HB4292 EnrolledLRB102 22139 RPS 31268 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The General Obligation Bond Act is amended by
5changing Sections 2, 2.5, and 7.7 as follows:
 
6    (30 ILCS 330/2)  (from Ch. 127, par. 652)
7    Sec. 2. Authorization for Bonds. The State of Illinois is
8authorized to issue, sell and provide for the retirement of
9General Obligation Bonds of the State of Illinois for the
10categories and specific purposes expressed in Sections 2
11through 8 of this Act, in the total amount of $79,256,839,969
12$78,256,839,969.
13    The bonds authorized in this Section 2 and in Section 16 of
14this Act are herein called "Bonds".
15    Of the total amount of Bonds authorized in this Act, up to
16$2,200,000,000 in aggregate original principal amount may be
17issued and sold in accordance with the Baccalaureate Savings
18Act in the form of General Obligation College Savings Bonds.
19    Of the total amount of Bonds authorized in this Act, up to
20$300,000,000 in aggregate original principal amount may be
21issued and sold in accordance with the Retirement Savings Act
22in the form of General Obligation Retirement Savings Bonds.
23    Of the total amount of Bonds authorized in this Act, the

 

 

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1additional $10,000,000,000 authorized by Public Act 93-2, the
2$3,466,000,000 authorized by Public Act 96-43, and the
3$4,096,348,300 authorized by Public Act 96-1497 shall be used
4solely as provided in Section 7.2.
5    Of the total amount of Bonds authorized in this Act, the
6additional $6,000,000,000 authorized by Public Act 100-23
7shall be used solely as provided in Section 7.6 and shall be
8issued by December 31, 2017.
9    Of the total amount of Bonds authorized in this Act,
10$2,000,000,000 $1,000,000,000 of the additional amount
11authorized by Public Act 100-587 and this amendatory Act of
12the 102nd General Assembly shall be used solely as provided in
13Section 7.7.
14    The issuance and sale of Bonds pursuant to the General
15Obligation Bond Act is an economical and efficient method of
16financing the long-term capital needs of the State. This Act
17will permit the issuance of a multi-purpose General Obligation
18Bond with uniform terms and features. This will not only lower
19the cost of registration but also reduce the overall cost of
20issuing debt by improving the marketability of Illinois
21General Obligation Bonds.
22(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
23101-30, eff. 6-28-19.)
 
24    (30 ILCS 330/2.5)
25    Sec. 2.5. Limitation on issuance of Bonds.

 

 

HB4292 Enrolled- 3 -LRB102 22139 RPS 31268 b

1    (a) Except as provided in subsection (b), no Bonds may be
2issued if, after the issuance, in the next State fiscal year
3after the issuance of the Bonds, the amount of debt service
4(including principal, whether payable at maturity or pursuant
5to mandatory sinking fund installments, and interest) on all
6then-outstanding Bonds, other than (i) Bonds authorized by
7Public Act 100-23, (ii) Bonds issued by Public Act 96-43,
8(iii) Bonds authorized by Public Act 96-1497, and (iv) Bonds
9authorized by Public Act 100-587, and (v) Bonds authorized by
10this amendatory Act of the 102nd General Assembly, would
11exceed 7% of the aggregate appropriations from the general
12funds, the State Construction Account Fund, and the Road Fund
13for the fiscal year immediately prior to the fiscal year of the
14issuance. For the purposes of this subsection (a), "general
15funds" has the same meaning as ascribed to that term under
16Section 50-40 of the State Budget Law of the Civil
17Administrative Code of Illinois.
18    (b) If the Comptroller and Treasurer each consent in
19writing, Bonds may be issued even if the issuance does not
20comply with subsection (a). In addition, $2,000,000,000 in
21Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
22and $2,000,000,000 in Refunding Bonds under Section 16, may be
23issued during State fiscal year 2017 without complying with
24subsection (a). In addition, $2,000,000,000 in Bonds for the
25purposes set forth in Sections 3, 4, 5, 6, and 7, and
26$2,000,000,000 in Refunding Bonds under Section 16, may be

 

 

HB4292 Enrolled- 4 -LRB102 22139 RPS 31268 b

1issued during State fiscal year 2018 without complying with
2subsection (a).
3(Source: P.A. 100-23, Article 25, Section 25-5, eff. 7-6-17;
4100-23, Article 75, Section 75-10, eff. 7-6-17; 100-587, eff.
56-4-18; 100-863, eff. 8-14-18; 101-30, eff. 6-28-19.)
 
6    (30 ILCS 330/7.7)
7    Sec. 7.7. State Pension Obligation Acceleration Bonds.
8    (a) As used in this Act, "State Pension Obligation
9Acceleration Bonds" means Bonds authorized by Public Act
10100-587 and this amendatory Act of the 102nd General Assembly
11this amendatory Act of the 100th General Assembly and used for
12the purpose of making accelerated pension benefit payments
13under Articles 14, 15, and 16 of the Illinois Pension Code.
14    (b) State Pension Obligation Acceleration Bonds in the
15amount of $2,000,000,000 $1,000,000,000 are hereby authorized
16to be used for the purpose of making accelerated pension
17benefit payments under Articles 14, 15, and 16 of the Illinois
18Pension Code.
19    (c) The proceeds of State Pension Obligation Acceleration
20Bonds authorized in subsection (b) of this Section, less the
21amounts authorized in the Bond Sale Order to be directly paid
22out for bond sale expenses under Section 8, shall be deposited
23directly into the State Pension Obligation Acceleration Bond
24Fund, and the Comptroller and the Treasurer shall, as soon as
25practical, make accelerated pension benefit payments under

 

 

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1Articles 14, 15, and 16 of the Illinois Pension Code.
2    (d) There is created the State Pension Obligation
3Acceleration Bond Fund as a special fund in the State
4Treasury. Funds deposited in the State Pension Obligation
5Acceleration Bond Fund may only be used for the purpose of
6making accelerated pension benefit payments under Articles 14,
715, and 16 of the Illinois Pension Code or for the payment of
8principal and interest due on State Pension Obligation
9Acceleration Bonds. This subsection shall constitute an
10irrevocable and continuing appropriation of all amounts
11necessary for such purposes.
12(Source: P.A. 100-587, eff. 6-4-18.)
 
13    Section 10. The Illinois Pension Code is amended by
14changing Sections 14-147.5, 14-147.6, 15-185.5, 15-185.6,
1516-190.5, and 16-190.6 as follows:
 
16    (40 ILCS 5/14-147.5)
17    Sec. 14-147.5. Accelerated pension benefit payment in lieu
18of any pension benefit.
19    (a) As used in this Section:
20    "Eligible person" means a person who:
21        (1) has terminated service;
22        (2) has accrued sufficient service credit to be
23    eligible to receive a retirement annuity under this
24    Article;

 

 

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1        (3) has not received any retirement annuity under this
2    Article; and
3        (4) has not made the election under Section 14-147.6.
4    "Pension benefit" means the benefits under this Article,
5or Article 1 as it relates to those benefits, including any
6anticipated annual increases, that an eligible person is
7entitled to upon attainment of the applicable retirement age.
8"Pension benefit" also includes applicable survivor's or
9disability benefits.
10    (b) As soon as practical after June 4, 2018 (the effective
11date of Public Act 100-587), the System shall calculate, using
12actuarial tables and other assumptions adopted by the Board,
13the present value of pension benefits for each eligible person
14who requests that information and shall offer each eligible
15person the opportunity to irrevocably elect to receive an
16amount determined by the System to be equal to 60% of the
17present value of his or her pension benefits in lieu of
18receiving any pension benefit. The offer shall specify the
19dollar amount that the eligible person will receive if he or
20she so elects and shall expire when a subsequent offer is made
21to an eligible person. An eligible person is limited to one
22calculation and offer per calendar year. The System shall make
23a good faith effort to contact every eligible person to notify
24him or her of the election.
25    Until June 30, 2026 2024, an eligible person may
26irrevocably elect to receive an accelerated pension benefit

 

 

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1payment in the amount that the System offers under this
2subsection in lieu of receiving any pension benefit. A person
3who elects to receive an accelerated pension benefit payment
4under this Section may not elect to proceed under the
5Retirement Systems Reciprocal Act with respect to service
6under this Article.
7    (c) A person's creditable service under this Article shall
8be terminated upon the person's receipt of an accelerated
9pension benefit payment under this Section, and no other
10benefit shall be paid under this Article based on the
11terminated creditable service, including any retirement,
12survivor, or other benefit; except that to the extent that
13participation, benefits, or premiums under the State Employees
14Group Insurance Act of 1971 are based on the amount of service
15credit, the terminated service credit shall be used for that
16purpose.
17    (d) If a person who has received an accelerated pension
18benefit payment under this Section returns to active service
19under this Article, then:
20        (1) Any benefits under the System earned as a result
21    of that return to active service shall be based solely on
22    the person's creditable service arising from the return to
23    active service.
24        (2) The accelerated pension benefit payment may not be
25    repaid to the System, and the terminated creditable
26    service may not under any circumstances be reinstated.

 

 

HB4292 Enrolled- 8 -LRB102 22139 RPS 31268 b

1    (e) As a condition of receiving an accelerated pension
2benefit payment, the accelerated pension benefit payment must
3be transferred into a tax qualified retirement plan or
4account. The accelerated pension benefit payment under this
5Section may be subject to withholding or payment of applicable
6taxes, but to the extent permitted by federal law, a person who
7receives an accelerated pension benefit payment under this
8Section must direct the System to pay all of that payment as a
9rollover into another retirement plan or account qualified
10under the Internal Revenue Code of 1986, as amended.
11    (f) Upon receipt of a member's irrevocable election to
12receive an accelerated pension benefit payment under this
13Section, the System shall submit a voucher to the Comptroller
14for payment of the member's accelerated pension benefit
15payment. The Comptroller shall transfer the amount of the
16voucher from the State Pension Obligation Acceleration Bond
17Fund to the System, and the System shall transfer the amount
18into the member's eligible retirement plan or qualified
19account.
20    (g) The Board shall adopt any rules, including emergency
21rules, necessary to implement this Section.
22    (h) No provision of this Section shall be interpreted in a
23way that would cause the applicable System to cease to be a
24qualified plan under the Internal Revenue Code of 1986.
25(Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.)
 

 

 

HB4292 Enrolled- 9 -LRB102 22139 RPS 31268 b

1    (40 ILCS 5/14-147.6)
2    Sec. 14-147.6. Accelerated pension benefit payment for a
3reduction in annual retirement annuity and survivor's annuity
4increases.
5    (a) As used in this Section:
6    "Accelerated pension benefit payment" means a lump sum
7payment equal to 70% of the difference of the present value of
8the automatic annual increases to a Tier 1 member's retirement
9annuity and survivor's annuity using the formula applicable to
10the Tier 1 member and the present value of the automatic annual
11increases to the Tier 1 member's retirement annuity using the
12formula provided under subsection (b-5) and survivor's annuity
13using the formula provided under subsection (b-6).
14    "Eligible person" means a person who:
15        (1) is a Tier 1 member;
16        (2) has submitted an application for a retirement
17    annuity under this Article;
18        (3) meets the age and service requirements for
19    receiving a retirement annuity under this Article;
20        (4) has not received any retirement annuity under this
21    Article; and
22        (5) has not made the election under Section 14-147.5.
23    (b) As soon as practical after June 4, 2018 (the effective
24date of Public Act 100-587) and until June 30, 2026 2024, the
25System shall implement an accelerated pension benefit payment
26option for eligible persons. Upon the request of an eligible

 

 

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1person, the System shall calculate, using actuarial tables and
2other assumptions adopted by the Board, an accelerated pension
3benefit payment amount and shall offer that eligible person
4the opportunity to irrevocably elect to have his or her
5automatic annual increases in retirement annuity calculated in
6accordance with the formula provided under subsection (b-5)
7and any increases in survivor's annuity payable to his or her
8survivor's annuity beneficiary calculated in accordance with
9the formula provided under subsection (b-6) in exchange for
10the accelerated pension benefit payment. The election under
11this subsection must be made before the eligible person
12receives the first payment of a retirement annuity otherwise
13payable under this Article.
14    (b-5) Notwithstanding any other provision of law, the
15retirement annuity of a person who made the election under
16subsection (b) shall be subject to annual increases on the
17January 1 occurring either on or after the attainment of age 67
18or the first anniversary of the annuity start date, whichever
19is later. Each annual increase shall be calculated at 1.5% of
20the originally granted retirement annuity.
21    (b-6) Notwithstanding any other provision of law, a
22survivor's annuity payable to a survivor's annuity beneficiary
23of a person who made the election under subsection (b) shall be
24subject to annual increases on the January 1 occurring on or
25after the first anniversary of the commencement of the
26annuity. Each annual increase shall be calculated at 1.5% of

 

 

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1the originally granted survivor's annuity.
2    (c) If a person who has received an accelerated pension
3benefit payment returns to active service under this Article,
4then:
5        (1) the calculation of any future automatic annual
6    increase in retirement annuity shall be calculated in
7    accordance with the formula provided under subsection
8    (b-5); and
9        (2) the accelerated pension benefit payment may not be
10    repaid to the System.
11    (d) As a condition of receiving an accelerated pension
12benefit payment, the accelerated pension benefit payment must
13be transferred into a tax qualified retirement plan or
14account. The accelerated pension benefit payment under this
15Section may be subject to withholding or payment of applicable
16taxes, but to the extent permitted by federal law, a person who
17receives an accelerated pension benefit payment under this
18Section must direct the System to pay all of that payment as a
19rollover into another retirement plan or account qualified
20under the Internal Revenue Code of 1986, as amended.
21    (d-5) Upon receipt of a member's irrevocable election to
22receive an accelerated pension benefit payment under this
23Section, the System shall submit a voucher to the Comptroller
24for payment of the member's accelerated pension benefit
25payment. The Comptroller shall transfer the amount of the
26voucher to the System, and the System shall transfer the

 

 

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1amount into a member's eligible retirement plan or qualified
2account.
3    (e) The Board shall adopt any rules, including emergency
4rules, necessary to implement this Section.
5    (f) No provision of this Section shall be interpreted in a
6way that would cause the applicable System to cease to be a
7qualified plan under the Internal Revenue Code of 1986.
8(Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.)
 
9    (40 ILCS 5/15-185.5)
10    Sec. 15-185.5. Accelerated pension benefit payment in lieu
11of any pension benefit.
12    (a) As used in this Section:
13    "Eligible person" means a person who:
14        (1) has terminated service;
15        (2) has accrued sufficient service credit to be
16    eligible to receive a retirement annuity under this
17    Article;
18        (3) has not received any retirement annuity under this
19    Article;
20        (4) has not made the election under Section 15-185.6;
21    and
22        (5) is not a participant in the self-managed plan
23    under Section 15-158.2.
24    "Implementation date" means the earliest date upon which
25the Board authorizes eligible persons to begin irrevocably

 

 

HB4292 Enrolled- 13 -LRB102 22139 RPS 31268 b

1electing the accelerated pension benefit payment option under
2this Section. The Board shall endeavor to make such
3participation available as soon as possible after June 4, 2018
4(the effective date of Public Act 100-587) and shall establish
5an implementation date by Board resolution.
6    "Pension benefit" means the benefits under this Article,
7or Article 1 as it relates to those benefits, including any
8anticipated annual increases, that an eligible person is
9entitled to upon attainment of the applicable retirement age.
10"Pension benefit" also includes applicable survivors benefits,
11disability benefits, or disability retirement annuity
12benefits.
13    (b) Beginning on the implementation date, the System shall
14offer each eligible person the opportunity to irrevocably
15elect to receive an amount determined by the System to be equal
16to 60% of the present value of his or her pension benefits in
17lieu of receiving any pension benefit. The System shall
18calculate, using actuarial tables and other assumptions
19adopted by the Board, the present value of pension benefits
20for each eligible person upon his or her request in writing to
21the System. The System shall not perform more than one
22calculation per eligible member in a State fiscal year. The
23offer shall specify the dollar amount that the eligible person
24will receive if he or she so elects and shall expire when a
25subsequent offer is made to an eligible person. The System
26shall make a good faith effort to contact every eligible

 

 

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1person to notify him or her of the election.
2    Beginning on the implementation date and until June 30,
32026 2024, an eligible person may irrevocably elect to receive
4an accelerated pension benefit payment in the amount that the
5System offers under this subsection in lieu of receiving any
6pension benefit. A person who elects to receive an accelerated
7pension benefit payment under this Section may not elect to
8proceed under the Retirement Systems Reciprocal Act with
9respect to service under this Article.
10    (c) Upon payment of an accelerated pension benefit payment
11under this Section, the person forfeits all accrued rights and
12credits in the System and no other benefit shall be paid under
13this Article based on those forfeited rights and credits,
14including any retirement, survivor, or other benefit; except
15that to the extent that participation, benefits, or premiums
16under the State Employees Group Insurance Act of 1971 are
17based on the amount of service credit, the terminated service
18credit shall be used for that purpose.
19    (d) If a person who has received an accelerated pension
20benefit payment under this Section returns to participation
21under this Article, any benefits under the System earned as a
22result of that return to participation shall be based solely
23on the person's credits and creditable service arising from
24the return to participation. Upon return to participation, the
25person shall be considered a new employee subject to all the
26qualifying conditions for participation and eligibility for

 

 

HB4292 Enrolled- 15 -LRB102 22139 RPS 31268 b

1benefits applicable to new employees.
2    (d-5) The accelerated pension benefit payment may not be
3repaid to the System, and the forfeited rights and credits may
4not under any circumstances be reinstated.
5    (e) As a condition of receiving an accelerated pension
6benefit payment, the accelerated pension benefit payment must
7be deposited into a tax qualified retirement plan or account
8identified by the eligible person at the time of the election.
9The accelerated pension benefit payment under this Section may
10be subject to withholding or payment of applicable taxes, but
11to the extent permitted by federal law, a person who receives
12an accelerated pension benefit payment under this Section must
13direct the System to pay all of that payment as a rollover into
14another retirement plan or account qualified under the
15Internal Revenue Code of 1986, as amended.
16    (f) The System shall submit vouchers to the State
17Comptroller for the payment of accelerated pension benefit
18payments under this Section. The State Comptroller shall pay
19the amounts of the vouchers from the State Pension Obligation
20Acceleration Bond Fund to the System, and the System shall
21deposit the amounts into the applicable tax qualified plans or
22accounts.
23    (g) The Board shall adopt any rules, including emergency
24rules, necessary to implement this Section.
25    (h) No provision of this Section shall be interpreted in a
26way that would cause the System to cease to be a qualified plan

 

 

HB4292 Enrolled- 16 -LRB102 22139 RPS 31268 b

1under the Internal Revenue Code of 1986.
2(Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.)
 
3    (40 ILCS 5/15-185.6)
4    Sec. 15-185.6. Accelerated pension benefit payment for a
5reduction in an annual increase to a retirement annuity and an
6annuity benefit payable as a result of death.
7    (a) As used in this Section:
8    "Accelerated pension benefit payment" means a lump sum
9payment equal to 70% of the difference of: (i) the present
10value of the automatic annual increases to a Tier 1 member's
11retirement annuity, including any increases to any annuity
12benefit payable as a result of his or her death, using the
13formula applicable to the Tier 1 member; and (ii) the present
14value of the automatic annual increases to the Tier 1 member's
15retirement annuity, including any increases to any annuity
16benefit payable as a result of his or her death, using the
17formula provided under subsection (b-5).
18    "Eligible person" means a person who:
19        (1) is a Tier 1 member;
20        (2) has submitted an application for a retirement
21    annuity under this Article;
22        (3) meets the age and service requirements for
23    receiving a retirement annuity under this Article;
24        (4) has not received any retirement annuity under this
25    Article;

 

 

HB4292 Enrolled- 17 -LRB102 22139 RPS 31268 b

1        (5) has not made the election under Section 15-185.5;
2    and
3        (6) is not a participant in the self-managed plan
4    under Section 15-158.2.
5    "Implementation date" means the earliest date upon which
6the Board authorizes eligible persons to begin irrevocably
7electing the accelerated pension benefit payment option under
8this Section. The Board shall endeavor to make such
9participation available as soon as possible after June 4, 2018
10(the effective date of Public Act 100-587) and shall establish
11an implementation date by Board resolution.
12    (b) Beginning on the implementation date and until June
1330, 2026 2024, the System shall implement an accelerated
14pension benefit payment option for eligible persons. The
15System shall calculate, using actuarial tables and other
16assumptions adopted by the Board, an accelerated pension
17benefit payment amount for an eligible person upon his or her
18request in writing to the System and shall offer that eligible
19person the opportunity to irrevocably elect to have his or her
20automatic annual increases in retirement annuity and any
21annuity benefit payable as a result of his or her death
22calculated in accordance with the formula provided in
23subsection (b-5) in exchange for the accelerated pension
24benefit payment. The System shall not perform more than one
25calculation under this Section per eligible person in a State
26fiscal year. The election under this subsection must be made

 

 

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1before any retirement annuity is paid to the eligible person,
2and the eligible survivor, spouse, or contingent annuitant, as
3applicable, must consent to the election under this
4subsection.
5    (b-5) Notwithstanding any other provision of law, the
6retirement annuity of a person who made the election under
7subsection (b) shall be increased annually beginning on the
8January 1 occurring either on or after the attainment of age 67
9or the first anniversary of the annuity start date, whichever
10is later, and any annuity benefit payable as a result of his or
11her death shall be increased annually beginning on: (1) the
12January 1 occurring on or after the commencement of the
13annuity if the deceased Tier 1 member died while receiving a
14retirement annuity; or (2) the January 1 occurring after the
15first anniversary of the commencement of the benefit. Each
16annual increase shall be calculated at 1.5% of the originally
17granted retirement annuity or annuity benefit payable as a
18result of the Tier 1 member's death.
19    (c) If an annuitant who has received an accelerated
20pension benefit payment returns to participation under this
21Article, the calculation of any future automatic annual
22increase in retirement annuity under subsection (c) of Section
2315-139 shall be calculated in accordance with the formula
24provided in subsection (b-5).
25    (c-5) The accelerated pension benefit payment may not be
26repaid to the System.

 

 

HB4292 Enrolled- 19 -LRB102 22139 RPS 31268 b

1    (d) As a condition of receiving an accelerated pension
2benefit payment, the accelerated pension benefit payment must
3be deposited into a tax qualified retirement plan or account
4identified by the eligible person at the time of election. The
5accelerated pension benefit payment under this Section may be
6subject to withholding or payment of applicable taxes, but to
7the extent permitted by federal law, a person who receives an
8accelerated pension benefit payment under this Section must
9direct the System to pay all of that payment as a rollover into
10another retirement plan or account qualified under the
11Internal Revenue Code of 1986, as amended.
12    (d-5) The System shall submit vouchers to the State
13Comptroller for the payment of accelerated pension benefit
14payments under this Section. The State Comptroller shall pay
15the amounts of the vouchers from the State Pension Obligation
16Acceleration Bond Fund to the System, and the System shall
17deposit the amounts into the applicable tax qualified plans or
18accounts.
19    (e) The Board shall adopt any rules, including emergency
20rules, necessary to implement this Section.
21    (f) No provision of this Section shall be interpreted in a
22way that would cause the System to cease to be a qualified plan
23under the Internal Revenue Code of 1986.
24(Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.)
 
25    (40 ILCS 5/16-190.5)

 

 

HB4292 Enrolled- 20 -LRB102 22139 RPS 31268 b

1    Sec. 16-190.5. Accelerated pension benefit payment in lieu
2of any pension benefit.
3    (a) As used in this Section:
4    "Eligible person" means a person who:
5        (1) has terminated service;
6        (2) has accrued sufficient service credit to be
7    eligible to receive a retirement annuity under this
8    Article;
9        (3) has not received any retirement annuity under this
10    Article; and
11        (4) has not made the election under Section 16-190.6.
12    "Pension benefit" means the benefits under this Article,
13or Article 1 as it relates to those benefits, including any
14anticipated annual increases, that an eligible person is
15entitled to upon attainment of the applicable retirement age.
16"Pension benefit" also includes applicable survivor's or
17disability benefits.
18    (b) As soon as practical after June 4, 2018 (the effective
19date of Public Act 100-587), the System shall calculate, using
20actuarial tables and other assumptions adopted by the Board,
21the present value of pension benefits for each eligible person
22who requests that information and shall offer each eligible
23person the opportunity to irrevocably elect to receive an
24amount determined by the System to be equal to 60% of the
25present value of his or her pension benefits in lieu of
26receiving any pension benefit. The offer shall specify the

 

 

HB4292 Enrolled- 21 -LRB102 22139 RPS 31268 b

1dollar amount that the eligible person will receive if he or
2she so elects and shall expire when a subsequent offer is made
3to an eligible person. The System shall make a good faith
4effort to contact every eligible person to notify him or her of
5the election.
6    Until June 30, 2026 2024, an eligible person may
7irrevocably elect to receive an accelerated pension benefit
8payment in the amount that the System offers under this
9subsection in lieu of receiving any pension benefit. A person
10who elects to receive an accelerated pension benefit payment
11under this Section may not elect to proceed under the
12Retirement Systems Reciprocal Act with respect to service
13under this Article.
14    (c) A person's creditable service under this Article shall
15be terminated upon the person's receipt of an accelerated
16pension benefit payment under this Section, and no other
17benefit shall be paid under this Article based on the
18terminated creditable service, including any retirement,
19survivor, or other benefit; except that to the extent that
20participation, benefits, or premiums under the State Employees
21Group Insurance Act of 1971 are based on the amount of service
22credit, the terminated service credit shall be used for that
23purpose.
24    (d) If a person who has received an accelerated pension
25benefit payment under this Section returns to active service
26under this Article, then:

 

 

HB4292 Enrolled- 22 -LRB102 22139 RPS 31268 b

1        (1) Any benefits under the System earned as a result
2    of that return to active service shall be based solely on
3    the person's creditable service arising from the return to
4    active service.
5        (2) The accelerated pension benefit payment may not be
6    repaid to the System, and the terminated creditable
7    service may not under any circumstances be reinstated.
8    (e) As a condition of receiving an accelerated pension
9benefit payment, the accelerated pension benefit payment must
10be transferred into a tax qualified retirement plan or
11account. The accelerated pension benefit payment under this
12Section may be subject to withholding or payment of applicable
13taxes, but to the extent permitted by federal law, a person who
14receives an accelerated pension benefit payment under this
15Section must direct the System to pay all of that payment as a
16rollover into another retirement plan or account qualified
17under the Internal Revenue Code of 1986, as amended.
18    (f) Upon receipt of a member's irrevocable election to
19receive an accelerated pension benefit payment under this
20Section, the System shall submit a voucher to the Comptroller
21for payment of the member's accelerated pension benefit
22payment. The Comptroller shall transfer the amount of the
23voucher from the State Pension Obligation Acceleration Bond
24Fund to the System, and the System shall transfer the amount
25into the member's eligible retirement plan or qualified
26account.

 

 

HB4292 Enrolled- 23 -LRB102 22139 RPS 31268 b

1    (g) The Board shall adopt any rules, including emergency
2rules, necessary to implement this Section.
3    (h) No provision of Public Act 100-587 shall be
4interpreted in a way that would cause the applicable System to
5cease to be a qualified plan under the Internal Revenue Code of
61986.
7(Source: P.A. 101-10, eff. 6-5-19; 102-558, eff. 8-20-21.)
 
8    (40 ILCS 5/16-190.6)
9    Sec. 16-190.6. Accelerated pension benefit payment for a
10reduction in annual retirement annuity and survivor's annuity
11increases.
12    (a) As used in this Section:
13    "Accelerated pension benefit payment" means a lump sum
14payment equal to 70% of the difference of the present value of
15the automatic annual increases to a Tier 1 member's retirement
16annuity and survivor's annuity using the formula applicable to
17the Tier 1 member and the present value of the automatic annual
18increases to the Tier 1 member's retirement annuity using the
19formula provided under subsection (b-5) and the survivor's
20annuity using the formula provided under subsection (b-6).
21    "Eligible person" means a person who:
22        (1) is a Tier 1 member;
23        (2) has submitted an application for a retirement
24    annuity under this Article;
25        (3) meets the age and service requirements for

 

 

HB4292 Enrolled- 24 -LRB102 22139 RPS 31268 b

1    receiving a retirement annuity under this Article;
2        (4) has not received any retirement annuity under this
3    Article; and
4        (5) has not made the election under Section 16-190.5.
5    (b) As soon as practical after June 4, 2018 the effective
6date of Public Act 100-587) and until June 30, 2026 2024, the
7System shall implement an accelerated pension benefit payment
8option for eligible persons. Upon the request of an eligible
9person, the System shall calculate, using actuarial tables and
10other assumptions adopted by the Board, an accelerated pension
11benefit payment amount and shall offer that eligible person
12the opportunity to irrevocably elect to have his or her
13automatic annual increases in retirement annuity calculated in
14accordance with the formula provided under subsection (b-5)
15and any increases in survivor's annuity payable to his or her
16survivor's annuity beneficiary calculated in accordance with
17the formula provided under subsection (b-6) in exchange for
18the accelerated pension benefit payment. The election under
19this subsection must be made before the eligible person
20receives the first payment of a retirement annuity otherwise
21payable under this Article.
22    (b-5) Notwithstanding any other provision of law, the
23retirement annuity of a person who made the election under
24subsection (b) shall be subject to annual increases on the
25January 1 occurring either on or after the attainment of age 67
26or the first anniversary of the annuity start date, whichever

 

 

HB4292 Enrolled- 25 -LRB102 22139 RPS 31268 b

1is later. Each annual increase shall be calculated at 1.5% of
2the originally granted retirement annuity.
3    (b-6) Notwithstanding any other provision of law, a
4survivor's annuity payable to a survivor's annuity beneficiary
5of a person who made the election under subsection (b) shall be
6subject to annual increases on the January 1 occurring on or
7after the first anniversary of the commencement of the
8annuity. Each annual increase shall be calculated at 1.5% of
9the originally granted survivor's annuity.
10    (c) If a person who has received an accelerated pension
11benefit payment returns to active service under this Article,
12then:
13        (1) the calculation of any future automatic annual
14    increase in retirement annuity shall be calculated in
15    accordance with the formula provided in subsection (b-5);
16    and
17        (2) the accelerated pension benefit payment may not be
18    repaid to the System.
19    (d) As a condition of receiving an accelerated pension
20benefit payment, the accelerated pension benefit payment must
21be transferred into a tax qualified retirement plan or
22account. The accelerated pension benefit payment under this
23Section may be subject to withholding or payment of applicable
24taxes, but to the extent permitted by federal law, a person who
25receives an accelerated pension benefit payment under this
26Section must direct the System to pay all of that payment as a

 

 

HB4292 Enrolled- 26 -LRB102 22139 RPS 31268 b

1rollover into another retirement plan or account qualified
2under the Internal Revenue Code of 1986, as amended.
3    (d-5) Upon receipt of a member's irrevocable election to
4receive an accelerated pension benefit payment under this
5Section, the System shall submit a voucher to the Comptroller
6for payment of the member's accelerated pension benefit
7payment. The Comptroller shall transfer the amount of the
8voucher from the State Pension Obligation Acceleration Bond
9Fund to the System, and the System shall transfer the amount
10into the member's eligible retirement plan or qualified
11account.
12    (e) The Board shall adopt any rules, including emergency
13rules, necessary to implement this Section.
14    (f) No provision of this Section shall be interpreted in a
15way that would cause the applicable System to cease to be a
16qualified plan under the Internal Revenue Code of 1986.
17(Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.