99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1225

 

Introduced 2/11/2015, by Sen. Heather A. Steans

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/611  from Ch. 48, par. 441

    Amends the Unemployment Insurance Act. Provides that none of the amount received by an individual as primary social security old age and disability retirement benefits shall constitute disqualifying income.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Section 611 as follows:
 
6    (820 ILCS 405/611)  (from Ch. 48, par. 441)
7    Sec. 611. Retirement pay. A. For the purposes of this
8Section "disqualifying income" means:
9    1. The entire amount which an individual has received or
10will receive with respect to a week in the form of a retirement
11payment (a) from an individual or organization (i) for which he
12performed services during his base period or which is liable
13for benefit charges or payments in lieu of contributions as a
14result of the payment of benefits to such individual and (ii)
15which pays all of the cost of such retirement payment, or (b)
16from a trust, annuity or insurance fund or under an annuity or
17insurance contract, to or under which an individual or
18organization for which he performed services during his base
19period or which is liable for benefit charges or payments in
20lieu of contributions as a result of the payment of benefits to
21such individual pays or has paid all of the premiums or
22contributions; and
23    2. One-half the amount which an individual has received or

 

 

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1will receive with respect to a week in the form of a retirement
2payment (a) from an individual or organization (i) for which he
3performed services during his base period or which is liable
4for benefit charges or payments in lieu of contributions as a
5result of the payment of benefits to such individual and (ii)
6which pays some, but not all, of the cost of such retirement
7payment, or (b) from a trust, annuity or insurance fund
8(including primary social security old age and disability
9retirement benefits, including those based on self-employment)
10or under an annuity or insurance contract, to or under which an
11individual or organization for which he performed services
12during his base period or which is liable for benefit charges
13or payments in lieu of contributions as a result of the payment
14of benefits to such individual pays or has paid some, but not
15all, of the premiums or contributions.
16    3. Notwithstanding paragraphs paragraph 1 and 2 above, the
17entire amount which an individual has received or will receive,
18with respect to any week which begins after March 31, 1980, of
19any governmental or other pension, retirement, or retired pay,
20annuity or any other similar periodic payment which is based on
21any previous work of such individual during his base period or
22which is liable for benefit charges or payments in lieu of
23contributions as a result of the payment of benefits to such
24individual. This paragraph shall be in effect only if it is
25required as a condition for full tax credit against the tax
26imposed by the Federal Unemployment Tax Act.

 

 

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1    4. Notwithstanding paragraphs 1, 2, and 3 above, none of
2the amount that an individual has received or will receive with
3respect to a week in the form of social security old age,
4survivors, and disability benefits under 42 U.S.C. Section 401
5et seq., including those based on self-employment, shall
6constitute disqualifying income.
7    B. Whenever an individual has received or will receive a
8retirement payment for a month, an amount shall be deemed to
9have been paid him for each day equal to one-thirtieth of such
10retirement payment. If the retirement payment is for a
11half-month, an amount shall be deemed to have been paid the
12individual for each day equal to one-fifteenth of such
13retirement payment. If the retirement payment is for any other
14period, an amount shall be deemed to have been paid the
15individual for each day in such period equal to the retirement
16payment divided by the number of days in the period.
17    C. An individual shall be ineligible for benefits for any
18week with respect to which his disqualifying income equals or
19exceeds his weekly benefit amount. If such disqualifying income
20with respect to a week totals less than the benefits for which
21he would otherwise be eligible under this Act, he shall be
22paid, with respect to such week, benefits reduced by the amount
23of such disqualifying income.
24    D. To assure full tax credit to the employers of this State
25against the tax imposed by the Federal Unemployment Tax Act,
26the Director shall take any action as may be necessary in the

 

 

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1administration of paragraph 3 of subsection A of this Section
2to insure that the application of its provisions conform to the
3requirements of such Federal Act as interpreted by the United
4States Secretary of Labor or other appropriate Federal agency.
5(Source: P.A. 86-3.)