Bill Text: IL HB0425 | 2021-2022 | 102nd General Assembly | Engrossed
Bill Title: Amends the Chicago Police Article of the Illinois Pension Code. Removes an age limitation on eligibility for a refund of contributions. Deletes language providing that a policeman may receive a refund until the annuity to which he is entitled has been fixed. Provides that any refund under the Article shall be calculated based on the policeman's contributions to the fund, less the amount of any annuity benefit previously received by the policeman and his beneficiaries. Provides that a policeman shall have no such right of refund if the sum of the annuity benefits the policeman and his beneficiaries have received exceeds the sum to which the policeman has contributed to the fund. Amends the State Mandates Act to require implementation without reimbursement.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2021-04-22 - Referred to Assignments [HB0425 Detail]
Download: Illinois-2021-HB0425-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,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Pension Code is amended by | ||||||
| 5 | changing Section 5-163 as follows:
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| 6 | (40 ILCS 5/5-163) (from Ch. 108 1/2, par. 5-163)
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| 7 | Sec. 5-163. Refund - General. | ||||||
| 8 | (a) A policeman, without regard to his period of service, | ||||||
| 9 | who
withdraws before age 50, and a policeman with less than 10 | ||||||
| 10 | years of
service who withdraws before age 57, is entitled to a | ||||||
| 11 | refund of the
amount deducted from his salary
for age and | ||||||
| 12 | service annuity or Tier 2 monthly retirement annuity, for | ||||||
| 13 | automatic annual increase in annuity as provided in Section | ||||||
| 14 | 5-167.1, and for widow's
annuity or Tier 2 surviving spouse's | ||||||
| 15 | annuity, together with interest at 1-1/2% per year on each
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| 16 | deduction from the date of each deduction
until the date of his
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| 17 | withdrawal from the service.
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| 18 | (b) Any refund under this Article shall be calculated | ||||||
| 19 | based on the policeman's contributions to the fund, less the | ||||||
| 20 | amount of any annuity benefit previously received by the | ||||||
| 21 | policeman and his beneficiaries. A policeman shall have no | ||||||
| 22 | such right of refund if the sum of the annuity benefits the | ||||||
| 23 | policeman and his beneficiaries have received exceeds the sum | ||||||
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| 1 | to which the policeman has contributed to the fund. A | ||||||
| 2 | policeman may receive a refund until the annuity to which he
is | ||||||
| 3 | entitled has been fixed. Thereafter, he shall have no such | ||||||
| 4 | right of
refund.
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| 5 | (c) A policeman who withdraws the amount credited to him | ||||||
| 6 | surrenders
and forfeits all rights to any annuity or other | ||||||
| 7 | benefit from the fund,
for himself and for any other person or | ||||||
| 8 | persons who might otherwise have
benefited through him. The | ||||||
| 9 | rights so forfeited shall be restored to him,
his wife or widow | ||||||
| 10 | and his children upon full repayment as provided in
Section | ||||||
| 11 | 5-164.
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| 12 | If the policeman subsequently re-enters service before age | ||||||
| 13 | 57, and
has not so repaid in full the amounts refunded the | ||||||
| 14 | rights forfeited
shall not be restored, but the policeman | ||||||
| 15 | shall retain the right (which
is also secured to the widow) to | ||||||
| 16 | have the period of service represented
by the refunds counted | ||||||
| 17 | in the compensation of length of service, except
as otherwise | ||||||
| 18 | provided in Section 5-164.
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| 19 | (d) A policeman who has served less than 10 years who has | ||||||
| 20 | not
received a refund shall have all amounts to his credit for | ||||||
| 21 | purposes on
the date of his withdrawal improved by interest | ||||||
| 22 | while he is out of
service until he attains age 57, if he | ||||||
| 23 | subsequently re-enters the
service and attains a right to | ||||||
| 24 | annuity.
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| 25 | (e) If a policeman elects to make additional contribution | ||||||
| 26 | for past
service as provided in Section 5-174 and fails to pay | ||||||
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| 1 | such contributions
in full within the time specified in said | ||||||
| 2 | section, a refund of the
amount so paid, with interest at | ||||||
| 3 | 1-1/2% per year, compounded annually,
shall be refunded as | ||||||
| 4 | provided in said section.
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| 5 | (f) If a policeman makes contributions in accordance with | ||||||
| 6 | the
provisions of Section 5-174(b) and subsequently returns to | ||||||
| 7 | the position
he holds by certification and appointment as the | ||||||
| 8 | result of competitive
civil service examination, he shall | ||||||
| 9 | receive a refund of such
contributions, upon application | ||||||
| 10 | therefor, together with interest at
1-1/2% per year on each | ||||||
| 11 | such deduction from the date
it was made to the
date of refund. | ||||||
| 12 | Application for refund must be made before the annuity
to | ||||||
| 13 | which he has a right has been fixed.
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| 14 | (Source: P.A. 99-905, eff. 11-29-16.)
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| 15 | Section 90. The State Mandates Act is amended by adding | ||||||
| 16 | Section 8.45 as follows:
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| 17 | (30 ILCS 805/8.45 new) | ||||||
| 18 | Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and | ||||||
| 19 | 8 of this Act, no reimbursement by the State is required for | ||||||
| 20 | the implementation of any mandate created by this amendatory | ||||||
| 21 | Act of the 102nd General Assembly.
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