Judiciary I - Civil Law Committee

Adopted in House Comm. on May 24, 2005

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1446

2     AMENDMENT NO. ______. Amend Senate Bill 1446 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Pension Code is amended by
5 changing 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

 

 

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1     has service credits in a retirement system, including a
2     person who is receiving or is eligible to receive a
3     retirement or disability benefit, without regard to
4     whether the person has withdrawn from service.
5         (5) "Member's refund" means a return of all or a
6     portion of a member's contributions that is elected by the
7     member (or provided by operation of law) and is payable
8     before the member's death.
9         (5.5) "Permissive service" means service credit
10     purchased by the member, unused vacation, and unused sick
11     leave that the retirement system includes by statute in a
12     member's benefit calculations.
13         (6) "Qualified Illinois Domestic Relations Order" or
14     "QILDRO" means an Illinois court order that creates or
15     recognizes the existence of an alternate payee's right to
16     receive all or a portion of a member's accrued benefits in
17     a retirement system, is issued pursuant to this Section and
18     Section 503(b)(2) of the Illinois Marriage and Dissolution
19     of Marriage Act, and meets the requirements of this
20     Section. A QILDRO is not the same as a qualified domestic
21     relations order or QDRO issued pursuant to Section 414(p)
22     of the Internal Revenue Code of 1986. The requirements of
23     paragraphs (2) and (3) of that Section do not apply to
24     orders issued under this Section and shall not be deemed a
25     guide to the interpretation of this Section; a QILDRO is
26     intended to be a domestic relations order within the
27     meaning of paragraph (11) of that Section.
28         (7) "Regular payee" means the person to whom a benefit
29     would be payable in the absence of an effective QILDRO.
30         (7.5) "Regular service" means service credit earned by
31     the member, including a repayment of a refund for regular
32     service that the retirement system includes by statute in a
33     member's benefit calculations. "Regular service" does not
34     include service credit purchased by the member, unused

 

 

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1     vacation, or unused sick leave.
2         (8) "Retirement benefit" means any periodic or
3     nonperiodic benefit payable to a retired member based on
4     age or service, or on the amounts accumulated to the credit
5     of the member for retirement purposes, including any
6     periodic or nonperiodic increases in the benefit, whether
7     or not the benefit is so called under the applicable
8     Article of this Code.
9         (9) "Retirement system" or "system" means any
10     retirement system, pension fund, or other public employee
11     retirement benefit plan that is maintained or established
12     under any of Articles 2 through 18 of this Code.
13         (10) "Surviving spouse" means the spouse of a member at
14     the time of the member's death.
15         (11) "Survivor's benefit" means any periodic benefit
16     payable to a surviving spouse, child, parent, or other
17     survivor of a deceased member, including any periodic or
18     nonperiodic increases in the benefit or nonperiodic
19     payment included with the benefit, whether or not the
20     benefit is so called under the applicable Article of this
21     Code.
22     (b) (1) An Illinois court of competent jurisdiction in a
23 proceeding for declaration of invalidity of marriage, legal
24 separation, or dissolution of marriage that provides for
25 support or the distribution of property, or any proceeding to
26 amend or enforce such support or a property distribution, may
27 order that all or any part of any (i) member's retirement
28 benefit, or (ii) member's refund payable to or on behalf of the
29 member, or (iii) death benefit, or portion thereof, that would
30 otherwise be payable to the member's death benefit
31 beneficiaries or estate be instead paid by the retirement
32 system to the a designated alternate payee.
33     (2) An order issued under this Section provides only for
34 the diversion to an alternate payee of certain benefits

 

 

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1 otherwise payable by the retirement system under the provisions
2 of this Code. The existence of a QILDRO shall not cause the
3 retirement system to pay any benefit, or any amount of benefit,
4 to an alternate payee that would not have been payable by the
5 system to a regular payee in the absence of the QILDRO.
6     (3) A QILDRO shall not affect the vesting, accrual, or
7 amount of any benefit, nor the date or conditions upon which
8 any benefit becomes payable, nor the right of the member or the
9 member's survivors to make any election otherwise authorized
10 under this Code, except as provided in subsections (i) and (j).
11     (4) A QILDRO shall not apply to or affect the payment of
12 any survivor's benefit, death benefit, disability benefit,
13 life insurance benefit, or health insurance benefit.
14     (c) (1) A QILDRO must contain the name, mailing residence
15 address, and social security number of the member and of the
16 alternate payee and must identify the retirement system to
17 which it is directed and the court issuing the order.
18     (2) A QILDRO must specify each benefit to which it applies,
19 and it must specify the amount of the benefit to be paid to the
20 alternate payee. In the case of a non-periodic benefit, this
21 amount must be specified as a dollar amount or as a percentage
22 as specifically provided in subsection (n). In the case of a
23 periodic benefit, this amount must be specified as a dollar
24 amount per month or as a percentage per month as specifically
25 provided in subsection (n) , which in the case of a nonperiodic
26 benefit shall be expressed as a dollar amount (except that a
27 nonperiodic benefit payable to an alternate payee of a
28 participant in the self-managed plan authorized under Article
29 15 of this Code may be expressed as a dollar amount or as a
30 percentage of the participant's account), and in the case of a
31 periodic benefit shall be expressed as a dollar amount per
32 month.
33     (3) With respect to each benefit to which it applies, a
34 QILDRO must specify when the order will take effect. In the

 

 

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1 case of a lump sum benefit payable to an alternate payee of a
2 participant in the self-managed plan authorized under Article
3 15 of this Code, the benefit shall be paid upon the proper
4 request of the alternate payee. In the case of a periodic
5 benefit that is being paid at the time the order is received, a
6 QILDRO shall take effect immediately or on a specified later
7 date; if it takes effect immediately, it shall become effective
8 on the first benefit payment date occurring at least 30 days
9 after the order is received by the retirement system. In the
10 case of any other benefit, a QILDRO shall take effect when the
11 benefit becomes payable, unless some later date is specified
12 pursuant to subsection (n). except that a lump-sum benefit
13 payable to an alternate payee of a participant in the
14 self-managed plan authorized under Article 15 of this Code may
15 be paid upon the request of the alternate payee. However, in no
16 event shall a QILDRO apply to any benefit paid by the
17 retirement system before or within 30 days after the order is
18 received. A retirement system may adopt rules to prorate the
19 amount of the first and final periodic payments to an alternate
20 payee.
21     (4) A QILDRO must also contain any provisions required
22 under subsection (n) or (p).
23     (5) If a QILDRO indicates that the alternate payee is to
24 receive a percentage of any retirement system benefit, the
25 calculations required shall be performed by the member, the
26 alternate payee, their designated representatives or their
27 designated experts. The results of said calculations shall be
28 provided to the retirement system via a QILDRO Calculation
29 Court Order issued by an Illinois court of competent
30 jurisdiction in a proceeding for declaration of invalidity of
31 marriage, legal separation, or dissolution of marriage. The
32 QILDRO Calculation Court Order shall follow the form provided
33 in subsection (n-5). The retirement system shall have no duty
34 or obligation to assist in such calculations or in completion

 

 

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1 of the QILDRO Calculation Court Order, other than to provide
2 the information required to be provided pursuant to subsection
3 (h).
4     (6) Within 45 days after the receipt of a QILDRO
5 Calculation Court Order, the retirement system shall notify the
6 member and the alternate payee (or one designated
7 representative of each) of the receipt of the Order. If a valid
8 QILDRO underlying the QILDRO Calculation Court Order has not
9 been filed with the retirement system, or if the QILDRO
10 Calculation Court Order does not clearly indicate the amount
11 the retirement system is to pay to the alternate payee, then
12 the retirement system shall at the same time notify the member
13 and the alternate payee (or one designated representative of
14 each) of the situation. Unless a valid QILDRO has not been
15 filed with the retirement system, or the QILDRO Calculation
16 Court Order does not clearly indicate the amount the retirement
17 system is to pay the alternate payee, the retirement system
18 shall implement the QILDRO based on the QILDRO Calculation
19 Court Order as soon as administratively possible once benefits
20 are payable. The retirement system shall have no obligation to
21 make any determination as to whether the calculations in the
22 QILDRO Calculation Court Order are accurate or whether the
23 calculations are in accordance with the parties' QILDRO,
24 agreement, or judgment. The retirement system shall not reject
25 a QILDRO Calculation Court Order because the calculations are
26 not accurate or not in accordance with the parties' QILDRO,
27 agreement, or judgment. The retirement system shall have no
28 responsibility for the consequences of its implementation of a
29 QILDRO Calculation Court Order that is inaccurate or not in
30 accordance with the parties' QILDRO, agreement, or judgment.
31     (d) (1) An order issued under this Section shall not be
32 implemented unless a certified copy of the order has been filed
33 with the retirement system. The system shall promptly notify
34 the member and the alternate payee by first class mail of its

 

 

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1 receipt of the order.
2     (2) Neither the retirement system, nor its board, nor any
3 of its employees shall be liable to the member, the regular
4 payee, or any other person for any amount of a benefit that is
5 paid in good faith to an alternate payee in accordance with a
6 QILDRO.
7     (3) Each new or modified QILDRO or QILDRO Calculation Court
8 Order that At the time the order is submitted to the retirement
9 system, it shall be accompanied by a nonrefundable $50
10 processing fee payable to the retirement system, to be used by
11 the system to defer any administrative costs arising out of the
12 implementation of the order QILDRO.
13     (e) (1) Each alternate payee is responsible for maintaining
14 a current mailing residence address on file with the retirement
15 system. The retirement system shall have no duty to attempt to
16 locate any alternate payee by any means other than sending
17 written notice to the last known address of the alternate payee
18 on file with the system.
19     (2) In the event that the system cannot locate an alternate
20 payee when a benefit becomes payable, the system shall hold the
21 amount of the benefit payable to the alternate payee and make
22 payment to the alternate payee if he or she is located within
23 the following 180 days. If the alternate payee has not been
24 located within 180 days from the date the benefit becomes
25 payable, the system shall pay the benefit and the amounts held
26 to the regular payee. If the alternate payee is subsequently
27 located, the system shall thereupon implement the QILDRO, but
28 the interest of the alternate payee in any amounts already paid
29 to the regular payee shall be extinguished. Amounts held under
30 this subsection shall not bear interest.
31     (f) (1) If the amount of a benefit that is specified in a
32 QILDRO or QILDRO Calculation Court Order for payment to an
33 alternate payee exceeds the actual amount of that benefit
34 payable by the retirement system, the excess shall be

 

 

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1 disregarded. The retirement system shall have no liability to
2 any alternate payee or any other person for the disregarded
3 amounts.
4     (2) In the event of multiple QILDROs against a member, the
5 retirement system shall honor all of the QILDROs to the extent
6 possible. However, if the total amount of a benefit to be paid
7 to alternate payees under all QILDROs in effect against the
8 member exceeds the actual amount of that benefit payable by the
9 system, the QILDROs shall be satisfied in the order of their
10 receipt by the system until the amount of the benefit is
11 exhausted, and shall not be adjusted pro rata. Any amounts that
12 cannot be paid due to exhaustion of the benefit shall remain
13 unpaid, and the retirement system shall have no liability to
14 any alternate payee or any other person for such amounts.
15     (3) A modification of a QILDRO shall be filed with the
16 retirement system in the same manner as a new QILDRO. A
17 modification that does not increase the amount of any benefit
18 payable to the alternate payee, as that amount was designated
19 in the QILDRO, and does not expand the QILDRO to affect any
20 benefit not affected by the unmodified QILDRO, does not affect
21 the priority of payment under subdivision (f)(2); the priority
22 of payment of a QILDRO that has been modified to increase the
23 amount of any benefit payable to the alternate payee, or to
24 expand the QILDRO to affect a benefit not affected by the
25 unmodified QILDRO, shall be based on the date on which the
26 system receives the modification of the QILDRO.
27     (4) A modification of a QILDRO Calculation Court Order
28 shall be filed with the retirement system in the same manner as
29 a new QILDRO Calculation Court Order.
30     (g) (1) Upon the death of the alternate payee under a
31 QILDRO, the QILDRO shall expire and cease to be effective, and
32 in the absence of another QILDRO, the right to receive any
33 affected benefit shall revert to the regular payee.
34     (2) All QILDROs relating to a member's participation in a

 

 

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1 particular retirement system shall expire and cease to be
2 effective upon the issuance of a member's refund that
3 terminates the member's participation in that retirement
4 system, without regard to whether the refund was paid to the
5 member or to an alternate payee under a QILDRO. An expired
6 QILDRO shall not be automatically revived by any subsequent
7 return by the member to service under that retirement system.
8     (h) (1) Within 45 days after receiving a subpoena from any
9 party to a proceeding for declaration of invalidity of
10 marriage, legal separation, or dissolution of marriage in which
11 a QILDRO may be issued, or after receiving a request from the
12 member, a retirement system shall provide in response issue a
13 statement of a member's accumulated contributions, accrued
14 benefits, and other interests in the plan administered by the
15 retirement system based on the data on file with the system on
16 the date the subpoena is received. If so requested in the
17 subpoena, the retirement system shall also provide in response
18 general retirement plan information available to a member , and
19 of any relevant procedures, rules, or modifications to the
20 model QILDRO form that have been adopted by the retirement
21 system.
22     (1.5) If a QILDRO provides for the alternate payee to
23 receive a percentage of a retirement benefit (as opposed to
24 providing for the alternate payee to receive specified dollar
25 amounts of a retirement benefit), then the retirement system
26 shall provide the applicable information to the member and to
27 the alternate payee, or to one designated representative of
28 each (e.g., the member's attorney and the alternate payee's
29 attorney) as indicated below:
30         (A) If the member is a participant in the self-managed
31     plan authorized under Article 15 of this Code and the
32     QILDRO provides that the only benefit the alternate payee
33     is to receive is a percentage of a lump sum benefit as of a
34     specific date that has already past, then, within 30 days

 

 

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1     after the retirement system receives the QILDRO, the
2     retirement system shall provide the lump sum amount to
3     which the QILDRO percentage is to be applied.
4         (B) For all situations except that situation described
5     in item (A), if the retirement system receives the QILDRO
6     before the member's effective date of retirement, then,
7     within 45 days after the retirement system receives the
8     QILDRO, the retirement system shall provide all of the
9     following information:
10             (i) The date of the member's initial membership in
11         the retirement system, expressed as month, day, and
12         year, if available, or the most exact date that is
13         available to the retirement system.
14             (ii) The amount of permissive and regular service
15         the member accumulated in the retirement system from
16         the time of initial membership through the most recent
17         date available prior to the retirement system
18         receiving the QILDRO (the dates used by the retirement
19         system shall also be provided). Service amounts shall
20         be expressed using the most exact time increments
21         available to the retirement system (e.g., months or
22         fractions of years).
23             (iii) The gross amount of the member's non-reduced
24         monthly annuity benefit earned, calculated as of the
25         most recent date available prior to the retirement
26         system receiving the QILDRO, the date used by the
27         retirement system, and the earliest date the member may
28         be eligible to commence the benefit. This amount shall
29         include any permissive service and upgrades purchased
30         by the member, and those amounts shall be noted
31         separately.
32             (iv) The gross amount of the member's refund or
33         partial refund, including any interest payable on
34         those amounts, calculated as of the most recent date

 

 

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1         available prior to the retirement system receiving the
2         QILDRO (the date used by the retirement system shall
3         also be provided).
4             (v) The gross amount of the death benefits that
5         would be payable to the member's death benefit
6         beneficiaries or estate, assuming the member died on
7         the date or a date as close as possible to the date the
8         QILDRO was received by the retirement system,
9         including any interest payable on the amounts,
10         calculated as of the most recent date available prior
11         to the retirement system receiving the QILDRO (the date
12         used by the retirement system shall also be provided).
13             (vi) Whether the member has notified the
14         retirement system of the date the member intends to
15         retire, and if so, that date.
16             (vii) If the member has provided a date that he or
17         she intends to retire, the date, if available, that the
18         retirement system reasonably believes will be the
19         member's effective date of retirement.
20         (C) For all situations except that situation described
21     in item (A), if the retirement system receives the QILDRO
22     after the effective date of retirement, then, within 45
23     days after the retirement system receives the QILDRO, or,
24     if the retirement system receives the QILDRO before the
25     member's effective date of retirement, then as soon as
26     administratively possible before or after the member's
27     effective date of retirement (but not later than 45 days
28     after the member's effective date of retirement), the
29     retirement system shall provide all of the following
30     information:
31             (i) The member's effective date of retirement.
32             (ii) The date the member commenced benefits or, if
33         not yet commenced, the date the retirement system has
34         scheduled the member's benefits to commence.

 

 

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1             (iii) The amount of permissive and regular service
2         the member accumulated in the retirement system from
3         the time of initial membership through the member's
4         effective date of retirement. Service amounts shall be
5         expressed using the most exact time increments
6         available to the retirement system (e.g., months or
7         fractions of years).
8             (iv) The gross amount of the member's monthly
9         annuity benefit, calculated as of the member's
10         effective date of retirement. This amount shall
11         include any permissive service and upgrades purchased
12         by the member, and those amounts shall be noted
13         separately.
14             (v) The gross amount of the member's refund or
15         partial refund, including any interest payable on
16         those amounts, calculated as of the member's effective
17         date of retirement.
18             (vi) The gross amount of death benefits that would
19         be payable to the member's death benefit beneficiaries
20         or estate, assuming the member died on the member's
21         effective date of retirement, including any interest
22         payable on those amounts.
23         (D) If, and only if, the alternate payee is entitled to
24     benefits under Section VII of the QILDRO, then, within 45
25     days after the retirement system receives notice of the
26     member's death, the retirement system shall provide the
27     gross amount of death benefits payable, including any
28     interest payable on those amounts, calculated as of the
29     member's date of death.
30     (2) In no event shall the retirement system be required to
31 furnish to any person an actuarial opinion as to the present
32 value of the member's benefits or other interests.
33     (3) The papers, entries, and records, or parts thereof, of
34 any retirement system may be proved by a copy thereof,

 

 

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1 certified under the signature of the secretary of the system or
2 other duly appointed keeper of the records of the system and
3 the corporate seal, if any.
4     (i) In a retirement system in which a member or beneficiary
5 is required to apply to the system for payment of a benefit,
6 the required application may be made by an alternate payee who
7 is entitled to all of a termination refund or retirement
8 benefit or part of a death benefit that is payable that benefit
9 under a QILDRO, provided that all other qualifications and
10 requirements have been met. However, the alternate payee may
11 not make the required application for death benefits while the
12 member is alive or for a member's refund or a retirement
13 benefit if the member is in active service or below the minimum
14 age for receiving an undiscounted retirement annuity in the
15 retirement system that has received the QILDRO or in any other
16 retirement system in which the member has regular or permissive
17 creditable service and in which the member's rights under the
18 Retirement Systems Reciprocal Act would be affected as a result
19 of the alternate payee's application for a member's refund or
20 retirement benefit.
21     (j) (1) So long as there is in effect a QILDRO relating to
22 a member's retirement benefit, the affected member may not
23 elect a form of payment that has the effect of diminishing the
24 amount of the payment to which any alternate payee is entitled,
25 unless the alternate payee has consented to the election in a
26 writing that includes the alternate payee's notarized
27 signature, and this written and notarized consent has been
28 filed with the retirement system.
29     (2) If a member attempts to make an election prohibited
30 under subdivision (j)(1), the retirement system shall reject
31 the election and advise the member of the need to obtain the
32 alternate payee's consent.
33     (3) If a retirement system discovers that it has mistakenly
34 allowed an election prohibited under subdivision (j)(1), it

 

 

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1 shall thereupon disallow that election and recalculate any
2 benefits affected thereby. If the system determines that an
3 amount paid to a regular payee should have been paid to an
4 alternate payee, the system shall, if possible, recoup the
5 amounts as provided in subsection (k) of this Section.
6     (k) In the event that a regular payee or an alternate payee
7 is overpaid, the retirement system shall have the authority to
8 and shall recoup the amounts by deducting the overpayment from
9 future payments and making payment to the other payee. The
10 system may make deductions for recoupment over a period of time
11 in the same manner as is provided by law or rule for the
12 recoupment of other amounts incorrectly disbursed by the system
13 in instances not involving a QILDRO. The retirement system
14 shall incur no liability to either the alternate payee or the
15 regular payee as a result of any payment made in good faith,
16 regardless of whether the system is able to accomplish
17 recoupment.
18     (l) (1) A retirement system that has, before the effective
19 date of this Section, received and implemented a domestic
20 relations order that directs payment of a benefit to a person
21 other than the regular payee may continue to implement that
22 order, and shall not be liable to the regular payee for any
23 amounts paid in good faith to that other person in accordance
24 with the order.
25     (2) A domestic relations order directing payment of a
26 benefit to a person other than the regular payee that was
27 issued by a court but not implemented by a retirement system
28 prior to the effective date of this Section shall be void.
29 However, a person who is the beneficiary or alternate payee of
30 a domestic relations order that is rendered void under this
31 subsection may petition the court that issued the order for an
32 amended order that complies with this Section.
33     (3) A retirement system that received a valid QILDRO before
34 the effective date of this amendatory Act of the 94th General

 

 

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

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

 

 

09400SB1446ham001 - 16 - LRB094 09006 AMC 45893 a

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

 

 

09400SB1446ham001 - 17 - LRB094 09006 AMC 45893 a

1 reference and made a part of this Order.
2     II. Identification of Retirement System and parties:
 
3 Retirement System:              ............................
4                                 (Name)
5
6
............................
  
7                                 (Address)
 
8 Member:                         ............................
9                                 (Name)
10
11
............................
  
12                                 (Mailing Address)
13
14
............................
  
15                                 (Social Security Number)
 
16 Alternate payee:                ............................
17                                 (Name)
18
19
............................
  
20                                 (Mailing Address)
21
22
............................
  
23                                 (Social Security Number)
 
24 The alternate payee is the member's .... current or former
25 spouse/ .... child or other dependent [check one].
 
26     III. The Retirement System shall pay the indicated amounts
27 of the member's retirement benefits to the alternate payee

 

 

09400SB1446ham001 - 18 - LRB094 09006 AMC 45893 a

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

 

 

09400SB1446ham001 - 19 - LRB094 09006 AMC 45893 a

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

 

 

09400SB1446ham001 - 20 - LRB094 09006 AMC 45893 a

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

 

 

09400SB1446ham001 - 21 - LRB094 09006 AMC 45893 a

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

 

 

09400SB1446ham001 - 22 - LRB094 09006 AMC 45893 a

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

 

 

09400SB1446ham001 - 23 - LRB094 09006 AMC 45893 a

1                 (iv) the death benefit payable to the member's
2             death benefit beneficiaries or estate, including
3             any payable interest (Section VII(A)) calculated
4             as of the time said benefit becomes payable to the
5             member's beneficiary;
6         whichever are applicable pursuant to Section III, V,
7         VI, or VII of this Order. These gross amounts shall be
8         provided by the Retirement System pursuant to Section
9         1-119 of the Illinois Pension Code (40 ILCS 5/1-119).
10             "D" equals the percentage noted in Section
11         III(A)(2), V(A)(2), VI(A)(2), or VII(A)(2), whichever
12         are applicable.
13         (2) The alternate payee's benefit under this Section IX
14     shall be paid in accordance with all Sections of this Order
15     that apply.
16     X. In accordance with subsection (j) of Section 1-119 of
17 the Illinois Pension Code (40 ILCS 5/1-119), so long as this
18 QILDRO is in effect, the member may not elect a form of payment
19 of the retirement benefit that has the effect of diminishing
20 the amount of the payment to which the alternate payee is
21 entitled, unless the alternate payee has consented to the
22 election in writing, the consent has been notarized, and the
23 consent has been filed with the Retirement System.
24     XI. If the member began participating in the Retirement
25 System before July 1, 1999, this Order shall not take effect
26 unless accompanied by the written consent of the member as
27 required under subsection (m) of Section 1-119 of the Illinois
28 Pension Code (40 ILCS 5/1-119).
29     XII. The Court retains jurisdiction over this matter for
30 all of the following purposes:
31         (1) To establish or maintain this Order as a Qualified
32     Illinois Domestic Relations Order.
33         (2) To enter amended QILDROs and QILDRO Calculation
34     Court Orders to conform to the parties' Marital Settlement

 

 

09400SB1446ham001 - 24 - LRB094 09006 AMC 45893 a

1     Agreement or Agreement for Legal Separation ("Agreement"),
2     to the parties' Judgment for Dissolution of Marriage or
3     Judgment for Legal Separation ("Judgment"), to any
4     modifications of the parties' Agreement or Judgment, or to
5     any supplemental orders entered to clarify the parties'
6     Agreement or Judgment.
7         (3) To enter supplemental orders to clarify the intent
8     of the parties or the Court regarding the benefits
9     allocated herein in accordance with the parties' Agreement
10     or Judgment, with any modifications of the parties'
11     Agreement or Judgment, or with any supplemental orders
12     entered to clarify the parties' Agreement or Judgment. A
13     supplemental order may not require the Retirement System to
14     take any action not permitted under Illinois law or the
15     Retirement System's administrative rules. To the extent
16     that the supplemental order does not conform to Illinois
17     law or administrative rule, it shall not be binding upon
18     the Retirement System.
 
19     DATED: ......................
 
20     SIGNED: .....................
21             [Judge's Signature]
 
22     (n-5) A QILDRO Calculation Court Order issued under this
23 Section shall be in substantially the following form:
 
24
QILDRO Calculation Court Order

 
25 ...................................
26 [Enter case caption here]
27 ...................................
28 [Enter Retirement System name here]
 

 

 

09400SB1446ham001 - 25 - LRB094 09006 AMC 45893 a

1     THIS CAUSE coming before the Court for the purpose of the
2 entry of a QILDRO Calculation Court Order under the provisions
3 of Section 1-119 of the Illinois Pension Code (40 ILCS
4 5/1-119), the Court having jurisdiction over the parties and
5 the subject matter hereof; the Court finding that a QILDRO has
6 previously been entered in this matter, that the QILDRO has
7 been received and accepted by the Retirement System, and that
8 the QILDRO requires percentage calculations to allocate the
9 alternate payee's share of the member's benefit or refund, the
10 Court not having found that the QILDRO has become void or
11 invalid, and the Court being fully advised;
 
12     IT IS HEREBY ORDERED AS FOLLOWS:
13     (1) The definitions and other provisions of Section 1-119
14 of the Illinois Pension Code [40 ILCS 5/1-119] are adopted by
15 reference and made a part of this Order.
16     (2) Identification of Retirement System and parties:
 
17 Retirement System:              ............................
18                                 (Name)
19
20
............................
  
21                                 (Address)
 
22 Member:                         ............................
23                                 (Name)
24
25
............................
  
26                                 (Mailing Address)
27
28
............................
  
29                                 (Social Security Number)
 

 

 

09400SB1446ham001 - 26 - LRB094 09006 AMC 45893 a

1 Alternate payee:                ............................
2                                 (Name)
3
4
............................
  
5                                 (Mailing Address)
6
7
............................
  
8                                 (Social Security Number)
 
9 The Alternate payee is the member's .... current or former
10 spouse/ .... child or other dependent [check one].
 
11     (3) The following shall apply if and only if the QILDRO
12 allocated benefits to the alternate payee in the specific
13 Section noted. The Retirement System shall pay the amounts as
14 directed below, but only if and when the benefits are payable
15 pursuant to the QILDRO and Section 1-119 of the Illinois
16 Pension Code (40 ILCS 5/1-119). Parties shall see QILDRO
17 Section IX for the definitions of A, B, C and D as used below.
18         (a) The alternate payee's benefit pursuant to QILDRO
19     Section III(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]   [Monthly Amount]
 
23         (b) The alternate payee's benefit pursuant to QILDRO
24     Section V(A)(2) shall be calculated pursuant to Section IX
25     of the QILDRO and paid as follows:
 
26 (......./.......) X ....... X .............. = ............
27 [Enter A] [Enter B] [enter C]    [Enter D]       [Amount]
 

 

 

09400SB1446ham001 - 27 - LRB094 09006 AMC 45893 a

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

 

 

09400SB1446ham001 - 28 - LRB094 09006 AMC 45893 a

1 ..................... X ............... = .................
2 [Gross benefit amount]   [Percentage]        [Amount]
 
3         (C) The alternate payee's benefit pursuant to QILDRO
4     Section VI(A)(3) shall be calculated and paid as follows:
 
5 ..................... X ............... = .................
6 [Gross benefit amount]   [Percentage]        [Amount]
 
7         (D) The alternate payee's benefit pursuant to QILDRO
8     Section VII(A)(3) shall be calculated and paid as follows:
 
9 ..................... X ............... = .................
10 [Gross benefit amount]   [Percentage]        [Amount]
 
11 The Retirement System's sole obligation with respect to the
12 equations in this paragraph (4) is to pay the amounts indicated
13 as the result of the equations. The Retirement System shall
14 have no obligation to review or verify the equations or to
15 assist in the calculations used to determine such amounts.
 
16     (5) The Court retains jurisdiction over this matter for the
17 following purposes:
18         (A) to establish or maintain this Order as a QILDRO
19     Calculation Court Order;
20         (B) to enter amended QILDROs and QILDRO Calculation
21     Court Orders to conform to the parties' QILDRO, Marital
22     Settlement Agreement or Agreement for Legal Separation
23     ("Agreement"), to the parties' Judgment for Dissolution of
24     Marriage or Judgment for Legal Separation ("Judgment"), to
25     any modifications of the parties' QILDRO, Agreement, or
26     Judgment, or to any supplemental orders entered to clarify
27     the parties' QILDRO, Agreement, or Judgment; and

 

 

09400SB1446ham001 - 29 - LRB094 09006 AMC 45893 a

1         (C) To enter supplemental orders to clarify the intent
2     of the parties or the Court regarding the benefits
3     allocated herein in accordance with the parties' Agreement
4     or Judgment, with any modifications of the parties'
5     Agreement or Judgment, or with any supplemental orders
6     entered to clarify the parties' Agreement or Judgment. A
7     supplemental order may not require the Retirement System to
8     take any action not permitted under Illinois law or the
9     Retirement System's administrative rules. To the extent
10     the supplemental order does not conform to Illinois law or
11     administrative rule, it shall not be binding upon the
12     Retirement System.
 
13     DATED: ......................
 
14     SIGNED: .....................
15             [Judge's Signature]
 
16
QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER

 
17     THIS CAUSE coming before the Court for the purpose of the
18 entry of a Qualified Illinois Domestic Relations Order under
19 the provisions of Section 1-119 of the Illinois Pension Code,
20 the Court having jurisdiction over the parties and the subject
21 matter hereof; the Court finding that one of the parties to
22 this proceeding is a member of a retirement system subject to
23 Section 1-119 of the Illinois Pension Code, this Order is
24 entered to implement a division of that party's interest in the
25 retirement system; 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 are adopted by reference and made
29 a part of this Order.
30     (2) Identification of Retirement System and parties:

 

 

09400SB1446ham001 - 30 - LRB094 09006 AMC 45893 a

1         Retirement System: (name and address)
2         Member: (name, residence address and social security
3     number)
4         Alternate payee: (name, residence address and social
5     security number)
6     (3) The Retirement System shall pay the indicated amounts
7 of the following specified benefits to the alternate payee
8 under the following terms and conditions:
9         (i) Of the member's retirement benefit, the Retirement
10     System shall pay to the alternate payee $...... per month,
11     beginning (if the benefit is already being paid, either
12     immediately or on a specified later date; otherwise, on the
13     date the retirement benefit commences), and ending upon the
14     termination of the retirement benefit or the death of the
15     alternate payee, whichever occurs first.
16         (ii) Of any member's refund that becomes payable, the
17     Retirement System shall pay to the alternate payee $......
18     when the member's refund becomes payable.
19     (4) In accordance with subsection (j) of Section 1-119 of
20 the Illinois Pension Code, so long as this QILDRO is in effect,
21 the member may not elect a form of payment of the retirement
22 benefit that has the effect of diminishing the amount of the
23 payment to which the alternate payee is entitled, unless the
24 alternate payee has consented to the election in writing and
25 this consent has been filed with the retirement system.
26     (5) If the member began participating in the Retirement
27 System before the effective date of this Section, this Order
28 shall not take effect unless accompanied by the written consent
29 of the member as required under subsection (m) of Section 1-119
30 of the Illinois Pension Code.
31     (6) The Court retains jurisdiction to modify this Order.
 
32     DATED:.......................
 

 

 

09400SB1446ham001 - 31 - LRB094 09006 AMC 45893 a

1     SIGNED:......................
 
2     (o) (1) A court in Illinois that has issued a QILDRO shall
3 retain jurisdiction of all issues relating to the modification
4 of the QILDRO as indicated in Section XII of the QILDRO and in
5 accordance with Illinois law. A court in Illinois that has
6 issued a QILDRO Calculation Court Order shall retain
7 jurisdiction of all issues relating to the modification of the
8 QILDRO Calculation Court Order as indicated in Section 5 of the
9 QILDRO Calculation Court Order and in accordance with Illinois
10 law.
11     (2) The Administrative Review Law and the rules adopted
12 pursuant thereto shall govern and apply to all proceedings for
13 judicial review of final administrative decisions of the board
14 of trustees of the retirement system arising under this
15 Section.
16     (2) The term "administrative decision" is defined as in
17 Section 3-101 of the Code of Civil Procedure. The venue for
18 review under the Administrative Review Law shall be the same as
19 is provided by law for judicial review of other administrative
20 decisions of the retirement system.
21     (p) (1) Each retirement system may adopt any procedures or
22 rules that it deems necessary or useful for the implementation
23 of this Section.
24     (2) Each retirement system may by rule modify the model
25 QILDRO form provided in subsection (n), except that no
26 retirement system may change that form in a way that limits the
27 choices provided to the alternate payee in subsections (n) or
28 (n-5). Each retirement system may by rule or require that
29 additional information be included in QILDROs presented to the
30 system, as may be necessary to meet the needs of the retirement
31 system.
32     (3) Each retirement system shall define its blank model
33 QILDRO form and blank model QILDRO Calculation Court Order form

 

 

09400SB1446ham001 - 32 - LRB094 09006 AMC 45893 a

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