103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2035

 

Introduced 2/7/2023, by Rep. Kelly M. Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/13-209.5 new
40 ILCS 5/13-309  from Ch. 108 1/2, par. 13-309
40 ILCS 5/13-310  from Ch. 108 1/2, par. 13-310
40 ILCS 5/13-314  from Ch. 108 1/2, par. 13-314
40 ILCS 5/13-706  from Ch. 108 1/2, par. 13-706

    Amends the Metropolitan Water Reclamation District Article of the Illinois Pension Code. Allows licensed health care professionals (rather than just physicians) to make certain disability determinations. Defines "licensed health care professional". Makes conforming changes. Makes changes concerning the Board of the Fund's powers to waive the requirement of legal guardianship of certain persons.


LRB103 25367 RPS 51712 b

 

 

A BILL FOR

 

HB2035LRB103 25367 RPS 51712 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 Illinois Pension Code is amended by
5changing Sections 13-309, 13-310, 13-314, and 13-706 and by
6adding Section 13-209.5 as follows:
 
7    (40 ILCS 5/13-209.5 new)
8    Sec. 13-209.5. Licensed health care professional.
9"Licensed health care professional" means any individual who
10has obtained a license through the Department of Financial and
11Professional Regulation under the Medical Practice Act of
121987, under the Physician Assistant Practice Act of 1987, or
13under the Clinical Psychologist Licensing Act or an advanced
14practice registered nurse licensed under the Nurse Practice
15Act.
 
16    (40 ILCS 5/13-309)  (from Ch. 108 1/2, par. 13-309)
17    Sec. 13-309. Duty disability benefit.
18    (a) Any employee who becomes disabled, which disability is
19the result of an injury or illness compensable under the
20Illinois Workers' Compensation Act or the Illinois Workers'
21Occupational Diseases Act, is entitled to a duty disability
22benefit during the period of disability for which the employee

 

 

HB2035- 2 -LRB103 25367 RPS 51712 b

1does not receive any part of salary, or any part of a
2retirement annuity under this Article; except that in the case
3of an employee who first enters service on or after June 13,
41997 and becomes disabled before August 18, 2005 (the
5effective date of Public Act 94-621), a duty disability
6benefit is not payable for the first 3 days of disability that
7would otherwise be payable under this Section if the
8disability does not continue for at least 11 additional days.
9The changes made to this Section by Public Act 94-621 are
10prospective only and do not entitle an employee to a duty
11disability benefit for the first 3 days of any disability that
12occurred before that effective date and did not continue for
13at least 11 additional days. This benefit shall be 75% of
14salary at the date disability begins. However, if the
15disability in any measure resulted from any physical defect or
16disease which existed at the time such injury was sustained or
17such illness commenced, the duty disability benefit shall be
1850% of salary.
19    Unless the employer acknowledges that the disability is a
20result of injury or illness compensable under the Workers'
21Compensation Act or the Workers' Occupational Diseases Act,
22the duty disability benefit shall not be payable until the
23issue of compensability under those Acts is finally
24adjudicated. The period of disability shall be as determined
25by the Illinois Workers' Compensation Commission or
26acknowledged by the employer.

 

 

HB2035- 3 -LRB103 25367 RPS 51712 b

1    An employee in service before June 13, 1997 shall also
2receive a child's disability benefit during the period of
3disability of $10 per month for each unmarried natural or
4adopted child of the employee under 18 years of age.
5    The first payment shall be made not later than one month
6after the benefit is granted, and subsequent payments shall be
7made at least monthly. The Board shall by rule prescribe for
8the payment of such benefits on the basis of the amount of
9salary lost during the period of disability.
10    (b) The benefit shall be allowed only if all of the
11following requirements are met by the employee:
12        (1) Application is made to the Board.
13        (2) A medical report is submitted by at least one
14    licensed health care professional and practicing physician
15    as part of the employee's application.
16        (3) The employee is examined by at least one licensed
17    health care professional and practicing physician
18    appointed by the Board and found to be in a disabled
19    physical condition, and shall be re-examined at least
20    annually thereafter during the continuance of disability.
21    The employee need not be examined by a licensed health
22    care professional and practicing physician appointed by
23    the Board if the attorney for the district certifies in
24    writing that the employee is entitled to receive
25    compensation under the Workers' Compensation Act or the
26    Workers' Occupational Diseases Act. The Board may require

 

 

HB2035- 4 -LRB103 25367 RPS 51712 b

1    other evidence of disability.
2    (c) The benefit shall terminate when:
3        (1) The employee returns to work or receives a
4    retirement annuity paid wholly or in part under this
5    Article;
6        (2) The disability ceases;
7        (3) The employee attains age 65, but if the employee
8    becomes disabled at age 60 or later, benefits may be
9    extended for a period of no more than 5 years after
10    disablement;
11        (4) The employee (i) refuses to submit to reasonable
12    examinations by licensed health care physicians or other
13    health professionals appointed by the Board, (ii) fails or
14    refuses to consent to and sign an authorization allowing
15    the Board to receive copies of or to examine the
16    employee's medical and hospital records, or (iii) fails or
17    refuses to provide complete information regarding any
18    other employment for compensation he or she has received
19    since becoming disabled; or
20        (5) The employee willfully and continuously refuses to
21    follow medical advice and treatment to enable the employee
22    to return to work. However this provision does not apply
23    to an employee who relies in good faith on treatment by
24    prayer through spiritual means alone in accordance with
25    the tenets and practice of a recognized church or
26    religious denomination, by a duly accredited practitioner

 

 

HB2035- 5 -LRB103 25367 RPS 51712 b

1    thereof.
2    In the case of a duty disability recipient who returns to
3work, the employee must make application to the Retirement
4Board within 2 years from the date the employee last received
5duty disability benefits in order to become again entitled to
6duty disability benefits based on the injury for which a duty
7disability benefit was theretofore paid.
8(Source: P.A. 95-586, eff. 8-31-07; 96-251, eff. 8-11-09.)
 
9    (40 ILCS 5/13-310)  (from Ch. 108 1/2, par. 13-310)
10    Sec. 13-310. Ordinary disability benefit.
11    (a) Any employee who becomes disabled as the result of any
12cause other than injury or illness incurred in the performance
13of duty for the employer or any other employer, or while
14engaged in self-employment activities, shall be entitled to an
15ordinary disability benefit. The eligible period for this
16benefit shall be 25% of the employee's total actual service
17prior to the date of disability with a cumulative maximum
18period of 5 years.
19    (b) The benefit shall be allowed only if the employee
20files an application in writing with the Board, and a medical
21report is submitted by at least one licensed health care
22professional and practicing physician as part of the
23employee's application.
24    The benefit is not payable for any disability which begins
25during any period of unpaid leave of absence. No benefit shall

 

 

HB2035- 6 -LRB103 25367 RPS 51712 b

1be allowed for any period of disability prior to 30 days before
2application is made, unless the Board finds good cause for the
3delay in filing the application. The benefit shall not be paid
4during any period for which the employee receives or is
5entitled to receive any part of salary.
6    The benefit is not payable for any disability which begins
7during any period of absence from duty other than allowable
8vacation time in any calendar year. An employee whose
9disability begins during any such ineligible period of absence
10from service may not receive benefits until the employee
11recovers from the disability and is in service for at least 15
12consecutive working days after such recovery.
13    In the case of an employee who first enters service on or
14after June 13, 1997, an ordinary disability benefit is not
15payable for the first 3 days of disability that would
16otherwise be payable under this Section if the disability does
17not continue for at least 11 additional days.
18    Beginning on the effective date of this amendatory Act of
19the 94th General Assembly, an employee who first entered
20service on or after June 13, 1997 is also eligible for ordinary
21disability benefits on the 31st day after the last day worked,
22provided all sick leave is exhausted.
23    (c) The benefit shall be 50% of the employee's salary at
24the date of disability, and shall terminate when the earliest
25of the following occurs:
26        (1) The employee returns to work or receives a

 

 

HB2035- 7 -LRB103 25367 RPS 51712 b

1    retirement annuity paid wholly or in part under this
2    Article;
3        (2) The disability ceases;
4        (3) The employee willfully and continuously refuses to
5    follow medical advice and treatment to enable the employee
6    to return to work. However this provision does not apply
7    to an employee who relies in good faith on treatment by
8    prayer through spiritual means alone in accordance with
9    the tenets and practice of a recognized church or
10    religious denomination, by a duly accredited practitioner
11    thereof;
12        (4) The employee (i) refuses to submit to a reasonable
13    physical examination within 30 days of application by a
14    licensed health care professional physician appointed by
15    the Board, (ii) in the case of chronic alcoholism, the
16    employee refuses to join a rehabilitation program licensed
17    by the Department of Public Health of the State of
18    Illinois and certified by the Joint Commission on the
19    Accreditation of Hospitals, (iii) fails or refuses to
20    consent to and sign an authorization allowing the Board to
21    receive copies of or to examine the employee's medical and
22    hospital records, or (iv) fails or refuses to provide
23    complete information regarding any other employment for
24    compensation he or she has received since becoming
25    disabled; or
26        (5) The eligible period for this benefit has been

 

 

HB2035- 8 -LRB103 25367 RPS 51712 b

1    exhausted.
2    The first payment of the benefit shall be made not later
3than one month after the same has been granted, and subsequent
4payments shall be made at least monthly.
5(Source: P.A. 102-210, eff. 7-30-21.)
 
6    (40 ILCS 5/13-314)  (from Ch. 108 1/2, par. 13-314)
7    Sec. 13-314. Alternative provisions for Water Reclamation
8District commissioners.
9    (a) Transfer of credits. Any Water Reclamation District
10commissioner elected by vote of the people and who has elected
11to participate in this Fund may transfer to this Fund credits
12and creditable service accumulated under any other pension
13fund or retirement system established under Articles 2 through
1418 of this Code, upon payment to the Fund of (1) the amount by
15which the employer and employee contributions that would have
16been required if he had participated in this Fund during the
17period for which credit is being transferred, plus interest,
18exceeds the amounts actually transferred from such other fund
19or system to this Fund, plus (2) interest thereon at 6% per
20year compounded annually from the date of transfer to the date
21of payment.
22    (b) Alternative annuity. Any participant commissioner may
23elect to establish alternative credits for an alternative
24annuity by electing in writing to make additional optional
25contributions in accordance with this Section and procedures

 

 

HB2035- 9 -LRB103 25367 RPS 51712 b

1established by the Board. Unless and until such time as the
2U.S. Internal Revenue Service or the federal courts provide a
3favorable ruling as described in Section 13-502(f), a
4commissioner may discontinue making the additional optional
5contributions by notifying the Fund in writing in accordance
6with this Section and procedures established by the Board.
7    Additional optional contributions for the alternative
8annuity shall be as follows:
9        (1) For service after the option is elected, an
10    additional contribution of 3% of salary shall be
11    contributed to the Fund on the same basis and under the
12    same conditions as contributions required under Section
13    13-502.
14        (2) For contributions on past service, the additional
15    contribution shall be 3% of the salary for the applicable
16    period of service, plus interest at the annual rate from
17    time to time as determined by the Board, compounded
18    annually from the date of service to the date of payment.
19    Contributions for service before the option is elected may
20    be made in a lump sum payment to the Fund or by
21    contributing to the Fund on the same basis and under the
22    same conditions as contributions required under Section
23    13-502. All payments for past service must be paid in full
24    before credit is given. No additional optional
25    contributions may be made for any period of service for
26    which credit has been previously forfeited by acceptance

 

 

HB2035- 10 -LRB103 25367 RPS 51712 b

1    of a refund, unless the refund is repaid in full with
2    interest at the rate specified in Section 13-603, from the
3    date of refund to the date of repayment.
4    In lieu of the retirement annuity otherwise payable under
5this Article, any commissioner who has elected to participate
6in the Fund and make additional optional contributions in
7accordance with this Section, has attained age 55, and has at
8least 6 years of service credit, may elect to have the
9retirement annuity computed as follows: 3% of the
10participant's average final salary as a commissioner for each
11of the first 8 years of service credit, plus 4% of such salary
12for each of the next 4 years of service credit, plus 5% of such
13salary for each year of service credit in excess of 12 years,
14subject to a maximum of 80% of such salary. To the extent such
15commissioner has made additional optional contributions with
16respect to only a portion of years of service credit, the
17retirement annuity will first be determined in accordance with
18this Section to the extent such additional optional
19contributions were made, and then in accordance with the
20remaining Sections of this Article to the extent of years of
21service credit with respect to which additional optional
22contributions were not made. The change in minimum retirement
23age (from 60 to 55) made by Public Act 87-1265 applies to
24persons who begin receiving a retirement annuity under this
25Section on or after January 25, 1993 (the effective date of
26Public Act 87-1265), without regard to whether they are in

 

 

HB2035- 11 -LRB103 25367 RPS 51712 b

1service on or after that date.
2    (c) Disability benefits. In lieu of the disability
3benefits otherwise payable under this Article, any
4commissioner who (1) has elected to participate in the Fund,
5and (2) has become permanently disabled and as a consequence
6is unable to perform the duties of office, and (3) was making
7optional contributions in accordance with this Section at the
8time the disability was incurred, may elect to receive a
9disability annuity calculated in accordance with the formula
10in subsection (b). For the purposes of this subsection, such
11commissioner shall be considered permanently disabled only if:
12(i) disability occurs while in service as a commissioner and
13is of such a nature as to prevent the reasonable performance of
14the duties of office at the time; and (ii) the Board has
15received a written certification by at least 2 licensed health
16care professionals physicians appointed by it stating that
17such commissioner is disabled and that the disability is
18likely to be permanent.
19    (d) Alternative survivor's benefits. In lieu of the
20survivor's benefits otherwise payable under this Article, the
21spouse or eligible child of any deceased commissioner who (1)
22had elected to participate in the Fund, and (2) was either
23making (or had already made) additional optional contributions
24on the date of death, or was receiving an annuity calculated
25under this Section at the time of death, may elect to receive
26an annuity beginning on the date of the commissioner's death,

 

 

HB2035- 12 -LRB103 25367 RPS 51712 b

1provided that the spouse and commissioner must have been
2married on the date of the last termination of a service as
3commissioner and for a continuous period of at least one year
4immediately preceding death.
5    The annuity shall be payable beginning on the date of the
6commissioner's death if the spouse is then age 50 or over, or
7beginning at age 50 if the age of the spouse is less than 50
8years. If a minor unmarried child or children of the
9commissioner, under age 18 (age 23 in the case of a full-time
10student), also survive, and the child or children are under
11the care of the eligible spouse, the annuity shall begin as of
12the date of death of the commissioner without regard to the
13spouse's age. Beginning on the first day of the month
14following the month in which this amendatory Act of the 96th
15General Assembly takes effect, benefits shall begin on the
16first of the month following the commissioner's date of death
17if the spouse is then age 50 or over or, if a minor unmarried
18child or children of the commissioner, under age 18 (age 23 in
19the case of a full time student), also survive, and the child
20or children are under the care of the eligible spouse. The
21benefit is payable for the full month if the annuitant was
22alive on the first day of the month.
23    The annuity to a spouse shall be the greater of (i) 66 2/3%
24of the amount of retirement annuity earned by the commissioner
25on the date of death, subject to a minimum payment of 10% of
26salary, provided that if an eligible spouse, regardless of

 

 

HB2035- 13 -LRB103 25367 RPS 51712 b

1age, has in his or her care at the date of death of the
2commissioner any unmarried child or children of the
3commissioner under age 18, the minimum annuity shall be 30% of
4the commissioner's salary, plus 10% of salary on account of
5each minor child of the commissioner, subject to a combined
6total payment on account of a spouse and minor children not to
7exceed 50% of the deceased commissioner's salary or (ii) for
8the spouse of a commissioner whose death occurs on or after
9August 18, 2005 (the effective date of Public Act 94-621), the
10surviving spouse annuity shall be computed in the same manner
11as described in Section 13-306(a). The number of total service
12years used to calculate the commissioner's annuity shall be
13the number of service years used to calculate the annuity for
14that commissioner's surviving spouse. In the event there shall
15be no spouse of the commissioner surviving, or should a spouse
16die while eligible minor children still survive the
17commissioner, each such child shall be entitled to an annuity
18equal to 20% of salary of the commissioner subject to a
19combined total payment on account of all such children not to
20exceed 50% of salary of the commissioner. The salary to be used
21in the calculation of these benefits shall be the same as that
22prescribed for determining a retirement annuity as provided in
23subsection (b) of this Section.
24    Upon the death of a commissioner occurring after
25termination of a service or while in receipt of a retirement
26annuity, the combined total payment to a spouse and minor

 

 

HB2035- 14 -LRB103 25367 RPS 51712 b

1children, or to minor children alone if no eligible spouse
2survives, shall be limited to 85% of the amount of retirement
3annuity earned by the commissioner.
4    Marriage of a child or attainment of age 18 (age 23 in the
5case of a full-time student), whichever first occurs, shall
6render the child ineligible for further consideration in the
7payment of annuity to a spouse or in the increase in the amount
8thereof. Upon attainment of ineligibility of the youngest
9minor child of the commissioner, the annuity shall immediately
10revert to the amount payable upon death of a commissioner
11leaving no minor children surviving. If the spouse is under
12age 50 at such time, the annuity as revised shall be deferred
13until such age is attained.
14    (e) Refunds. Refunds of additional optional contributions
15shall be made on the same basis and under the same conditions
16as provided under Section 13-601. Interest shall be credited
17on the same basis and under the same conditions as for other
18contributions.
19    Optional contributions shall be accounted for in a
20separate Commission's Optional Contribution Reserve. Optional
21contributions under this Section shall be included in the
22amount of employee contributions used to compute the tax levy
23under Section 13-503.
24    (f) Effective date. The effective date of this plan of
25optional alternative benefits and contributions shall be the
26date upon which approval was received from the U.S. Internal

 

 

HB2035- 15 -LRB103 25367 RPS 51712 b

1Revenue Service. The plan of optional alternative benefits and
2contributions shall not be available to any former employee
3receiving an annuity from the Fund on the effective date,
4unless said former employee re-enters service and renders at
5least 3 years of additional service after the date of re-entry
6as a commissioner.
7(Source: P.A. 95-279, eff. 1-1-08; 96-251, eff. 8-11-09.)
 
8    (40 ILCS 5/13-706)  (from Ch. 108 1/2, par. 13-706)
9    Sec. 13-706. Board powers and duties. The Board shall have
10the powers and duties set forth in this Section, in addition to
11such other powers and duties as may be provided in this Article
12and in this Code:
13        (a) To supervise collections. To see that all amounts
14    specified in this Article to be applied to the Fund, from
15    any source, are collected and applied.
16        (b) To notify of deductions. To notify the Clerk of
17    the Water Reclamation District of the deductions to be
18    made from the salaries of employees.
19        (c) To accept gifts. To accept by gift, grant, bequest
20    or otherwise any money or property of any kind and use the
21    same for the purposes of the Fund.
22        (d) To invest the reserves. To invest the reserves of
23    the Fund in accordance with the provisions set forth in
24    Section 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and
25    1-115 of this Code. Investments made in accordance with

 

 

HB2035- 16 -LRB103 25367 RPS 51712 b

1    Section 1-113 of Article 1 of this Code shall be deemed
2    prudent. The Board is also authorized to transfer
3    securities to the Illinois State Board of Investment for
4    the purpose of participation in any commingled investment
5    fund as provided in Article 22A of this Code.
6        (e) To authorize payments. To consider and pass upon
7    all applications for annuities and benefits; to authorize
8    or suspend the payment of any annuity or benefit; to
9    inquire into the validity and legality of any grant of
10    annuity or benefit paid from or payable out of the Fund; to
11    increase, reduce, or suspend any such annuity or benefit
12    whenever the annuity or benefit, or any part thereof, was
13    secured or granted, or the amount thereof fixed, as the
14    result of misrepresentation, fraud, or error. No such
15    annuity or benefit shall be permanently reduced or
16    suspended until the affected annuitant or beneficiary is
17    first notified of the proposed action and given an
18    opportunity to be heard. No trustee of the Board shall
19    vote upon that trustee's own personal claim for annuity,
20    benefit or refund, or participate in the deliberations of
21    the Board as to the validity of any such claim. The Board
22    shall have exclusive original jurisdiction in all matters
23    of claims for annuities, benefits and refunds.
24        (f) To submit an annual report. To submit a report in
25    July of each year to the Board of Commissioners of the
26    Water Reclamation District as of the close of business on

 

 

HB2035- 17 -LRB103 25367 RPS 51712 b

1    December 31st of the preceding year. The report shall
2    include the following:
3            (1) A balance sheet, showing the financial and
4        actuarial condition of the Fund as of the end of the
5        calendar year;
6            (2) A statement of receipts and disbursements
7        during such year;
8            (3) A statement showing changes in the asset,
9        liability, reserve and surplus accounts during such
10        year;
11            (4) A detailed statement of investments as of the
12        end of the year; and
13            (5) Any additional information as is deemed
14        necessary for proper interpretation of the condition
15        of the Fund.
16        (g) To subpoena witnesses. To compel witnesses to
17    attend and testify before it upon any matter concerning
18    the Fund and allow witness fees not in excess of $6 for
19    attendance upon any one day. The President and other
20    members of the Board may administer oaths to witnesses.
21        (h) To appoint employees and consultants. To appoint
22    such actuarial, medical, legal, investigational, clerical
23    or financial employees and consultants as are necessary,
24    and fix their compensation.
25        (i) To make rules. To make rules and regulations
26    necessary for the administration of the affairs of the

 

 

HB2035- 18 -LRB103 25367 RPS 51712 b

1    Fund.
2        (j) To waive guardianship. To waive the requirement of
3    legal guardianship of a person under legal disability or
4    any minor unmarried beneficiary of the Fund for a
5    representative living with a parent or grandparent, and
6    legal guardianship of any beneficiary under legal
7    disability whose husband, wife, or parent is managing such
8    person or beneficiary's affairs, whenever the Board deems
9    such waiver to be in the best interest of the person or
10    beneficiary.
11        (k) To collect amounts due. To collect any amounts due
12    to the Fund from any participant or beneficiary prior to
13    payment of any annuity, benefit or refund.
14        (l) To invoke rule of offset. To offset against any
15    amount payable to an employee or to any other person such
16    sums as may be due to the Fund or may have been paid by the
17    Fund due to misrepresentation, fraud or error.
18        (m) To assess and collect interest on amounts due to
19    the Fund using the annual rate as shall from time to time
20    be determined by the Board, compounded annually from the
21    date of notification to the date of payment.
22(Source: P.A. 94-621, eff. 8-18-05; 95-586, eff. 8-31-07.)