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| | HB0164 Engrossed | | LRB100 02315 RPS 12320 b |
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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, |
3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Pension Code is amended by changing |
5 | | Sections 13-305 and 13-601 as follows:
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6 | | (40 ILCS 5/13-305) (from Ch. 108 1/2, par. 13-305)
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7 | | Sec. 13-305. Surviving spouse's annuity; eligibility. A |
8 | | surviving spouse
who was married to an employee on the date of |
9 | | the employee's death
while in service, or was married to an |
10 | | employee on the date of withdrawal from
service and remained |
11 | | married to that employee until the employee's
death, shall be |
12 | | entitled to a surviving spouse's annuity payable for
life. |
13 | | However, the annuity shall not be payable to the surviving |
14 | | spouse of (1)
an employee who withdraws from service
before |
15 | | attaining the minimum retirement age unless the deceased |
16 | | employee had at least 10 years of service, or at least 5
years |
17 | | of service if the employee was eligible for an annuity upon |
18 | | attainment of age 62 pursuant to Section 13-301(b) or had been |
19 | | receiving a retirement annuity
pursuant to Section
13-301(d), |
20 | | or (2) an employee not described in item (1) who first enters
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21 | | service on or after the effective date of this amendatory Act |
22 | | of 1997 and who
has been employed as an employee for (i) less |
23 | | than 36 months from the date of
the employee's original entry |
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1 | | into service or (ii) less than 12 months from the
employee's |
2 | | date of latest re-entry into service; except as otherwise |
3 | | provided
in Section 13-306(a) for an employee whose death |
4 | | arises out of or in the course
of the employee's service to the |
5 | | employer.
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6 | | Notwithstanding any other provision of this Section and |
7 | | notwithstanding the forfeiture of rights provisions under |
8 | | subsection (e) of Section 13-601, surviving spouse annuity |
9 | | eligibility or eligibility for alternative survivor's |
10 | | benefits, if applicable, shall be extended to the spouse or |
11 | | civil union partner of an annuitant who retired prior to June |
12 | | 1, 2011 and received a refund of surviving spouse annuity |
13 | | contributions as provided in subsection (b) of Section 13-601 |
14 | | if the annuitant (i) repaid the surviving spouse annuity |
15 | | contributions under subsection (b-5) of Section 13-601, (ii) |
16 | | could not enter into either a civil union or marriage |
17 | | recognized in the State of Illinois prior to that date, and |
18 | | (iii) became: |
19 | | (A) a party to a civil union or a party to a legal |
20 | | relationship that is recognized as a civil union or |
21 | | marriage under the Illinois Religious Freedom Protection |
22 | | and Civil Union Act on or after June 1, 2011 and before |
23 | | July 1, 2016 and remains such a party; |
24 | | (B) a party to a marriage under the Illinois Marriage |
25 | | and Dissolution of Marriage Act on or after February 26, |
26 | | 2014 and before July 1, 2016 and remains such a party; or |
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| | HB0164 Engrossed | - 3 - | LRB100 02315 RPS 12320 b |
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1 | | (C) a party to a marriage, civil union, or other legal |
2 | | relationship that, at the time it was formed, was not |
3 | | legally recognized in Illinois but was subsequently |
4 | | recognized as a civil union or marriage under the Illinois |
5 | | Religious Freedom Protection and Civil Union Act on or |
6 | | after June 1, 2011 and before July 1, 2016, a marriage |
7 | | under the Illinois Marriage and Dissolution of Marriage Act |
8 | | on or after February 26, 2014 and before July 1, 2016, or |
9 | | both, and remains such a party. |
10 | | A dissolution of marriage after retirement shall not divest |
11 | | the
employee's spouse of the entitlement to a surviving |
12 | | spouse's annuity upon
the subsequent death of the employee, |
13 | | provided that the surviving spouse
and the deceased employee |
14 | | had been married to each other for a period of
not less than 10 |
15 | | continuous years on the date of retirement.
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16 | | For purposes of Section 1-103.1, the changes made by this |
17 | | amendatory Act of the 100th General Assembly apply to persons |
18 | | not in service on or after the effective date of this |
19 | | amendatory Act of the 100th General Assembly. |
20 | | (Source: P.A. 94-621, eff. 8-18-05.)
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21 | | (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
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22 | | Sec. 13-601. Refunds.
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23 | | (a) Withdrawal from service. Upon withdrawal from service, |
24 | | an employee
who first became a member before January 1, 2011, |
25 | | who is under age 55 (age 50 if the employee first entered |
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1 | | service before June
13, 1997), or an employee age 55 (age 50 if |
2 | | the employee first entered
service before June 13, 1997) or |
3 | | over but less than age 60 having less
than 20 years of service, |
4 | | or an employee age 60 or over having less than 5
years of |
5 | | service shall be entitled, upon application, to a refund of |
6 | | total
contributions from salary deductions or amounts |
7 | | otherwise paid under this
Article by the employee. An employee |
8 | | who first becomes a member on or after January 1, 2011, who |
9 | | withdraws before age 62 regardless of length of service, or who |
10 | | withdraws with less than 10 years of service regardless of age |
11 | | is entitled to a refund of total contributions from salary |
12 | | deductions or amounts otherwise paid under this Article by the |
13 | | employee. The refund shall not include interest credited to
the |
14 | | contributions. The Board may, in its discretion, withhold |
15 | | payment of a
refund for a period not to exceed one year from |
16 | | the date of filing an
application for refund.
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17 | | (b) Surviving spouse's annuity contributions. A refund of |
18 | | all amounts
deducted from salary or otherwise contributed by an |
19 | | employee for the
surviving spouse's annuity shall be paid upon |
20 | | retirement to any employee
who on the date of retirement is |
21 | | either not married or is married but whose
spouse is not |
22 | | eligible for a surviving spouse's annuity paid wholly or in
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23 | | part under this Article. The refund shall include interest on
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24 | | each contribution at the rate of 3% per annum compounded |
25 | | annually from the
date of the contribution to the date of the |
26 | | refund.
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| | HB0164 Engrossed | - 5 - | LRB100 02315 RPS 12320 b |
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1 | | (b-5) An annuitant who (i) retired prior to June 1, 2011, |
2 | | (ii) received a refund of surviving spouse's annuity |
3 | | contributions under subsection (b), and (iii) thereafter |
4 | | became and remains a party to a civil union or marriage, as |
5 | | described in Section 13-305, may, within a period of one year |
6 | | beginning 5 months after the effective date of this amendatory |
7 | | Act of the 100th General Assembly, and in accordance with any |
8 | | rules adopted by the Board and consents required by the Board, |
9 | | make an irrevocable election to re-establish rights to a |
10 | | surviving spouse annuity under Sections 13-305 and 13-306 or to |
11 | | alternative survivor's benefits under subsection (d) of |
12 | | Section 13-314, whichever is applicable, by paying to the Fund: |
13 | | (1) the total amount of the refund received for surviving |
14 | | spouse's annuity contributions; and (2) interest thereon at the |
15 | | actuarially assumed rate of return at the time of the election |
16 | | from the date of the refund to the date of repayment in full. |
17 | | Such election may only be made by the annuitant. |
18 | | The Fund shall allow the annuitant to repay the total |
19 | | amount of the refund, plus interest, over a period not to |
20 | | exceed 24 months. To the extent permitted by the Internal |
21 | | Revenue Code of 1986, as amended, and for federal and State tax |
22 | | purposes, if a member pays in monthly installments by reducing |
23 | | the monthly annuity by the amount of the otherwise applicable |
24 | | contribution, the monthly amount by which the annuitant's |
25 | | benefit is reduced shall not be treated as a contribution by |
26 | | the annuitant, but rather as a reduction of the annuitant's |
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| | HB0164 Engrossed | - 6 - | LRB100 02315 RPS 12320 b |
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1 | | monthly annuity. In the event of the death of the annuitant |
2 | | prior to repayment of the total amount of the refund, plus |
3 | | interest, the amount owed as of the date of death shall be |
4 | | deducted from the spouse annuity by a reduction in the |
5 | | surviving spouse's monthly annuity. The death of the spouse or |
6 | | civil union partner prior to the annuitant's death shall not |
7 | | void the election. |
8 | | (c) Payment of Refunds After Death. Whenever any refund is |
9 | | payable after the death of the employee or annuitant as |
10 | | provided for in this Article, the refund shall be paid as |
11 | | follows: to the employee's surviving spouse, but if there is no |
12 | | surviving spouse then in accordance with the employee's written |
13 | | designation of beneficiary filed with the Board on the |
14 | | prescribed form before the employee's death. If there is no |
15 | | such designation of beneficiary, then to the employee's |
16 | | surviving children in equal parts to each. If there are no such |
17 | | children, the refund shall be paid to the heirs of the employee |
18 | | according to the law of descent and distribution of the State |
19 | | of Illinois.
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20 | | If a personal representative of the estate has not been |
21 | | appointed within
90 days from the date on which a refund became |
22 | | payable, the refund may be
applied, in the discretion of the |
23 | | Board, toward the payment of the
employee's or the surviving |
24 | | spouse's burial expenses. Any remaining
balance shall be paid |
25 | | to the heirs of the employee according to the law of
descent |
26 | | and distribution of the State of Illinois.
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| | HB0164 Engrossed | - 7 - | LRB100 02315 RPS 12320 b |
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1 | | Whenever the total accumulations to the account of an |
2 | | employee from employee contributions other than the |
3 | | contribution for the cost of living increase, including |
4 | | interest to the employee's date of withdrawal, have not been |
5 | | paid to the employee and surviving spouse as a retirement or |
6 | | spouse's annuity before the death of the employee and spouse, a |
7 | | refund shall be paid as follows: an amount equal to the excess |
8 | | of such amounts over the amounts paid on such annuities without |
9 | | interest on either such amount.
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10 | | If a reversionary annuity becomes payable under Section |
11 | | 13-303, the
refund provided in this section shall not be paid |
12 | | until the death of the
reversionary annuitant and the refund |
13 | | otherwise payable under this section
shall be then further |
14 | | reduced by the amount of the reversionary annuity paid.
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15 | | (d) In lieu of annuity. Notwithstanding the provisions set |
16 | | forth in
subsection (a) of this section, whenever an employee's |
17 | | or surviving
spouse's annuity will be less than $200 per month, |
18 | | the employee or
surviving spouse, as the case may be, may elect |
19 | | to receive a refund of
accumulated employee contributions; |
20 | | provided, however, that if the election
is made by a surviving |
21 | | spouse the refund shall be reduced by any amounts
theretofore |
22 | | paid to the employee in the form of an annuity.
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23 | | (e) Forfeiture of rights. An employee or surviving spouse |
24 | | who receives
a refund forfeits the right to receive an annuity |
25 | | or any other benefit
payable under this Article except that if |
26 | | the refund is to a surviving
spouse, any child or children of |
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1 | | the employee shall not be deprived of the
right to receive a |
2 | | child's annuity as provided in Section 13-308 of this
Article, |
3 | | and the payment of a child's annuity shall not reduce the |
4 | | amount
refundable to the surviving spouse.
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5 | | (Source: P.A. 95-586, eff. 8-31-07; 96-251, eff. 8-11-09; |
6 | | 96-1490, eff. 1-1-11.)
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7 | | Section 99. Effective date. This Act takes effect upon |
8 | | becoming law.
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