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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 | ||||||||||||||||||||||||||||
5 | changing Sections 7-141 and 7-144 as follows:
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6 | (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
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7 | Sec. 7-141. Retirement annuities; conditions. Retirement | ||||||||||||||||||||||||||||
8 | annuities shall be payable as hereinafter set forth:
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9 | (a) A participating employee who, regardless of cause, is | ||||||||||||||||||||||||||||
10 | separated
from the service of all participating municipalities | ||||||||||||||||||||||||||||
11 | and
instrumentalities thereof and participating | ||||||||||||||||||||||||||||
12 | instrumentalities shall be
entitled to a retirement annuity | ||||||||||||||||||||||||||||
13 | provided:
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14 | 1. He is at least age 55 if he is a Tier 1 regular | ||||||||||||||||||||||||||||
15 | employee, he is age 62 if he is a Tier 2 regular employee, | ||||||||||||||||||||||||||||
16 | or, in the case of a person who is eligible
to have his | ||||||||||||||||||||||||||||
17 | annuity calculated under Section 7-142.1, he is at least | ||||||||||||||||||||||||||||
18 | age 50;
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19 | 2. He is not entitled to receive earnings for | ||||||||||||||||||||||||||||
20 | employment in a position requiring him, or entitling him | ||||||||||||||||||||||||||||
21 | to elect, to be a participating employee;
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22 | 3. The amount of his annuity, before the application | ||||||||||||||||||||||||||||
23 | of paragraph (b) of
Section 7-142 is at least $10 per |
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1 | month;
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2 | 4. If he first became a participating employee after | ||||||
3 | December 31,
1961 and is a Tier 1 regular employee, he has | ||||||
4 | at least 8 years of service, or, if he is a Tier 2 regular | ||||||
5 | member, he has at least 10 years of service. This service | ||||||
6 | requirement shall not
apply to any participating employee, | ||||||
7 | regardless of participation date, if the
General Assembly | ||||||
8 | terminates the Fund.
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9 | (a-5) If any annuitant under this Article must be | ||||||
10 | considered a participating employee because there was not a | ||||||
11 | separation from service as required by subsection (a) of this | ||||||
12 | Section and the participating municipality or participating | ||||||
13 | instrumentality that employs or re-employs that annuitant | ||||||
14 | knowingly fails to notify the Board to suspend the annuity, | ||||||
15 | the participating municipality or participating | ||||||
16 | instrumentality may be required to reimburse the Fund for an | ||||||
17 | amount up to the total of any annuity payments made to the | ||||||
18 | annuitant after the date the annuity should have been | ||||||
19 | suspended, as determined by the Board, less any amount | ||||||
20 | actually repaid by the annuitant. In no case shall the total | ||||||
21 | amount repaid by the annuitant plus any amount reimbursed by | ||||||
22 | the employer to the Fund be more than the total of all annuity | ||||||
23 | payments made to the annuitant after the date the annuity | ||||||
24 | should have been suspended. | ||||||
25 | (b) Retirement annuities shall be payable:
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26 | 1. As provided in Section 7-119;
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1 | 2. Except as provided in item 3, upon receipt by the | ||||||
2 | fund of a written
application. The effective date may be | ||||||
3 | not more than one
year prior to the date of the receipt by | ||||||
4 | the fund of the application;
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5 | 3. Upon attainment of the required age of distribution | ||||||
6 | under Section 401(a)(9) of the Internal Revenue Code of | ||||||
7 | 1986, as amended, if the member (i) is no longer in
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8 | service,
and (ii) is otherwise entitled to an annuity | ||||||
9 | under this Article;
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10 | 4. To the beneficiary of the deceased annuitant for | ||||||
11 | the unpaid amount
accrued to date of death, if any.
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12 | (Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21; | ||||||
13 | 102-210, Article 10, Section 10-5, eff. 1-1-22; 102-813, eff. | ||||||
14 | 5-13-22.)
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15 | (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
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16 | Sec. 7-144. Retirement annuities; suspended annuities - | ||||||
17 | suspended during employment.
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18 | (a) If any person
receiving any annuity again becomes an | ||||||
19 | employee
and receives earnings from employment in a position | ||||||
20 | requiring him, or entitling him to elect, to
become a | ||||||
21 | participating employee, then the annuity payable to such | ||||||
22 | employee
shall be suspended as of the first 1st day of the | ||||||
23 | month coincidental with or
next following the date upon which | ||||||
24 | such person becomes such an employee, unless the person is | ||||||
25 | authorized under subsection (b) of Section 7-137.1 of this |
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1 | Code to continue receiving a retirement annuity during that | ||||||
2 | period.
Upon proper qualification of the participating | ||||||
3 | employee payment of such
annuity may be resumed on the first | ||||||
4 | 1st day of the month following such
qualification and upon | ||||||
5 | proper application therefor. The participating
employee in | ||||||
6 | such case shall be entitled to a supplemental annuity
arising | ||||||
7 | from service and credits earned subsequent to such re-entry as | ||||||
8 | a
participating employee.
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9 | Notwithstanding any other provision of this Article, an | ||||||
10 | annuitant shall be considered a participating employee if he | ||||||
11 | or she returns to work as an employee with a participating | ||||||
12 | employer and works more than 599 hours annually (or 999 hours | ||||||
13 | annually with a participating employer that has adopted a | ||||||
14 | resolution pursuant to subsection (e) of Section 7-137 of this | ||||||
15 | Code). Each of these annual periods shall commence on the | ||||||
16 | month and day upon which the annuitant is first employed with | ||||||
17 | the participating employer following the effective date of the | ||||||
18 | annuity. | ||||||
19 | (a-5) If any annuitant under this Article must be | ||||||
20 | considered a participating employee per the provisions of | ||||||
21 | subsection (a) of this Section , and the participating | ||||||
22 | municipality or participating instrumentality that employs or | ||||||
23 | re-employs that annuitant knowingly fails to notify the Board | ||||||
24 | to suspend the annuity, the participating municipality or | ||||||
25 | participating instrumentality may be required to reimburse the | ||||||
26 | Fund for an amount up to one-half of the total of any annuity |
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1 | payments made to the annuitant after the date the annuity | ||||||
2 | should have been suspended, as determined by the Board , less | ||||||
3 | any amount actually repaid by the annuitant . In no case shall | ||||||
4 | the total amount repaid by the annuitant plus any amount | ||||||
5 | reimbursed by the employer to the Fund be more than the total | ||||||
6 | of all annuity payments made to the annuitant after the date | ||||||
7 | the annuity should have been suspended. This subsection shall | ||||||
8 | not apply if the annuitant returned to work for the employer | ||||||
9 | for less than 12 months. | ||||||
10 | The Fund shall notify all annuitants that they must notify | ||||||
11 | the Fund immediately if they return to work for any | ||||||
12 | participating employer. The notification by the Fund shall | ||||||
13 | occur upon retirement and no less than annually thereafter in | ||||||
14 | a format determined by the Fund. The Fund shall also develop | ||||||
15 | and maintain a system to track annuitants who have returned to | ||||||
16 | work and notify the participating employer and annuitant at | ||||||
17 | least annually of the limitations on returning to work under | ||||||
18 | this Section. | ||||||
19 | (b) Supplemental annuities to persons who return to | ||||||
20 | service for less
than 48 months shall be computed under the | ||||||
21 | provisions of Sections 7-141,
7-142 , and 7-143. In determining | ||||||
22 | whether an employee is eligible for an
annuity which requires | ||||||
23 | a minimum period of service, his entire period of
service | ||||||
24 | shall be taken into consideration but the supplemental annuity
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25 | shall be based on earnings and service in the supplemental | ||||||
26 | period only.
The effective date of the suspended and |
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1 | supplemental annuity for the
purpose of increases after | ||||||
2 | retirement shall be considered to be the
effective date of the | ||||||
3 | suspended annuity.
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4 | (c) Supplemental annuities to persons who return to | ||||||
5 | service for 48
months or more shall be a monthly amount | ||||||
6 | determined as follows:
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7 | (1) An amount shall be computed under subparagraph b | ||||||
8 | of paragraph
(1) of subsection (a) of Section 7-142, | ||||||
9 | considering all of the service
credits of the employee . ;
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10 | (2) The actuarial value in monthly payments for life | ||||||
11 | of the annuity
payments made before suspension shall be | ||||||
12 | determined and subtracted from
the amount determined in | ||||||
13 | paragraph (1) above . ;
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14 | (3) The monthly amount of the suspended annuity, with | ||||||
15 | any applicable
increases after retirement computed from | ||||||
16 | the effective date to the date
of reinstatement, shall be | ||||||
17 | subtracted from the amount determined in paragraph (2)
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18 | above and the remainder shall be the amount of the | ||||||
19 | supplemental annuity
provided that this amount shall not | ||||||
20 | be less than the amount computed under
subsection (b) of | ||||||
21 | this Section.
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22 | (4) The suspended annuity shall be reinstated at an | ||||||
23 | amount including
any increases after retirement from the | ||||||
24 | effective date to date of
reinstatement.
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25 | (5) The effective date of the combined suspended and | ||||||
26 | supplemental
annuities for the purposes of increases after |
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1 | retirement shall be
considered to be the effective date of | ||||||
2 | the supplemental annuity.
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3 | (d) If a Tier 2 regular employee becomes a member or | ||||||
4 | participant under any other system or fund created by this | ||||||
5 | Code and is employed on a full-time basis, except for those | ||||||
6 | members or participants exempted from the provisions of | ||||||
7 | subsection (a) of Section 1-160 of this Code (other than a | ||||||
8 | participating employee under this Article), then the person's | ||||||
9 | retirement annuity shall be suspended during that employment. | ||||||
10 | Upon termination of that employment, the person's retirement | ||||||
11 | annuity shall resume and be recalculated as required by this | ||||||
12 | Section. | ||||||
13 | (e) If a Tier 2 regular employee first began participation | ||||||
14 | on or after January 1, 2012 and is receiving a retirement | ||||||
15 | annuity and accepts on a contractual basis a position to | ||||||
16 | provide services to a governmental entity from which he or she | ||||||
17 | has retired, then that person's annuity or retirement pension | ||||||
18 | shall be suspended during that contractual service, | ||||||
19 | notwithstanding the provisions of any other Section in this | ||||||
20 | Article. Such annuitant shall notify the Fund, as well as his | ||||||
21 | or her contractual employer, of his or her retirement status | ||||||
22 | before accepting contractual employment. A person who fails to | ||||||
23 | submit such notification shall be guilty of a Class A | ||||||
24 | misdemeanor and required to pay a fine of $1,000. Upon | ||||||
25 | termination of that contractual employment, the person's | ||||||
26 | retirement annuity shall resume and be recalculated as |
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1 | required by this Section. | ||||||
2 | (Source: P.A. 102-210, eff. 1-1-22; revised 8-19-22.)
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3 | Section 90. The State Mandates Act is amended by adding | ||||||
4 | Section 8.47 as follows: | ||||||
5 | (30 ILCS 805/8.47 new) | ||||||
6 | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | ||||||
7 | 8 of this Act, no reimbursement by the State is required for | ||||||
8 | the implementation of any mandate created by this amendatory | ||||||
9 | Act of the 103rd General Assembly.
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10 | Section 99. Effective date. This Act takes effect January | ||||||
11 | 1, 2024.
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