 16-1 of the Criminal Code of 2012,
then none of the benefits provided under this Article that are
attributable to the service of that person under this Article
shall be paid.
(b) None of the benefits provided for in this Article shall
be paid to any person who is convicted of any felony relating
to or arising out of or in connection with his or her service
as a teacher.
(c) If a person is receiving an annuity from the System and
is convicted of, or pleads guilty to, a felony, other than a
felony requiring the forfeiture of that annuity under
subsection (a) or (b) of this Section, then the Board shall
suspend the payment of the annuity for the duration of that
person's incarceration for that offense. Upon completion of the
term of incarceration for that offense, the person may seek
reinstatement of his or her annuity by filing a request for
reinstatement of benefits with the System in the manner

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prescribed by the Board.
(d) A person who forfeits his or her benefits under this
Section is entitled to a refund of his or her unused employee
contributions to the extent that the refund of those
contributions is necessary in order for the System to maintain
qualified plan status under the federal Internal Revenue Code
of 1986.
(e) This Section shall not operate to impair any contract
or vested right acquired prior to July 9, 1955 under any law or
laws continued in this Article, nor to preclude the right to a
refund. The System may sue any such person to collect all
moneys paid in excess of refundable contributions.
All teachers entering or re-entering service after July 9,
1955 shall be deemed to have consented to the provisions of
this Section as a condition of membership.
The changes to this Section made by this amendatory Act of
the 98th General Assembly apply without regard to whether the
person is in active service on or after the effective date of
this amendatory Act.
(Source: P.A. 85-1008.)
(40 ILCS 5/18-163) (from Ch. 108 1/2, par. 18-163)
Sec. 18-163. Felony conviction.
(a) If a person is convicted of, or pleads guilty to,
violating paragraph (6) of subsection (a) of Section 12-6,
subsection (a) of Section 33-1, Section 33-3, subsection (a) of

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Section 33E-7, or subsection (d) of Section 17-10.3 of the
Criminal Code of 2012, or is sentenced for theft of
governmental property under paragraph (4.1), (5.1), or (6.1) of
subsection (b) of Section 16-1 of the Criminal Code of 2012,
then none of the benefits provided under this Article that are
attributable to the service of that person under this Article
shall be paid.
(b) None of the benefits herein provided shall be paid to
any person who is convicted of any felony relating to or
arising out of or in connection with his or her service as a
judge.
(c) If a person is receiving an annuity from the System and
is convicted of, or pleads guilty to, a felony, other than a
felony requiring the forfeiture of that annuity under
subsection (a) or (b) of this Section, then the Board shall
suspend the payment of the annuity for the duration of that
person's incarceration for that offense. Upon completion of the
term of incarceration for that offense, the person may seek
reinstatement of his or her annuity by filing a request for
reinstatement of benefits with the System in the manner
prescribed by the Board.
(d) A person who forfeits his or her benefits under this
Section is entitled to a refund of his or her unused employee
contributions to the extent that the refund of those
contributions is necessary in order for the System to maintain
qualified plan status under the federal Internal Revenue Code

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of 1986.
(e) This Section shall not operate to impair any contract
or vested right acquired before July 9, 1955 under any law or
laws continued in this Article, nor to preclude the right to a
refund.
All participants entering service subsequent to July 9,
1955 are deemed to have consented to the provisions of this
Section as a condition of participation.
The changes to this Section made by this amendatory Act of
the 98th General Assembly apply without regard to whether the
person is in active service on or after the effective date of
this amendatory Act.
(Source: P.A. 83-1440.)".