Full Text of SB1653 095th General Assembly
SB1653enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 13-215, 13-216, 13-309, 13-502, 13-601, and 13-706 as | 6 |
| follows:
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| (40 ILCS 5/13-215) (from Ch. 108 1/2, par. 13-215)
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| Sec. 13-215. "Retirement annuity": A benefit payable as an | 9 |
| annuity for
service as an employee. The annuity shall be | 10 |
| payable in equal monthly
installments for life, except as | 11 |
| otherwise provided in this Article,
beginning in the
one month | 12 |
| after the effective date of the annuity as fixed by the
Board , | 13 |
| which shall not be prior to the date of withdrawal nor more | 14 |
| than one
year prior to the date of the employee's application | 15 |
| for the annuity. A
pro rata amount of the annuity shall be paid | 16 |
| for part of a month when the
annuity begins after the first day | 17 |
| of the month or ends before
the last day of the month.
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| Notwithstanding the above, all retirement annuity payments | 19 |
| first payable on or after January 1, 2008, shall begin the | 20 |
| first of the month following the effective date of retirement.
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| Effective January 1, 2008, benefits are payable for the | 22 |
| full month if the annuitant was alive on the first day of the | 23 |
| month.
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| (Source: P.A. 87-794.)
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| (40 ILCS 5/13-216) (from Ch. 108 1/2, par. 13-216)
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| Sec. 13-216. "Surviving spouse's annuity": The amount | 4 |
| payable as a
surviving spouse annuity commencing on the date of | 5 |
| the employee's or
retiree's death. The annuity shall be payable | 6 |
| in equal monthly
installments for life, except as otherwise | 7 |
| provided in this Article,
in the month after the effective date | 8 |
| of the annuity
beginning one month after the effective date of | 9 |
| the annuity . A pro rata
amount of the annuity shall be paid for | 10 |
| part of a month when the annuity
begins after the first day of | 11 |
| the month or ends before the last day of
the month.
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| Notwithstanding the above, all surviving spouse annuity | 13 |
| payments first payable on or after January 1, 2008, shall begin | 14 |
| the first of the month following the employee's or annuitant's | 15 |
| date of death.
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| Effective January 1, 2008, benefits are payable for the | 17 |
| full month if the annuitant was alive on the first day of the | 18 |
| month.
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| (Source: P.A. 87-794.)
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| (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
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| Sec. 13-309. Duty disability benefit.
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| (a) Any employee who becomes disabled, which disability is | 23 |
| the result of an
injury or illness compensable under the | 24 |
| Illinois Workers' Compensation Act or
the Illinois Workers' |
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| Occupational Diseases Act, is entitled to a duty
disability | 2 |
| benefit during the period of disability for which the employee | 3 |
| does
not receive any part of salary, or any part of a | 4 |
| retirement annuity under this
Article; except that in the case | 5 |
| of an employee who first enters service on or
after June 13, | 6 |
| 1997 and becomes disabled before the effective date of this | 7 |
| amendatory Act of the 94th General Assembly, a duty disability
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| benefit is not payable for the first 3 days of disability that | 9 |
| would otherwise
be payable under this Section if the disability | 10 |
| does not continue for at least
11 additional days. The changes | 11 |
| made to this Section by this amendatory Act of the 94th General | 12 |
| Assembly are prospective only and do not entitle an employee to | 13 |
| a duty disability benefit for the first 3 days of any | 14 |
| disability that occurred before that effective date and did not | 15 |
| continue for at least 11 additional days. This benefit shall be | 16 |
| 75% of salary at the date disability
begins. However, if the | 17 |
| disability in any measure resulted from any physical
defect or | 18 |
| disease which existed at the time such injury was sustained or | 19 |
| such
illness commenced, the duty disability benefit shall be | 20 |
| 50% of salary.
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| Unless the employer acknowledges that the disability is a | 22 |
| result of
injury or illness compensable under the Workers' | 23 |
| Compensation Act or the
Workers' Occupational Diseases Act, the | 24 |
| duty disability benefit shall
not be payable until the issue of | 25 |
| compensability under those Acts is finally
adjudicated. The | 26 |
| period of disability shall be as determined by the Illinois
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| Workers' Compensation Commission or acknowledged by the | 2 |
| employer.
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| An employee in service before June 13, 1997 shall also | 4 |
| receive a child's disability
benefit during the period of | 5 |
| disability of $10 per month for each
unmarried natural or | 6 |
| adopted child of the employee under
18 years of age.
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| The first payment shall be made not later than one month | 8 |
| after the
benefit is granted, and subsequent payments shall be | 9 |
| made at least monthly.
The Board shall by rule prescribe for | 10 |
| the payment of such benefits on the
basis of the amount of | 11 |
| salary lost during the period of disability.
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| (b) The benefit shall be allowed only if the following | 13 |
| requirements are
met by the employee:
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| (1) Application is made to the Board within 90 days | 15 |
| from the date
disability begins;
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| (2) A medical report is submitted by at least one | 17 |
| licensed and
practicing physician as part of the employee's | 18 |
| application; and
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| (3) The employee is examined by at least one licensed | 20 |
| and practicing
physician appointed by the Board and found | 21 |
| to be in a disabled physical
condition, and shall be | 22 |
| re-examined at least annually thereafter during the
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| continuance of disability. The employee need not be | 24 |
| re-examined by a
licensed and practicing physician if the | 25 |
| attorney for the district
certifies in writing that the | 26 |
| employee is entitled to receive compensation
under the |
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| Workers' Compensation Act or the Workers' Occupational | 2 |
| Diseases Act.
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| (c) The benefit shall terminate when:
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| (1) The employee returns to work or receives a | 5 |
| retirement annuity paid
wholly or in part under this | 6 |
| Article;
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| (2) The disability ceases;
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| (3) The employee attains age 65, but if the employee | 9 |
| becomes disabled at
age 60 or later, benefits may be | 10 |
| extended for a period of no
more than 5 years after
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| disablement;
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| (4) The employee (i) refuses to submit to reasonable | 13 |
| examinations by
physicians or other health professionals | 14 |
| appointed by the Board, (ii) fails
or refuses to consent to | 15 |
| and sign an authorization allowing the Board to
receive | 16 |
| copies of or to examine the employee's medical and hospital | 17 |
| records,
or (iii) fails or refuses to provide complete | 18 |
| information regarding any other
employment for | 19 |
| compensation he or she has received since becoming | 20 |
| disabled;
or
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| (5) The employee willfully and continuously refuses to | 22 |
| follow medical advice and treatment to enable the employee | 23 |
| to return to
work. However this provision does not apply to | 24 |
| an employee who relies in good
faith on treatment by prayer | 25 |
| through spiritual means alone in accordance with
the tenets | 26 |
| and practice of a recognized church or religious |
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| denomination, by a
duly accredited practitioner thereof.
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| In the case of a duty disability recipient who returns to | 3 |
| work, the employee
must make application to the Retirement | 4 |
| Board within 2 years from the date the
employee last received | 5 |
| duty disability benefits in order to become again
entitled to | 6 |
| duty disability benefits based on the injury for which a duty
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| disability benefit was theretofore paid.
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| (Source: P.A. 93-721, eff. 1-1-05; 94-621, eff. 8-18-05.)
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| (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
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| Sec. 13-502. Employee contributions; deductions from | 11 |
| salary.
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| (a) Retirement annuity and child's annuity. There shall be | 13 |
| deducted
from each payment of salary an amount equal to 7%
7 | 14 |
| 1/2% of salary as the
employee's contribution for the | 15 |
| retirement annuity, including annual
increases therefore and
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| child's annuity , and 0.5% of salary as the employee's | 17 |
| contribution for annual increases to the retirement annuity .
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| (b) Surviving spouse's annuity. There shall be deducted | 19 |
| from each
payment of salary an amount equal to 1 1/2% of salary | 20 |
| as the employee's
contribution for the surviving spouse's | 21 |
| annuity and annual increases therefor.
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| (c) Pickup of employee contributions. The Employer may pick | 23 |
| up employee
contributions required under subsections (a) and | 24 |
| (b) of this Section. If
contributions are picked up they shall | 25 |
| be treated as Employer contributions
in determining tax |
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| treatment under the United States Internal Revenue Code,
and | 2 |
| shall not be included as gross income of the employee until | 3 |
| such time
as they are distributed. The Employer shall pay these | 4 |
| employee
contributions from the same source of funds used in | 5 |
| paying salary to the
employee. The Employer may pick up these | 6 |
| contributions by a reduction in
the cash salary of the employee | 7 |
| or by an offset against a future salary
increase or by a | 8 |
| combination of a reduction in salary and offset against a
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| future salary increase. If employee contributions are picked up | 10 |
| they shall be
treated for all purposes of this Article 13, | 11 |
| including Sections 13-503 and
13-601, in the same manner and to | 12 |
| the same extent as employee contributions
made prior to the | 13 |
| date picked up.
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| (d) Subject to the requirements of federal law, the | 15 |
| Employer shall
pick up optional contributions that the employee | 16 |
| has elected to pay to the
Fund under Section 13-304.1, and the | 17 |
| contributions so picked up
shall be treated as employer | 18 |
| contributions for the purposes of determining
federal tax | 19 |
| treatment. The Employer shall pick up the contributions by a
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| reduction in the cash salary of the employee and shall pay the | 21 |
| contributions
from the same fund that is used to pay earnings | 22 |
| to the employee. The Employer
shall, however, continue to | 23 |
| withhold federal and State income taxes based upon
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| contributions made under Section 13-304.1 until the Internal | 25 |
| Revenue Service or
the federal courts rule that pursuant to | 26 |
| Section 414(h) of the U.S. Internal
Revenue Code of 1986, as |
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| amended, these contributions shall not be included as
gross | 2 |
| income of the employee until such time as they are distributed | 3 |
| or made
available.
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| (e) Each employee is deemed to consent and agree to the | 5 |
| deductions from
compensation provided for in this Article.
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| (f) Subject to the requirements of federal law, the | 7 |
| Employer shall pick up
contributions that a commissioner has | 8 |
| elected to pay to the Fund under Section
13-314, and the | 9 |
| contributions so picked up shall be treated as Employer
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| contributions for the purposes of determining federal tax | 11 |
| treatment. The
Employer shall pick up the contributions by a | 12 |
| reduction in the cash salary of
the commissioner and shall pay | 13 |
| the contributions from the same fund as is
used to pay earnings | 14 |
| to the commissioner. The Employer shall, however,
continue to | 15 |
| withhold federal and State income taxes based upon | 16 |
| contributions
made under Section 13-314 until the U.S. Internal | 17 |
| Revenue Service or the
federal courts rule that pursuant to | 18 |
| Section 414(h) of the Internal Revenue
Code of 1986, as | 19 |
| amended, these contributions shall not be included as gross
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| income of the employee until such time as they are distributed | 21 |
| or made
available.
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| (Source: P.A. 94-621, eff. 8-18-05.)
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| (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
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| Sec. 13-601. Refunds.
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| (a) Withdrawal from service. Upon withdrawal from service, |
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| an employee
under age 55 (age 50 if the employee first entered | 2 |
| service before June
13, 1997), or an employee age 55 (age 50 if | 3 |
| the employee first entered
service before June 13, 1997) or | 4 |
| over but less than 60 having less
than 20 years of service, or | 5 |
| an employee age 60 or over having less than 5
years of service | 6 |
| shall be entitled, upon application, to a refund of total
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| contributions from salary deductions or amounts otherwise paid | 8 |
| under this
Article by the employee. The refund shall not | 9 |
| include interest credited to
the contributions. The Board may, | 10 |
| in its discretion, withhold payment of a
refund for a period | 11 |
| not to exceed one year from the date of filing an
application | 12 |
| for refund.
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| (b) Surviving spouse's annuity contributions. A refund of | 14 |
| all amounts
deducted from salary or otherwise contributed by an | 15 |
| employee for the
surviving spouse's annuity shall be paid upon | 16 |
| retirement to any employee
who on the date of retirement is | 17 |
| either not married or is married but whose
spouse is not | 18 |
| eligible for a surviving spouse's annuity paid wholly or in
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| part under this Article. The refund shall include interest on
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| each contribution at the rate of 3% per annum compounded | 21 |
| annually from the
date of the contribution to the date of the | 22 |
| refund.
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| (c) Payment of Refunds After Death. Whenever any refund is | 24 |
| payable after the death of the annuitant as provided for in | 25 |
| this Article, the refund shall be paid as follows: to the | 26 |
| employee's surviving spouse, but if there is no surviving |
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| spouse then in accordance with the employee's written | 2 |
| designation of beneficiary filed with the Board on the | 3 |
| prescribed form before the employee's death. If there is no | 4 |
| such designation of beneficiary, then to the employee's | 5 |
| surviving children in equal parts to each. If there are no such | 6 |
| children, the refund shall be paid to the heirs of the employee | 7 |
| according to the law of descent and distribution of the State | 8 |
| of Illinois.
When paid to children, estate or beneficiary. | 9 |
| Whenever the total
accumulations, to the account of an employee | 10 |
| from employee contributions,
including interest to the | 11 |
| employee's date of withdrawal, have not been paid to the | 12 |
| employee and surviving spouse
as a retirement or spouse's | 13 |
| annuity before the death of the survivor of the
employee and | 14 |
| spouse, a refund shall be paid as follows: an amount equal to
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| the excess of such amounts over the amounts paid on such | 16 |
| annuities without
interest on either such amount, shall be paid | 17 |
| to the children of the
employee, in equal parts to each, unless | 18 |
| the employee has directed in
writing, signed by him before an | 19 |
| officer authorized to administer oaths,
and filed with the | 20 |
| Board before the employee's death, that any such amount
shall | 21 |
| be refunded and paid to any one or more of such children; and | 22 |
| if
there are not children, such other beneficiary or | 23 |
| beneficiaries as might be
designated by the employee. If there | 24 |
| are no such children or designation
of beneficiary, the refund | 25 |
| shall be paid to the personal representative of
the employee's | 26 |
| estate.
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| If a personal representative of the estate has not been | 2 |
| appointed within
90 days from the date on which a refund became | 3 |
| payable, the refund may be
applied, in the discretion of the | 4 |
| Board, toward the payment of the
employee's or the surviving | 5 |
| spouse's burial expenses. Any remaining
balance shall be paid | 6 |
| to the heirs of the employee according to the law of
descent | 7 |
| and distribution of the State of Illinois.
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| Whenever the total accumulations to the account of an | 9 |
| employee from employee contributions other than the | 10 |
| contribution for the cost of living increase, including | 11 |
| interest to the employee's date of withdrawal, have not been | 12 |
| paid to the employee and surviving spouse as a retirement or | 13 |
| spouse's annuity before the death of the employee and spouse, a | 14 |
| refund shall be paid as follows: an amount equal to the excess | 15 |
| of such amounts over the amounts paid on such annuities without | 16 |
| interest on either such amount.
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| If a reversionary annuity becomes payable under Section | 18 |
| 13-303, the
refund provided in this section shall not be paid | 19 |
| until the death of the
reversionary annuitant and the refund | 20 |
| otherwise payable under this section
shall be then further | 21 |
| reduced by the amount of the reversionary annuity paid.
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| (d) In lieu of annuity. Notwithstanding the provisions set | 23 |
| forth in
subsection (a) of this section, whenever an employee's | 24 |
| or surviving
spouse's annuity will be less than $200 per month, | 25 |
| the employee or
surviving spouse, as the case may be, may elect | 26 |
| to receive a refund of
accumulated employee contributions; |
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| provided, however, that if the election
is made by a surviving | 2 |
| spouse the refund shall be reduced by any amounts
theretofore | 3 |
| paid to the employee in the form of an annuity.
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| (e) Forfeiture of rights. An employee or surviving spouse | 5 |
| who receives
a refund forfeits the right to receive an annuity | 6 |
| or any other benefit
payable under this Article except that if | 7 |
| the refund is to a surviving
spouse, any child or children of | 8 |
| the employee shall not be deprived of the
right to receive a | 9 |
| child's annuity as provided in Section 13-308 of this
Article, | 10 |
| and the payment of a child's annuity shall not reduce the | 11 |
| amount
refundable to the surviving spouse.
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| (Source: P.A. 94-621, eff. 8-18-05.)
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| (40 ILCS 5/13-706) (from Ch. 108 1/2, par. 13-706)
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| Sec. 13-706. Board powers and duties. The Board shall have | 15 |
| the powers and
duties set forth in this Section, in addition to | 16 |
| such other powers and
duties as may be provided in this Article | 17 |
| and in this Code:
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| (a) To supervise collections. To see that all amounts | 19 |
| specified in this
Article to be applied to the Fund, from | 20 |
| any source, are collected and applied.
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| (b) To notify of deductions. To notify the Clerk of the | 22 |
| Water
Reclamation District of the deductions to be made | 23 |
| from the salaries of
employees.
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| (c) To accept gifts. To accept by gift, grant, bequest | 25 |
| or otherwise any
money or property of any kind and use the |
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| same for the purposes of the Fund.
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| (d) To invest the reserves. To invest the reserves of | 3 |
| the Fund in
accordance with the provisions set forth in | 4 |
| Section 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and | 5 |
| 1-115 of this Code. Investments made in accordance with | 6 |
| Section 1-113 of Article 1 of
this Code shall be deemed | 7 |
| prudent . The Board is also authorized to transfer | 8 |
| securities to the
Illinois State Board of Investment for | 9 |
| the purpose of participation in any
commingled investment | 10 |
| fund as provided in Article 22A of this Code.
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| (e) To authorize payments. To consider and pass upon | 12 |
| all applications
for annuities and benefits; to authorize | 13 |
| or suspend the payment of any
annuity or benefit; to | 14 |
| inquire into the validity and legality of any grant
of | 15 |
| annuity or benefit paid from or payable out of the Fund; to | 16 |
| increase,
reduce, or suspend any such annuity or benefit | 17 |
| whenever the annuity or
benefit, or any part thereof, was | 18 |
| secured or granted, or the amount thereof
fixed, as the | 19 |
| result of misrepresentation, fraud, or error. No such
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| annuity or benefit shall be permanently reduced or | 21 |
| suspended until the
affected annuitant or beneficiary is | 22 |
| first notified of the proposed action
and given an | 23 |
| opportunity to be heard. No trustee of the Board shall vote
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| upon that trustee's own personal claim for annuity, benefit | 25 |
| or refund, or
participate in the deliberations of the Board | 26 |
| as to the validity of any
such claim. The Board shall have |
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| exclusive original jurisdiction in all
matters of claims | 2 |
| for annuities, benefits and refunds.
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| (f) To submit an annual report. To submit a report in | 4 |
| July of each year
to the Board of Commissioners of the | 5 |
| Water Reclamation District as of the
close of business on | 6 |
| December 31st of the preceding year. The report shall
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| include the following:
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| (1) A balance sheet, showing the financial and | 9 |
| actuarial condition of
the Fund as of the end of the | 10 |
| calendar year;
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| (2) A statement of receipts and disbursements | 12 |
| during such year;
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| (3) A statement showing changes in the asset, | 14 |
| liability, reserve and
surplus accounts during such | 15 |
| year;
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| (4) A detailed statement of investments as of the | 17 |
| end of the year; and
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| (5) Any additional information as is deemed | 19 |
| necessary for proper
interpretation of the condition | 20 |
| of the Fund.
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| (g) To subpoena witnesses. To compel witnesses to | 22 |
| attend and testify
before it upon any matter concerning the | 23 |
| Fund and allow witness fees not in
excess of $6 for | 24 |
| attendance upon any one day. The President and other
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| members of the Board may administer oaths to witnesses.
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| (h) To appoint employees and consultants. To appoint |
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| such actuarial,
medical, legal, investigational, clerical | 2 |
| or financial employees and
consultants as are necessary, | 3 |
| and fix their compensation.
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| (i) To make rules. To make rules and regulations | 5 |
| necessary for the
administration of the affairs of the | 6 |
| Fund.
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| (j) To waive guardianship. To waive the requirement of | 8 |
| legal
guardianship of any minor unmarried beneficiary of | 9 |
| the Fund living with a
parent or grandparent, and legal | 10 |
| guardianship of any beneficiary under
legal disability | 11 |
| whose husband, wife, or parent is managing such
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| beneficiary's affairs, whenever the Board deems such | 13 |
| waiver to be in the
best interest of the beneficiary.
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| (k) To collect amounts due. To collect any amounts due | 15 |
| to the Fund from
any participant or beneficiary prior to | 16 |
| payment of any annuity, benefit or
refund.
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| (l) To invoke rule of offset. To offset against any | 18 |
| amount payable to
an employee or to any other person such | 19 |
| sums as may be due to the Fund
or may have been paid by the | 20 |
| Fund due to misrepresentation, fraud or error.
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| (m) To assess and collect interest on amounts due to | 22 |
| the Fund using the annual rate as shall from time to time | 23 |
| be determined by the Board, compounded annually from the | 24 |
| date of notification to the date of payment.
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| (Source: P.A. 94-621, eff. 8-18-05.)
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| Section 90. The State Mandates Act is amended by adding | 2 |
| Section 8.31 as follows: | 3 |
| (30 ILCS 805/8.31 new) | 4 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 5 |
| of this Act, no reimbursement by the State is required for the | 6 |
| implementation of any mandate created by this amendatory Act of | 7 |
| the 95th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 9 |
| becoming law.
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