Full Text of HB6021 99th General Assembly
HB6021enr 99TH GENERAL ASSEMBLY |
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| 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 | | Sections 7-154, 7-159, 15-139, 15-145, 15-154, and 16-143.2 as | 6 | | follows:
| 7 | | (40 ILCS 5/7-154) (from Ch. 108 1/2, par. 7-154)
| 8 | | Sec. 7-154. Surviving spouse annuities - Eligibility.
| 9 | | (a) A surviving spouse annuity shall be payable to the | 10 | | eligible
surviving spouse of a participating employee, an | 11 | | employee annuitant, or a
person who on the date of death would | 12 | | have been entitled to a retirement
annuity, had he applied for | 13 | | such annuity, and who dies at any time when a
surviving spouse | 14 | | annuity equals at least $5 per month, provided:
| 15 | | (1) The surviving spouse (i) was married to the
| 16 | | participating employee for at least one year on the date of
| 17 | | death, or (ii) was married to the annuitant or person | 18 | | entitled to a
retirement annuity for at least one year | 19 | | prior to the date of
termination of service, or (iii) was | 20 | | married to the deceased annuitant
for at least one year on | 21 | | the date of the deceased annuitant's death, if at
the time | 22 | | of termination of service the deceased annuitant was | 23 | | married for
at least one year to a spouse who does not |
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| 1 | | survive the deceased annuitant. (Item (iii) applies to the | 2 | | spouses of annuitants who die on or after the effective | 3 | | date of this amendatory Act of the 99th General Assembly, | 4 | | notwithstanding whether the annuitant was in service on or | 5 | | after that effective date or the effective date of Public | 6 | | Act 87-850.)
| 7 | | (2) The male deceased employee annuitant or such other
| 8 | | person entitled to a retirement annuity had contributed to | 9 | | this fund for
surviving spouse annuity purposes for at | 10 | | least 1 year or continuously since
the effective date of | 11 | | the participating municipality or participating
| 12 | | instrumentality.
| 13 | | (3) The female deceased employee annuitant or such | 14 | | other
person entitled to a retirement annuity was in | 15 | | service on or after July 27,
1972, provided that the | 16 | | annuity shall not be computed on the basis of any
| 17 | | retirement annuity effective before that date.
| 18 | | (4) If the employee dies before termination of service,
| 19 | | the employee did not exclude the spouse from any
death | 20 | | benefit or surviving spouse annuity pursuant to subsection | 21 | | (b) of
Section 7-118. A designation of beneficiary naming a | 22 | | spouse and children
jointly or a trust pursuant to | 23 | | subsection (b) of Section 7-118 shall
preclude payment of a | 24 | | surviving spouse annuity.
| 25 | | (b) If a person is the spouse of a retiring participating
| 26 | | employee on the date of the initial payment of a retirement |
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| 1 | | annuity and is
qualified to receive a surviving spouse annuity | 2 | | upon the death of the
employee and the surviving spouse | 3 | | contributions are not refunded to the
employee, then a | 4 | | surviving spouse annuity shall be payable to that person
even | 5 | | if the marriage to the employee is dissolved after that date.
| 6 | | (c) Eligibility of a surviving spouse shall be determined | 7 | | as of the
date of death. Only one surviving spouse annuity | 8 | | shall be paid on
account of the death of any employee.
| 9 | | (Source: P.A. 87-740; 87-850.)
| 10 | | (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
| 11 | | Sec. 7-159. Surviving spouse annuity - refund of survivor | 12 | | credits.
| 13 | | (a) Any employee annuitant who (1) upon the date a | 14 | | retirement annuity
begins is not then married, or (2) is | 15 | | married to a person who would not qualify
for surviving spouse | 16 | | annuity if the person died on such date, is entitled to a
| 17 | | refund of the survivor credits including interest accumulated | 18 | | on the date the
annuity begins, excluding survivor credits and | 19 | | interest thereon credited during
periods of disability, and no | 20 | | spouse shall have a right to any surviving spouse
annuity from | 21 | | this Fund. If the employee annuitant
reenters service and upon | 22 | | subsequent retirement has a spouse who would
qualify for a | 23 | | surviving spouse annuity, the employee annuitant may pay the
| 24 | | fund the amount of the refund plus interest at the effective | 25 | | rate at the
date of payment. The payment shall qualify the |
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| 1 | | spouse for a surviving
spouse annuity and the amount paid shall | 2 | | be considered as survivor
contributions.
| 3 | | (b) Instead of a refund under subsection (a), the retiring | 4 | | employee may
elect to convert the amount of the refund into an | 5 | | annuity, payable
separately from the retirement annuity. If the | 6 | | annuitant dies before the
guaranteed amount has been | 7 | | distributed, the remainder shall be paid in a lump
sum to the | 8 | | designated beneficiary of the annuitant. The Board shall adopt | 9 | | any
rules necessary for the implementation of this subsection.
| 10 | | (c) An annuitant who retired prior to June 1, 2011 and | 11 | | received a refund of
survivor credits under subsection (a), and | 12 | | who thereafter became, and remains,
either: | 13 | | (1) a party to a civil union or a party to a legal | 14 | | relationship that is recognized as a civil union or | 15 | | marriage under the Illinois Religious Freedom Protection | 16 | | and Civil Union Act on or after June 1, 2011; or | 17 | | (2) a party to a marriage under the Illinois Marriage | 18 | | and Dissolution of Marriage Act on or after February 26, | 19 | | 2014; or | 20 | | (3) a party to a marriage, civil union or other legal | 21 | | relationship that, at the time it was formed, was not | 22 | | legally recognized in Illinois but was subsequently | 23 | | recognized as a civil union or marriage under the Illinois | 24 | | Religious Freedom Protection and Civil Union Act on or | 25 | | after June 1, 2011, a marriage under the Illinois Marriage | 26 | | and Dissolution of Marriage Act on or after February 26, |
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| 1 | | 2014, or both; | 2 | | may, within a period of one year beginning 5 months after the | 3 | | effective date of this amendatory Act of the 99th General | 4 | | Assembly, make an election to re-establish rights to a
| 5 | | surviving spouse annuity under Sections 7-154 through 7-158 | 6 | | (notwithstanding
the eligibility requirements of paragraph | 7 | | (a)(1) of Section 7-154), by paying to the
Fund: (1) the total | 8 | | amount of the refund received for survivor credits; and (2)
| 9 | | interest thereon at the actuarially assumed rate of return from | 10 | | the date of the refund to the date of
payment. Such election | 11 | | must be made prior to the date of death of the annuitant. | 12 | | The Fund may allow the annuitant to repay this refund over | 13 | | a period of not more
than 24 months. To the extent permitted by | 14 | | the Internal Revenue Code of 1986, as amended, for federal and | 15 | | State tax purposes, if a member pays in monthly
installments by | 16 | | reducing the monthly benefit by the amount of the otherwise
| 17 | | applicable contribution, the monthly amount by which the | 18 | | annuitant's benefit is
reduced shall not be treated as a | 19 | | contribution by the annuitant but rather as a
reduction of the | 20 | | annuitant's monthly benefit. | 21 | | If an annuitant makes an election under this subsection (c) | 22 | | and the contributions
required are not paid in full, an | 23 | | otherwise qualifying spouse shall be given the
option to make | 24 | | an additional lump sum payment of the remaining contributions
| 25 | | and qualify for a surviving spouse annuity. Otherwise, an | 26 | | additional refund
representing contributions made hereunder |
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| 1 | | shall be paid at the annuitant's death
and there shall be no | 2 | | surviving spouse annuity paid. | 3 | | (Source: P.A. 90-766, eff. 8-14-98.)
| 4 | | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| 5 | | Sec. 15-139. Retirement annuities; cancellation; suspended | 6 | | during
employment. | 7 | | (a) If an annuitant returns to employment for an employer
| 8 | | within 60 days after the beginning of the retirement annuity | 9 | | payment
period, the retirement annuity shall be cancelled, and | 10 | | the annuitant shall
refund to the System the total amount of | 11 | | the retirement annuity payments
which he or she received. If | 12 | | the retirement annuity is cancelled, the
participant shall | 13 | | continue to participate in the System.
| 14 | | (b) If an annuitant retires prior to age 60 and receives or | 15 | | becomes
entitled to receive during any month compensation in | 16 | | excess of the monthly
retirement annuity (including any | 17 | | automatic annual increases) for services
performed after the | 18 | | date of retirement for any employer under this System, that
| 19 | | portion of the monthly
retirement annuity provided by employer | 20 | | contributions shall not be payable.
| 21 | | If an annuitant retires at age 60 or over and receives
or | 22 | | becomes entitled to receive during any academic year | 23 | | compensation in
excess of the difference between his or her | 24 | | highest annual earnings prior
to retirement and his or her | 25 | | annual retirement annuity computed under Rule
1, Rule 2, Rule |
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| 1 | | 3, or Rule 4 of Section 15-136, or under Section
15-136.4,
for | 2 | | services performed after
the date of retirement for any | 3 | | employer under this System, that portion of
the monthly | 4 | | retirement annuity provided by employer contributions shall be
| 5 | | reduced by an amount equal to the compensation that exceeds | 6 | | such difference.
| 7 | | However, any remuneration received for serving as a member | 8 | | of the
Illinois Educational Labor Relations Board shall be | 9 | | excluded from
"compensation" for the purposes of this | 10 | | subsection (b), and serving as a
member of the Illinois | 11 | | Educational Labor Relations Board shall not be
deemed to be a | 12 | | return to employment for the purposes of this Section.
This | 13 | | provision applies without regard to whether service was | 14 | | terminated
prior to the effective date of this amendatory Act | 15 | | of 1991.
| 16 | | "Academic year", as used in this subsection (b), means the | 17 | | 12-month period beginning September 1. | 18 | | (c) If an employer certifies that an annuitant has been | 19 | | reemployed
on a permanent and continuous basis or in a position
| 20 | | in which the annuitant is expected to serve for at least 9 | 21 | | months, the
annuitant shall resume his or her status as a | 22 | | participating employee
and shall be entitled to all rights | 23 | | applicable to
participating employees upon filing with the | 24 | | board an
election to forgo all annuity payments during the | 25 | | period
of reemployment. Upon subsequent retirement, the | 26 | | retirement
annuity shall consist of the annuity which was |
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| 1 | | terminated by the reemployment,
plus the additional retirement | 2 | | annuity based upon service
granted during the period of | 3 | | reemployment, but the combined retirement
annuity shall not | 4 | | exceed the maximum
annuity applicable on the date of the last | 5 | | retirement.
| 6 | | The total service and earnings credited before and after | 7 | | the initial
date of retirement shall be considered in | 8 | | determining eligibility of the
employee or the employee's | 9 | | beneficiary to benefits under this
Article, and in calculating | 10 | | final rate of earnings.
| 11 | | In determining the death benefit
payable to a beneficiary | 12 | | of an annuitant who again becomes a participating
employee | 13 | | under this Section, accumulated normal and additional
| 14 | | contributions shall be considered as the sum of the accumulated | 15 | | normal and
additional contributions at the date of initial | 16 | | retirement and the
accumulated normal and additional | 17 | | contributions credited after that date,
less the sum of the | 18 | | annuity payments received by the annuitant.
| 19 | | The survivors insurance benefits provided under Section | 20 | | 15-145 shall not
be applicable to an annuitant who resumes his | 21 | | or her status as a
participating employee, unless the | 22 | | annuitant, at the time of initial
retirement, has a survivors | 23 | | insurance beneficiary who could qualify
for such benefits or | 24 | | the annuitant repaid the survivors insurance contribution | 25 | | refund or additional annuity under subsection (c-5) of Section | 26 | | 15-154 .
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| 1 | | If the participant's employment is terminated because of | 2 | | circumstances
other than death before 9 months from the date of | 3 | | reemployment, the
provisions of this Section regarding | 4 | | resumption of status as a
participating employee shall not | 5 | | apply. The normal and survivors insurance
contributions which | 6 | | are deducted during this period shall be refunded to
the | 7 | | annuitant without interest, and subsequent benefits under this | 8 | | Article
shall be the same as those which were applicable prior | 9 | | to the date the
annuitant resumed employment.
| 10 | | The amendments made to this Section by this amendatory Act | 11 | | of the 91st
General Assembly apply without regard to whether | 12 | | the annuitant was in service
on or after the effective date of | 13 | | this amendatory Act.
| 14 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | 15 | | 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
| 16 | | (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
| 17 | | Sec. 15-145. Survivors insurance benefits; conditions and | 18 | | amounts.
| 19 | | (a) The survivors insurance benefits provided under this | 20 | | Section shall
be payable to the eligible survivors of a Tier 1 | 21 | | member covered under the
traditional benefit package upon the | 22 | | death of (1) a participating employee
with at least 1 1/2 years | 23 | | of service, (2) a participant who terminated
employment with at | 24 | | least 10 years of service, and (3) an annuitant in receipt
of a | 25 | | retirement annuity or disability retirement annuity under this |
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| 1 | | Article.
| 2 | | Service under the State Employees' Retirement System of | 3 | | Illinois, the
Teachers' Retirement System of the State of | 4 | | Illinois and the Public School
Teachers' Pension and Retirement | 5 | | Fund of Chicago shall be considered in
determining eligibility | 6 | | for survivors benefits under this Section.
| 7 | | If by law, a function of a governmental unit, as defined by | 8 | | Section 20-107,
is transferred in whole or in part to an | 9 | | employer, and an employee transfers
employment from this | 10 | | governmental unit to such employer within 6 months after
the | 11 | | transfer of this function, the service credits in the | 12 | | governmental unit's
retirement system which have been | 13 | | validated under Section 20-109 shall be
considered in | 14 | | determining eligibility for survivors benefits under this
| 15 | | Section.
| 16 | | (b) A surviving spouse of a deceased participant, or of a | 17 | | deceased
annuitant who did not take a refund or additional | 18 | | annuity consisting of
accumulated survivors insurance | 19 | | contributions or who repaid the refund or additional annuity , | 20 | | shall receive a survivors
annuity of 30% of the final rate of | 21 | | earnings. Payments shall begin on the
day following the | 22 | | participant's or annuitant's death or the date the surviving
| 23 | | spouse attains age 50, whichever is later, and continue until | 24 | | the death of the
surviving spouse. The annuity shall be payable | 25 | | to the surviving spouse prior
to attainment of age 50 if the | 26 | | surviving spouse has in his or her care a
deceased |
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| 1 | | participant's or annuitant's dependent unmarried child under | 2 | | age 18
(under age 22 if a full-time student) who is eligible | 3 | | for a survivors annuity.
| 4 | | Remarriage of a surviving spouse prior to attainment of age | 5 | | 55 that occurs
before the effective date of this amendatory Act | 6 | | of the 91st General Assembly
shall disqualify him or her for | 7 | | the receipt of a survivors annuity until July
6, 2000.
| 8 | | A surviving spouse whose survivors annuity has been | 9 | | terminated due to
remarriage may apply for reinstatement of | 10 | | that
annuity. The reinstated annuity shall begin to accrue on | 11 | | July 6, 2000, except
that if, on July 6, 2000, the annuity is | 12 | | payable to an eligible surviving
child or parent, payment of | 13 | | the annuity to the surviving spouse shall not be
reinstated | 14 | | until the annuity is no longer payable to any eligible | 15 | | surviving
child or parent. The reinstated annuity shall include | 16 | | any one-time or annual
increases received prior to the date of | 17 | | termination, as well as any increases
that would otherwise have | 18 | | accrued from the date of termination to the date of
| 19 | | reinstatement.
An eligible surviving spouse whose expectation | 20 | | of receiving a survivors
annuity was lost due to remarriage | 21 | | before attainment of age 50 shall also be
entitled to | 22 | | reinstatement under this subsection, but the resulting | 23 | | survivors
annuity shall not begin to accrue sooner than upon | 24 | | the surviving spouse's
attainment of age 50.
| 25 | | The changes made to this subsection by this amendatory Act | 26 | | of the 92nd
General Assembly (pertaining to remarriage prior to |
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| 1 | | age 55 or 50) apply without
regard to whether the deceased | 2 | | participant or annuitant was in service on or
after the | 3 | | effective date of this amendatory Act.
| 4 | | (c) Each dependent unmarried child under age 18 (under age | 5 | | 22 if a
full-time student) of a deceased participant, or of a | 6 | | deceased annuitant who
did not take a refund or additional | 7 | | annuity consisting of accumulated survivors
insurance | 8 | | contributions or who repaid the refund or additional annuity ,
| 9 | | shall receive a survivors annuity equal to the sum of (1) 20% | 10 | | of the final rate
of earnings, and (2) 10% of the final rate of | 11 | | earnings divided by the number of
children entitled to this | 12 | | benefit. Payments shall begin on the day following
the | 13 | | participant's or annuitant's death and continue until the child | 14 | | marries,
dies, or attains age 18 (age 22 if a full-time | 15 | | student). If the child
is in the care of a surviving spouse who | 16 | | is eligible for survivors insurance
benefits, the child's | 17 | | benefit shall be paid to the surviving spouse.
| 18 | | Each unmarried child over age 18 of a deceased participant | 19 | | or of a deceased
annuitant who had a survivor's insurance | 20 | | beneficiary at the time of his or her
retirement, and who was | 21 | | dependent upon the participant or annuitant by reason
of a | 22 | | physical or mental disability which began prior to the date the | 23 | | child
attained age 18 (age 22 if a full-time student), shall | 24 | | receive a survivor's
annuity equal to the
sum of (1) 20% of the | 25 | | final rate of earnings, and (2) 10% of the final rate
of | 26 | | earnings divided by the number of children entitled to |
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| 1 | | survivors
benefits. Payments shall begin on the day following | 2 | | the participant's or
annuitant's death and continue until the | 3 | | child marries, dies, or is no
longer disabled. If the child is | 4 | | in the care of a surviving spouse who is
eligible for survivors | 5 | | insurance benefits, the child's benefit may be paid
to the | 6 | | surviving spouse. For the purposes of this Section, disability
| 7 | | means inability to engage in any substantial gainful activity | 8 | | by reason of
any medically determinable physical or mental | 9 | | impairment that can be
expected to result in death or that has | 10 | | lasted or can be expected to last
for a continuous period of at | 11 | | least one year.
| 12 | | (d) Each dependent parent of a deceased participant, or of | 13 | | a deceased
annuitant who did not take a refund or additional | 14 | | annuity consisting of
accumulated survivors insurance | 15 | | contributions or who repaid the refund or additional annuity , | 16 | | shall receive a survivors
annuity equal to the sum of (1) 20% | 17 | | of
final rate of earnings, and (2) 10% of final rate of | 18 | | earnings divided by the
number of parents who qualify for the | 19 | | benefit. Payments shall begin when the
parent reaches age 55 or | 20 | | the day following the participant's or annuitant's
death, | 21 | | whichever is later, and continue until the parent dies. | 22 | | Remarriage of
a parent prior to attainment of age 55 shall | 23 | | disqualify the parent for the
receipt of a survivors annuity.
| 24 | | (e) In addition to the survivors annuity provided above, | 25 | | each
survivors insurance beneficiary shall, upon death of the | 26 | | participant or
annuitant, receive a lump sum payment of $1,000 |
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| 1 | | divided by the number
of such beneficiaries.
| 2 | | (f) The changes made in this Section by Public Act 81-712 | 3 | | pertaining
to survivors annuities in cases of remarriage prior | 4 | | to age 55
shall apply to each survivors insurance beneficiary | 5 | | who
remarries after June 30, 1979, regardless of the date that | 6 | | the
participant or annuitant terminated his employment or died.
| 7 | | The change made to this Section by this amendatory Act of | 8 | | the 91st General
Assembly, pertaining to remarriage prior to | 9 | | age 55, applies without regard to
whether the deceased | 10 | | participant or annuitant was in service on or after the
| 11 | | effective date of this amendatory Act of the 91st General | 12 | | Assembly.
| 13 | | (g) On January 1, 1981, any person who was receiving
a | 14 | | survivors annuity on or before January 1, 1971 shall have the
| 15 | | survivors annuity then being paid increased by 1% for each full | 16 | | year which
has elapsed from the date the annuity began. On | 17 | | January 1, 1982, any
survivor whose annuity began after January | 18 | | 1, 1971, but before January 1,
1981, shall have the survivor's | 19 | | annuity then being paid increased by 1% for
each year which has | 20 | | elapsed from the date the survivor's annuity began.
On January | 21 | | 1, 1987, any survivor who began receiving a survivor's annuity
| 22 | | on or before January 1, 1977, shall have the monthly survivor's | 23 | | annuity
increased by $1 for each full year which has elapsed | 24 | | since the date the
survivor's annuity began.
| 25 | | (h) If the sum of the lump sum and total monthly survivor | 26 | | benefits
payable under this Section upon the death of a |
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| 1 | | participant amounts to less
than the sum of the death benefits | 2 | | payable under items (2) and (3) of
Section 15-141, the | 3 | | difference shall be paid in a lump sum to the
beneficiary of | 4 | | the participant who is living on the date that this
additional | 5 | | amount becomes payable.
| 6 | | (i) If the sum of the lump sum and total monthly survivor | 7 | | benefits payable
under this Section upon the death of an | 8 | | annuitant receiving a retirement
annuity or disability | 9 | | retirement annuity amounts to less than the death
benefit | 10 | | payable under Section 15-142, the difference shall be paid to | 11 | | the
beneficiary of the annuitant who is living on the date that | 12 | | this
additional amount becomes payable.
| 13 | | (j) Effective on the later of (1) January 1, 1990, or (2) | 14 | | the
January 1 on or next after the date on which the survivor | 15 | | annuity begins,
if the deceased member died while receiving a | 16 | | retirement annuity, or in all
other cases the January 1 nearest | 17 | | the first
anniversary of the date the survivor annuity payments | 18 | | begin, every survivors
insurance beneficiary shall receive an | 19 | | increase in
his or her monthly survivors annuity of 3%. On each | 20 | | January 1 after the
initial increase, the monthly survivors | 21 | | annuity shall be increased by 3% of
the total survivors annuity | 22 | | provided under this Article, including previous
increases | 23 | | provided by this subsection. Such increases shall apply to the
| 24 | | survivors insurance beneficiaries of each participant and | 25 | | annuitant,
whether or not the employment status of the | 26 | | participant or annuitant
terminates before the effective date |
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| 1 | | of this amendatory Act of 1990. This
subsection (j) also | 2 | | applies to persons receiving a survivor annuity
under the | 3 | | portable benefit package.
| 4 | | (k) If the Internal Revenue Code of 1986, as amended, | 5 | | requires that the
survivors benefits be payable at an age | 6 | | earlier than that specified in this
Section the benefits shall | 7 | | begin at the earlier age, in which event, the
survivor's | 8 | | beneficiary shall be entitled only to that amount which is | 9 | | equal
to the actuarial equivalent of the benefits provided by | 10 | | this Section.
| 11 | | (l) The changes made to this Section and Section 15-131 by | 12 | | this amendatory
Act of 1997, relating to benefits for certain | 13 | | unmarried children who are
full-time students under age 22, | 14 | | apply without regard to whether the deceased
member was in | 15 | | service on or after the effective date of this amendatory Act
| 16 | | of 1997. These changes do not authorize the repayment of a | 17 | | refund or a
re-election of benefits, and any benefit or | 18 | | increase in benefits resulting
from these changes is not | 19 | | payable retroactively for any period before the
effective date | 20 | | of this amendatory Act of 1997.
| 21 | | (Source: P.A. 98-92, eff. 7-16-13.)
| 22 | | (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
| 23 | | Sec. 15-154. Refunds.
| 24 | | (a) A participant whose status as an employee is | 25 | | terminated, regardless of
cause, or who has been on lay off |
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| 1 | | status for more than 120 days, and who is not
on leave of | 2 | | absence, is entitled to a refund of contributions upon | 3 | | application;
except that not more than one such refund | 4 | | application may be made during any
academic year.
| 5 | | Except as set forth in subsections (a-1) and (a-2), the | 6 | | refund shall
be the sum of the accumulated normal, additional, | 7 | | and survivors insurance
contributions, plus the entire | 8 | | contribution made by the participant under
Section 15-113.3, | 9 | | less the amount of interest credited on these contributions
| 10 | | each year in excess of 4 1/2% of the amount on which interest | 11 | | was calculated.
| 12 | | (a-1) A person who elects, in accordance with the | 13 | | requirements of Section
15-134.5, to participate in the | 14 | | portable benefit package and who becomes a
participating | 15 | | employee under that retirement program upon the conclusion of
| 16 | | the one-year waiting period applicable to the portable benefit | 17 | | package election
shall have his or her refund calculated in | 18 | | accordance with the provisions of
subsection (a-2).
| 19 | | (a-2) The refund payable to a participant described in | 20 | | subsection (a-1)
shall be the sum of the participant's | 21 | | accumulated normal and additional
contributions, as defined in | 22 | | Sections 15-116 and 15-117, plus the entire
contribution made | 23 | | by the participant under Section 15-113.3. If the
participant | 24 | | terminates with 5 or more years of service for employment as
| 25 | | defined in Section 15-113.1, he or she shall also be entitled | 26 | | to a distribution
of employer contributions in an amount equal |
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| 1 | | to the sum of the accumulated
normal and additional | 2 | | contributions, as defined in Sections 15-116 and 15-117.
| 3 | | (b) Upon acceptance of a refund, the participant forfeits | 4 | | all
accrued rights and credits in the System, and if | 5 | | subsequently reemployed, the
participant shall be considered a | 6 | | new employee subject to all the qualifying
conditions for | 7 | | participation and eligibility for benefits applicable to new
| 8 | | employees. If such person again becomes a participating | 9 | | employee and continues
as such for 2 years, or is employed by | 10 | | an employer and participates for at
least 2 years in the | 11 | | Federal Civil Service Retirement System, all such rights,
| 12 | | credits, and previous status as a participant shall be restored | 13 | | upon repayment
of the amount of the refund, together with | 14 | | compound interest thereon from the
date the refund was issued | 15 | | to the date of repayment at the rate of 6% per
annum through | 16 | | August 31, 1982, and at the effective rates after that date.
| 17 | | When a participant in the portable benefit package who received | 18 | | a refund
which included a distribution of employer | 19 | | contributions repays a refund
pursuant to this Section, | 20 | | one-half of the amount repaid shall be deemed the
member's | 21 | | reinstated accumulated normal and additional contributions and | 22 | | the
other half shall be allocated as an employer contribution | 23 | | to the System,
except that any amount repaid for previously | 24 | | purchased military service
credit under Section 15-113.3 shall | 25 | | be accounted for as such.
| 26 | | (c) Except as otherwise provided under subsection (c-5), if |
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| 1 | | If a participant covered under the traditional
benefit package | 2 | | has made survivors insurance contributions, but has no
| 3 | | survivors insurance beneficiary upon retirement, he or she | 4 | | shall be entitled
to elect a refund of the accumulated | 5 | | survivors insurance contributions, or to
elect an additional | 6 | | annuity the value of which is equal to the accumulated
| 7 | | survivors insurance contributions. This election must be made | 8 | | prior to the
date the person's retirement annuity is approved | 9 | | by the System.
| 10 | | (c-5) Notwithstanding subsection (c), an annuitant who | 11 | | retired prior to June 1, 2011 and made the election under | 12 | | subsection (c), and who thereafter became, and remains, either: | 13 | | (1) a party to a civil union or a party to a legal | 14 | | relationship that is recognized as a civil union or | 15 | | marriage under the Illinois Religious Freedom Protection | 16 | | and Civil Union Act on or after June 1, 2011; or | 17 | | (2) a party to a marriage under the Illinois Marriage | 18 | | and Dissolution of Marriage Act on or after February 26, | 19 | | 2014; or | 20 | | (3) a party to a marriage, civil union or other legal | 21 | | relationship that, at the time it was formed, was not | 22 | | legally recognized in Illinois but was subsequently | 23 | | recognized as a civil union or marriage under the Illinois | 24 | | Religious Freedom Protection and Civil Union Act on or | 25 | | after June 1, 2011, a marriage under the Illinois Marriage | 26 | | and Dissolution of Marriage Act on or after February 26, |
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| 1 | | 2014, or both; | 2 | | may make a one-time, irrevocable election to repay the refund | 3 | | or additional annuity payments received under subsection (c), | 4 | | together with compound interest thereon at the actuarially | 5 | | assumed rate of return from the date the refund was issued or | 6 | | the date each additional annuity payment was issued to the date | 7 | | of repayment. The annuitant shall submit proof of party status | 8 | | for item (1), (2), or (3) in the form of a valid marriage | 9 | | certificate or a civil union certificate with any additional | 10 | | requirements the Board prescribes by rulemaking. The election | 11 | | must be received by the System (i) within a period of one year | 12 | | beginning 5 months after the effective date of this amendatory | 13 | | Act of the 99th General Assembly and (ii) prior to the date of | 14 | | death of the annuitant. | 15 | | To the extent permitted under the Internal Revenue Code of | 16 | | 1986, as amended, the full repayment shall be made within a | 17 | | period beginning on the date of the election and ending on the | 18 | | earlier of the 24th month thereafter or the date of the | 19 | | annuitant's death. If an annuitant fails to make the repayment | 20 | | within the required period, any payments made shall be | 21 | | returned, without interest, to the annuitant (or to the | 22 | | annuitant's estate if the payments ceased due to death), and | 23 | | survivors insurance benefits under Section 15-145 shall not be | 24 | | payable upon the annuitant's death. | 25 | | Upon such repayment, all forfeited survivors insurance | 26 | | benefit rights and credits under Section 15-145 shall be |
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| 1 | | restored. This repayment right shall not alter or modify any | 2 | | eligibility requirement for survivors insurance beneficiaries | 3 | | under this Article applicable upon the annuitant's death. The | 4 | | repayment shall be irrevocable. No person shall have a claim or | 5 | | right to the repaid amounts in a manner not otherwise provided | 6 | | for under this Article in the event that: the marriage, civil | 7 | | union, or other legal relationship described in this subsection | 8 | | is dissolved, annulled, or declared invalid by a court of | 9 | | competent jurisdiction; or the other party to the marriage, | 10 | | civil union, or other legal relationship predeceases the | 11 | | annuitant or otherwise fails to qualify as a survivors | 12 | | insurance beneficiary upon the annuitant's death. | 13 | | For purposes of this subsection (c-5), the term "annuitant" | 14 | | shall include an annuitant who resumed his or her status as a | 15 | | participating employee under Section 15-139(c). | 16 | | (d) A participant, upon application, is entitled to a | 17 | | refund of his
or her accumulated additional contributions | 18 | | attributable to the additional
contributions described in the | 19 | | last sentence of subsection (c) of Section
15-157. Upon the | 20 | | acceptance of such a refund of accumulated additional
| 21 | | contributions, the participant forfeits all rights and credits | 22 | | which may
have accrued because of such contributions.
| 23 | | (e) A participant who terminates his or her employee status | 24 | | and elects to
waive service credit under Section 15-154.2, is | 25 | | entitled to a refund of the
accumulated normal, additional and | 26 | | survivors insurance contributions, if any,
which were credited |
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| 1 | | the participant for this service, or to an additional
annuity | 2 | | the value of which is equal to the accumulated normal, | 3 | | additional and
survivors insurance contributions, if any; | 4 | | except that not more than one such
refund application may be | 5 | | made during any academic year. Upon acceptance of
this refund, | 6 | | the participant forfeits all rights and credits accrued because
| 7 | | of this service.
| 8 | | (f) If a police officer or firefighter receives a | 9 | | retirement annuity
under Rule 1 or 3 of Section 15-136, he or | 10 | | she shall be entitled at
retirement to a refund of the | 11 | | difference between his or her accumulated
normal contributions | 12 | | and the normal contributions which would have
accumulated had | 13 | | such person filed a waiver of the retirement formula
provided | 14 | | by Rule 4 of Section 15-136.
| 15 | | (g) If, at the time of retirement, a participant would be | 16 | | entitled to
a retirement annuity under Rule 1, 2, 3, 4, or 5 of | 17 | | Section 15-136, or under
Section 15-136.4, that exceeds
the | 18 | | maximum specified in clause (1) of subsection (c) of Section | 19 | | 15-136, he
or she shall be entitled to a refund of the employee | 20 | | contributions, if any,
paid under Section 15-157 after the date | 21 | | upon which continuance of such
contributions would have | 22 | | otherwise caused the retirement annuity to exceed
this maximum, | 23 | | plus compound interest at the effective rates.
| 24 | | (Source: P.A. 99-450, eff. 8-24-15.)
| 25 | | (40 ILCS 5/16-143.2) (from Ch. 108 1/2, par. 16-143.2)
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| 1 | | Sec. 16-143.2. Refund of contributions for survivor | 2 | | benefits at retirement.
| 3 | | (a) If at the time of applying for a retirement annuity | 4 | | under Section
16-132, or while in receipt of such a retirement | 5 | | annuity, a member
does not have a dependent beneficiary as | 6 | | defined in paragraph (3) of
Section 16-140, such member may be | 7 | | granted, upon written request, a refund
of actual contributions | 8 | | for survivor benefits, without interest. Members
will be | 9 | | eligible for a refund of contributions for survivor benefits as
| 10 | | provided in the previous sentence notwithstanding the fact that | 11 | | they began
receiving retirement benefits prior to this | 12 | | amendatory Act of 1985.
Acceptance of the refund will forfeit | 13 | | all rights to survivor benefits under
Sections 16-140 through | 14 | | 16-143.
| 15 | | (b) Except as provided under subsection (c), an An | 16 | | annuitant who reestablishes membership following acceptance of
| 17 | | refund of contributions for survivor benefits under subsection | 18 | | (a) of this
Section may reinstate eligibility for benefits | 19 | | provided under Sections 16-140
through 16-143 only through: (1) | 20 | | repayment of such refund together with
regular interest thereon | 21 | | from the date of the refund to the date of repayment,
and (2) | 22 | | completion of one year of creditable service following | 23 | | acceptance
of such refund. If membership is reestablished and | 24 | | the above conditions
(1) and (2) are not met, an additional | 25 | | refund, representing contributions
made following the previous | 26 | | refund will be provided upon the member's death
or retirement, |
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| 1 | | whichever is applicable.
| 2 | | (c) Notwithstanding subsection (b), an annuitant who has | 3 | | received a refund under subsection (a) may, during a period of | 4 | | one year beginning 5 months after the effective date of this | 5 | | amendatory Act of the 99th General Assembly, make an election | 6 | | to reestablish rights to survivor benefits under Sections | 7 | | 16-140 through 16-143 by paying to the System: | 8 | | (1) the total amount of the refund received for actual | 9 | | contributions; and | 10 | | (2) interest on the amount of the refund at the | 11 | | actuarially assumed rate of return for the period starting | 12 | | on the date of receipt of the refund and ending when the | 13 | | annuitant has made an election under this subsection (c). | 14 | | The System may allow an individual to repay this refund | 15 | | through: a tax-deferred lump sum payment in full; substantially | 16 | | equal monthly installments over a period of at least one but | 17 | | not more than 24 months by reducing the annuitant's monthly | 18 | | benefit over the established number of months by the amount of | 19 | | the otherwise applicable contribution; or a combination | 20 | | thereof. To the extent permitted under the Internal Revenue | 21 | | Code of 1986, as amended, for federal and State tax purposes, | 22 | | the monthly amount by which the annuitant's benefit is reduced | 23 | | shall not be treated as a contribution by the annuitant, but | 24 | | rather as a reduction of the annuitant's monthly benefit. | 25 | | If a member makes an election under this subsection (c) and | 26 | | the contributions required in items (1) and (2) of this |
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| 1 | | subsection (c) are not paid in full, an additional one-time | 2 | | lump sum refund representing contributions made following the | 3 | | previous refund shall be provided to the named beneficiary or | 4 | | beneficiaries on file with the System or, if none, to the | 5 | | member's estate, when the member dies. | 6 | | (Source: P.A. 87-794.)
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.
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