Bill Text: IL SB1648 | 2023-2024 | 103rd General Assembly | Chaptered

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Further amends the Illinois Pension Code. In the State Employees Articles of the Code, provides that a Tier 2 employee whose disability continues but whose disability benefit is terminated due to attaining age 65 or terminated after 5 years because the ordinary disability benefit commenced after age 60 shall immediately qualify to begin receiving a Tier 2 retirement annuity without reduction due to age if the employee has earned at least 10 years of service credit.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2023-08-11 - Public Act . . . . . . . . . 103-0553 [SB1648 Detail]

Download: Illinois-2023-SB1648-Chaptered.html

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Public Act 103-0553
SB1648 Enrolled LRB103 27807 RPS 54185 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 11-159 and by adding Sections 11-159.1 and
14-126.5 as follows:
(40 ILCS 5/11-159) (from Ch. 108 1/2, par. 11-159)
Sec. 11-159. Annuity after withdrawal while disabled for
employees who first became participants prior to January 1,
2011.
(a) This Section applies to employees who first became
participants prior to January 1, 2011.
(b) An employee whose disability continues after the
employee he has received ordinary disability benefits benefit
for the maximum period of time prescribed by this Article, and
who withdraws before age 60 while still so disabled, is
entitled to receive an annuity in of such amount as can be
provided from the total sum accumulated to the employee's his
credit from employee contributions and employer city
contributions, to be computed as of the employee's his age on
the date of withdrawal. If the minimum annuity under Section
11-134 applies and is greater than the annuity under this
subsection (b), then the Section 11-134 annuity shall apply.

Any annuity under this subsection (b) shall be subject to
automatic annual increases under Section 11-134.1.
(c) The annuity to which the employee's spouse his wife
shall be entitled upon the employee's his death, shall be
fixed on the date of the employee's his withdrawal. It shall be
provided on a reversionary annuity basis from the total sum
accumulated to the employee's his credit for widow's annuity
on the date of such withdrawal. If the minimum annuity under
Section 11-145.1 applies and is greater than the annuity under
this subsection (c), then the Section 11-145.1 annuity shall
apply. Any widow's annuity shall not be subject to any
automatic annual increases.
(d) Upon the death of any such employee while on annuity,
if the employee's his service was at least 4 years after the
date of the employee's his original entry, and at least 2 years
after the date of the employee's his latest re-entry, the
employee's his unmarried child or children under age 18 shall
be entitled to an annuity as specified in this Article for
children of an employee who retires after age 55, subject to
prescribed limitations on total payments to a family of an
employee.
(Source: P.A. 81-1536.)
(40 ILCS 5/11-159.1 new)
Sec. 11-159.1. Annuity after withdrawal while disabled for
employees who first became participants on or after January 1,

2011.
(a) This Section applies to employees who first became
participants on or after January 1, 2011.
(b) An employee whose disability continues after the
employee has received ordinary disability benefits for the
maximum period of time prescribed by this Article and who
withdraws before becoming eligible for a retirement annuity
under subsection (c), (c-5), (d), or (d-5) of Section 1-160
while still so disabled is entitled to receive an annuity in
such amount as can be provided from the total sum accumulated
to the employee's credit from employee contributions and
employer contributions, to be computed as of the employee's
age on the date of withdrawal. The minimum annuity under
Section 11-134 shall not apply, and any annuity under this
subsection (b) shall not be subject to any automatic annual
increases.
(c) The annuity to which the employee's spouse shall be
entitled upon the employee's death shall be fixed on the date
of the employee's withdrawal. It shall be provided on a
reversionary annuity basis from the total sum accumulated to
the employee's credit for widow's annuity on the date of such
withdrawal. The minimum annuity under Section 11-145.1 shall
not apply and any widow's annuity under this subsection (c)
shall not be subject to any automatic annual increases.
(d) Upon the death of any such employee while on annuity,
if the employee's service was at least 4 years after the date

of the employee's original entry, and at least 2 years after
the date of the employee's latest re-entry, the employee's
unmarried children under age 18 shall be entitled to an
annuity as specified in this Article for children of an
employee who retires after age 55, subject to prescribed
limitations on total payments to a family of an employee.
(40 ILCS 5/14-126.5 new)
Sec. 14-126.5. Retirement annuity option for termination
of ordinary disability benefit. A member who is subject to the
provisions of Section 1-160 whose disability continues but
whose disability benefit is either terminated due to attaining
age 65 or terminated after 5 years because the ordinary
disability benefit commenced after age 60 shall immediately
qualify to begin receiving a retirement annuity without the
reduction provided under subsection (d) of Section 1-160 if
the member has earned at least 10 years of creditable service.
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. 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 103rd General Assembly.

Section 99. Effective date. This Act takes effect upon
becoming law.