SB1446 Enrolled LRB094 09006 AMC 39227 b

1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 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
25     has service credits in a retirement system, including a
26     person who is receiving or is eligible to receive a
27     retirement or disability benefit, without regard to
28     whether the person has withdrawn from service.
29         (5) "Member's refund" means a return of all or a
30     portion of a member's contributions that is elected by the
31     member (or provided by operation of law) and is payable
32     before the member's death.

 

 

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1         (5.5) "Permissive service" means service credit
2     purchased by the member, unused vacation, and unused sick
3     leave that the retirement system includes by statute in a
4     member's benefit calculations.
5         (6) "Qualified Illinois Domestic Relations Order" or
6     "QILDRO" means an Illinois court order that creates or
7     recognizes the existence of an alternate payee's right to
8     receive all or a portion of a member's accrued benefits in
9     a retirement system, is issued pursuant to this Section and
10     Section 503(b)(2) of the Illinois Marriage and Dissolution
11     of Marriage Act, and meets the requirements of this
12     Section. A QILDRO is not the same as a qualified domestic
13     relations order or QDRO issued pursuant to Section 414(p)
14     of the Internal Revenue Code of 1986. The requirements of
15     paragraphs (2) and (3) of that Section do not apply to
16     orders issued under this Section and shall not be deemed a
17     guide to the interpretation of this Section; a QILDRO is
18     intended to be a domestic relations order within the
19     meaning of paragraph (11) of that Section.
20         (7) "Regular payee" means the person to whom a benefit
21     would be payable in the absence of an effective QILDRO.
22         (7.5) "Regular service" means service credit earned by
23     the member, including a repayment of a refund for regular
24     service that the retirement system includes by statute in a
25     member's benefit calculations. "Regular service" does not
26     include service credit purchased by the member, unused
27     vacation, or unused sick leave.
28         (8) "Retirement benefit" means any periodic or
29     nonperiodic benefit payable to a retired member based on
30     age or service, or on the amounts accumulated to the credit
31     of the member for retirement purposes, including any
32     periodic or nonperiodic increases in the benefit, whether
33     or not the benefit is so called under the applicable
34     Article of this Code.
35         (9) "Retirement system" or "system" means any
36     retirement system, pension fund, or other public employee

 

 

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1     retirement benefit plan that is maintained or established
2     under any of Articles 2 through 18 of this Code.
3         (10) "Surviving spouse" means the spouse of a member at
4     the time of the member's death.
5         (11) "Survivor's benefit" means any periodic benefit
6     payable to a surviving spouse, child, parent, or other
7     survivor of a deceased member, including any periodic or
8     nonperiodic increases in the benefit or nonperiodic
9     payment included with the benefit, whether or not the
10     benefit is so called under the applicable Article of this
11     Code.
12     (b) (1) An Illinois court of competent jurisdiction in a
13 proceeding for declaration of invalidity of marriage, legal
14 separation, or dissolution of marriage that provides for
15 support or the distribution of property, or any proceeding to
16 amend or enforce such support or a property distribution, may
17 order that all or any part of any (i) member's retirement
18 benefit, or (ii) member's refund payable to or on behalf of the
19 member, or (iii) death benefit, or portion thereof, that would
20 otherwise be payable to the member's death benefit
21 beneficiaries or estate be instead paid by the retirement
22 system to the a designated alternate payee.
23     (2) An order issued under this Section provides only for
24 the diversion to an alternate payee of certain benefits
25 otherwise payable by the retirement system under the provisions
26 of this Code. The existence of a QILDRO shall not cause the
27 retirement system to pay any benefit, or any amount of benefit,
28 to an alternate payee that would not have been payable by the
29 system to a regular payee in the absence of the QILDRO.
30     (3) A QILDRO shall not affect the vesting, accrual, or
31 amount of any benefit, nor the date or conditions upon which
32 any benefit becomes payable, nor the right of the member or the
33 member's survivors to make any election otherwise authorized
34 under this Code, except as provided in subsections (i) and (j).
35     (4) A QILDRO shall not apply to or affect the payment of
36 any survivor's benefit, death benefit, disability benefit,

 

 

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1 life insurance benefit, or health insurance benefit.
2     (c) (1) A QILDRO must contain the name, mailing residence
3 address, and social security number of the member and of the
4 alternate payee and must identify the retirement system to
5 which it is directed and the court issuing the order.
6     (2) A QILDRO must specify each benefit to which it applies,
7 and it must specify the amount of the benefit to be paid to the
8 alternate payee. In the case of a non-periodic benefit, this
9 amount must be specified as a dollar amount or as a percentage
10 as specifically provided in subsection (n). In the case of a
11 periodic benefit, this amount must be specified as a dollar
12 amount per month or as a percentage per month as specifically
13 provided in subsection (n) , which in the case of a nonperiodic
14 benefit shall be expressed as a dollar amount (except that a
15 nonperiodic benefit payable to an alternate payee of a
16 participant in the self-managed plan authorized under Article
17 15 of this Code may be expressed as a dollar amount or as a
18 percentage of the participant's account), and in the case of a
19 periodic benefit shall be expressed as a dollar amount per
20 month.
21     (3) With respect to each benefit to which it applies, a
22 QILDRO must specify when the order will take effect. In the
23 case of a lump sum benefit payable to an alternate payee of a
24 participant in the self-managed plan authorized under Article
25 15 of this Code, the benefit shall be paid upon the proper
26 request of the alternate payee. In the case of a periodic
27 benefit that is being paid at the time the order is received, a
28 QILDRO shall take effect immediately or on a specified later
29 date; if it takes effect immediately, it shall become effective
30 on the first benefit payment date occurring at least 30 days
31 after the order is received by the retirement system. In the
32 case of any other benefit, a QILDRO shall take effect when the
33 benefit becomes payable, unless some later date is specified
34 pursuant to subsection (n). except that a lump-sum benefit
35 payable to an alternate payee of a participant in the
36 self-managed plan authorized under Article 15 of this Code may

 

 

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1 be paid upon the request of the alternate payee. However, in no
2 event shall a QILDRO apply to any benefit paid by the
3 retirement system before or within 30 days after the order is
4 received. A retirement system may adopt rules to prorate the
5 amount of the first and final periodic payments to an alternate
6 payee.
7     (4) A QILDRO must also contain any provisions required
8 under subsection (n) or (p).
9     (5) If a QILDRO indicates that the alternate payee is to
10 receive a percentage of any retirement system benefit, the
11 calculations required shall be performed by the member, the
12 alternate payee, their designated representatives or their
13 designated experts. The results of said calculations shall be
14 provided to the retirement system via a QILDRO Calculation
15 Court Order issued by an Illinois court of competent
16 jurisdiction in a proceeding for declaration of invalidity of
17 marriage, legal separation, or dissolution of marriage. The
18 QILDRO Calculation Court Order shall follow the form provided
19 in subsection (n-5). The retirement system shall have no duty
20 or obligation to assist in such calculations or in completion
21 of the QILDRO Calculation Court Order, other than to provide
22 the information required to be provided pursuant to subsection
23 (h).
24     (6) Within 45 days after the receipt of a QILDRO
25 Calculation Court Order, the retirement system shall notify the
26 member and the alternate payee (or one designated
27 representative of each) of the receipt of the Order. If a valid
28 QILDRO underlying the QILDRO Calculation Court Order has not
29 been filed with the retirement system, or if the QILDRO
30 Calculation Court Order does not clearly indicate the amount
31 the retirement system is to pay to the alternate payee, then
32 the retirement system shall at the same time notify the member
33 and the alternate payee (or one designated representative of
34 each) of the situation. Unless a valid QILDRO has not been
35 filed with the retirement system, or the QILDRO Calculation
36 Court Order does not clearly indicate the amount the retirement

 

 

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1 system is to pay the alternate payee, the retirement system
2 shall implement the QILDRO based on the QILDRO Calculation
3 Court Order as soon as administratively possible once benefits
4 are payable. The retirement system shall have no obligation to
5 make any determination as to whether the calculations in the
6 QILDRO Calculation Court Order are accurate or whether the
7 calculations are in accordance with the parties' QILDRO,
8 agreement, or judgment. The retirement system shall not reject
9 a QILDRO Calculation Court Order because the calculations are
10 not accurate or not in accordance with the parties' QILDRO,
11 agreement, or judgment. The retirement system shall have no
12 responsibility for the consequences of its implementation of a
13 QILDRO Calculation Court Order that is inaccurate or not in
14 accordance with the parties' QILDRO, agreement, or judgment.
15     (d) (1) An order issued under this Section shall not be
16 implemented unless a certified copy of the order has been filed
17 with the retirement system. The system shall promptly notify
18 the member and the alternate payee by first class mail of its
19 receipt of the order.
20     (2) Neither the retirement system, nor its board, nor any
21 of its employees shall be liable to the member, the regular
22 payee, or any other person for any amount of a benefit that is
23 paid in good faith to an alternate payee in accordance with a
24 QILDRO.
25     (3) Each new or modified QILDRO or QILDRO Calculation Court
26 Order that At the time the order is submitted to the retirement
27 system, it shall be accompanied by a nonrefundable $50
28 processing fee payable to the retirement system, to be used by
29 the system to defer any administrative costs arising out of the
30 implementation of the order QILDRO.
31     (e) (1) Each alternate payee is responsible for maintaining
32 a current mailing residence address on file with the retirement
33 system. The retirement system shall have no duty to attempt to
34 locate any alternate payee by any means other than sending
35 written notice to the last known address of the alternate payee
36 on file with the system.

 

 

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1     (2) In the event that the system cannot locate an alternate
2 payee when a benefit becomes payable, the system shall hold the
3 amount of the benefit payable to the alternate payee and make
4 payment to the alternate payee if he or she is located within
5 the following 180 days. If the alternate payee has not been
6 located within 180 days from the date the benefit becomes
7 payable, the system shall pay the benefit and the amounts held
8 to the regular payee. If the alternate payee is subsequently
9 located, the system shall thereupon implement the QILDRO, but
10 the interest of the alternate payee in any amounts already paid
11 to the regular payee shall be extinguished. Amounts held under
12 this subsection shall not bear interest.
13     (f) (1) If the amount of a benefit that is specified in a
14 QILDRO or QILDRO Calculation Court Order for payment to an
15 alternate payee exceeds the actual amount of that benefit
16 payable by the retirement system, the excess shall be
17 disregarded. The retirement system shall have no liability to
18 any alternate payee or any other person for the disregarded
19 amounts.
20     (2) In the event of multiple QILDROs against a member, the
21 retirement system shall honor all of the QILDROs to the extent
22 possible. However, if the total amount of a benefit to be paid
23 to alternate payees under all QILDROs in effect against the
24 member exceeds the actual amount of that benefit payable by the
25 system, the QILDROs shall be satisfied in the order of their
26 receipt by the system until the amount of the benefit is
27 exhausted, and shall not be adjusted pro rata. Any amounts that
28 cannot be paid due to exhaustion of the benefit shall remain
29 unpaid, and the retirement system shall have no liability to
30 any alternate payee or any other person for such amounts.
31     (3) A modification of a QILDRO shall be filed with the
32 retirement system in the same manner as a new QILDRO. A
33 modification that does not increase the amount of any benefit
34 payable to the alternate payee, as that amount was designated
35 in the QILDRO, and does not expand the QILDRO to affect any
36 benefit not affected by the unmodified QILDRO, does not affect

 

 

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1 the priority of payment under subdivision (f)(2); the priority
2 of payment of a QILDRO that has been modified to increase the
3 amount of any benefit payable to the alternate payee, or to
4 expand the QILDRO to affect a benefit not affected by the
5 unmodified QILDRO, shall be based on the date on which the
6 system receives the modification of the QILDRO.
7     (4) A modification of a QILDRO Calculation Court Order
8 shall be filed with the retirement system in the same manner as
9 a new QILDRO Calculation Court Order.
10     (g) (1) Upon the death of the alternate payee under a
11 QILDRO, the QILDRO shall expire and cease to be effective, and
12 in the absence of another QILDRO, the right to receive any
13 affected benefit shall revert to the regular payee.
14     (2) All QILDROs relating to a member's participation in a
15 particular retirement system shall expire and cease to be
16 effective upon the issuance of a member's refund that
17 terminates the member's participation in that retirement
18 system, without regard to whether the refund was paid to the
19 member or to an alternate payee under a QILDRO. An expired
20 QILDRO shall not be automatically revived by any subsequent
21 return by the member to service under that retirement system.
22     (h) (1) Within 45 days after receiving a subpoena from any
23 party to a proceeding for declaration of invalidity of
24 marriage, legal separation, or dissolution of marriage in which
25 a QILDRO may be issued, or after receiving a request from the
26 member, a retirement system shall provide in response issue a
27 statement of a member's accumulated contributions, accrued
28 benefits, and other interests in the plan administered by the
29 retirement system based on the data on file with the system on
30 the date the subpoena is received. If so requested in the
31 subpoena, the retirement system shall also provide in response
32 general retirement plan information available to a member , and
33 of any relevant procedures, rules, or modifications to the
34 model QILDRO form that have been adopted by the retirement
35 system.
36     (1.5) If a QILDRO provides for the alternate payee to

 

 

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1 receive a percentage of a retirement benefit (as opposed to
2 providing for the alternate payee to receive specified dollar
3 amounts of a retirement benefit), then the retirement system
4 shall provide the applicable information to the member and to
5 the alternate payee, or to one designated representative of
6 each (e.g., the member's attorney and the alternate payee's
7 attorney) as indicated below:
8         (A) If the member is a participant in the self-managed
9     plan authorized under Article 15 of this Code and the
10     QILDRO provides that the only benefit the alternate payee
11     is to receive is a percentage of a lump sum benefit as of a
12     specific date that has already past, then, within 45 days
13     after the retirement system receives the QILDRO, the
14     retirement system shall provide the lump sum amount to
15     which the QILDRO percentage is to be applied.
16         (B) For all situations except that situation described
17     in item (A), if the retirement system receives the QILDRO
18     before the member's effective date of retirement, then,
19     within 45 days after the retirement system receives the
20     QILDRO, the retirement system shall provide all of the
21     following information:
22             (i) The date of the member's initial membership in
23         the retirement system, expressed as month, day, and
24         year, if available, or the most exact date that is
25         available to the retirement system.
26             (ii) The amount of permissive and regular service
27         the member accumulated in the retirement system from
28         the time of initial membership through the most recent
29         date available prior to the retirement system
30         receiving the QILDRO (the dates used by the retirement
31         system shall also be provided). Service amounts shall
32         be expressed using the most exact time increments
33         available to the retirement system (e.g., months or
34         fractions of years).
35             (iii) The gross amount of the member's non-reduced
36         monthly annuity benefit earned, calculated as of the

 

 

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1         most recent date available prior to the retirement
2         system receiving the QILDRO, the date used by the
3         retirement system, and the earliest date the member may
4         be eligible to commence the benefit. This amount shall
5         include any permissive service and upgrades purchased
6         by the member, and those amounts shall be noted
7         separately.
8             (iv) The gross amount of the member's refund or
9         partial refund, including any interest payable on
10         those amounts, calculated as of the most recent date
11         available prior to the retirement system receiving the
12         QILDRO (the date used by the retirement system shall
13         also be provided).
14             (v) The gross amount of the death benefits that
15         would be payable to the member's death benefit
16         beneficiaries or estate, assuming the member died on
17         the date or a date as close as possible to the date the
18         QILDRO was received by the retirement system,
19         including any interest payable on the amounts,
20         calculated as of the most recent date available prior
21         to the retirement system receiving the QILDRO (the date
22         used by the retirement system shall also be provided).
23             (vi) Whether the member has notified the
24         retirement system of the date the member intends to
25         retire, and if so, that date.
26             (vii) If the member has provided a date that he or
27         she intends to retire, the date, if available, that the
28         retirement system reasonably believes will be the
29         member's effective date of retirement.
30         (C) For all situations except that situation described
31     in item (A), if the retirement system receives the QILDRO
32     after the effective date of retirement, then, within 45
33     days after the retirement system receives the QILDRO, or,
34     if the retirement system receives the QILDRO before the
35     member's effective date of retirement, then as soon as
36     administratively possible before or after the member's

 

 

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1     effective date of retirement (but not later than 45 days
2     after the member's effective date of retirement), the
3     retirement system shall provide all of the following
4     information:
5             (i) The member's effective date of retirement.
6             (ii) The date the member commenced benefits or, if
7         not yet commenced, the date the retirement system has
8         scheduled the member's benefits to commence.
9             (iii) The amount of permissive and regular service
10         the member accumulated in the retirement system from
11         the time of initial membership through the member's
12         effective date of retirement. Service amounts shall be
13         expressed using the most exact time increments
14         available to the retirement system (e.g., months or
15         fractions of years).
16             (iv) The gross amount of the member's monthly
17         retirement benefit, calculated as of the member's
18         effective date of retirement. This amount shall
19         include any permissive service and upgrades purchased
20         by the member, and those amounts shall be noted
21         separately.
22             (v) The gross amount of the member's refund or
23         partial refund, including any interest payable on
24         those amounts, calculated as of the member's effective
25         date of retirement.
26             (vi) The gross amount of death benefits that would
27         be payable to the member's death benefit beneficiaries
28         or estate, assuming the member died on the member's
29         effective date of retirement, including any interest
30         payable on those amounts.
31         (D) If, and only if, the alternate payee is entitled to
32     benefits under Section VII of the QILDRO, then, within 45
33     days after the retirement system receives notice of the
34     member's death, the retirement system shall provide the
35     gross amount of death benefits payable, including any
36     interest payable on those amounts, calculated as of the

 

 

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1     member's date of death.
2     (2) In no event shall the retirement system be required to
3 furnish to any person an actuarial opinion as to the present
4 value of the member's benefits or other interests.
5     (3) The papers, entries, and records, or parts thereof, of
6 any retirement system may be proved by a copy thereof,
7 certified under the signature of the secretary of the system or
8 other duly appointed keeper of the records of the system and
9 the corporate seal, if any.
10     (i) In a retirement system in which a member or beneficiary
11 is required to apply to the system for payment of a benefit,
12 the required application may be made by an alternate payee who
13 is entitled to all of a termination refund or retirement
14 benefit or part of a death benefit that is payable that benefit
15 under a QILDRO, provided that all other qualifications and
16 requirements have been met. However, the alternate payee may
17 not make the required application for death benefits while the
18 member is alive or for a member's refund or a retirement
19 benefit if the member is in active service or below the minimum
20 age for receiving an undiscounted retirement annuity in the
21 retirement system that has received the QILDRO or in any other
22 retirement system in which the member has regular or permissive
23 creditable service and in which the member's rights under the
24 Retirement Systems Reciprocal Act would be affected as a result
25 of the alternate payee's application for a member's refund or
26 retirement benefit.
27     (j) (1) So long as there is in effect a QILDRO relating to
28 a member's retirement benefit, the affected member may not
29 elect a form of payment that has the effect of diminishing the
30 amount of the payment to which any alternate payee is entitled,
31 unless the alternate payee has consented to the election in a
32 writing that includes the alternate payee's notarized
33 signature, and this written and notarized consent has been
34 filed with the retirement system.
35     (2) If a member attempts to make an election prohibited
36 under subdivision (j)(1), the retirement system shall reject

 

 

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1 the election and advise the member of the need to obtain the
2 alternate payee's consent.
3     (3) If a retirement system discovers that it has mistakenly
4 allowed an election prohibited under subdivision (j)(1), it
5 shall thereupon disallow that election and recalculate any
6 benefits affected thereby. If the system determines that an
7 amount paid to a regular payee should have been paid to an
8 alternate payee, the system shall, if possible, recoup the
9 amounts as provided in subsection (k) of this Section.
10     (k) In the event that a regular payee or an alternate payee
11 is overpaid, the retirement system shall have the authority to
12 and shall recoup the amounts by deducting the overpayment from
13 future payments and making payment to the other payee. The
14 system may make deductions for recoupment over a period of time
15 in the same manner as is provided by law or rule for the
16 recoupment of other amounts incorrectly disbursed by the system
17 in instances not involving a QILDRO. The retirement system
18 shall incur no liability to either the alternate payee or the
19 regular payee as a result of any payment made in good faith,
20 regardless of whether the system is able to accomplish
21 recoupment.
22     (l) (1) A retirement system that has, before the effective
23 date of this Section, received and implemented a domestic
24 relations order that directs payment of a benefit to a person
25 other than the regular payee may continue to implement that
26 order, and shall not be liable to the regular payee for any
27 amounts paid in good faith to that other person in accordance
28 with the order.
29     (2) A domestic relations order directing payment of a
30 benefit to a person other than the regular payee that was
31 issued by a court but not implemented by a retirement system
32 prior to the effective date of this Section shall be void.
33 However, a person who is the beneficiary or alternate payee of
34 a domestic relations order that is rendered void under this
35 subsection may petition the court that issued the order for an
36 amended order that complies with this Section.

 

 

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1     (3) A retirement system that received a valid QILDRO before
2 the effective date of this amendatory Act of the 94th General
3 Assembly shall continue to implement the QILDRO and shall not
4 be liable to any party for amounts paid in good faith pursuant
5 to the QILDRO.
6     (m) (1) In accordance with Article XIII, Section 5 of the
7 Illinois Constitution, which prohibits the impairment or
8 diminishment of benefits granted under this Code, a QILDRO
9 issued against a member of a retirement system established
10 under an Article of this Code that exempts the payment of
11 benefits or refunds from attachment, garnishment, judgment or
12 other legal process shall not be effective without the written
13 consent of the member if the member began participating in the
14 retirement system on or before the effective date of this
15 Section. That consent must specify the retirement system, the
16 court case number, and the names and social security numbers of
17 the member and the alternate payee. The consent must accompany
18 the QILDRO when it is filed with the retirement system, and
19 must be in substantially the following form:
 
20
CONSENT TO ISSUANCE OF QILDRO

 
21 Case Caption: ...................................
22 Court Case Number: ....................
23 Member's Name: ..................................
24 Member's Social Security Number: ........................
25 Alternate payee's Name: .........................
26 Alternate payee's Social Security Number: ...............
27     I, (name), a member of the (retirement system), hereby
28 irrevocably consent to the issuance of a Qualified Illinois
29 Domestic Relations Order. I understand that under the Order,
30 certain benefits that would otherwise be payable to me, or to
31 my death benefit beneficiaries surviving spouse or estate, will
32 instead be payable to (name of alternate payee). I also
33 understand that my right to elect certain forms of payment of
34 my retirement benefit or member's refund may be limited as a

 

 

SB1446 Enrolled - 15 - LRB094 09006 AMC 39227 b

1 result of the Order.
2     DATED:.......................
3     SIGNED:......................
 
4     (2) A member's consent to the issuance of a QILDRO shall be
5 irrevocable, and shall apply to any QILDRO that pertains to the
6 alternate payee and retirement system named in the consent.
7     (n) A QILDRO An order issued under this Section shall be in
8 substantially the following form (omitting any provisions that
9 are not applicable to benefits that are or may be ultimately
10 payable to the member):
 
11
QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER

 
12 ...................................
13 (Enter Case Caption Here)
14 ...................................
15 (Enter Retirement System Name Here)
 
16     THIS CAUSE coming before the Court for the purpose of the
17 entry of a Qualified Illinois Domestic Relations Order under
18 the provisions of Section 1-119 of the Illinois Pension Code
19 (40 ILCS 5/1-119), the Court having jurisdiction over the
20 parties and the subject matter hereof; the Court finding that
21 one of the parties to this proceeding is a member of a
22 retirement system subject to Section 1-119 of the Illinois
23 Pension Code (40 ILCS 5/1-119), this Order is entered to
24 implement a division of that party's interest in the retirement
25 system; and the Court being fully advised;
 
26 IT IS HEREBY ORDERED AS FOLLOWS:
 
27     I. The definitions and other provisions of Section 1-119 of
28 the Illinois Pension Code (40 ILCS 5/1-119) are adopted by
29 reference and made a part of this Order.
30     II. Identification of Retirement System and parties:
 

 

 

SB1446 Enrolled - 16 - LRB094 09006 AMC 39227 b

1 Retirement System:              ............................
2                                 (Name)
3
4
............................
  
5                                 (Address)
 
6 Member:                         ............................
7                                 (Name)
8
9
............................
  
10                                 (Mailing Address)
11
12
............................
  
13                                 (Social Security Number)
 
14 Alternate payee:                ............................
15                                 (Name)
16
17
............................
  
18                                 (Mailing Address)
19
20
............................
  
21                                 (Social Security Number)
 
22 The alternate payee is the member's .... current or former
23 spouse/ .... child or other dependent [check one].
 
24     III. The Retirement System shall pay the indicated amounts
25 of the member's retirement benefits to the alternate payee
26 under the following terms and conditions:
27         (A) The Retirement System shall pay the alternate payee
28     pursuant to one of the following methods [complete the ONE
29     option that applies]:

 

 

SB1446 Enrolled - 17 - LRB094 09006 AMC 39227 b

1             (1) $...... per month [enter amount]; or
2             (2) .......% [enter percentage] per month of the
3         marital portion of said benefit with the marital
4         portion defined using the formula in Section IX; or
5             (3) ........% [enter percentage] per month of the
6         gross amount of said benefit calculated as of the date
7         the .... member's/ .... alternate payee's [check one]
8         benefit commences [check alternate payee only if the
9         alternate payee will commence benefits after the
10         member commences benefits, e.g. if the member is
11         receiving retirement benefits at the time this Order is
12         entered].
13         (B) If the member's retirement benefit has already
14     commenced, payments to the alternate payee shall commence
15     either [check/complete the ONE option that applies]:
16             (1) .... as soon as administratively possible upon
17         this order being received and accepted by the
18         Retirement System; or
19             (2) .... on the date of ........ [enter any benefit
20         payment date that will occur at least 30 days after the
21         date the retirement system receives a valid QILDRO, but
22         ONLY if payment to the alternate payee is to be delayed
23         to some future date; otherwise, check item (1) above].
24         (C) If the member's retirement benefit has not yet
25     commenced, payments to the alternate payee shall commence
26     as of the date the member's retirement benefit commences.
27         (D) Payments to the alternate payee under this Section
28     III shall terminate [check/complete the ONE option that
29     applies]:
30             (1) .... upon the death of the member or the death
31         of the alternate payee, whichever is the first to
32         occur; or
33             (2) .... after ........ payments are made to the
34         alternate payee [enter any set number] or upon the
35         death of the member or the death of the alternate
36         payee, whichever is the first to occur.

 

 

SB1446 Enrolled - 18 - LRB094 09006 AMC 39227 b

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

 

 

SB1446 Enrolled - 19 - LRB094 09006 AMC 39227 b

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

 

 

SB1446 Enrolled - 20 - LRB094 09006 AMC 39227 b

1     VIII. If this Order indicates that the alternate payee is
2 to receive a percentage of any retirement benefit or refund,
3 upon receipt of the information required to be provided by the
4 Retirement System under Section 1-119 of the Illinois Pension
5 Code (40 ILCS 5/1-119), the calculations required shall be
6 performed by the member, by the alternate payee, or by their
7 designated representatives or designated experts. The results
8 of the calculations shall be provided to the Retirement System
9 via a QILDRO Calculation Court Order in accordance with Section
10 1-119 of the Illinois Pension Code.
11     IX. Marital Portion Benefit Calculation Formula (Option to
12 calculate benefit in items III(A)(2), V(A)(2), VI(A)(2), and
13 VII(A)(2) above). If in this Section "other" is circled in the
14 definition of A, B, or C, then a supplemental order must be
15 entered simultaneously with this QILDRO clarifying the intent
16 of the parties or the Court as to that item. The supplemental
17 order cannot require the Retirement System to take any action
18 not permitted under Illinois law or the Retirement System's
19 administrative rules. To the extent that the supplemental order
20 does not conform to Illinois law or administrative rule, it
21 shall not be binding upon the Retirement System.
22         (1) The amount of the alternate payee's benefit shall
23     be the result of (A/B) x C x D where:
24             "A" equals the number of months of .... regular/
25         .... regular plus permissive/ .... other [check only
26         one] service that the member accumulated in the
27         Retirement System from the date of marriage
28         ....................... [enter date MM/DD/YYYY] to the
29         date of divorce .................... [enter date
30         MM/DD/YYYY]. This number of months of service shall be
31         calculated as whole months after receipt of
32         information required from the Retirement System
33         pursuant to Section 1-119 of the Illinois Pension Code
34         (40 ILCS 5/1-119).
35             "B" equals the number of months of .... regular/
36         .... regular plus permissive/ .... other [check only

 

 

SB1446 Enrolled - 21 - LRB094 09006 AMC 39227 b

1         one] service that the member accumulated in the
2         Retirement System from the time of initial membership
3         in the Retirement System through the member's
4         effective date of retirement. The number of months of
5         service shall be calculated as whole months after
6         receipt of information required from the Retirement
7         System pursuant to Section 1-119 of the Illinois
8         Pension Code (40 ILCS 5/1-119).
9             "C" equals the gross amount of:
10                 (i) the member's monthly retirement benefit
11             (Section III(A)) calculated as of the member's
12             effective date of retirement, .... including/ ....
13             not including/ .... other [check only one]
14             permissive service, upgrades purchased, and other
15             benefit formula enhancements;
16                 (ii) the member's refund payable upon
17             termination or lump sum retirement benefit that
18             becomes payable, including any payable interest
19             (Section V(A)) calculated as of the time said
20             refund becomes payable to the member;
21                 (iii) the member's partial refund, including
22             any payable interest (Section VI(A)) calculated as
23             of the time said partial refund becomes payable to
24             the member; or
25                 (iv) the death benefit payable to the member's
26             death benefit beneficiaries or estate, including
27             any payable interest (Section VII(A)) calculated
28             as of the time said benefit becomes payable to the
29             member's beneficiary;
30         whichever are applicable pursuant to Section III, V,
31         VI, or VII of this Order. These gross amounts shall be
32         provided by the Retirement System pursuant to Section
33         1-119 of the Illinois Pension Code (40 ILCS 5/1-119).
34             "D" equals the percentage noted in Section
35         III(A)(2), V(A)(2), VI(A)(2), or VII(A)(2), whichever
36         are applicable.

 

 

SB1446 Enrolled - 22 - LRB094 09006 AMC 39227 b

1         (2) The alternate payee's benefit under this Section IX
2     shall be paid in accordance with all Sections of this Order
3     that apply.
4     X. In accordance with subsection (j) of Section 1-119 of
5 the Illinois Pension Code (40 ILCS 5/1-119), so long as this
6 QILDRO is in effect, the member may not elect a form of payment
7 of the retirement benefit that has the effect of diminishing
8 the amount of the payment to which the alternate payee is
9 entitled, unless the alternate payee has consented to the
10 election in writing, the consent has been notarized, and the
11 consent has been filed with the Retirement System.
12     XI. If the member began participating in the Retirement
13 System before July 1, 1999, this Order shall not take effect
14 unless accompanied by the written consent of the member as
15 required under subsection (m) of Section 1-119 of the Illinois
16 Pension Code (40 ILCS 5/1-119).
17     XII. The Court retains jurisdiction over this matter for
18 all of the following purposes:
19         (1) To establish or maintain this Order as a Qualified
20     Illinois Domestic Relations Order.
21         (2) To enter amended QILDROs and QILDRO Calculation
22     Court Orders to conform to the parties' Marital Settlement
23     Agreement or Agreement for Legal Separation ("Agreement"),
24     to the parties' Judgment for Dissolution of Marriage or
25     Judgment for Legal Separation ("Judgment"), to any
26     modifications of the parties' Agreement or Judgment, or to
27     any supplemental orders entered to clarify the parties'
28     Agreement or Judgment.
29         (3) To enter supplemental orders to clarify the intent
30     of the parties or the Court regarding the benefits
31     allocated herein in accordance with the parties' Agreement
32     or Judgment, with any modifications of the parties'
33     Agreement or Judgment, or with any supplemental orders
34     entered to clarify the parties' Agreement or Judgment. A
35     supplemental order may not require the Retirement System to
36     take any action not permitted under Illinois law or the

 

 

SB1446 Enrolled - 23 - LRB094 09006 AMC 39227 b

1     Retirement System's administrative rules. To the extent
2     that the supplemental order does not conform to Illinois
3     law or administrative rule, it shall not be binding upon
4     the Retirement System.
 
5     DATED: ......................
 
6     SIGNED: .....................
7             [Judge's Signature]
 
8     (n-5) A QILDRO Calculation Court Order issued under this
9 Section shall be in substantially the following form:
 
10
QILDRO Calculation Court Order

 
11 ...................................
12 [Enter case caption here]
13 ...................................
14 [Enter Retirement System name here]
 
15     THIS CAUSE coming before the Court for the purpose of the
16 entry of a QILDRO Calculation Court Order under the provisions
17 of Section 1-119 of the Illinois Pension Code (40 ILCS
18 5/1-119), the Court having jurisdiction over the parties and
19 the subject matter hereof; the Court finding that a QILDRO has
20 previously been entered in this matter, that the QILDRO has
21 been received and accepted by the Retirement System, and that
22 the QILDRO requires percentage calculations to allocate the
23 alternate payee's share of the member's benefit or refund, the
24 Court not having found that the QILDRO has become void or
25 invalid, and the Court being fully advised;
 
26     IT IS HEREBY ORDERED AS FOLLOWS:
27     (1) The definitions and other provisions of Section 1-119
28 of the Illinois Pension Code [40 ILCS 5/1-119] are adopted by
29 reference and made a part of this Order.

 

 

SB1446 Enrolled - 24 - LRB094 09006 AMC 39227 b

1     (2) Identification of Retirement System and parties:
 
2 Retirement System:              ............................
3                                 (Name)
4
5
............................
  
6                                 (Address)
 
7 Member:                         ............................
8                                 (Name)
9
10
............................
  
11                                 (Mailing Address)
12
13
............................
  
14                                 (Social Security Number)
 
15 Alternate payee:                ............................
16                                 (Name)
17
18
............................
  
19                                 (Mailing Address)
20
21
............................
  
22                                 (Social Security Number)
 
23 The Alternate payee is the member's .... current or former
24 spouse/ .... child or other dependent [check one].
 
25     (3) The following shall apply if and only if the QILDRO
26 allocated benefits to the alternate payee in the specific
27 Section noted. The Retirement System shall pay the amounts as
28 directed below, but only if and when the benefits are payable
29 pursuant to the QILDRO and Section 1-119 of the Illinois

 

 

SB1446 Enrolled - 25 - LRB094 09006 AMC 39227 b

1 Pension Code (40 ILCS 5/1-119). Parties shall see QILDRO
2 Section IX for the definitions of A, B, C and D as used below.
3         (a) The alternate payee's benefit pursuant to QILDRO
4     Section III(A)(2) shall be calculated pursuant to Section
5     IX of the QILDRO and paid as follows:
 
6 (......./.......) X ....... X .............. = ............
7 [Enter A] [Enter B] [Enter C]    [Enter D]   [Monthly Amount]
 
8         (b) The alternate payee's benefit pursuant to QILDRO
9     Section V(A)(2) shall be calculated pursuant to Section IX
10     of the QILDRO and paid as follows:
 
11 (......./.......) X ....... X .............. = ............
12 [Enter A] [Enter B] [Enter C]    [Enter D]       [Amount]
 
13         (c) The alternate payee's benefit pursuant to QILDRO
14     Section VI(A)(2) shall be calculated pursuant to Section IX
15     of the QILDRO and paid as follows:
 
16 (......./.......)  X ....... X ............. = ............
17 [Enter A] [Enter B] [Enter C]    [Enter D]       [Amount]
 
18         (d) The alternate payee's benefit pursuant to QILDRO
19     Section VII(A)(2) shall be calculated pursuant to Section
20     IX of the QILDRO and paid as follows:
 
21 (......./.......) X ....... X .............. = ............
22 [Enter A] [Enter B] [Enter C]   [Enter D]        [Amount]
 
23 The Retirement System's sole obligation with respect to the
24 equations in this paragraph (3) is to pay the amounts indicated
25 as the result of the equations. The Retirement System shall
26 have no obligation to review or verify the equations or to
27 assist in the calculations used to determine such amounts.
 

 

 

SB1446 Enrolled - 26 - LRB094 09006 AMC 39227 b

1     (4) The following shall apply only if the QILDRO allocated
2 benefits to the alternate payee in the specific Section noted.
3 The Retirement System shall pay the amounts as directed below,
4 but only if and when the benefits are payable pursuant to the
5 QILDRO and Section 1-119 of the Illinois Pension Code (40 ILCS
6 5/1-119).
7         (A) The alternate payee's benefit pursuant to QILDRO
8     Section III(A)(3) shall be calculated and paid as follows:
 
9 .................... X ............... = .................
10 [Gross benefit amount]  [Percentage]     [Monthly Amount]
 
11         (B) The alternate payee's benefit pursuant to QILDRO
12     Section V(A)(3) shall be calculated and paid as follows:
 
13 ..................... X ............... = .................
14 [Gross benefit amount]   [Percentage]        [Amount]
 
15         (C) The alternate payee's benefit pursuant to QILDRO
16     Section VI(A)(3) shall be calculated and paid as follows:
 
17 ..................... X ............... = .................
18 [Gross benefit amount]   [Percentage]        [Amount]
 
19         (D) The alternate payee's benefit pursuant to QILDRO
20     Section VII(A)(3) shall be calculated and paid as follows:
 
21 ..................... X ............... = .................
22 [Gross benefit amount]   [Percentage]        [Amount]
 
23 The Retirement System's sole obligation with respect to the
24 equations in this paragraph (4) is to pay the amounts indicated
25 as the result of the equations. The Retirement System shall
26 have no obligation to review or verify the equations or to
27 assist in the calculations used to determine such amounts.
 

 

 

SB1446 Enrolled - 27 - LRB094 09006 AMC 39227 b

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

 
29     THIS CAUSE coming before the Court for the purpose of the
30 entry of a Qualified Illinois Domestic Relations Order under
31 the provisions of Section 1-119 of the Illinois Pension Code,
32 the Court having jurisdiction over the parties and the subject

 

 

SB1446 Enrolled - 28 - LRB094 09006 AMC 39227 b

1 matter hereof; the Court finding that one of the parties to
2 this proceeding is a member of a retirement system subject to
3 Section 1-119 of the Illinois Pension Code, this Order is
4 entered to implement a division of that party's interest in the
5 retirement system; and the Court being fully advised;
6     IT IS HEREBY ORDERED AS FOLLOWS:
7     (1) The definitions and other provisions of Section 1-119
8 of the Illinois Pension Code are adopted by reference and made
9 a part of this Order.
10     (2) Identification of Retirement System and parties:
11         Retirement System: (name and address)
12         Member: (name, residence address and social security
13     number)
14         Alternate payee: (name, residence address and social
15     security number)
16     (3) The Retirement System shall pay the indicated amounts
17 of the following specified benefits to the alternate payee
18 under the following terms and conditions:
19         (i) Of the member's retirement benefit, the Retirement
20     System shall pay to the alternate payee $...... per month,
21     beginning (if the benefit is already being paid, either
22     immediately or on a specified later date; otherwise, on the
23     date the retirement benefit commences), and ending upon the
24     termination of the retirement benefit or the death of the
25     alternate payee, whichever occurs first.
26         (ii) Of any member's refund that becomes payable, the
27     Retirement System shall pay to the alternate payee $......
28     when the member's refund becomes payable.
29     (4) In accordance with subsection (j) of Section 1-119 of
30 the Illinois Pension Code, so long as this QILDRO is in effect,
31 the member may not elect a form of payment of the retirement
32 benefit that has the effect of diminishing the amount of the
33 payment to which the alternate payee is entitled, unless the
34 alternate payee has consented to the election in writing and
35 this consent has been filed with the retirement system.
36     (5) If the member began participating in the Retirement

 

 

SB1446 Enrolled - 29 - LRB094 09006 AMC 39227 b

1 System before the effective date of this Section, this Order
2 shall not take effect unless accompanied by the written consent
3 of the member as required under subsection (m) of Section 1-119
4 of the Illinois Pension Code.
5     (6) The Court retains jurisdiction to modify this Order.
 
6     DATED:.......................
 
7     SIGNED:......................
 
8     (o) (1) A court in Illinois that has issued a QILDRO shall
9 retain jurisdiction of all issues relating to the modification
10 of the QILDRO as indicated in Section XII of the QILDRO and in
11 accordance with Illinois law. A court in Illinois that has
12 issued a QILDRO Calculation Court Order shall retain
13 jurisdiction of all issues relating to the modification of the
14 QILDRO Calculation Court Order as indicated in Section 5 of the
15 QILDRO Calculation Court Order and in accordance with Illinois
16 law.
17     (2) The Administrative Review Law and the rules adopted
18 pursuant thereto shall govern and apply to all proceedings for
19 judicial review of final administrative decisions of the board
20 of trustees of the retirement system arising under this
21 Section.
22     (2) The term "administrative decision" is defined as in
23 Section 3-101 of the Code of Civil Procedure. The venue for
24 review under the Administrative Review Law shall be the same as
25 is provided by law for judicial review of other administrative
26 decisions of the retirement system.
27     (p) (1) Each retirement system may adopt any procedures or
28 rules that it deems necessary or useful for the implementation
29 of this Section.
30     (2) Each retirement system may by rule modify the model
31 QILDRO form provided in subsection (n), except that no
32 retirement system may change that form in a way that limits the
33 choices provided to the alternate payee in subsections (n) or

 

 

SB1446 Enrolled - 30 - LRB094 09006 AMC 39227 b

1 (n-5). Each retirement system may by rule or require that
2 additional information be included in QILDROs presented to the
3 system, as may be necessary to meet the needs of the retirement
4 system.
5     (3) Each retirement system shall define its blank model
6 QILDRO form and blank model QILDRO Calculation Court Order form
7 as an original of the forms or a paper copy of the forms. Each
8 retirement system shall, whenever possible, make the forms
9 available on the internet in non-modifiable computer format
10 (for example, Adobe Portable Document Format files) for
11 printing purposes.
12     (4) If a retirement system in good faith implements an
13 order under this Section that follows substantially the same
14 form as the model order and the retirement system later
15 discovers that the implemented order was not absolutely
16 identical to the retirement system's model order, the
17 retirement system's implementation shall not be a violation of
18 this Section and the retirement system shall have no
19 responsibility to compensate the member or the alternate payee
20 for moneys that would have been paid or not paid had the order
21 been identical to the model order.
22 (Source: P.A. 93-347, eff. 7-24-03.)
 
23     Section 99. Effective date. This Act takes effect on July
24 1, 2006.