Bill Text: IL HB4588 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that "gainful employment" means employment from which a member realizes earned income, as that term is defined in a provision of the Internal Revenue Code, in excess of $20,000 in any calendar year, unreduced by contributions to a tax-deferred retirement plan account authorized by the Internal Revenue Code, or the pro rata share of $20,000 if less than a calendar year, while in receipt of a disability or occupational disability benefit. Provides that the $20,000 referred to in the definition of "gainful employment" shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB4588 Detail]

Download: Illinois-2019-HB4588-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4588 Introduced , by Rep. Margo McDermed SYNOPSIS AS INTRODUCED:
40 ILCS 5/16-121.5 new
Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that "gainful employment" means employment from which a member realizes earned income, as that term is defined in a provision of the Internal Revenue Code, in excess of $20,000 in any calendar year, unreduced by contributions to a tax-deferred retirement plan account authorized by the Internal Revenue Code, or the pro rata share of $20,000 if less than a calendar year, while in receipt of a disability or occupational disability benefit. Provides that the $20,000 referred to in the definition of "gainful employment" shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u. Effective immediately.
LRB101 18379 RPS 67826 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB4588 LRB101 18379 RPS 67826 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by adding
Section 16-121.5 as follows:
(40 ILCS 5/16-121.5 new)
Sec. 16-121.5. Gainful employment. "Gainful employment":
Employment from which a member realizes earned income, as that
term is defined in Section 32(c)(2) of the Internal Revenue
Code, in excess of $20,000 in any calendar year, unreduced by
contributions to a tax-deferred retirement plan account
authorized by the Internal Revenue Code, or the pro rata share
of $20,000 if less than a calendar year, while in receipt of a
disability or occupational disability benefit. However, the
$20,000 referred to in this definition shall be increased on
each January 1 by the annual unadjusted percentage increase
(but not less than zero) in the consumer price index-u for the
12 months ending with the preceding September; these
adjustments shall be cumulative and compounded.
For the purposes of this definition, "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

HB4588 - 2 - LRB101 18379 RPS 67826 b
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new dollar amount resulting from
each annual adjustment shall be determined by the Public
Pension Division of the Department of Insurance and made
available to the System by November 1 of each year.
Section 99. Effective date. This Act takes effect upon
becoming law.