HB4196 102ND GENERAL ASSEMBLY

LRB102 19596 RPS 28364 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4196

Introduced 10/27/2021, by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:

See Index

Amends the Chicago Laborer Article of the Illinois Pension Code. For Tier 1 participants: provides that if the minimum annuity applies and is greater than the annuity provided under the annuity after withdrawal while disabled provisions, then the minimum annuity shall apply; provides that the annuity for withdrawal while disabled shall be subject to automatic annual increases; provides that if the minimum widow's annuity applies and is greater than the spouse's annuity under the annuity after withdrawal while disabled provisions, then the minimum widow's annuity shall apply; and provides that any widow's annuity shall not be subject to any automatic annual increases. For Tier 2 participants: provides that an employee whose disability continues after the employee has received ordinary disability benefits for the maximum period of time and who withdraws before becoming eligible for a retirement annuity while still so disabled is entitled to receive an annuity in such amount as can be provided from the total sum accumulated to the employee's credit from employee and employer contributions, to be computed as of the employee's age on the date of withdrawal; provides that the annuity shall not be subject to any automatic annual increases and that the minimum annuity shall not apply; provides that the annuity to which the employee's spouse shall be entitled upon the employee's death shall be fixed on the date of the employee's withdrawal and shall be provided on a reversionary annuity basis; and provides that the annuity shall not be subject to any automatic annual increases and that the minimum widow's annuity shall not apply. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 11-159 and by adding Section 11-159.1 as follows:

(40 ILCS 5/11-159) (from Ch. 108 1/2, par. 11-159)

Sec. 11-159. Annuity after withdrawal while disabled for employees who first became participants prior to January 1, 2011.

(a) This Section applies to employees who first became participants prior to January 1, 2011.

(b) An employee whose disability continues after the employee he has received ordinary disability benefits benefit for the maximum period of time prescribed by this Article, and who withdraws before age 60 while still so disabled, is entitled to receive an annuity in of such amount as can be provided from the total sum accumulated to the employee's his credit from employee contributions and employer city contributions, to be computed as of the employee's his age on the date of withdrawal. If the minimum annuity under Section 11-134 applies and is greater than the annuity under this subsection (b), then the Section 11-134 annuity shall apply. Any annuity under this subsection (b) shall be subject to automatic annual increases under Section 11-134.1.

(c) The annuity to which the employee's spouse his wife shall be entitled upon the employee's his death, shall be fixed on the date of the employee's his withdrawal. It shall be provided on a reversionary annuity basis from the total sum accumulated to the employee's his credit for widow's annuity on the date of such withdrawal. If the minimum annuity under Section 11-145.1 applies and is greater than the annuity under this subsection (c), then the Section 11-145.1 annuity shall apply. Any widow's annuity shall not be subject to any automatic annual increases.

(d) Upon the death of any such employee while on annuity, if the employee's his service was at least 4 years after the date of the employee's his original entry, and at least 2 years after the date of the employee's his latest re-entry, the employee's his unmarried child or children under age 18 shall be entitled to an annuity as specified in this Article for children of an employee who retires after age 55, subject to prescribed limitations on total payments to a family of an employee.

(Source: P.A. 81-1536.)

(40 ILCS 5/11-159.1 new)

Sec. 11-159.1. Annuity after withdrawal while disabled for employees who first became participants on or after January 1, 2011.

(a) This Section applies to employees who first became participants on or after January 1, 2011.

(b) An employee whose disability continues after the employee has received ordinary disability benefits for the maximum period of time prescribed by this Article and who withdraws before becoming eligible for a retirement annuity under subsection (c), (c-5), (d), or (d-5) of Section 1-160 while still so disabled is entitled to receive an annuity in such amount as can be provided from the total sum accumulated to the employee's credit from employee contributions and employer contributions, to be computed as of the employee's age on the date of withdrawal. The minimum annuity under Section 11-134 shall not apply, and any annuity under this subsection (b) shall not be subject to any automatic annual increases.

(c) The annuity to which the employee's spouse shall be entitled upon the employee's death shall be fixed on the date of the employee's withdrawal. It shall be provided on a reversionary annuity basis from the total sum accumulated to the employee's credit for widow's annuity on the date of such withdrawal. The minimum annuity under Section 11-145.1 shall not apply and any widow's annuity under this subsection (c) shall not be subject to any automatic annual increases.

(d) Upon the death of any such employee while on annuity, if the employee's service was at least 4 years after the date of the employee's original entry, and at least 2 years after the date of the employee's latest re-entry, the employee's unmarried children under age 18 shall be entitled to an annuity as specified in this Article for children of an employee who retires after age 55, subject to prescribed limitations on total payments to a family of an employee.

Section 90. The State Mandates Act is amended by adding Section 8.45 as follows:

(30 ILCS 805/8.45 new)

Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 102nd General Assembly.

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