Bill Text: IL HB0164 | 2017-2018 | 100th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning definitions.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2017-08-22 - Public Act . . . . . . . . . 100-0244 [HB0164 Detail]
Download: Illinois-2017-HB0164-Engrossed.html
Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning definitions.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2017-08-22 - Public Act . . . . . . . . . 100-0244 [HB0164 Detail]
Download: Illinois-2017-HB0164-Engrossed.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Sections 13-305 and 13-601 as follows:
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6 | (40 ILCS 5/13-305) (from Ch. 108 1/2, par. 13-305)
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7 | Sec. 13-305. Surviving spouse's annuity; eligibility. A | ||||||
8 | surviving spouse
who was married to an employee on the date of | ||||||
9 | the employee's death
while in service, or was married to an | ||||||
10 | employee on the date of withdrawal from
service and remained | ||||||
11 | married to that employee until the employee's
death, shall be | ||||||
12 | entitled to a surviving spouse's annuity payable for
life. | ||||||
13 | However, the annuity shall not be payable to the surviving | ||||||
14 | spouse of (1)
an employee who withdraws from service
before | ||||||
15 | attaining the minimum retirement age unless the deceased | ||||||
16 | employee had at least 10 years of service, or at least 5
years | ||||||
17 | of service if the employee was eligible for an annuity upon | ||||||
18 | attainment of age 62 pursuant to Section 13-301(b) or had been | ||||||
19 | receiving a retirement annuity
pursuant to Section
13-301(d), | ||||||
20 | or (2) an employee not described in item (1) who first enters
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21 | service on or after the effective date of this amendatory Act | ||||||
22 | of 1997 and who
has been employed as an employee for (i) less | ||||||
23 | than 36 months from the date of
the employee's original entry |
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1 | into service or (ii) less than 12 months from the
employee's | ||||||
2 | date of latest re-entry into service; except as otherwise | ||||||
3 | provided
in Section 13-306(a) for an employee whose death | ||||||
4 | arises out of or in the course
of the employee's service to the | ||||||
5 | employer.
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6 | Notwithstanding any other provision of this Section and | ||||||
7 | notwithstanding the forfeiture of rights provisions under | ||||||
8 | subsection (e) of Section 13-601, surviving spouse annuity | ||||||
9 | eligibility or eligibility for alternative survivor's | ||||||
10 | benefits, if applicable, shall be extended to the spouse or | ||||||
11 | civil union partner of an annuitant who retired prior to June | ||||||
12 | 1, 2011 and received a refund of surviving spouse annuity | ||||||
13 | contributions as provided in subsection (b) of Section 13-601 | ||||||
14 | if the annuitant (i) repaid the surviving spouse annuity | ||||||
15 | contributions under subsection (b-5) of Section 13-601, (ii) | ||||||
16 | could not enter into either a civil union or marriage | ||||||
17 | recognized in the State of Illinois prior to that date, and | ||||||
18 | (iii) became: | ||||||
19 | (A) a party to a civil union or a party to a legal | ||||||
20 | relationship that is recognized as a civil union or | ||||||
21 | marriage under the Illinois Religious Freedom Protection | ||||||
22 | and Civil Union Act on or after June 1, 2011 and before | ||||||
23 | July 1, 2016 and remains such a party; | ||||||
24 | (B) a party to a marriage under the Illinois Marriage | ||||||
25 | and Dissolution of Marriage Act on or after February 26, | ||||||
26 | 2014 and before July 1, 2016 and remains such a party; or |
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1 | (C) a party to a marriage, civil union, or other legal | ||||||
2 | relationship that, at the time it was formed, was not | ||||||
3 | legally recognized in Illinois but was subsequently | ||||||
4 | recognized as a civil union or marriage under the Illinois | ||||||
5 | Religious Freedom Protection and Civil Union Act on or | ||||||
6 | after June 1, 2011 and before July 1, 2016, a marriage | ||||||
7 | under the Illinois Marriage and Dissolution of Marriage Act | ||||||
8 | on or after February 26, 2014 and before July 1, 2016, or | ||||||
9 | both, and remains such a party. | ||||||
10 | A dissolution of marriage after retirement shall not divest | ||||||
11 | the
employee's spouse of the entitlement to a surviving | ||||||
12 | spouse's annuity upon
the subsequent death of the employee, | ||||||
13 | provided that the surviving spouse
and the deceased employee | ||||||
14 | had been married to each other for a period of
not less than 10 | ||||||
15 | continuous years on the date of retirement.
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16 | For purposes of Section 1-103.1, the changes made by this | ||||||
17 | amendatory Act of the 100th General Assembly apply to persons | ||||||
18 | not in service on or after the effective date of this | ||||||
19 | amendatory Act of the 100th General Assembly. | ||||||
20 | (Source: P.A. 94-621, eff. 8-18-05.)
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21 | (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
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22 | Sec. 13-601. Refunds.
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23 | (a) Withdrawal from service. Upon withdrawal from service, | ||||||
24 | an employee
who first became a member before January 1, 2011, | ||||||
25 | who is under age 55 (age 50 if the employee first entered |
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1 | service before June
13, 1997), or an employee age 55 (age 50 if | ||||||
2 | the employee first entered
service before June 13, 1997) or | ||||||
3 | over but less than age 60 having less
than 20 years of service, | ||||||
4 | or an employee age 60 or over having less than 5
years of | ||||||
5 | service shall be entitled, upon application, to a refund of | ||||||
6 | total
contributions from salary deductions or amounts | ||||||
7 | otherwise paid under this
Article by the employee. An employee | ||||||
8 | who first becomes a member on or after January 1, 2011, who | ||||||
9 | withdraws before age 62 regardless of length of service, or who | ||||||
10 | withdraws with less than 10 years of service regardless of age | ||||||
11 | is entitled to a refund of total contributions from salary | ||||||
12 | deductions or amounts otherwise paid under this Article by the | ||||||
13 | employee. The refund shall not include interest credited to
the | ||||||
14 | contributions. The Board may, in its discretion, withhold | ||||||
15 | payment of a
refund for a period not to exceed one year from | ||||||
16 | the date of filing an
application for refund.
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17 | (b) Surviving spouse's annuity contributions. A refund of | ||||||
18 | all amounts
deducted from salary or otherwise contributed by an | ||||||
19 | employee for the
surviving spouse's annuity shall be paid upon | ||||||
20 | retirement to any employee
who on the date of retirement is | ||||||
21 | either not married or is married but whose
spouse is not | ||||||
22 | eligible for a surviving spouse's annuity paid wholly or in
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23 | part under this Article. The refund shall include interest on
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24 | each contribution at the rate of 3% per annum compounded | ||||||
25 | annually from the
date of the contribution to the date of the | ||||||
26 | refund.
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1 | (b-5) An annuitant who (i) retired prior to June 1, 2011, | ||||||
2 | (ii) received a refund of surviving spouse's annuity | ||||||
3 | contributions under subsection (b), and (iii) thereafter | ||||||
4 | became and remains a party to a civil union or marriage, as | ||||||
5 | described in Section 13-305, may, within a period of one year | ||||||
6 | beginning 5 months after the effective date of this amendatory | ||||||
7 | Act of the 100th General Assembly, and in accordance with any | ||||||
8 | rules adopted by the Board and consents required by the Board, | ||||||
9 | make an irrevocable election to re-establish rights to a | ||||||
10 | surviving spouse annuity under Sections 13-305 and 13-306 or to | ||||||
11 | alternative survivor's benefits under subsection (d) of | ||||||
12 | Section 13-314, whichever is applicable, by paying to the Fund: | ||||||
13 | (1) the total amount of the refund received for surviving | ||||||
14 | spouse's annuity contributions; and (2) interest thereon at the | ||||||
15 | actuarially assumed rate of return at the time of the election | ||||||
16 | from the date of the refund to the date of repayment in full. | ||||||
17 | Such election may only be made by the annuitant. | ||||||
18 | The Fund shall allow the annuitant to repay the total | ||||||
19 | amount of the refund, plus interest, over a period not to | ||||||
20 | exceed 24 months. To the extent permitted by the Internal | ||||||
21 | Revenue Code of 1986, as amended, and for federal and State tax | ||||||
22 | purposes, if a member pays in monthly installments by reducing | ||||||
23 | the monthly annuity by the amount of the otherwise applicable | ||||||
24 | contribution, the monthly amount by which the annuitant's | ||||||
25 | benefit is reduced shall not be treated as a contribution by | ||||||
26 | the annuitant, but rather as a reduction of the annuitant's |
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1 | monthly annuity. In the event of the death of the annuitant | ||||||
2 | prior to repayment of the total amount of the refund, plus | ||||||
3 | interest, the amount owed as of the date of death shall be | ||||||
4 | deducted from the spouse annuity by a reduction in the | ||||||
5 | surviving spouse's monthly annuity. The death of the spouse or | ||||||
6 | civil union partner prior to the annuitant's death shall not | ||||||
7 | void the election. | ||||||
8 | (c) Payment of Refunds After Death. Whenever any refund is | ||||||
9 | payable after the death of the employee or annuitant as | ||||||
10 | provided for in this Article, the refund shall be paid as | ||||||
11 | follows: to the employee's surviving spouse, but if there is no | ||||||
12 | surviving spouse then in accordance with the employee's written | ||||||
13 | designation of beneficiary filed with the Board on the | ||||||
14 | prescribed form before the employee's death. If there is no | ||||||
15 | such designation of beneficiary, then to the employee's | ||||||
16 | surviving children in equal parts to each. If there are no such | ||||||
17 | children, the refund shall be paid to the heirs of the employee | ||||||
18 | according to the law of descent and distribution of the State | ||||||
19 | of Illinois.
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20 | If a personal representative of the estate has not been | ||||||
21 | appointed within
90 days from the date on which a refund became | ||||||
22 | payable, the refund may be
applied, in the discretion of the | ||||||
23 | Board, toward the payment of the
employee's or the surviving | ||||||
24 | spouse's burial expenses. Any remaining
balance shall be paid | ||||||
25 | to the heirs of the employee according to the law of
descent | ||||||
26 | and distribution of the State of Illinois.
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1 | Whenever the total accumulations to the account of an | ||||||
2 | employee from employee contributions other than the | ||||||
3 | contribution for the cost of living increase, including | ||||||
4 | interest to the employee's date of withdrawal, have not been | ||||||
5 | paid to the employee and surviving spouse as a retirement or | ||||||
6 | spouse's annuity before the death of the employee and spouse, a | ||||||
7 | refund shall be paid as follows: an amount equal to the excess | ||||||
8 | of such amounts over the amounts paid on such annuities without | ||||||
9 | interest on either such amount.
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10 | If a reversionary annuity becomes payable under Section | ||||||
11 | 13-303, the
refund provided in this section shall not be paid | ||||||
12 | until the death of the
reversionary annuitant and the refund | ||||||
13 | otherwise payable under this section
shall be then further | ||||||
14 | reduced by the amount of the reversionary annuity paid.
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15 | (d) In lieu of annuity. Notwithstanding the provisions set | ||||||
16 | forth in
subsection (a) of this section, whenever an employee's | ||||||
17 | or surviving
spouse's annuity will be less than $200 per month, | ||||||
18 | the employee or
surviving spouse, as the case may be, may elect | ||||||
19 | to receive a refund of
accumulated employee contributions; | ||||||
20 | provided, however, that if the election
is made by a surviving | ||||||
21 | spouse the refund shall be reduced by any amounts
theretofore | ||||||
22 | paid to the employee in the form of an annuity.
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23 | (e) Forfeiture of rights. An employee or surviving spouse | ||||||
24 | who receives
a refund forfeits the right to receive an annuity | ||||||
25 | or any other benefit
payable under this Article except that if | ||||||
26 | the refund is to a surviving
spouse, any child or children of |
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1 | the employee shall not be deprived of the
right to receive a | ||||||
2 | child's annuity as provided in Section 13-308 of this
Article, | ||||||
3 | and the payment of a child's annuity shall not reduce the | ||||||
4 | amount
refundable to the surviving spouse.
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5 | (Source: P.A. 95-586, eff. 8-31-07; 96-251, eff. 8-11-09; | ||||||
6 | 96-1490, eff. 1-1-11.)
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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