093_SB0489

 
                                     LRB093 05073 LRD 05133 b

 1        AN ACT concerning unemployment insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Unemployment Insurance Act is amended  by
 5    changing 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
 8    Section "disqualifying income" means:
 9        1.  The entire amount which an individual has received or
10    will receive with  respect  to  a  week  in  the  form  of  a
11    retirement payment (a) from an individual or organization (i)
12    for  which  he  performed  services during his base period or
13    which is liable for benefit charges or payments  in  lieu  of
14    contributions  as a result of the payment of benefits to such
15    individual and (ii) which  pays  all  of  the  cost  of  such
16    retirement payment, or (b) from a trust, annuity or insurance
17    fund  or  under an annuity or insurance contract, to or under
18    which an individual or organization for  which  he  performed
19    services  during  his  base  period  or  which  is liable for
20    benefit charges or payments in lieu  of  contributions  as  a
21    result  of the payment of benefits to such individual pays or
22    has paid all of the premiums or contributions; and
23        2.  One-half the amount which an individual has  received
24    or  will  receive  with  respect  to  a week in the form of a
25    retirement payment (a) from an individual or organization (i)
26    for which he performed services during  his  base  period  or
27    which  is  liable  for benefit charges or payments in lieu of
28    contributions as a result of the payment of benefits to  such
29    individual and (ii) which pays some, but not all, of the cost
30    of  such  retirement payment, or (b) from a trust, annuity or
31    insurance fund (including primary social security old age and
 
                            -2-      LRB093 05073 LRD 05133 b
 1    disability retirement  benefits,  including  those  based  on
 2    self-employment)  or  under an annuity or insurance contract,
 3    to or under which an individual or organization for which  he
 4    performed  services during his base period or which is liable
 5    for benefit charges or payments in lieu of contributions as a
 6    result of the payment of benefits to such individual pays  or
 7    has paid some, but not all, of the premiums or contributions.
 8        2.1.  Notwithstanding  paragraphs  1 and 2 above, because
 9    the individual contributed to the cost of the benefits,  none
10    of  the  amount  which  an  individual  has  received or will
11    receive with respect to a week in the form of primary  social
12    security   old   age   and  disability  retirement  benefits,
13    including those based on  self-employment,  shall  constitute
14    disqualifying income.
15        3.  Notwithstanding  paragraphs  paragraph 1, 2 and 2.1 2
16    above, the entire amount which an individual has received  or
17    will  receive,  with  respect  to any week which begins after
18    March  31,  1980,  of  any  governmental  or  other  pension,
19    retirement, or retired pay,  annuity  or  any  other  similar
20    periodic  payment which is based on any previous work of such
21    individual during his base period  or  which  is  liable  for
22    benefit  charges  or  payments  in lieu of contributions as a
23    result of the payment of benefits to  such  individual.  This
24    paragraph  shall  be  in  effect  only if it is required as a
25    condition for full tax credit against the tax imposed by  the
26    Federal Unemployment Tax Act.
27        B.  Whenever an individual has received or will receive a
28    retirement  payment for a month, an amount shall be deemed to
29    have been paid him for each day  equal  to  one-thirtieth  of
30    such  retirement  payment. If the retirement payment is for a
31    half-month, an amount shall be deemed to have been  paid  the
32    individual  for  each  day  equal  to  one-fifteenth  of such
33    retirement payment. If the  retirement  payment  is  for  any
34    other period, an amount shall be deemed to have been paid the
 
                            -3-      LRB093 05073 LRD 05133 b
 1    individual   for  each  day  in  such  period  equal  to  the
 2    retirement payment divided by  the  number  of  days  in  the
 3    period.
 4        C.  An  individual  shall  be ineligible for benefits for
 5    any week with  respect  to  which  his  disqualifying  income
 6    equals   or  exceeds  his  weekly  benefit  amount.  If  such
 7    disqualifying income with respect to a week totals less  than
 8    the  benefits  for which he would otherwise be eligible under
 9    this Act, he shall  be  paid,  with  respect  to  such  week,
10    benefits reduced by the amount of such disqualifying income.
11        D.  To  assure  full  tax credit to the employers of this
12    State against the tax imposed by the Federal Unemployment Tax
13    Act, the Director shall take any action as may  be  necessary
14    in  the administration of paragraph 3 of subsection A of this
15    Section to insure that  the  application  of  its  provisions
16    conform   to   the   requirements  of  such  Federal  Act  as
17    interpreted by the United States Secretary of Labor or  other
18    appropriate Federal agency.
19    (Source: P.A. 86-3.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.