Bill Text: IL SB2022 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that any surviving spouse of an annuitant who (1) retired prior to June 1, 2011, (2) was not married on the date the retirement annuity began, (3) received a specified refund of survivor credits, and (4) died prior to the implementation of Public Act 99-682, which allowed certain annuitants who received a refund of contributions for survivor benefits to elect to repay the refund and have their survivor benefit rights reinstated, may, within a period of one year beginning 5 months after the effective date of the amendatory Act, make an election to re-establish rights to a surviving spouse annuity by paying to the Fund: (1) the total amount of the refund received for survivor credits; and (2) interest thereon at the actuarially assumed rate of return from the date of the refund to the date of payment. Provides that the surviving spouse must also provide documentation proving he or she was married to the annuitant at the time of death and has not subsequently remarried. Provides that the Fund may allow the surviving spouse to repay this refund over a period of not more than 24 months. Provides that, for federal and State tax purposes and to the extent permitted by law, if a surviving spouse pays in monthly installments by reducing the monthly benefit by the amount of the otherwise applicable contribution, the monthly amount by which the surviving spouse's benefit is reduced shall not be treated as a contribution by the surviving spouse but rather as a reduction of the surviving spouse's monthly benefit. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB2022 Detail]
Download: Illinois-2019-SB2022-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 | Section 7-159 as follows:
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6 | (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
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7 | Sec. 7-159. Surviving spouse annuity - refund of survivor | ||||||||||||||||||||||||
8 | credits.
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9 | (a) Any employee annuitant who (1) upon the date a | ||||||||||||||||||||||||
10 | retirement annuity
begins is not then married, or (2) is | ||||||||||||||||||||||||
11 | married to a person who would not qualify
for surviving spouse | ||||||||||||||||||||||||
12 | annuity if the person died on such date, is entitled to a
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13 | refund of the survivor credits including interest accumulated | ||||||||||||||||||||||||
14 | on the date the
annuity begins, excluding survivor credits and | ||||||||||||||||||||||||
15 | interest thereon credited during
periods of disability, and no | ||||||||||||||||||||||||
16 | spouse shall have a right to any surviving spouse
annuity from | ||||||||||||||||||||||||
17 | this Fund. If the employee annuitant
reenters service and upon | ||||||||||||||||||||||||
18 | subsequent retirement has a spouse who would
qualify for a | ||||||||||||||||||||||||
19 | surviving spouse annuity, the employee annuitant may pay the
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20 | fund the amount of the refund plus interest at the effective | ||||||||||||||||||||||||
21 | rate at the
date of payment. The payment shall qualify the | ||||||||||||||||||||||||
22 | spouse for a surviving
spouse annuity and the amount paid shall | ||||||||||||||||||||||||
23 | be considered as survivor
contributions.
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1 | (b) Instead of a refund under subsection (a), the retiring | ||||||
2 | employee may
elect to convert the amount of the refund into an | ||||||
3 | annuity, payable
separately from the retirement annuity. If the | ||||||
4 | annuitant dies before the
guaranteed amount has been | ||||||
5 | distributed, the remainder shall be paid in a lump
sum to the | ||||||
6 | designated beneficiary of the annuitant. The Board shall adopt | ||||||
7 | any
rules necessary for the implementation of this subsection.
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8 | (c) An annuitant who retired prior to June 1, 2011 and | ||||||
9 | received a refund of
survivor credits under subsection (a), and | ||||||
10 | who thereafter became, and remains,
either: | ||||||
11 | (1) a party to a civil union or a party to a legal | ||||||
12 | relationship that is recognized as a civil union or | ||||||
13 | marriage under the Illinois Religious Freedom Protection | ||||||
14 | and Civil Union Act on or after June 1, 2011; or | ||||||
15 | (2) a party to a marriage under the Illinois Marriage | ||||||
16 | and Dissolution of Marriage Act on or after February 26, | ||||||
17 | 2014; or | ||||||
18 | (3) a party to a marriage, civil union or other legal | ||||||
19 | relationship that, at the time it was formed, was not | ||||||
20 | legally recognized in Illinois but was subsequently | ||||||
21 | recognized as a civil union or marriage under the Illinois | ||||||
22 | Religious Freedom Protection and Civil Union Act on or | ||||||
23 | after June 1, 2011, a marriage under the Illinois Marriage | ||||||
24 | and Dissolution of Marriage Act on or after February 26, | ||||||
25 | 2014, or both; | ||||||
26 | may, within a period of one year beginning 5 months after the |
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1 | effective date of this amendatory Act of the 99th General | ||||||
2 | Assembly, make an election to re-establish rights to a
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3 | surviving spouse annuity under Sections 7-154 through 7-158 | ||||||
4 | (notwithstanding
the eligibility requirements of paragraph | ||||||
5 | (a)(1) of Section 7-154), by paying to the
Fund: (1) the total | ||||||
6 | amount of the refund received for survivor credits; and (2)
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7 | interest thereon at the actuarially assumed rate of return from | ||||||
8 | the date of the refund to the date of
payment. Such election | ||||||
9 | must be made prior to the date of death of the annuitant. | ||||||
10 | The Fund may allow the annuitant to repay this refund over | ||||||
11 | a period of not more
than 24 months. To the extent permitted by | ||||||
12 | the Internal Revenue Code of 1986, as amended, for federal and | ||||||
13 | State tax purposes, if a member pays in monthly
installments by | ||||||
14 | reducing the monthly benefit by the amount of the otherwise
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15 | applicable contribution, the monthly amount by which the | ||||||
16 | annuitant's benefit is
reduced shall not be treated as a | ||||||
17 | contribution by the annuitant but rather as a
reduction of the | ||||||
18 | annuitant's monthly benefit. | ||||||
19 | If an annuitant makes an election under this subsection (c) | ||||||
20 | and the contributions
required are not paid in full, an | ||||||
21 | otherwise qualifying spouse shall be given the
option to make | ||||||
22 | an additional lump sum payment of the remaining contributions
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23 | and qualify for a surviving spouse annuity. Otherwise, an | ||||||
24 | additional refund
representing contributions made hereunder | ||||||
25 | shall be paid at the annuitant's death
and there shall be no | ||||||
26 | surviving spouse annuity paid. |
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1 | (d) Any surviving spouse of an annuitant who (1) retired | ||||||
2 | prior to June 1, 2011, (2) was not married on the date the | ||||||
3 | retirement annuity began, (3) received a refund of survivor | ||||||
4 | credits under subsection (a), and (4) died prior to the | ||||||
5 | implementation of Public Act 99-682 may, within a period of one | ||||||
6 | year, beginning 5 months after the effective date of this | ||||||
7 | amendatory Act of the 101st General Assembly, make an election | ||||||
8 | to re-establish rights to a surviving spouse annuity under | ||||||
9 | Sections 7-154 through 7-158 (notwithstanding the eligibility | ||||||
10 | requirements of paragraph (a) of subsection (1) of Section | ||||||
11 | 7-154), by paying to the Fund: (i) the total amount of the | ||||||
12 | refund received for survivor credits; and (ii) interest thereon | ||||||
13 | at the actuarially assumed rate of return from the date of the | ||||||
14 | refund to the date of payment. The surviving spouse must also | ||||||
15 | provide documentation proving he or she was married to the | ||||||
16 | annuitant at the time of death and has not subsequently | ||||||
17 | remarried. This proof must include a marriage certificate and | ||||||
18 | any other supporting documents deemed necessary by the Fund. | ||||||
19 | The Fund may allow the surviving spouse to repay this | ||||||
20 | refund over a period of not more than 24 months. To the extent | ||||||
21 | permitted by the Internal Revenue Code of 1986, as amended, for | ||||||
22 | federal and State tax purposes, if a surviving spouse pays in | ||||||
23 | monthly installments by reducing the monthly benefit by the | ||||||
24 | amount of the otherwise applicable contribution, the monthly | ||||||
25 | amount by which the surviving spouse's benefit is reduced shall | ||||||
26 | not be treated as a contribution by the surviving spouse but |
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1 | rather as a reduction of the surviving spouse's monthly | ||||||
2 | benefit. | ||||||
3 | (Source: P.A. 99-682, eff. 7-29-16.)
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4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.
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