Bill Text: IL SB0040 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the General Assembly Article of the Illinois Pension Code. Provides that a person who is a member on the effective date of the amendatory Act may file a written notice of election not to participate in the General Assembly Retirement System within 24 months from the date of becoming a member or 18 months after the effective date of the amendatory Act, whichever is later. Provides that a person who makes that election shall, upon written request, receive a refund of his or her total contributions, without interest. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB0040 Detail]

Download: Illinois-2013-SB0040-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB0040 Introduced 1/16/2013, by Sen. Tim Bivins SYNOPSIS AS INTRODUCED:
40 ILCS 5/2-117 from Ch. 108 1/2, par. 2-117
40 ILCS 5/2-123 from Ch. 108 1/2, par. 2-123
Amends the General Assembly Article of the Illinois Pension Code. Provides that a person who is a member on the effective date of the amendatory Act may file a written notice of election not to participate in the General Assembly Retirement System within 24 months from the date of becoming a member or 18 months after the effective date of the amendatory Act, whichever is later. Provides that a person who makes that election shall, upon written request, receive a refund of his or her total contributions, without interest. Effective immediately.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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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 changing
Sections 2-117 and 2-123 as follows:
(40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
Sec. 2-117. Participants - Election not to participate.
(a) Every person who was a member on November 1, 1947, or
in military service on such date, is subject to the provisions
of this system beginning upon such date, unless prior to such
date he or she filed with the board a written notice of
election not to participate.
Except as provided in subsection (a-1), every Every person
who becomes a member after November 1, 1947, and who is then
not a participant becomes a participant beginning upon the date
of becoming a member unless, within 24 months from that date,
he or she has filed with the board a written notice of election
not to participate.
(a-1) A person who is a member on the effective date of
this amendatory Act of the 98th General Assembly may file his
or her written notice of election not to participate within 24
months from the date of becoming a member or 18 months after
the effective date of this amendatory Act of the 98th General

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Assembly, whichever is later.
(b) A member who has filed notice of an election not to
participate (and a former member who has not yet begun to
receive a retirement annuity under this Article) may become a
participant with respect to the period for which the member
elected not to participate upon filing with the board, before
April 1, 1993, a written rescission of the election not to
participate. Upon contributing an amount equal to the
contributions he or she would have made as a participant from
November 1, 1947, or the date of becoming a member, whichever
is later, to the date of becoming a participant, with interest
at the rate of 4% per annum until the contributions are paid,
the participant shall receive credit for service as a member
prior to the date of the rescission, both before and after
November 1, 1947. The required contributions shall be made
before commencement of the retirement annuity; otherwise no
credit for service prior to the date of participation shall be
granted.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
Sec. 2-123. Refunds.
(a) A participant who ceases to be a member, other than an
annuitant, and a member who ceases to be a participant under
subsection (a-1) of Section 2-117 shall, upon written request,
receive a refund of his or her total contributions, without

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interest. The refund shall include the additional
contributions for the automatic increase in retirement
annuity. By accepting the refund, a participant forfeits all
accrued rights and benefits in the System and loses credit for
all service. However, if he or she again becomes a member, he
or she may resume status as a participant and reestablish any
forfeited service credit by paying to the System the full
amount refunded, together with interest at 4% per annum from
the time the refund is paid to the date the member again
becomes a participant.
A former member of the General Assembly may reestablish any
service credit forfeited by acceptance of a refund by paying to
the System on or before February 1, 1993, the full amount
refunded, together with interest at 4% per annum from the date
of payment of the refund to the date of repayment.
When a member or former member owes money to the System,
interest at the rate of 4% per annum shall accrue and be
payable on such amounts owed beginning on the date of
termination of service as a member until the contributions due
have been paid in full.
(b) A participant who (1) has elected to cease making
contributions for survivor's annuity under subsection (b) of
Section 2-126, (2) has no eligible survivor's annuity
beneficiary upon becoming an annuitant, or (3) terminates
service with less than 8 years of service is entitled to a
refund of the contributions for a survivor's annuity, without

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interest. If the person later marries, a survivor's annuity
shall not be payable upon his or her death, unless the amount
of the refund is repaid to the System, together with interest
at the rate of 4% per year from the date of refund to the date
of repayment.
(c) If at the date of retirement or death of a participant
who served as an officer of the General Assembly, the total
period of such service is less than 4 years, the additional
contributions made by such member on the additional salary as
an officer shall be refunded unless the participant served as
an officer for at least 2 years and has contributed the amount
he or she would have contributed if he or she had served as an
officer for 4 years as provided in Section 2-126.
(d) Upon the termination of the last survivor's annuity
payable to a survivor of a deceased participant, the excess, if
any, of the total contributions made by the participant for
retirement and survivor's annuity, without interest, over the
total amount of retirement and survivor's annuity payments
received by the participant and the participant's survivors
shall be refunded upon request:
(i) if there was a surviving spouse of the deceased
participant who was eligible for a survivor's annuity, to
the designated beneficiary of that spouse or, if the
designated beneficiary is deceased or there is no
designated beneficiary, to that spouse's estate;
(ii) if there was no eligible surviving spouse of the

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deceased participant, to the designated beneficiary of the
deceased participant or, if the designated beneficiary is
deceased or there is no designated beneficiary, to the
deceased participant's estate.
(e) Upon the death of a participant, if a survivor's
annuity is not payable under this Article, a beneficiary
designated by the participant shall be entitled to a refund of
all contributions made by the participant. If the participant
has not designated a refund beneficiary, the surviving spouse
shall be entitled to the refund of contributions; if there is
no surviving spouse, the contributions shall be refunded to the
participant's surviving children, if any, and if no children
survive, the refund payment shall be made to the participant's
estate.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
Section 99. Effective date. This Act takes effect upon
becoming law.