Bill Text: IL SB0122 | 2021-2022 | 102nd General Assembly | Introduced

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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 1-0)

Status: (Introduced - Dead) 2021-04-16 - Rule 3-9(a) / Re-referred to Assignments [SB0122 Detail]

Download: Illinois-2021-SB0122-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB0122 Introduced 2/3/2021, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-163 from Ch. 108 1/2, par. 5-163
30 ILCS 805/8.45 new
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.
LRB102 05184 RPS 15205 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB0122 LRB102 05184 RPS 15205 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
changing Section 5-163 as follows:
(40 ILCS 5/5-163) (from Ch. 108 1/2, par. 5-163)
Sec. 5-163. Refund - General.
(a) A policeman, without regard to his period of service,
who withdraws before age 50, and a policeman with less than 10
years of service who withdraws before age 57, is entitled to a
refund of the amount deducted from his salary for age and
service annuity or Tier 2 monthly retirement annuity, for
automatic annual increase in annuity as provided in Section
5-167.1, and for widow's annuity or Tier 2 surviving spouse's
annuity, together with interest at 1-1/2% per year on each
deduction from the date of each deduction until the date of his
withdrawal from the service.
(b) Any refund under this 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. 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

SB0122 - 2 - LRB102 05184 RPS 15205 b
to which the policeman has contributed to the fund. A
policeman may receive a refund until the annuity to which he is
entitled has been fixed. Thereafter, he shall have no such
right of refund.
(c) A policeman who withdraws the amount credited to him
surrenders and forfeits all rights to any annuity or other
benefit from the fund, for himself and for any other person or
persons who might otherwise have benefited through him. The
rights so forfeited shall be restored to him, his wife or widow
and his children upon full repayment as provided in Section
5-164.
If the policeman subsequently re-enters service before age
57, and has not so repaid in full the amounts refunded the
rights forfeited shall not be restored, but the policeman
shall retain the right (which is also secured to the widow) to
have the period of service represented by the refunds counted
in the compensation of length of service, except as otherwise
provided in Section 5-164.
(d) A policeman who has served less than 10 years who has
not received a refund shall have all amounts to his credit for
purposes on the date of his withdrawal improved by interest
while he is out of service until he attains age 57, if he
subsequently re-enters the service and attains a right to
annuity.
(e) If a policeman elects to make additional contribution
for past service as provided in Section 5-174 and fails to pay

SB0122 - 3 - LRB102 05184 RPS 15205 b
such contributions in full within the time specified in said
section, a refund of the amount so paid, with interest at
1-1/2% per year, compounded annually, shall be refunded as
provided in said section.
(f) If a policeman makes contributions in accordance with
the provisions of Section 5-174(b) and subsequently returns to
the position he holds by certification and appointment as the
result of competitive civil service examination, he shall
receive a refund of such contributions, upon application
therefor, together with interest at 1-1/2% per year on each
such deduction from the date it was made to the date of refund.
Application for refund must be made before the annuity to
which he has a right has been fixed.
(Source: P.A. 99-905, eff. 11-29-16.)
Section 90. The State Mandates Act is amended by adding
Section 8.45 as follows:
(30 ILCS 805/8.45 new)
Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 102nd General Assembly.