Rep. Julie Hamos

Filed: 4/6/2005

 

 


 

 


 
09400HB3627ham001 LRB094 09004 AMC 44339 a

1
AMENDMENT TO HOUSE BILL 3627

2     AMENDMENT NO. ______. Amend House Bill 3627 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Pension Code is amended by
5 changing Section 1-119 as follows:
 
6     (40 ILCS 5/1-119)
7     Sec. 1-119. Qualified Illinois Domestic Relations Orders.
8     (a) For the purposes of this Section:
9         (1) "Alternate payee" means the spouse, former spouse,
10     child, or other dependent of a member, as designated in a
11     QILDRO.
12         (2) "Death benefit" means any nonperiodic benefit
13     payable upon the death of a member to a survivor of the
14     member or to the member's estate or designated beneficiary,
15     including any refund of contributions following the
16     member's death, whether or not the benefit is so called
17     under the applicable Article of this Code.
18         (3) "Disability benefit" means any periodic or
19     nonperiodic benefit payable to a disabled member based on
20     occupational or nonoccupational disability or disease,
21     including any periodic or nonperiodic increases in the
22     benefit, whether or not the benefit is so called under the
23     applicable Article of this Code.
24         (4) "Member" means any person who participates in or

 

 

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1     has service credits in a retirement system, including a
2     person who is receiving or is eligible to receive a
3     retirement or disability benefit, without regard to
4     whether the person has withdrawn from service.
5         (5) "Member's refund" means a return of all or a
6     portion of a member's contributions that is elected by the
7     member (or provided by operation of law) and is payable
8     before the member's death.
9         (5.5) "Permissive service" means the amount of service
10     time credited to a member that has been or will be used by
11     the retirement system to calculate the member's benefit.
12     "Permissive service" includes, but is not limited to,
13     regular service, service purchased by the member, unused
14     vacation, and unused sick leave included by the retirement
15     system in the member's benefit calculations.
16         (6) "Qualified Illinois Domestic Relations Order" or
17     "QILDRO" means an Illinois court order that creates or
18     recognizes the existence of an alternate payee's right to
19     receive all or a portion of a member's accrued benefits in
20     a retirement system, is issued pursuant to this Section and
21     Section 503(b)(2) of the Illinois Marriage and Dissolution
22     of Marriage Act, and meets the requirements of this
23     Section. A QILDRO is not the same as a qualified domestic
24     relations order or QDRO issued pursuant to Section 414(p)
25     of the Internal Revenue Code of 1986. The requirements of
26     paragraphs (2) and (3) of that Section do not apply to
27     orders issued under this Section and shall not be deemed a
28     guide to the interpretation of this Section; a QILDRO is
29     intended to be a domestic relations order within the
30     meaning of paragraph (11) of that Section.
31         (7) "Regular payee" means the person to whom a benefit
32     would be payable in the absence of an effective QILDRO.
33         (7.5) "Regular service" means the amount of service
34     time earned by the member not due to service purchased by

 

 

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1     the member, unused vacation, or unused sick leave included
2     by the retirement system in the member's benefit
3     calculations.
4         (8) "Retirement benefit" means any periodic or
5     nonperiodic benefit payable to a retired member based on
6     age or service, or on the amounts accumulated to the credit
7     of the member for retirement purposes, including any
8     periodic or nonperiodic increases in the benefit, whether
9     or not the benefit is so called under the applicable
10     Article of this Code.
11         (9) "Retirement system" or "system" means any
12     retirement system, pension fund, or other public employee
13     retirement benefit plan that is maintained or established
14     under any of Articles 2 through 18 of this Code.
15         (10) "Surviving spouse" means the spouse of a member at
16     the time of the member's death.
17         (11) "Survivor's benefit" means any periodic benefit
18     payable to a surviving spouse, child, parent, or other
19     survivor of a deceased member, including any periodic or
20     nonperiodic increases in the benefit or nonperiodic
21     payment included with the benefit, whether or not the
22     benefit is so called under the applicable Article of this
23     Code.
24     (b) (1) An Illinois court of competent jurisdiction in a
25 proceeding for declaration of invalidity of marriage, legal
26 separation, or dissolution of marriage that provides for
27 support or the distribution of property, or any proceeding to
28 amend or enforce such support or a property distribution, may
29 order that all or any part of any (i) member's retirement
30 benefit, or (ii) member's refund payable to or on behalf of the
31 member, or (iii) death benefit that would otherwise be payable
32 to the member, on behalf of the member, or to the member's
33 designated beneficiary be instead paid by the retirement system
34 to a designated alternate payee.

 

 

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1     (2) An order issued under this Section provides only for
2 the diversion to an alternate payee of certain benefits
3 otherwise payable by the retirement system under the provisions
4 of this Code. The existence of a QILDRO shall not cause the
5 retirement system to pay any benefit, or any amount of benefit,
6 to an alternate payee that would not have been payable by the
7 system to a regular payee in the absence of the QILDRO.
8     (3) A QILDRO shall not affect the vesting, accrual, or
9 amount of any benefit, nor the date or conditions upon which
10 any benefit becomes payable, nor the right of the member or the
11 member's survivors to make any election otherwise authorized
12 under this Code, except as provided in subsections (i) and (j).
13     (4) A QILDRO shall not apply to or affect the payment of
14 any survivor's benefit, death benefit, disability benefit,
15 life insurance benefit, or health insurance benefit.
16     (c) (1) A QILDRO must contain the name, residence address,
17 and social security number of the member and of the alternate
18 payee and must identify the retirement system to which it is
19 directed and the court issuing the order.
20     (2) A QILDRO must specify each benefit to which it applies,
21 and it must specify the amount of the benefit to be paid to the
22 alternate payee. In the case of a non-periodic benefit, this
23 amount must be specified as a dollar amount or as a percentage
24 as specifically provided in subsection (n). In the case of a
25 periodic benefit, this amount must be specified as a dollar
26 amount per month or as a percentage per month as specifically
27 provided in subsection (n) , which in the case of a nonperiodic
28 benefit shall be expressed as a dollar amount (except that a
29 nonperiodic benefit payable to an alternate payee of a
30 participant in the self-managed plan authorized under Article
31 15 of this Code may be expressed as a dollar amount or as a
32 percentage of the participant's account), and in the case of a
33 periodic benefit shall be expressed as a dollar amount per
34 month.

 

 

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1     (3) With respect to each benefit to which it applies, a
2 QILDRO must specify when the order will take effect. In the
3 case of a lump sum benefit payable to an alternate payee of a
4 participant in the self-managed plan authorized under Article
5 15 of this Code, the benefit shall be paid upon the proper
6 request of the alternate payee. In the case of a periodic
7 benefit that is being paid at the time the order is received, a
8 QILDRO shall take effect immediately or on a specified later
9 date; if it takes effect immediately, it shall become effective
10 on the first benefit payment date occurring at least 30 days
11 after the order is received by the retirement system. In the
12 case of any other benefit, a QILDRO shall take effect when the
13 benefit becomes payable, unless some later date is specified
14 pursuant to subsection (n). except that a lump-sum benefit
15 payable to an alternate payee of a participant in the
16 self-managed plan authorized under Article 15 of this Code may
17 be paid upon the request of the alternate payee. However, in no
18 event shall a QILDRO apply to any benefit paid by the
19 retirement system before or within 30 days after the order is
20 received. A retirement system may adopt rules to prorate the
21 amount of the first and final periodic payments to an alternate
22 payee.
23     (4) A QILDRO must also contain any provisions required
24 under subsection (n) or (p).
25     (5) If a QILDRO indicates that the alternate payee is to
26 receive a percentage of any retirement system benefit, the
27 calculations required shall be performed by the member, the
28 alternate payee, their designated representatives or their
29 designated experts. The results of said calculations shall be
30 provided to the retirement system via a QILDRO Calculation
31 Order. The QILDRO Calculation Order shall be completed using
32 the form provided in Section (n-5) herein.
33     (6) Within 30 days after the receipt of a QILDRO
34 Calculation Order, the retirement system shall notify the

 

 

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1 member and the alternate payee (or one designated
2 representative of each) of the receipt of the Order. If the
3 QILDRO underlying the QILDRO Calculation Order does not exist
4 or is not in effect, or if the QILDRO Calculation Order does
5 not clearly indicate the amount the retirement system is to pay
6 to the alternate payee, then the retirement system shall at the
7 same time notify the member and the alternate payee (or one
8 designated representative of each) of the situation. Unless the
9 QILDRO underlying the QILDRO Calculation Order is not in
10 existence, no longer in effect, or does not clearly indicate
11 the amount the retirement system is to pay the alternate payee,
12 the retirement system shall accept the QILDRO Calculation Order
13 and shall implement the Order as soon as administratively
14 possible once benefits are payable. The retirement system shall
15 not reject a QILDRO Calculation Order based on its
16 determination that the calculations therein are not accurate or
17 that the calculations are not in accordance with the parties'
18 QILDRO, agreement, or judgment. The retirement system shall
19 have no responsibility for the consequences of its
20 implementation of a QILDRO Calculation Order that is inaccurate
21 or not in accordance with the parties' QILDRO, agreement, or
22 judgment.
23     (d) (1) An order issued under this Section shall not be
24 implemented unless a certified copy of the order has been filed
25 with the retirement system. The system shall promptly notify
26 the member and the alternate payee by first class mail of its
27 receipt of the order.
28     (2) Neither the retirement system, nor its board, nor any
29 of its employees shall be liable to the member, the regular
30 payee, or any other person for any amount of a benefit that is
31 paid in good faith to an alternate payee in accordance with a
32 QILDRO.
33     (3) At the time a QILDRO the order is submitted to the
34 retirement system, it shall be accompanied by a nonrefundable

 

 

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1 $50 processing fee payable to the retirement system, to be used
2 by the system to defer any administrative costs arising out of
3 the implementation of the QILDRO.
4     (e) (1) Each alternate payee is responsible for maintaining
5 a current residence address on file with the retirement system.
6 The retirement system shall have no duty to attempt to locate
7 any alternate payee by any means other than sending written
8 notice to the last known address of the alternate payee on file
9 with the system.
10     (2) In the event that the system cannot locate an alternate
11 payee when a benefit becomes payable, the system shall hold the
12 amount of the benefit payable to the alternate payee and make
13 payment to the alternate payee if he or she is located within
14 the following 180 days. If the alternate payee has not been
15 located within 180 days from the date the benefit becomes
16 payable, the system shall pay the benefit and the amounts held
17 to the regular payee. If the alternate payee is subsequently
18 located, the system shall thereupon implement the QILDRO, but
19 the interest of the alternate payee in any amounts already paid
20 to the regular payee shall be extinguished. Amounts held under
21 this subsection shall not bear interest.
22     (f) (1) If the amount of a benefit that is specified in a
23 QILDRO for payment to an alternate payee exceeds the actual
24 amount of that benefit payable by the retirement system, the
25 excess shall be disregarded. The retirement system shall have
26 no liability to any alternate payee or any other person for the
27 disregarded amounts.
28     (2) In the event of multiple QILDROs against a member, the
29 retirement system shall honor all of the QILDROs to the extent
30 possible. However, if the total amount of a benefit to be paid
31 to alternate payees under all QILDROs in effect against the
32 member exceeds the actual amount of that benefit payable by the
33 system, the QILDROs shall be satisfied in the order of their
34 receipt by the system until the amount of the benefit is

 

 

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1 exhausted, and shall not be adjusted pro rata. Any amounts that
2 cannot be paid due to exhaustion of the benefit shall remain
3 unpaid, and the retirement system shall have no liability to
4 any alternate payee or any other person for such amounts.
5     (3) A modification of a QILDRO shall be filed with the
6 retirement system in the same manner as a new QILDRO. A
7 modification that does not increase the amount of any benefit
8 payable to the alternate payee, and does not expand the QILDRO
9 to affect any benefit not affected by the unmodified QILDRO,
10 does not affect the priority of payment under subdivision
11 (f)(2); the priority of payment of a QILDRO that has been
12 modified to increase the amount of any benefit payable to the
13 alternate payee, or to expand the QILDRO to affect a benefit
14 not affected by the unmodified QILDRO, shall be based on the
15 date on which the system receives the modification of the
16 QILDRO.
17     (g) (1) Upon the death of the alternate payee under a
18 QILDRO, the QILDRO shall expire and cease to be effective, and
19 in the absence of another QILDRO, the right to receive any
20 affected benefit shall revert to the regular payee.
21     (2) All QILDROs relating to a member's participation in a
22 particular retirement system shall expire and cease to be
23 effective upon the issuance of a member's refund that
24 terminates the member's participation in that retirement
25 system, without regard to whether the refund was paid to the
26 member or to an alternate payee under a QILDRO. An expired
27 QILDRO shall not be automatically revived by any subsequent
28 return by the member to service under that retirement system.
29     (h) (1) Within 45 days after receiving a subpoena from any
30 party to a proceeding for declaration of invalidity of
31 marriage, legal separation, or dissolution of marriage in which
32 a QILDRO may be issued, or after receiving a request from the
33 member, a retirement system shall provide in response issue a
34 statement of a member's accumulated contributions, accrued

 

 

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1 benefits, and other interests in the plan administered by the
2 retirement system based on the data on file with the system on
3 the date the subpoena is received. If so requested in the
4 subpoena, the retirement system shall also provide in response
5 general retirement plan information available to a member , and
6 of any relevant procedures, rules, or modifications to the
7 model QILDRO form that have been adopted by the retirement
8 system.
9     (1.5) If a QILDRO provides for the alternate payee to
10 receive a percentage of any retirement benefit (as opposed to
11 providing for the alternate payee to receive only dollar
12 amounts of retirement benefits), then the retirement system
13 shall provide the applicable information to the member and to
14 the alternate payee, or to one designated representative of
15 each (e.g., the member's attorney and the alternate payee's
16 attorney) as indicated below:
17         (A) If the member is a participant in the self-managed
18     plan authorized under Article 15 of this Code and the
19     QILDRO provides that the only benefit the alternate payee
20     is to receive is a percentage of a lump sum benefit as of a
21     specific date that has already past, then, within 30 days
22     after the retirement system receives the QILDRO, the
23     retirement system shall provide the lump sum amount to
24     which the QILDRO percentage is to be applied.
25         (B) For all situations except that situation described
26     in item (A), if the member has not commenced or elected to
27     commence benefits at the time the QILDRO is received by the
28     retirement system, then, within 30 days after the
29     retirement system receives the QILDRO, the retirement
30     system shall provide all of the following information:
31             (i) The date of the member's initial membership in
32         the retirement system, expressed as month, day, and
33         year, if available, or the most exact date that is
34         available to the retirement system.

 

 

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1             (ii) The amount of permissive and regular service
2         the member accumulated in the retirement system from
3         the time of initial membership through the most recent
4         date available prior to the retirement system
5         receiving the QILDRO (the dates used by the retirement
6         system shall also be provided). Service amounts shall
7         be expressed using the most exact time increments
8         available to the retirement system (e.g., months or
9         fractions of years).
10             (iii) The gross amount of the member's non-reduced
11         monthly annuity benefit earned, calculated as of the
12         most recent date available prior to the retirement
13         system receiving the QILDRO, the date used by the
14         retirement system, and the earliest date the member may
15         be eligible to commence the benefit. This amount shall
16         include any upgrades purchased by the member, which
17         shall be noted separately.
18             (iv) The gross amount of the member's refund
19         available or partial refund amounts available,
20         including any interest payable on those amounts,
21         calculated as of the most recent date available prior
22         to the retirement system receiving the QILDRO (the date
23         used by the retirement system shall also be provided).
24             (v) The gross amount of the member's death benefits
25         available, including any interest payable on the
26         amounts, calculated as of the most recent date
27         available prior to the retirement system receiving the
28         QILDRO (the date used by the retirement system shall
29         also be provided).
30         (C) For all situations except that situation described
31     in item (A), if the member has already commenced or has
32     already elected to commence benefits when the retirement
33     system receives the QILDRO, then, within 30 days after the
34     retirement system receives the QILDRO, or, if the member

 

 

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1     has not commenced or elected to commence benefits at the
2     time the retirement system receives the QILDRO, then at
3     least 60 days prior to the member's elected benefit
4     commencement date (or, if the retirement system receives
5     late notice of the member's elected benefit commencement
6     date, then as soon as administratively possible after the
7     retirement system receives the notice) the retirement
8     system shall provide all of the following information:
9             (i) The date the member commenced benefits or, if
10         not yet commenced, the date the member elected for
11         benefits to commence.
12             (ii) The amount of permissive and regular service
13         the member accumulated in the retirement system from
14         the time of initial membership through the time the
15         member commenced benefits (or, if not yet commenced,
16         through the time the member elected for benefits to
17         commence). Service amounts shall be expressed using
18         the most exact time increments available to the
19         retirement system (e.g., months or fractions of
20         years).
21             (iii) The gross amount of the member's non-reduced
22         monthly annuity benefit payable, calculated as of the
23         date that benefit commenced (or, if not yet commenced,
24         as of the time the member has elected for benefits to
25         commence) and the date used by the retirement system
26         for calculations. This amount shall include any
27         upgrades purchased by the member, which shall be noted
28         separately.
29             (iv) The gross amount of the member's refund
30         payable or partial refund amounts payable, including
31         any payable interest, calculated as of the date that
32         benefit was paid (or, if not yet paid, as of the date
33         the member has elected for the refund to be paid). The
34         date used by the retirement system for calculations

 

 

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1         shall also be provided.
2             (v) The gross amount of the member's death benefits
3         payable, including any payable interest, calculated as
4         of the member's commencement date (if the member has
5         commenced) or as of the date the member has elected to
6         commence benefits (if so elected).
7         (D) If, and only if, the alternate payee is entitled to
8     benefits under Section VII of the QILDRO, then, within 30
9     days after the member's death, the retirement system shall
10     provide the gross amount of the member's death benefits
11     payable, including any payable interest, calculated as of
12     the member's date of death.
13     (2) In no event shall the retirement system be required to
14 furnish to any person an actuarial opinion as to the present
15 value of the member's benefits or other interests.
16     (3) The papers, entries, and records, or parts thereof, of
17 any retirement system may be proved by a copy thereof,
18 certified under the signature of the secretary of the system or
19 other duly appointed keeper of the records of the system and
20 the corporate seal, if any.
21     (i) In a retirement system in which a member or beneficiary
22 is required to apply to the system for payment of a benefit,
23 the required application may be made by an alternate payee who
24 is entitled to all of a termination refund or retirement
25 benefit or part of a death benefit that is payable that benefit
26 under a QILDRO, provided that all other qualifications and
27 requirements have been met. However, the alternate payee may
28 not make the required application for death benefits while the
29 member is alive or for a member's refund or a retirement
30 benefit if the member is in active service or below the minimum
31 age for receiving an undiscounted retirement annuity in the
32 retirement system that has received the QILDRO or in any other
33 retirement system in which the member has creditable service
34 and in which the member's rights under the Retirement Systems

 

 

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1 Reciprocal Act would be affected as a result of the alternate
2 payee's application for a member's refund or retirement
3 benefit.
4     (j) (1) So long as there is in effect a QILDRO relating to
5 a member's retirement benefit, the affected member may not
6 elect a form of payment that has the effect of diminishing the
7 amount of the payment to which any alternate payee is entitled,
8 unless the alternate payee has consented to the election in a
9 writing that includes the alternate payee's notarized
10 signature, and this written and notarized consent has been
11 filed with the retirement system.
12     (2) If a member attempts to make an election prohibited
13 under subdivision (j)(1), the retirement system shall reject
14 the election and advise the member of the need to obtain the
15 alternate payee's consent.
16     (3) If a retirement system discovers that it has mistakenly
17 allowed an election prohibited under subdivision (j)(1), it
18 shall thereupon disallow that election and recalculate any
19 benefits affected thereby. If the system determines that an
20 amount paid to a regular payee should have been paid to an
21 alternate payee, the system shall, if possible, recoup the
22 amounts as provided in subsection (k) of this Section.
23     (k) In the event that a regular payee or an alternate payee
24 is overpaid, the retirement system shall recoup the amounts by
25 deducting the overpayment from future payments and making
26 payment to the other payee. The system may make deductions for
27 recoupment over a period of time in the same manner as is
28 provided by law or rule for the recoupment of other amounts
29 incorrectly disbursed by the system in instances not involving
30 a QILDRO. The retirement system shall incur no liability to
31 either the alternate payee or the regular payee as a result of
32 any payment made in good faith, regardless of whether the
33 system is able to accomplish recoupment.
34     (l) (1) A retirement system that has, before the effective

 

 

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1 date of this Section, received and implemented a domestic
2 relations order that directs payment of a benefit to a person
3 other than the regular payee may continue to implement that
4 order, and shall not be liable to the regular payee for any
5 amounts paid in good faith to that other person in accordance
6 with the order.
7     (2) A domestic relations order directing payment of a
8 benefit to a person other than the regular payee that was
9 issued by a court but not implemented by a retirement system
10 prior to the effective date of this Section shall be void.
11 However, a person who is the beneficiary or alternate payee of
12 a domestic relations order that is rendered void under this
13 subsection may petition the court that issued the order for an
14 amended order that complies with this Section.
15     (m) (1) In accordance with Article XIII, Section 5 of the
16 Illinois Constitution, which prohibits the impairment or
17 diminishment of benefits granted under this Code, a QILDRO
18 issued against a member of a retirement system established
19 under an Article of this Code that exempts the payment of
20 benefits or refunds from attachment, garnishment, judgment or
21 other legal process shall not be effective without the written
22 consent of the member if the member began participating in the
23 retirement system on or before the effective date of this
24 Section. That consent must specify the retirement system, the
25 court case number, and the names and social security numbers of
26 the member and the alternate payee. The consent must accompany
27 the QILDRO when it is filed with the retirement system, and
28 must be in substantially the following form:
 
29
CONSENT TO ISSUANCE OF QILDRO

 
30 Court Case Number: ....................
31 Member's Social Security Number: ........................
32 Alternate payee's Social Security Number: ...............

 

 

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1     I, (name), a member of the (retirement system), hereby
2 irrevocably consent to the issuance of a Qualified Illinois
3 Domestic Relations Order. I understand that under the Order,
4 certain benefits that would otherwise be payable to me, or to
5 my death benefit beneficiary surviving spouse or estate, will
6 instead be payable to (name of alternate payee). I also
7 understand that my right to elect certain forms of payment of
8 my retirement benefit or member's refund may be limited as a
9 result of the Order.
10     DATED:.......................
11     SIGNED:......................
 
12     (2) A member's consent to the issuance of a QILDRO shall be
13 irrevocable, and shall apply to any QILDRO that pertains to the
14 alternate payee and retirement system named in the consent.
15     (n) A QILDRO An order issued under this Section shall be in
16 substantially the following form (omitting any provisions that
17 are not applicable to benefits that are or may be ultimately
18 payable to the member):
 
19
QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER

 
20 ...................................
21 (Retirement System Name Here)
 
22     THIS CAUSE coming before the Court for the purpose of the
23 entry of a Qualified Illinois Domestic Relations Order under
24 the provisions of Section 1-119 of the Illinois Pension Code
25 (40 ILCS 5/1-119), the Court having jurisdiction over the
26 parties and the subject matter hereof; the Court finding that
27 one of the parties to this proceeding is a member of a
28 retirement system subject to Section 1-119 of the Illinois
29 Pension Code (40 ILCS 5/1-119), this Order is entered to
30 implement a division of that party's interest in the retirement

 

 

09400HB3627ham001 - 16 - LRB094 09004 AMC 44339 a

1 system; and the Court being fully advised;
 
2 IT IS HEREBY ORDERED AS FOLLOWS:
 
3     I. The definitions and other provisions of Section 1-119 of
4 the Illinois Pension Code (40 ILCS 5/1-119) are adopted by
5 reference and made a part of this Order.
6     II. Identification of Retirement System and parties:
 
7 Retirement System:              ............................
8                                 (Name)
9
10
............................
  
11                                 (Address)
 
12 Member:                         ............................
13                                 (Name)
14
15
............................
  
16                                 (Residence Address)
17
18
............................
  
19                                 (Social Security Number)
 
20 Alternate payee:                ............................
21                                 (Name)
22
23
............................
  
24                                 (Residence Address)
25
26
............................
  
27                                 (Social Security Number)
 

 

 

09400HB3627ham001 - 17 - LRB094 09004 AMC 44339 a

1 The alternate payee is the member's .... current or former
2 spouse/ .... child or other dependent [check one].
 
3     III. The Retirement System shall pay the indicated amounts
4 of the member's annuity retirement benefits to the alternate
5 payee under the following terms and conditions:
6         (A) The Retirement System shall pay the alternate payee
7     pursuant to one of the following methods [complete the ONE
8     option that applies]:
9             (1) $...... per month [enter amount]; or
10             (2) .......% [enter percentage] per month of the
11         marital portion of said benefit with the marital
12         portion defined using the formula in Section IX; or
13             (3) ........% [enter percentage] per month of the
14         gross amount of said benefit calculated as of the date
15         the .... member's/ .... alternate payee's [check one]
16         benefit commences.
17         (B) If the member's retirement benefit has already
18     commenced, the alternate payee's benefit shall commence
19     either [check/complete the ONE option that applies]:
20             (1) .... as soon as administratively possible upon
21         this order being approved by the Retirement System; or
22             (2) .... on the date of ........ [enter any set
23         date after this order has been approved by the
24         Retirement System].
25         (C) If the member's retirement benefit has not yet
26     commenced, the alternate payee's benefit shall commence
27     either [check/complete the ONE option that applies]:
28             (1) .... as of the date the member's retirement
29         benefit commences; or
30             (2) .... on the date of .......... [enter set date,
31         but only if that date occurs after the member's
32         retirement benefit has commenced].

 

 

09400HB3627ham001 - 18 - LRB094 09004 AMC 44339 a

1         (D) The alternate payee's benefit under this Section
2     III shall terminate [check/complete the ONE option that
3     applies]:
4             (1) .... upon the death of the member or the death
5         of the alternate payee, whichever is the first to
6         occur; or
7             (2) .... after ........ payments are made to the
8         alternate payee [enter any set number] or upon the
9         death of the member or the death of the alternate
10         payee, whichever shall be the first to occur.
11     IV. If the member's retirement benefits are subject to
12 annual post-retirement cost-of-living increases, the alternate
13 payee's share of said benefits .... shall/ .... shall not
14 [check one] be recalculated or increased annually to include a
15 proportionate share of the applicable cost-of-living
16 increases.
17     V. The Retirement System shall pay to the alternate payee
18 the indicated amounts of any refund that becomes payable to the
19 member under the following terms and conditions:
20         (A) The Retirement System shall pay the alternate payee
21     pursuant to one of the following methods [complete the ONE
22     option that applies]:
23             (1) $..... [enter amount]; or
24             (2) .....% [enter percentage] of the marital
25         portion of said benefit, with the marital portion
26         defined using the formula in Section IX; or
27             (3) ......% [enter percentage] of the gross amount
28         of said benefit calculated when the member's refund is
29         paid.
30         (B) The amount payable to an alternate payee under this
31     Section V(A)(2) or V(A)(3) shall include any applicable
32     interest that would otherwise be payable to the member
33     under the rules of the retirement system.
34         (C) The alternate payee's benefit under this Section V

 

 

09400HB3627ham001 - 19 - LRB094 09004 AMC 44339 a

1     shall be paid when the member's benefit is paid.
2     VI. The Retirement System shall pay to the alternate payee
3 the indicated amounts of any partial refund that becomes
4 payable to the member under the following terms and conditions:
5         (A) The Retirement System shall pay the alternate payee
6     pursuant to one of the following methods [complete the ONE
7     option that applies]:
8             (1) $...... [enter amount]; or
9             (2) ......% [enter percentage] of the marital
10         portion of said benefit, with the marital portion
11         defined using the formula in Section IX; or
12             (3) ......% [enter percentage] of the gross amount
13         of the benefit calculated when the member's refund is
14         paid.
15         (B) The amount payable to an alternate payee under this
16     Section VI(A)(2) or VI(A)(3) shall include any applicable
17     interest that would otherwise be payable to the member
18     under the rules of the retirement system.
19         (C) The alternate payee's benefit under this Section VI
20     shall be paid when the member's benefit is paid.
21     VII. The Retirement System shall pay to the alternate payee
22 the indicated amounts of any death benefits that become payable
23 to the member's beneficiary under the following terms and
24 conditions:
25         (A) For the purposes of the member's death benefits,
26     and to the extent and only to the extent required by this
27     Section VII, the alternate payee shall be designated as and
28     considered to be a beneficiary of the member at the time of
29     the member's death and shall receive [complete ONE of the
30     following options]:
31             (1) $...... [enter amount]; or
32             (2) ......% [enter percentage] of the marital
33         portion of death benefits, with the marital portion
34         defined using the formula in Section IX; or

 

 

09400HB3627ham001 - 20 - LRB094 09004 AMC 44339 a

1             (3) ......% [enter percentage] of the gross amount
2         of death benefits calculated when said benefits become
3         payable.
4         (B) The amount payable to an alternate payee under this
5     Section VII(A)(2) or VII(A)(3) shall include any
6     applicable interest that would otherwise be payable to the
7     member under the rules of the retirement system.
8         (C) The alternate payee's benefit under this Section
9     VII shall be paid as soon as administratively possible
10     after the member's death.
11     VIII. If this Order indicates that the alternate payee is
12 to receive a percentage of any retirement system benefit, upon
13 receipt of the information required to be provided by the
14 Retirement System under Section 1-119 of the Illinois Pension
15 Code (40 ILCS 5/1-119), the calculations required shall be
16 performed by the member, by the alternate payee, or by their
17 designated representatives and/or designated experts. The
18 results of the calculations shall be provided to the retirement
19 system via a QILDRO Calculation Order.
20     IX. Marital Portion Benefit Calculation Formula (Option to
21 calculate benefit in III(A)(2), V(A)(2), VI(A)(2) or VII(A)(2)
22 above). If in this Section "other" is circled in the definition
23 of A, B, or C, then a supplemental order must be entered
24 simultaneously with this QILDRO clarifying the intent of the
25 parties or the Court as to that item. The supplemental order
26 cannot require the retirement system to take any action not
27 permitted under Illinois law or the retirement system's
28 administrative rules, as determined by the System. To the
29 extent the supplemental order does not conform to Illinois law
30 or administrative rule, it shall not be binding upon the
31 retirement system.
32         (1) The amount of the alternate payee's benefit shall
33     be the result of (A/B) x C x D where:
34             "A" equals the number of months of .... permissive/

 

 

09400HB3627ham001 - 21 - LRB094 09004 AMC 44339 a

1         .... regular/ .... other [check only one] service that
2         the member accumulated in the retirement system from
3         the date of marriage ....................... [enter
4         date MM/DD/YYYY] to the date of divorce
5         .................... [enter date MM/DD/YYYY]. This
6         number of months of service shall be calculated as
7         whole months after receipt of information required
8         from the Retirement System pursuant to Section 1-119 of
9         the Illinois Pension Code (40 ILCS 5/1-119).
10             "B" equals the number of months of .... permissive/
11         .... regular/ .... other [check only one] service that
12         the member accumulated in the retirement system from
13         the time of initial membership in the retirement system
14         through the benefit commencement date. The number of
15         months of service shall be calculated as whole months
16         after receipt of information required from the
17         Retirement System pursuant to Section 1-119 of the
18         Illinois Pension Code (40 ILCS 5/1-119).
19             "C" equals the gross amount of:
20                 (i) the member's monthly annuity benefit
21             (Section III(A)) calculated as of the member's
22             benefit commencement date or elected benefit
23             commencement date, .... including/ .... not
24             including/ .... other [check only one] purchased
25             upgrades and other benefit formula enhancements;
26                 (ii) the member's refund amount including any
27             payable interest (Section V(A)) calculated as of
28             the time said refund becomes payable to the member;
29                 (iii) the member's partial refund amount,
30             including any payable interest (Section VI(A))
31             calculated as of the time said partial refund
32             becomes payable to the member; or
33                 (iv) the member's death benefit amounts
34             including any payable interest (Section VII(A))

 

 

09400HB3627ham001 - 22 - LRB094 09004 AMC 44339 a

1             calculated as of the time said benefit becomes
2             payable to the member's beneficiary;
3         whichever is applicable pursuant to Section III, V, VI,
4         or VII of this Order. These gross amounts shall be
5         provided by the Retirement System pursuant to Section
6         1-119 of the Illinois Pension Code (40 ILCS 5/1-119).
7             "D" equals the percentage noted in Section
8         III(A)(2), V(A)(2), VI(A)(2), or VII(A)(2), whichever
9         is applicable.
10     (2) The alternate payee's benefit under this Section IX
11 shall be paid in accordance with all Sections of this Order
12 that apply.
13     X. In accordance with subsection (j) of Section 1-119 of
14 the Illinois Pension Code (40 ILCS 5/1-119), so long as this
15 QILDRO is in effect, the member may not elect a form of payment
16 of the retirement benefit that has the effect of diminishing
17 the amount of the payment to which the alternate payee is
18 entitled, unless the alternate payee has consented to the
19 election in writing, the consent has been notarized, and the
20 consent has been filed with the retirement system.
21     XI. If the member began participating in the Retirement
22 System before July 1, 1999, this Order shall not take effect
23 unless accompanied by the written consent of the member as
24 required under subsection (m) of Section 1-119 of the Illinois
25 Pension Code (40 ILCS 5/1-119).
26     XII. The Court retains jurisdiction over this matter for
27 all of the following purposes:
28         (1) To establish or maintain this Order as a Qualified
29     Illinois Domestic Relations Order.
30         (2) To enter amended QILDROs and QILDRO Calculation
31     Orders to conform to the parties' Marital Settlement
32     Agreement or Agreement for Legal Separation ("Agreement"),
33     to the parties' Judgment for Dissolution of Marriage or
34     Judgment for Legal Separation ("Judgment"), to any

 

 

09400HB3627ham001 - 23 - LRB094 09004 AMC 44339 a

1     modifications of the parties' Agreement or Judgment, and to
2     any supplemental orders entered to clarify the parties'
3     Agreement or Judgment.
4         (3) To enter supplemental orders to clarify the intent
5     of the parties or the Court regarding the benefits
6     allocated herein in accordance with the parties' Agreement
7     or Judgment, with any modifications of the parties'
8     Agreement or Judgment, and with any supplemental orders
9     entered to clarify the parties' Agreement or Judgment. A
10     supplemental order may not require the retirement system to
11     take any action not permitted under Illinois law or the
12     retirement system's administrative rules as determined by
13     the System. To the extent the supplemental order does not
14     conform to Illinois law or administrative rule, it shall
15     not be binding upon the retirement system.
 
16     DATED: ......................
 
17     SIGNED: .....................
 
18     (n-5) A QILDRO Calculation Order issued under this Section
19 shall be in substantially the following form:
 
20
QILDRO CALCULATION ORDER

 
21 ...................................
22 [Enter Retirement System name here]
 
23     THIS CAUSE coming before the Court for the purpose of the
24 entry of a QILDRO Calculation Order under the provisions of
25 Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119),
26 the Court having jurisdiction over the parties and the subject
27 matter hereof; the Court finding that a QILDRO has previously
28 been entered in this matter, that the QILDRO has been approved

 

 

09400HB3627ham001 - 24 - LRB094 09004 AMC 44339 a

1 by the retirement system, and that the QILDRO requires
2 percentage calculations to allocate the alternate payee's
3 benefit, the Court not having found that the QILDRO has become
4 void or invalid, and the Court being fully advised;
 
5     IT IS HEREBY ORDERED AS FOLLOWS:
6     (1) The definitions and other provisions of Section 1-119
7 of the Illinois Pension Code [40 ILCS 5/1-119] are adopted by
8 reference and made a part of this Order.
9     (2) Identification of Retirement System and parties:
 
10 Retirement System:              ............................
11                                 (Name)
12
13
............................
  
14                                 (Address)
 
15 Member:                         ............................
16                                 (Name)
17
18
............................
  
19                                 (Residence Address)
20
21
............................
  
22                                 (Social Security Number)
 
23 Alternate payee:                ............................
24                                 (Name)
25
26
............................
  
27                                 (Residence Address)
28
29
............................
  

 

 

09400HB3627ham001 - 25 - LRB094 09004 AMC 44339 a

1                                 (Social Security Number)
 
2 The Alternate payee is the member's .... current or former
3 spouse/ ....child or other dependent [check one].
 
4     (3) Each of the following Sections (3(a) through 3(d))
5 shall apply if and only if the QILDRO allocated benefits to the
6 alternate payee in the specific Section noted. The retirement
7 system shall pay the monthly amounts as directed below, but
8 only if and when the benefits are payable pursuant to the
9 QILDRO and Section 1-119 of the Illinois Pension Code (40 ILCS
10 5/1-119). Parties shall see QILDRO Section IX for the
11 definitions of A, B, C and D as used below.
12         (a) The alternate payee's benefit pursuant to QILDRO
13     Section III(A)(2) shall be calculated pursuant to Section
14     IX of the QILDRO and paid as follows:
 
15 (......./.......) X ....... X .............. = ............
16 [Enter A] [Enter B] [Enter C]    [Enter D]   [Monthly Amount]
 
17         (b) The alternate payee's benefit pursuant to QILDRO
18     Section V(A)(2) shall be calculated pursuant to Section IX
19     of the QILDRO and paid as follows:
 
20 (......./.......) X ....... X .............. = ............
21 [Enter A] [Enter B] [enter C]    [Enter D]       [Amount]
 
22         (c) The alternate payee's benefit pursuant to QILDRO
23     Section VI(A)(2) shall be calculated pursuant to Section IX
24     of the QILDRO and paid as follows:
 
25 (......./.......)  X ....... X ............. = ............
26 [Enter A] [Enter B] [Enter C]    [Enter D]       [Amount]
 

 

 

09400HB3627ham001 - 26 - LRB094 09004 AMC 44339 a

1         (d) The alternate payee's benefit pursuant to QILDRO
2     Section VII(A)(2) shall be calculated pursuant to Section
3     IX of the QILDRO and paid as follows:
 
4 (......./.......) X ....... X .............. = ............
5 [Enter A] [Enter B] [Enter C]   [Enter D]        [Amount]
 
6     (4) The following shall apply only if the QILDRO allocated
7 benefits to the alternate payee in the specific Section noted.
8 The retirement system shall pay the monthly amounts as directed
9 below, but only if and when the benefits are payable pursuant
10 to the QILDRO and Section 1-119 of the Illinois Pension Code
11 (40 ILCS 5/1-119).
12         (A) The alternate payee's benefit pursuant to QILDRO
13     Section III(A)(3) shall be calculated and paid as follows:
 
14 .................... X ............... = .................
15 [Gross benefit amount]  [Percentage]     [Monthly Amount]
 
16         (B) The alternate payee's benefit pursuant to QILDRO
17     Section V(A)(3) shall be calculated and paid as follows:
 
18 ..................... X ............... = .................
19 [Gross benefit amount]   [Percentage]        [Amount]
 
20         (C) The alternate payee's benefit pursuant to QILDRO
21     Section VI(A)(3) shall be calculated and paid as follows:
 
22 ..................... X ............... = .................
23 [Gross benefit amount]   [Percentage]        [Amount]
 
24         (D) The alternate payee's benefit pursuant to QILDRO
25     Section VII(A)(3) shall be calculated and paid as follows:
 

 

 

09400HB3627ham001 - 27 - LRB094 09004 AMC 44339 a

1 ..................... X ............... = .................
2 [Gross benefit amount]   [Percentage]        [Amount]
 
3     (5) The Court retains jurisdiction over this matter for the
4 following purposes:
5         (A) to establish or maintain this Order as a QILDRO
6     Calculation Order;
7         (B) to enter amended QILDROs and QILDRO Calculation
8     Orders to conform to the parties' QILDRO, Marital
9     Settlement Agreement or Agreement for Legal Separation
10     ("Agreement"), to the parties' Judgment for Dissolution of
11     Marriage or Judgment for Legal Separation ("Judgment"), to
12     any modifications of the parties' QILDRO, Agreement, or
13     Judgment, and to any supplemental orders entered to clarify
14     the parties' QILDRO, Agreement, or Judgment; and
15         (C) To enter supplemental orders to clarify the intent
16     of the parties or the Court regarding the benefits
17     allocated herein in accordance with the parties' Agreement
18     or Judgment, with any modifications of the parties'
19     Agreement or Judgment, and with any supplemental orders
20     entered to clarify the parties' Agreement or Judgment. A
21     supplemental order may not require the retirement system to
22     take any action not permitted under Illinois law or the
23     retirement system's administrative rules as determined by
24     the System. To the extent the supplemental order does not
25     conform to Illinois law or administrative rule, it shall
26     not be binding upon the retirement system.
 
27     DATED: ......................
 
28     SIGNED: .....................
 
29
QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER

 

 

 

09400HB3627ham001 - 28 - LRB094 09004 AMC 44339 a

1     THIS CAUSE coming before the Court for the purpose of the
2 entry of a Qualified Illinois Domestic Relations Order under
3 the provisions of Section 1-119 of the Illinois Pension Code,
4 the Court having jurisdiction over the parties and the subject
5 matter hereof; the Court finding that one of the parties to
6 this proceeding is a member of a retirement system subject to
7 Section 1-119 of the Illinois Pension Code, this Order is
8 entered to implement a division of that party's interest in the
9 retirement system; and the Court being fully advised;
10     IT IS HEREBY ORDERED AS FOLLOWS:
11     (1) The definitions and other provisions of Section 1-119
12 of the Illinois Pension Code are adopted by reference and made
13 a part of this Order.
14     (2) Identification of Retirement System and parties:
15         Retirement System: (name and address)
16         Member: (name, residence address and social security
17     number)
18         Alternate payee: (name, residence address and social
19     security number)
20     (3) The Retirement System shall pay the indicated amounts
21 of the following specified benefits to the alternate payee
22 under the following terms and conditions:
23         (i) Of the member's retirement benefit, the Retirement
24     System shall pay to the alternate payee $...... per month,
25     beginning (if the benefit is already being paid, either
26     immediately or on a specified later date; otherwise, on the
27     date the retirement benefit commences), and ending upon the
28     termination of the retirement benefit or the death of the
29     alternate payee, whichever occurs first.
30         (ii) Of any member's refund that becomes payable, the
31     Retirement System shall pay to the alternate payee $......
32     when the member's refund becomes payable.
33     (4) In accordance with subsection (j) of Section 1-119 of

 

 

09400HB3627ham001 - 29 - LRB094 09004 AMC 44339 a

1 the Illinois Pension Code, so long as this QILDRO is in effect,
2 the member may not elect a form of payment of the retirement
3 benefit that has the effect of diminishing the amount of the
4 payment to which the alternate payee is entitled, unless the
5 alternate payee has consented to the election in writing and
6 this consent has been filed with the retirement system.
7     (5) If the member began participating in the Retirement
8 System before the effective date of this Section, this Order
9 shall not take effect unless accompanied by the written consent
10 of the member as required under subsection (m) of Section 1-119
11 of the Illinois Pension Code.
12     (6) The Court retains jurisdiction to modify this Order.
 
13     DATED:.......................
 
14     SIGNED:......................
 
15     (o) (1) A court in Illinois that has issued a QILDRO shall
16 retain jurisdiction of all issues relating to the modification
17 of the QILDRO as indicated in Section XII of the QILDRO and in
18 accordance with Illinois law. A court in Illinois that has
19 issued a QILDRO Calculation Order shall retain jurisdiction of
20 all issues relating to the modification of the QILDRO
21 Calculation Order as indicated in Section 5 of the QILDRO
22 Calculation Order and in accordance with Illinois law. The
23 Administrative Review Law and the rules adopted pursuant
24 thereto shall govern and apply to all proceedings for judicial
25 review of final administrative decisions of the board of
26 trustees of the retirement system arising under this Section.
27     (2) The term "administrative decision" is defined as in
28 Section 3-101 of the Code of Civil Procedure. The venue for
29 review under the Administrative Review Law shall be the same as
30 is provided by law for judicial review of other administrative
31 decisions of the retirement system.

 

 

09400HB3627ham001 - 30 - LRB094 09004 AMC 44339 a

1     (p) (1) Each retirement system may adopt any procedures or
2 rules that it deems necessary or useful for the implementation
3 of this Section.
4     (2) Each retirement system may by rule modify the model
5 QILDRO form provided in subsection (n), except that no
6 retirement system may change that form in a way that limits the
7 choices provided to the alternate payee in subsections (n) or
8 (n-5) as to form of payment, calculation method, or calculation
9 formula. Each retirement system may by rule or require that
10 additional information be included in QILDROs presented to the
11 system, as may be necessary to meet the needs of the retirement
12 system.
13     (3) Each retirement system shall define its uncompleted
14 model QILDRO form and uncompleted model QILDRO Calculation
15 Order as an original of the forms or a paper copy of the forms.
16 Each retirement system shall, whenever possible, make the forms
17 available on the internet in non-modifiable computer format
18 (for example, Adobe Portable Document Format files) for
19 printing purposes. After the form is completed and entered by
20 the court, a retirement system may require an original court
21 certified copy of the QILDRO in its completed state.
22 (Source: P.A. 93-347, eff. 7-24-03.)".