Bill Text: IL HB2520 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Illinois Municipal Retirement Fund (IMRF), State Universities, and Downstate Teacher Articles of the Illinois Pension Code. Provides that certain annuitants who received a refund of contributions for survivor benefits may elect to repay the refund, with interest, and have their survivor benefit rights reinstated. Specifies the required time and manner of repayment. In the IMRF and State Universities Articles, requires that the annuitant (1) retired prior to June 1, 2011, and (2) is a party to a civil union, marriage, or other legal relationship that is recognized as a civil union or marriage under the Illinois Religious Freedom Protection and Civil Union Act or the Illinois Marriage and Dissolution of Marriage Act on or after certain specified dates. Also, in the IMRF Article, extends application of a provision added by Public Act 87-850 to spouses of annuitants who die on or after the effective date of this amendatory Act. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-02-18 - Referred to Rules Committee [HB2520 Detail]
Download: Illinois-2015-HB2520-Introduced.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 changing | ||||||||||||||||||||||||||||||||||
5 | Sections 7-154, 7-159, 15-139, 15-145, 15-154, and 16-143.2 as | ||||||||||||||||||||||||||||||||||
6 | follows:
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7 | (40 ILCS 5/7-154) (from Ch. 108 1/2, par. 7-154)
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8 | Sec. 7-154. Surviving spouse annuities - Eligibility.
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9 | (a) A surviving spouse annuity shall be payable to the | ||||||||||||||||||||||||||||||||||
10 | eligible
surviving spouse of a participating employee, an | ||||||||||||||||||||||||||||||||||
11 | employee annuitant, or a
person who on the date of death would | ||||||||||||||||||||||||||||||||||
12 | have been entitled to a retirement
annuity, had he applied for | ||||||||||||||||||||||||||||||||||
13 | such annuity, and who dies at any time when a
surviving spouse | ||||||||||||||||||||||||||||||||||
14 | annuity equals at least $5 per month, provided:
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15 | (1) The surviving spouse (i) was married to the
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16 | participating employee for at least one year on the date of
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17 | death, or (ii) was married to the annuitant or person | ||||||||||||||||||||||||||||||||||
18 | entitled to a
retirement annuity for at least one year | ||||||||||||||||||||||||||||||||||
19 | prior to the date of
termination of service, or (iii) was | ||||||||||||||||||||||||||||||||||
20 | married to the deceased annuitant
for at least one year on | ||||||||||||||||||||||||||||||||||
21 | the date of the deceased annuitant's death, if at
the time | ||||||||||||||||||||||||||||||||||
22 | of termination of service the deceased annuitant was | ||||||||||||||||||||||||||||||||||
23 | married for
at least one year to a spouse who does not |
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1 | survive the deceased annuitant. (Item (iii) applies to the | ||||||
2 | spouses of annuitants who die on or after the effective | ||||||
3 | date of this amendatory Act of the 99th General Assembly, | ||||||
4 | notwithstanding whether the annuitant was in service on or | ||||||
5 | after that effective date or the effective date of Public | ||||||
6 | Act 87-850.)
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7 | (2) The male deceased employee annuitant or such other
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8 | person entitled to a retirement annuity had contributed to | ||||||
9 | this fund for
surviving spouse annuity purposes for at | ||||||
10 | least 1 year or continuously since
the effective date of | ||||||
11 | the participating municipality or participating
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12 | instrumentality.
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13 | (3) The female deceased employee annuitant or such | ||||||
14 | other
person entitled to a retirement annuity was in | ||||||
15 | service on or after July 27,
1972, provided that the | ||||||
16 | annuity shall not be computed on the basis of any
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17 | retirement annuity effective before that date.
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18 | (4) If the employee dies before termination of service,
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19 | the employee did not exclude the spouse from any
death | ||||||
20 | benefit or surviving spouse annuity pursuant to subsection | ||||||
21 | (b) of
Section 7-118. A designation of beneficiary naming a | ||||||
22 | spouse and children
jointly or a trust pursuant to | ||||||
23 | subsection (b) of Section 7-118 shall
preclude payment of a | ||||||
24 | surviving spouse annuity.
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25 | (b) If a person is the spouse of a retiring participating
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26 | employee on the date of the initial payment of a retirement |
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1 | annuity and is
qualified to receive a surviving spouse annuity | ||||||
2 | upon the death of the
employee and the surviving spouse | ||||||
3 | contributions are not refunded to the
employee, then a | ||||||
4 | surviving spouse annuity shall be payable to that person
even | ||||||
5 | if the marriage to the employee is dissolved after that date.
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6 | (c) Eligibility of a surviving spouse shall be determined | ||||||
7 | as of the
date of death. Only one surviving spouse annuity | ||||||
8 | shall be paid on
account of the death of any employee.
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9 | (Source: P.A. 87-740; 87-850.)
| ||||||
10 | (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
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11 | Sec. 7-159. Surviving spouse annuity - refund of survivor | ||||||
12 | credits.
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13 | (a) Any employee annuitant who (1) upon the date a | ||||||
14 | retirement annuity
begins is not then married, or (2) is | ||||||
15 | married to a person who would not qualify
for surviving spouse | ||||||
16 | annuity if the person died on such date, is entitled to a
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17 | refund of the survivor credits including interest accumulated | ||||||
18 | on the date the
annuity begins, excluding survivor credits and | ||||||
19 | interest thereon credited during
periods of disability, and no | ||||||
20 | spouse shall have a right to any surviving spouse
annuity from | ||||||
21 | this Fund. If the employee annuitant
reenters service and upon | ||||||
22 | subsequent retirement has a spouse who would
qualify for a | ||||||
23 | surviving spouse annuity, the employee annuitant may pay the
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24 | fund the amount of the refund plus interest at the effective | ||||||
25 | rate at the
date of payment. The payment shall qualify the |
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1 | spouse for a surviving
spouse annuity and the amount paid shall | ||||||
2 | be considered as survivor
contributions.
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3 | (b) Instead of a refund under subsection (a), the retiring | ||||||
4 | employee may
elect to convert the amount of the refund into an | ||||||
5 | annuity, payable
separately from the retirement annuity. If the | ||||||
6 | annuitant dies before the
guaranteed amount has been | ||||||
7 | distributed, the remainder shall be paid in a lump
sum to the | ||||||
8 | designated beneficiary of the annuitant. The Board shall adopt | ||||||
9 | any
rules necessary for the implementation of this subsection.
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10 | (c) An annuitant who retired prior to June 1, 2011 and | ||||||
11 | received a refund of
survivor credits under subsection (a), and | ||||||
12 | who thereafter became, and remains,
either: | ||||||
13 | (1) a party to a civil union or a party to a legal | ||||||
14 | relationship that is recognized as a civil union or | ||||||
15 | marriage under the Illinois Religious Freedom Protection | ||||||
16 | and Civil Union Act on or after June 1, 2011; or | ||||||
17 | (2) a party to a marriage under the Illinois Marriage | ||||||
18 | and Dissolution of Marriage Act on or after February 26, | ||||||
19 | 2014; or | ||||||
20 | (3) a party to a marriage, civil union or other legal | ||||||
21 | relationship that, at the time it was formed, was not | ||||||
22 | legally recognized in Illinois but was subsequently | ||||||
23 | recognized as a civil union or marriage under the Illinois | ||||||
24 | Religious Freedom Protection and Civil Union Act on or | ||||||
25 | after June 1, 2011, a marriage under the Illinois Marriage | ||||||
26 | and Dissolution of Marriage Act on or after February 26, |
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1 | 2014, or both; | ||||||
2 | may, on or after January 1, 2016 but before January 1, 2017, | ||||||
3 | make an election to re-establish rights to a
surviving spouse | ||||||
4 | annuity under Sections 7-154 through 7-158 (notwithstanding
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5 | the eligibility requirements of paragraph (a)(1) of Section | ||||||
6 | 7-154), by paying to the
Fund: (1) the total amount of the | ||||||
7 | refund received for survivor credits; and (2)
interest thereon | ||||||
8 | at the actuarially assumed rate of return from the date of the | ||||||
9 | refund to the date of
payment. Such election must be made prior | ||||||
10 | to the date of death of the annuitant. | ||||||
11 | The Fund may allow the annuitant to repay this refund over | ||||||
12 | a period of not more
than 24 months. To the extent permitted by | ||||||
13 | the Internal Revenue Code of 1986, as amended, for federal and | ||||||
14 | State tax purposes, if a member pays in monthly
installments by | ||||||
15 | reducing the monthly benefit by the amount of the otherwise
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16 | applicable contribution, the monthly amount by which the | ||||||
17 | annuitant's benefit is
reduced shall not be treated as a | ||||||
18 | contribution by the annuitant but rather as a
reduction of the | ||||||
19 | annuitant's monthly benefit. | ||||||
20 | If an annuitant makes an election under this subsection (c) | ||||||
21 | and the contributions
required are not paid in full, an | ||||||
22 | otherwise qualifying spouse shall be given the
option to make | ||||||
23 | an additional lump sum payment of the remaining contributions
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24 | and qualify for a surviving spouse annuity. Otherwise, an | ||||||
25 | additional refund
representing contributions made hereunder | ||||||
26 | shall be paid at the annuitant's death
and there shall be no |
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1 | surviving spouse annuity paid. | ||||||
2 | (Source: P.A. 90-766, eff. 8-14-98.)
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3 | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
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4 | Sec. 15-139. Retirement annuities; cancellation; suspended | ||||||
5 | during
employment. | ||||||
6 | (a) If an annuitant returns to employment for an employer
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7 | within 60 days after the beginning of the retirement annuity | ||||||
8 | payment
period, the retirement annuity shall be cancelled, and | ||||||
9 | the annuitant shall
refund to the System the total amount of | ||||||
10 | the retirement annuity payments
which he or she received. If | ||||||
11 | the retirement annuity is cancelled, the
participant shall | ||||||
12 | continue to participate in the System.
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13 | (b) If an annuitant retires prior to age 60 and receives or | ||||||
14 | becomes
entitled to receive during any month compensation in | ||||||
15 | excess of the monthly
retirement annuity (including any | ||||||
16 | automatic annual increases) for services
performed after the | ||||||
17 | date of retirement for any employer under this System, that
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18 | portion of the monthly
retirement annuity provided by employer | ||||||
19 | contributions shall not be payable.
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20 | If an annuitant retires at age 60 or over and receives
or | ||||||
21 | becomes entitled to receive during any academic year | ||||||
22 | compensation in
excess of the difference between his or her | ||||||
23 | highest annual earnings prior
to retirement and his or her | ||||||
24 | annual retirement annuity computed under Rule
1, Rule 2, Rule | ||||||
25 | 3, or Rule 4 of Section 15-136, or under Section
15-136.4,
for |
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1 | services performed after
the date of retirement for any | ||||||
2 | employer under this System, that portion of
the monthly | ||||||
3 | retirement annuity provided by employer contributions shall be
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4 | reduced by an amount equal to the compensation that exceeds | ||||||
5 | such difference.
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6 | However, any remuneration received for serving as a member | ||||||
7 | of the
Illinois Educational Labor Relations Board shall be | ||||||
8 | excluded from
"compensation" for the purposes of this | ||||||
9 | subsection (b), and serving as a
member of the Illinois | ||||||
10 | Educational Labor Relations Board shall not be
deemed to be a | ||||||
11 | return to employment for the purposes of this Section.
This | ||||||
12 | provision applies without regard to whether service was | ||||||
13 | terminated
prior to the effective date of this amendatory Act | ||||||
14 | of 1991.
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15 | "Academic year", as used in this subsection (b), means the | ||||||
16 | 12-month period beginning September 1. | ||||||
17 | (c) If an employer certifies that an annuitant has been | ||||||
18 | reemployed
on a permanent and continuous basis or in a position
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19 | in which the annuitant is expected to serve for at least 9 | ||||||
20 | months, the
annuitant shall resume his or her status as a | ||||||
21 | participating employee
and shall be entitled to all rights | ||||||
22 | applicable to
participating employees upon filing with the | ||||||
23 | board an
election to forgo all annuity payments during the | ||||||
24 | period
of reemployment. Upon subsequent retirement, the | ||||||
25 | retirement
annuity shall consist of the annuity which was | ||||||
26 | terminated by the reemployment,
plus the additional retirement |
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1 | annuity based upon service
granted during the period of | ||||||
2 | reemployment, but the combined retirement
annuity shall not | ||||||
3 | exceed the maximum
annuity applicable on the date of the last | ||||||
4 | retirement.
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5 | The total service and earnings credited before and after | ||||||
6 | the initial
date of retirement shall be considered in | ||||||
7 | determining eligibility of the
employee or the employee's | ||||||
8 | beneficiary to benefits under this
Article, and in calculating | ||||||
9 | final rate of earnings.
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10 | In determining the death benefit
payable to a beneficiary | ||||||
11 | of an annuitant who again becomes a participating
employee | ||||||
12 | under this Section, accumulated normal and additional
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13 | contributions shall be considered as the sum of the accumulated | ||||||
14 | normal and
additional contributions at the date of initial | ||||||
15 | retirement and the
accumulated normal and additional | ||||||
16 | contributions credited after that date,
less the sum of the | ||||||
17 | annuity payments received by the annuitant.
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18 | The survivors insurance benefits provided under Section | ||||||
19 | 15-145 shall not
be applicable to an annuitant who resumes his | ||||||
20 | or her status as a
participating employee, unless the | ||||||
21 | annuitant, at the time of initial
retirement, has a survivors | ||||||
22 | insurance beneficiary who could qualify
for such benefits or | ||||||
23 | the annuitant repaid the survivors insurance contribution | ||||||
24 | refund or additional annuity under subsection (c-5) of Section | ||||||
25 | 15-154 .
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26 | If the participant's employment is terminated because of |
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1 | circumstances
other than death before 9 months from the date of | ||||||
2 | reemployment, the
provisions of this Section regarding | ||||||
3 | resumption of status as a
participating employee shall not | ||||||
4 | apply. The normal and survivors insurance
contributions which | ||||||
5 | are deducted during this period shall be refunded to
the | ||||||
6 | annuitant without interest, and subsequent benefits under this | ||||||
7 | Article
shall be the same as those which were applicable prior | ||||||
8 | to the date the
annuitant resumed employment.
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9 | The amendments made to this Section by this amendatory Act | ||||||
10 | of the 91st
General Assembly apply without regard to whether | ||||||
11 | the annuitant was in service
on or after the effective date of | ||||||
12 | this amendatory Act.
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13 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | ||||||
14 | 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
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15 | (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
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16 | Sec. 15-145. Survivors insurance benefits; conditions and | ||||||
17 | amounts.
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18 | (a) The survivors insurance benefits provided under this | ||||||
19 | Section shall
be payable to the eligible survivors of a Tier 1 | ||||||
20 | member covered under the
traditional benefit package upon the | ||||||
21 | death of (1) a participating employee
with at least 1 1/2 years | ||||||
22 | of service, (2) a participant who terminated
employment with at | ||||||
23 | least 10 years of service, and (3) an annuitant in receipt
of a | ||||||
24 | retirement annuity or disability retirement annuity under this | ||||||
25 | Article.
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1 | Service under the State Employees' Retirement System of | ||||||
2 | Illinois, the
Teachers' Retirement System of the State of | ||||||
3 | Illinois and the Public School
Teachers' Pension and Retirement | ||||||
4 | Fund of Chicago shall be considered in
determining eligibility | ||||||
5 | for survivors benefits under this Section.
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6 | If by law, a function of a governmental unit, as defined by | ||||||
7 | Section 20-107,
is transferred in whole or in part to an | ||||||
8 | employer, and an employee transfers
employment from this | ||||||
9 | governmental unit to such employer within 6 months after
the | ||||||
10 | transfer of this function, the service credits in the | ||||||
11 | governmental unit's
retirement system which have been | ||||||
12 | validated under Section 20-109 shall be
considered in | ||||||
13 | determining eligibility for survivors benefits under this
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14 | Section.
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15 | (b) A surviving spouse of a deceased participant, or of a | ||||||
16 | deceased
annuitant who did not take a refund or additional | ||||||
17 | annuity consisting of
accumulated survivors insurance | ||||||
18 | contributions or who repaid the refund or additional annuity , | ||||||
19 | shall receive a survivors
annuity of 30% of the final rate of | ||||||
20 | earnings. Payments shall begin on the
day following the | ||||||
21 | participant's or annuitant's death or the date the surviving
| ||||||
22 | spouse attains age 50, whichever is later, and continue until | ||||||
23 | the death of the
surviving spouse. The annuity shall be payable | ||||||
24 | to the surviving spouse prior
to attainment of age 50 if the | ||||||
25 | surviving spouse has in his or her care a
deceased | ||||||
26 | participant's or annuitant's dependent unmarried child under |
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1 | age 18
(under age 22 if a full-time student) who is eligible | ||||||
2 | for a survivors annuity.
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3 | Remarriage of a surviving spouse prior to attainment of age | ||||||
4 | 55 that occurs
before the effective date of this amendatory Act | ||||||
5 | of the 91st General Assembly
shall disqualify him or her for | ||||||
6 | the receipt of a survivors annuity until July
6, 2000.
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7 | A surviving spouse whose survivors annuity has been | ||||||
8 | terminated due to
remarriage may apply for reinstatement of | ||||||
9 | that
annuity. The reinstated annuity shall begin to accrue on | ||||||
10 | July 6, 2000, except
that if, on July 6, 2000, the annuity is | ||||||
11 | payable to an eligible surviving
child or parent, payment of | ||||||
12 | the annuity to the surviving spouse shall not be
reinstated | ||||||
13 | until the annuity is no longer payable to any eligible | ||||||
14 | surviving
child or parent. The reinstated annuity shall include | ||||||
15 | any one-time or annual
increases received prior to the date of | ||||||
16 | termination, as well as any increases
that would otherwise have | ||||||
17 | accrued from the date of termination to the date of
| ||||||
18 | reinstatement.
An eligible surviving spouse whose expectation | ||||||
19 | of receiving a survivors
annuity was lost due to remarriage | ||||||
20 | before attainment of age 50 shall also be
entitled to | ||||||
21 | reinstatement under this subsection, but the resulting | ||||||
22 | survivors
annuity shall not begin to accrue sooner than upon | ||||||
23 | the surviving spouse's
attainment of age 50.
| ||||||
24 | The changes made to this subsection by this amendatory Act | ||||||
25 | of the 92nd
General Assembly (pertaining to remarriage prior to | ||||||
26 | age 55 or 50) apply without
regard to whether the deceased |
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1 | participant or annuitant was in service on or
after the | ||||||
2 | effective date of this amendatory Act.
| ||||||
3 | (c) Each dependent unmarried child under age 18 (under age | ||||||
4 | 22 if a
full-time student) of a deceased participant, or of a | ||||||
5 | deceased annuitant who
did not take a refund or additional | ||||||
6 | annuity consisting of accumulated survivors
insurance | ||||||
7 | contributions or who repaid the refund or additional annuity ,
| ||||||
8 | shall receive a survivors annuity equal to the sum of (1) 20% | ||||||
9 | of the final rate
of earnings, and (2) 10% of the final rate of | ||||||
10 | earnings divided by the number of
children entitled to this | ||||||
11 | benefit. Payments shall begin on the day following
the | ||||||
12 | participant's or annuitant's death and continue until the child | ||||||
13 | marries,
dies, or attains age 18 (age 22 if a full-time | ||||||
14 | student). If the child
is in the care of a surviving spouse who | ||||||
15 | is eligible for survivors insurance
benefits, the child's | ||||||
16 | benefit shall be paid to the surviving spouse.
| ||||||
17 | Each unmarried child over age 18 of a deceased participant | ||||||
18 | or of a deceased
annuitant who had a survivor's insurance | ||||||
19 | beneficiary at the time of his or her
retirement, and who was | ||||||
20 | dependent upon the participant or annuitant by reason
of a | ||||||
21 | physical or mental disability which began prior to the date the | ||||||
22 | child
attained age 18 (age 22 if a full-time student), shall | ||||||
23 | receive a survivor's
annuity equal to the
sum of (1) 20% of the | ||||||
24 | final rate of earnings, and (2) 10% of the final rate
of | ||||||
25 | earnings divided by the number of children entitled to | ||||||
26 | survivors
benefits. Payments shall begin on the day following |
| |||||||
| |||||||
1 | the participant's or
annuitant's death and continue until the | ||||||
2 | child marries, dies, or is no
longer disabled. If the child is | ||||||
3 | in the care of a surviving spouse who is
eligible for survivors | ||||||
4 | insurance benefits, the child's benefit may be paid
to the | ||||||
5 | surviving spouse. For the purposes of this Section, disability
| ||||||
6 | means inability to engage in any substantial gainful activity | ||||||
7 | by reason of
any medically determinable physical or mental | ||||||
8 | impairment that can be
expected to result in death or that has | ||||||
9 | lasted or can be expected to last
for a continuous period of at | ||||||
10 | least one year.
| ||||||
11 | (d) Each dependent parent of a deceased participant, or of | ||||||
12 | a deceased
annuitant who did not take a refund or additional | ||||||
13 | annuity consisting of
accumulated survivors insurance | ||||||
14 | contributions or who repaid the refund or additional annuity , | ||||||
15 | shall receive a survivors
annuity equal to the sum of (1) 20% | ||||||
16 | of
final rate of earnings, and (2) 10% of final rate of | ||||||
17 | earnings divided by the
number of parents who qualify for the | ||||||
18 | benefit. Payments shall begin when the
parent reaches age 55 or | ||||||
19 | the day following the participant's or annuitant's
death, | ||||||
20 | whichever is later, and continue until the parent dies. | ||||||
21 | Remarriage of
a parent prior to attainment of age 55 shall | ||||||
22 | disqualify the parent for the
receipt of a survivors annuity.
| ||||||
23 | (e) In addition to the survivors annuity provided above, | ||||||
24 | each
survivors insurance beneficiary shall, upon death of the | ||||||
25 | participant or
annuitant, receive a lump sum payment of $1,000 | ||||||
26 | divided by the number
of such beneficiaries.
|
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| |||||||
1 | (f) The changes made in this Section by Public Act 81-712 | ||||||
2 | pertaining
to survivors annuities in cases of remarriage prior | ||||||
3 | to age 55
shall apply to each survivors insurance beneficiary | ||||||
4 | who
remarries after June 30, 1979, regardless of the date that | ||||||
5 | the
participant or annuitant terminated his employment or died.
| ||||||
6 | The change made to this Section by this amendatory Act of | ||||||
7 | the 91st General
Assembly, pertaining to remarriage prior to | ||||||
8 | age 55, applies without regard to
whether the deceased | ||||||
9 | participant or annuitant was in service on or after the
| ||||||
10 | effective date of this amendatory Act of the 91st General | ||||||
11 | Assembly.
| ||||||
12 | (g) On January 1, 1981, any person who was receiving
a | ||||||
13 | survivors annuity on or before January 1, 1971 shall have the
| ||||||
14 | survivors annuity then being paid increased by 1% for each full | ||||||
15 | year which
has elapsed from the date the annuity began. On | ||||||
16 | January 1, 1982, any
survivor whose annuity began after January | ||||||
17 | 1, 1971, but before January 1,
1981, shall have the survivor's | ||||||
18 | annuity then being paid increased by 1% for
each year which has | ||||||
19 | elapsed from the date the survivor's annuity began.
On January | ||||||
20 | 1, 1987, any survivor who began receiving a survivor's annuity
| ||||||
21 | on or before January 1, 1977, shall have the monthly survivor's | ||||||
22 | annuity
increased by $1 for each full year which has elapsed | ||||||
23 | since the date the
survivor's annuity began.
| ||||||
24 | (h) If the sum of the lump sum and total monthly survivor | ||||||
25 | benefits
payable under this Section upon the death of a | ||||||
26 | participant amounts to less
than the sum of the death benefits |
| |||||||
| |||||||
1 | payable under items (2) and (3) of
Section 15-141, the | ||||||
2 | difference shall be paid in a lump sum to the
beneficiary of | ||||||
3 | the participant who is living on the date that this
additional | ||||||
4 | amount becomes payable.
| ||||||
5 | (i) If the sum of the lump sum and total monthly survivor | ||||||
6 | benefits payable
under this Section upon the death of an | ||||||
7 | annuitant receiving a retirement
annuity or disability | ||||||
8 | retirement annuity amounts to less than the death
benefit | ||||||
9 | payable under Section 15-142, the difference shall be paid to | ||||||
10 | the
beneficiary of the annuitant who is living on the date that | ||||||
11 | this
additional amount becomes payable.
| ||||||
12 | (j) Effective on the later of (1) January 1, 1990, or (2) | ||||||
13 | the
January 1 on or next after the date on which the survivor | ||||||
14 | annuity begins,
if the deceased member died while receiving a | ||||||
15 | retirement annuity, or in all
other cases the January 1 nearest | ||||||
16 | the first
anniversary of the date the survivor annuity payments | ||||||
17 | begin, every survivors
insurance beneficiary shall receive an | ||||||
18 | increase in
his or her monthly survivors annuity of 3%. On each | ||||||
19 | January 1 after the
initial increase, the monthly survivors | ||||||
20 | annuity shall be increased by 3% of
the total survivors annuity | ||||||
21 | provided under this Article, including previous
increases | ||||||
22 | provided by this subsection. Such increases shall apply to the
| ||||||
23 | survivors insurance beneficiaries of each participant and | ||||||
24 | annuitant,
whether or not the employment status of the | ||||||
25 | participant or annuitant
terminates before the effective date | ||||||
26 | of this amendatory Act of 1990. This
subsection (j) also |
| |||||||
| |||||||
1 | applies to persons receiving a survivor annuity
under the | ||||||
2 | portable benefit package.
| ||||||
3 | (k) If the Internal Revenue Code of 1986, as amended, | ||||||
4 | requires that the
survivors benefits be payable at an age | ||||||
5 | earlier than that specified in this
Section the benefits shall | ||||||
6 | begin at the earlier age, in which event, the
survivor's | ||||||
7 | beneficiary shall be entitled only to that amount which is | ||||||
8 | equal
to the actuarial equivalent of the benefits provided by | ||||||
9 | this Section.
| ||||||
10 | (l) The changes made to this Section and Section 15-131 by | ||||||
11 | this amendatory
Act of 1997, relating to benefits for certain | ||||||
12 | unmarried children who are
full-time students under age 22, | ||||||
13 | apply without regard to whether the deceased
member was in | ||||||
14 | service on or after the effective date of this amendatory Act
| ||||||
15 | of 1997. These changes do not authorize the repayment of a | ||||||
16 | refund or a
re-election of benefits, and any benefit or | ||||||
17 | increase in benefits resulting
from these changes is not | ||||||
18 | payable retroactively for any period before the
effective date | ||||||
19 | of this amendatory Act of 1997.
| ||||||
20 | (Source: P.A. 98-92, eff. 7-16-13.)
| ||||||
21 | (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
| ||||||
22 | Sec. 15-154. Refunds.
| ||||||
23 | (a) A participant whose status as an employee is | ||||||
24 | terminated, regardless of
cause, or who has been on lay off | ||||||
25 | status for more than 120 days, and who is not
on leave of |
| |||||||
| |||||||
1 | absence, is entitled to a refund of contributions upon | ||||||
2 | application;
except that not more than one such refund | ||||||
3 | application may be made during any
academic year.
| ||||||
4 | Except as set forth in subsections (a-1) and (a-2), the | ||||||
5 | refund shall
be the sum of the accumulated normal, additional, | ||||||
6 | and survivors insurance
contributions, plus the entire | ||||||
7 | contribution made by the participant under
Section 15-113.3, | ||||||
8 | less the amount of interest credited on these contributions
| ||||||
9 | each year in excess of 4 1/2% of the amount on which interest | ||||||
10 | was calculated.
| ||||||
11 | (a-1) A person who elects, in accordance with the | ||||||
12 | requirements of Section
15-134.5, to participate in the | ||||||
13 | portable benefit package and who becomes a
participating | ||||||
14 | employee under that retirement program upon the conclusion of
| ||||||
15 | the one-year waiting period applicable to the portable benefit | ||||||
16 | package election
shall have his or her refund calculated in | ||||||
17 | accordance with the provisions of
subsection (a-2).
| ||||||
18 | (a-2) The refund payable to a participant described in | ||||||
19 | subsection (a-1)
shall be the sum of the participant's | ||||||
20 | accumulated normal and additional
contributions, as defined in | ||||||
21 | Sections 15-116 and 15-117, plus the entire
contribution made | ||||||
22 | by the participant under Section 15-113.3. If the
participant | ||||||
23 | terminates with 5 or more years of service for employment as
| ||||||
24 | defined in Section 15-113.1, he or she shall also be entitled | ||||||
25 | to a distribution
of employer contributions in an amount equal | ||||||
26 | to the sum of the accumulated
normal and additional |
| |||||||
| |||||||
1 | contributions, as defined in Sections 15-116 and 15-117.
| ||||||
2 | (b) Upon acceptance of a refund, the participant forfeits | ||||||
3 | all
accrued rights and credits in the System, and if | ||||||
4 | subsequently reemployed, the
participant shall be considered a | ||||||
5 | new employee subject to all the qualifying
conditions for | ||||||
6 | participation and eligibility for benefits applicable to new
| ||||||
7 | employees. If such person again becomes a participating | ||||||
8 | employee and continues
as such for 2 years, or is employed by | ||||||
9 | an employer and participates for at
least 2 years in the | ||||||
10 | Federal Civil Service Retirement System, all such rights,
| ||||||
11 | credits, and previous status as a participant shall be restored | ||||||
12 | upon repayment
of the amount of the refund, together with | ||||||
13 | compound interest thereon from the
date the refund was received | ||||||
14 | to the date of repayment at the rate of 6% per
annum through | ||||||
15 | August 31, 1982, and at the effective rates after that date.
| ||||||
16 | When a participant in the portable benefit package who received | ||||||
17 | a refund
which included a distribution of employer | ||||||
18 | contributions repays a refund
pursuant to this Section, | ||||||
19 | one-half of the amount repaid shall be deemed the
member's | ||||||
20 | reinstated accumulated normal and additional contributions and | ||||||
21 | the
other half shall be allocated as an employer contribution | ||||||
22 | to the System,
except that any amount repaid for previously | ||||||
23 | purchased military service
credit under Section 15-113.3 shall | ||||||
24 | be accounted for as such.
| ||||||
25 | (c) Except as otherwise provided under subsection (c-5), if | ||||||
26 | If a participant covered under the traditional
benefit package |
| |||||||
| |||||||
1 | has made survivors insurance contributions, but has no
| ||||||
2 | survivors insurance beneficiary upon retirement, he or she | ||||||
3 | shall be entitled
to elect a refund of the accumulated | ||||||
4 | survivors insurance contributions, or to
elect an additional | ||||||
5 | annuity the value of which is equal to the accumulated
| ||||||
6 | survivors insurance contributions. This election must be made | ||||||
7 | prior to the
date the person's retirement annuity is approved | ||||||
8 | by the System.
| ||||||
9 | (c-5) Notwithstanding subsection (c), an annuitant who | ||||||
10 | retired prior to June 1, 2011 and made the election under | ||||||
11 | subsection (c), and who thereafter became, and remains, either: | ||||||
12 | (1) a party to a civil union or a party to a legal | ||||||
13 | relationship that is recognized as a civil union or | ||||||
14 | marriage under the Illinois Religious Freedom Protection | ||||||
15 | and Civil Union Act on or after June 1, 2011; or | ||||||
16 | (2) a party to a marriage under the Illinois Marriage | ||||||
17 | and Dissolution of Marriage Act on or after February 26, | ||||||
18 | 2014; or | ||||||
19 | (3) a party to a marriage, civil union or other legal | ||||||
20 | relationship that, at the time it was formed, was not | ||||||
21 | legally recognized in Illinois but was subsequently | ||||||
22 | recognized as a civil union or marriage under the Illinois | ||||||
23 | Religious Freedom Protection and Civil Union Act on or | ||||||
24 | after June 1, 2011, a marriage under the Illinois Marriage | ||||||
25 | and Dissolution of Marriage Act on or after February 26, | ||||||
26 | 2014, or both; |
| |||||||
| |||||||
1 | may make a one-time, irrevocable election to repay the refund | ||||||
2 | or additional annuity payments received under subsection (c), | ||||||
3 | together with compound interest thereon at the actuarially | ||||||
4 | assumed rate of return from the date the refund was issued or | ||||||
5 | the date each additional annuity payment was issued to the date | ||||||
6 | of repayment. The annuitant shall submit proof of party status | ||||||
7 | for item (1), (2), or (3) in the form of a valid marriage | ||||||
8 | certificate or a civil union certificate with any additional | ||||||
9 | requirements the Board prescribes by rulemaking. The election | ||||||
10 | must be received by the System within the period beginning on | ||||||
11 | January 1, 2016 and ending on January 1, 2017, and prior to the | ||||||
12 | date of death of the annuitant. | ||||||
13 | To the extent permitted under the Internal Revenue Code of | ||||||
14 | 1986, as amended, the full repayment shall be made within a | ||||||
15 | period beginning on the date of the election and ending on the | ||||||
16 | earlier of the 24th month thereafter or the date of the | ||||||
17 | annuitant's death. If an annuitant fails to make the repayment | ||||||
18 | within the required period, any payments made shall be | ||||||
19 | returned, without interest, to the annuitant (or to the | ||||||
20 | annuitant's estate if the payments ceased due to death), and | ||||||
21 | survivors insurance benefits under Section 15-145 shall not be | ||||||
22 | payable upon the annuitant's death. | ||||||
23 | Upon such repayment, all forfeited survivors insurance | ||||||
24 | benefit rights and credits under Section 15-145 shall be | ||||||
25 | restored. This repayment right shall not alter or modify any | ||||||
26 | eligibility requirement for survivors insurance beneficiaries |
| |||||||
| |||||||
1 | under this Article applicable upon the annuitant's death. The | ||||||
2 | repayment shall be irrevocable. No person shall have a claim or | ||||||
3 | right to the repaid amounts in a manner not otherwise provided | ||||||
4 | for under this Article in the event that: the marriage, civil | ||||||
5 | union, or other legal relationship described in this subsection | ||||||
6 | is dissolved, annulled, or declared invalid by a court of | ||||||
7 | competent jurisdiction; or the other party to the marriage, | ||||||
8 | civil union, or other legal relationship predeceases the | ||||||
9 | annuitant or otherwise fails to qualify as a survivors | ||||||
10 | insurance beneficiary upon the annuitant's death. | ||||||
11 | For purposes of this subsection (c-5), the term "annuitant" | ||||||
12 | shall include an annuitant who resumed his or her status as a | ||||||
13 | participating employee under Section 15-139(c). | ||||||
14 | (d) A participant, upon application, is entitled to a | ||||||
15 | refund of his
or her accumulated additional contributions | ||||||
16 | attributable to the additional
contributions described in the | ||||||
17 | last sentence of subsection (c) of Section
15-157. Upon the | ||||||
18 | acceptance of such a refund of accumulated additional
| ||||||
19 | contributions, the participant forfeits all rights and credits | ||||||
20 | which may
have accrued because of such contributions.
| ||||||
21 | (e) A participant who terminates his or her employee status | ||||||
22 | and elects to
waive service credit under Section 15-154.2, is | ||||||
23 | entitled to a refund of the
accumulated normal, additional and | ||||||
24 | survivors insurance contributions, if any,
which were credited | ||||||
25 | the participant for this service, or to an additional
annuity | ||||||
26 | the value of which is equal to the accumulated normal, |
| |||||||
| |||||||
1 | additional and
survivors insurance contributions, if any; | ||||||
2 | except that not more than one such
refund application may be | ||||||
3 | made during any academic year. Upon acceptance of
this refund, | ||||||
4 | the participant forfeits all rights and credits accrued because
| ||||||
5 | of this service.
| ||||||
6 | (f) If a police officer or firefighter receives a | ||||||
7 | retirement annuity
under Rule 1 or 3 of Section 15-136, he or | ||||||
8 | she shall be entitled at
retirement to a refund of the | ||||||
9 | difference between his or her accumulated
normal contributions | ||||||
10 | and the normal contributions which would have
accumulated had | ||||||
11 | such person filed a waiver of the retirement formula
provided | ||||||
12 | by Rule 4 of Section 15-136.
| ||||||
13 | (g) If, at the time of retirement, a participant would be | ||||||
14 | entitled to
a retirement annuity under Rule 1, 2, 3, 4, or 5 of | ||||||
15 | Section 15-136, or under
Section 15-136.4, that exceeds
the | ||||||
16 | maximum specified in clause (1) of subsection (c) of Section | ||||||
17 | 15-136, he
or she shall be entitled to a refund of the employee | ||||||
18 | contributions, if any,
paid under Section 15-157 after the date | ||||||
19 | upon which continuance of such
contributions would have | ||||||
20 | otherwise caused the retirement annuity to exceed
this maximum, | ||||||
21 | plus compound interest at the effective rates.
| ||||||
22 | (Source: P.A. 92-16, eff. 6-28-01;
92-424, eff. 8-17-01; | ||||||
23 | 93-347, eff. 7-24-03.)
| ||||||
24 | (40 ILCS 5/16-143.2) (from Ch. 108 1/2, par. 16-143.2)
| ||||||
25 | Sec. 16-143.2. Refund of contributions for survivor |
| |||||||
| |||||||
1 | benefits at retirement.
| ||||||
2 | (a) If at the time of applying for a retirement annuity | ||||||
3 | under Section
16-132, or while in receipt of such a retirement | ||||||
4 | annuity, a member
does not have a dependent beneficiary as | ||||||
5 | defined in paragraph (3) of
Section 16-140, such member may be | ||||||
6 | granted, upon written request, a refund
of actual contributions | ||||||
7 | for survivor benefits, without interest. Members
will be | ||||||
8 | eligible for a refund of contributions for survivor benefits as
| ||||||
9 | provided in the previous sentence notwithstanding the fact that | ||||||
10 | they began
receiving retirement benefits prior to this | ||||||
11 | amendatory Act of 1985.
Acceptance of the refund will forfeit | ||||||
12 | all rights to survivor benefits under
Sections 16-140 through | ||||||
13 | 16-143.
| ||||||
14 | (b) Except as provided under subsection (c), an An | ||||||
15 | annuitant who reestablishes membership following acceptance of
| ||||||
16 | refund of contributions for survivor benefits under subsection | ||||||
17 | (a) of this
Section may reinstate eligibility for benefits | ||||||
18 | provided under Sections 16-140
through 16-143 only through: (1) | ||||||
19 | repayment of such refund together with
regular interest thereon | ||||||
20 | from the date of the refund to the date of repayment,
and (2) | ||||||
21 | completion of one year of creditable service following | ||||||
22 | acceptance
of such refund. If membership is reestablished and | ||||||
23 | the above conditions
(1) and (2) are not met, an additional | ||||||
24 | refund, representing contributions
made following the previous | ||||||
25 | refund will be provided upon the member's death
or retirement, | ||||||
26 | whichever is applicable.
|
| |||||||
| |||||||
1 | (c) Notwithstanding subsection (b), an annuitant who has | ||||||
2 | received a refund under subsection (a) may, on or after January | ||||||
3 | 1, 2016 but before January 1, 2017, make an election to | ||||||
4 | reestablish rights to survivor benefits under Sections 16-140 | ||||||
5 | through 16-143 by paying to the System: | ||||||
6 | (1) the total amount of the refund received for actual | ||||||
7 | contributions; and | ||||||
8 | (2) interest on the amount of the refund at the | ||||||
9 | actuarially assumed rate of return for the period starting | ||||||
10 | on the date of receipt of the refund and ending when the | ||||||
11 | annuitant has made an election under this subsection (c). | ||||||
12 | The System may allow an individual to repay this refund | ||||||
13 | through: a tax-deferred lump sum payment in full; substantially | ||||||
14 | equal monthly installments over a period of at least one but | ||||||
15 | not more than 24 months by reducing the annuitant's monthly | ||||||
16 | benefit over the established number of months by the amount of | ||||||
17 | the otherwise applicable contribution; or a combination | ||||||
18 | thereof. To the extent permitted under the Internal Revenue | ||||||
19 | Code of 1986, as amended, for federal and State tax purposes, | ||||||
20 | the monthly amount by which the annuitant's benefit is reduced | ||||||
21 | shall not be treated as a contribution by the annuitant, but | ||||||
22 | rather as a reduction of the annuitant's monthly benefit. | ||||||
23 | If a member makes an election under this subsection (c) and | ||||||
24 | the contributions required in items (1) and (2) of this | ||||||
25 | subsection (c) are not paid in full, an additional one-time | ||||||
26 | lump sum refund representing contributions made following the |
| |||||||
| |||||||
1 | previous refund shall be provided to the named beneficiary or | ||||||
2 | beneficiaries on file with the System or, if none, to the | ||||||
3 | member's estate, when the member dies. | ||||||
4 | (Source: P.A. 87-794.)
| ||||||
5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.
|