Full Text of HB1697 095th General Assembly
HB1697 95TH GENERAL ASSEMBLY
|
|
|
95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1697
Introduced 2/22/2007, by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
|
40 ILCS 5/14-119 |
from Ch. 108 1/2, par. 14-119 |
40 ILCS 5/14-121 |
from Ch. 108 1/2, par. 14-121 |
40 ILCS 5/14-130 |
from Ch. 108 1/2, par. 14-130 |
40 ILCS 5/14-133 |
from Ch. 108 1/2, par. 14-133 |
40 ILCS 5/14-152.2 new |
|
|
Amends the State Employee Article of the Illinois Pension Code. Provides that, beginning January 1, 2008, the social security offset shall no longer be applied to any widow's or survivor's annuities. Provides that the retirement contribution for covered employees is increased 0.5% to remove the Social Security offset from their widow's or survivor's annuity, thus making their total contribution for that purpose 1.0%. Provides that, on or before January 1, 2008 and at future dates as established by the State Employees' Retirement System of Illinois, the covered employee may elect not to increase or to decrease his or her contribution, thus making his or her widow's or survivor's annuity subject to the Social Security offset. Provides that, after January 1, 2008, any contributions already made to the System for the purpose of removing the Social Security offset shall not be refunded and any election with reference to the Social Security offset shall be made within the limitations specified by the System. Specifies that the increased contributions are included in certain refunds. Specifies the required funding for the new benefit increase; specifies the effects of expiration if the General Assembly fails to extend the new benefit increase. Effective immediately.
|
| |
|
|
FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
|
|
A BILL FOR
|
|
|
|
|
HB1697 |
|
LRB095 07041 AMC 31868 b |
|
| 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 14-119, 14-121, 14-130, and 14-133 and by adding | 6 |
| Section 14-152.2 as follows:
| 7 |
| (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
| 8 |
| Sec. 14-119. Amount of widow's annuity.
| 9 |
| (a) The widow's annuity shall be 50% of the amount of | 10 |
| retirement annuity
payable to the member on the date of death | 11 |
| while on retirement if an
annuitant, or on the date of his | 12 |
| death while in service if an employee,
regardless of his age on | 13 |
| such date, or on the date of withdrawal if death
occurred after | 14 |
| termination of service under the conditions prescribed in
the | 15 |
| preceding Section.
| 16 |
| (b) If an eligible widow, regardless of age, has in her | 17 |
| care any
unmarried child or children of the member under age 18 | 18 |
| (under age 22 if a
full-time student), the widow's
annuity | 19 |
| shall be increased in the amount of 5% of the retirement | 20 |
| annuity
for each such child, but the combined payments for a | 21 |
| widow and
children shall not exceed 66 2/3% of the member's | 22 |
| earned
retirement annuity.
| 23 |
| The amount of retirement annuity from which the widow's
|
|
|
|
HB1697 |
- 2 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| annuity is derived shall be that earned by the member without | 2 |
| regard to
whether he attained age 60 prior to his withdrawal | 3 |
| under the conditions
stated or prior to his death.
| 4 |
| (c) Adopted children shall be considered as children of the | 5 |
| member
only if the proceedings for adoption were commenced at | 6 |
| least 1 year
prior to the member's death.
| 7 |
| Marriage of a child shall render the child ineligible for | 8 |
| further
consideration in the increase in the amount of the | 9 |
| widow's annuity.
| 10 |
| Attainment of age 18 (age 22 if a full-time student)
shall | 11 |
| render a child ineligible for
further consideration in the | 12 |
| increase of the widow's annuity, but the
annuity to the widow | 13 |
| shall be continued thereafter, without regard to
her age at | 14 |
| that time.
| 15 |
| (d) Until January 1, 2008 (or as otherwise provided in | 16 |
| Sections 14-133 and 14-152.2), a widow's annuity payable on
| 17 |
| account of any covered employee who has
shall have
been a | 18 |
| covered employee for at least 18 months shall be reduced
by 1/2 | 19 |
| of the amount of survivors benefits to which his beneficiaries | 20 |
| are
eligible under the provisions of the Federal Social | 21 |
| Security Act, except
that (1) the amount of any widow's annuity | 22 |
| payable under this Article shall
not be reduced by reason of | 23 |
| any increase under that Act which occurs after
the offset | 24 |
| required by this subsection is first applied to that annuity,
| 25 |
| and (2) for benefits granted on or after January 1, 1992, the | 26 |
| offset under
this subsection (d) shall not exceed 50% of the |
|
|
|
HB1697 |
- 3 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| amount of widow's annuity
otherwise payable.
| 2 |
| Beginning January 1, 2008 (and except as otherwise provided | 3 |
| in Sections 14-133 and 14-152.2), the offset under this | 4 |
| subsection (d) shall no
longer be applied to any widow's | 5 |
| annuity.
| 6 |
| (e) Upon the death of a recipient of a widow's annuity the | 7 |
| excess, if
any, of the member's accumulated contributions plus | 8 |
| credited interest over
all annuity payments to the member and | 9 |
| widow, exclusive of the $500 lump
sum payment, shall be paid to | 10 |
| the named beneficiary of the widow, or if
none has been named, | 11 |
| to the estate of the widow, provided no reversionary
annuity is | 12 |
| payable.
| 13 |
| (f) On January 1, 1981, any recipient of a widow's annuity | 14 |
| who was receiving
a widow's annuity on or before January 1, | 15 |
| 1971, shall have her widow's annuity
then being paid increased | 16 |
| by 1% for each full year which has elapsed from
the date the | 17 |
| widow's annuity began. On January 1, 1982, any recipient
of a | 18 |
| widow's annuity who began receiving a widow's annuity after | 19 |
| January
1, 1971, but before January 1, 1981, shall have her | 20 |
| widow's annuity then
being paid increased by 1% for each full | 21 |
| year which has elapsed from the
date the widow's annuity began. | 22 |
| On January 1, 1987, any recipient of a
widow's annuity who | 23 |
| began receiving the widow's annuity on or before January
1, | 24 |
| 1977, shall have the monthly widow's annuity increased by $1
| 25 |
| for each full year which has elapsed since the date the
annuity | 26 |
| began.
|
|
|
|
HB1697 |
- 4 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| (g) Beginning January 1, 1990, every widow's annuity shall | 2 |
| be
increased (1) on each January 1 occurring on or after the | 3 |
| commencement
of the annuity if the deceased member died while | 4 |
| receiving a retirement
annuity, or (2) in other cases, on each | 5 |
| January 1 occurring on or after
the first anniversary of the | 6 |
| commencement of the annuity, by an amount
equal to 3% of the | 7 |
| current amount of the annuity, including any previous
increases | 8 |
| under this Article. Such increases shall apply without regard | 9 |
| to
whether the deceased member was in service on or after the | 10 |
| effective date
of Public Act 86-1488, but shall not accrue for | 11 |
| any period prior to January
1, 1990.
| 12 |
| (Source: P.A. 90-448, eff. 8-16-97.)
| 13 |
| (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
| 14 |
| Sec. 14-121. Amount of survivors annuity. A survivors | 15 |
| annuity
beneficiary shall be entitled upon death of the member | 16 |
| to a single sum
payment of $1,000, payable pro rata among all | 17 |
| persons entitled thereto,
together with a survivors annuity | 18 |
| payable at the rates and under the
conditions specified in this | 19 |
| Article.
| 20 |
| (a) If the survivors annuity beneficiary is a spouse, the | 21 |
| survivors
annuity shall be 30% of final average compensation | 22 |
| subject to a maximum
payment of $400 per month.
| 23 |
| (b) If an eligible child or children under the care of a | 24 |
| spouse also
survives the member, such spouse as natural | 25 |
| guardian of the child or
children shall receive, in addition to |
|
|
|
HB1697 |
- 5 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| the foregoing annuity, 20% of final
average compensation on | 2 |
| account of each such child and 10% of final average
| 3 |
| compensation divided pro rata among such children, subject to a | 4 |
| maximum
payment on account of all survivor annuity | 5 |
| beneficiaries of $600 per month,
or 80% of the member's final | 6 |
| average compensation, whichever is the lesser.
| 7 |
| (c) If the survivors annuity beneficiary or beneficiaries | 8 |
| consists of
an unmarried child or children, the amount of | 9 |
| survivors annuity shall be
20% of final average compensation to | 10 |
| each child, and 10% of final average
compensation divided pro | 11 |
| rata among all such children entitled to such annuity,
subject | 12 |
| to a maximum payment to all children combined of $600 per month
| 13 |
| or 80% of the member's final average compensation, whichever is | 14 |
| the lesser.
| 15 |
| (d) If the survivors annuity beneficiary is one or more | 16 |
| dependent parents,
the annuity shall be 20% of final average | 17 |
| compensation to each parent and
10% of final average | 18 |
| compensation divided pro rata among the parents who
qualify for | 19 |
| this annuity, subject to a maximum payment to both dependent
| 20 |
| parents of $400 per month.
| 21 |
| (e) The survivors annuity to the spouse, children or | 22 |
| dependent parents of
a member whose death occurs after the date | 23 |
| of last withdrawal, or after
retirement, or while in service | 24 |
| following reentry into service after
retirement but before | 25 |
| completing 1 1/2 years of additional creditable
service, shall | 26 |
| not exceed the lesser of 80% of the member's earned
retirement |
|
|
|
HB1697 |
- 6 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| annuity at the date of death or the maximum previously
| 2 |
| established in this Section.
| 3 |
| (f) In applying the limitation prescribed on the combined | 4 |
| payments to
2 or more survivors annuity beneficiaries, the | 5 |
| annuity on account of each
beneficiary shall be reduced pro | 6 |
| rata until such time as the number of
beneficiaries makes the | 7 |
| reduction no longer applicable.
| 8 |
| (g) Until January 1, 2008 (or as otherwise provided in | 9 |
| Sections 14-133 and 14-152.2), a survivors annuity payable on | 10 |
| account of
any covered employee who has
shall have been a | 11 |
| covered employee for at
least 18 months at date of death or | 12 |
| last withdrawal, whichever is the later,
shall be reduced by | 13 |
| 1/2 of the survivors benefits to which his beneficiaries
are | 14 |
| eligible under the federal Social Security Act, except that (1) | 15 |
| the
survivors annuity payable under this Article shall not be | 16 |
| reduced by any
increase under that Act which occurs after the | 17 |
| offset required by this
subsection is first applied to that | 18 |
| annuity, (2) for benefits granted on or
after January 1, 1992, | 19 |
| the offset under this subsection (g) shall not exceed
50% of | 20 |
| the amount of survivors annuity otherwise payable.
| 21 |
| Beginning January 1, 2008 (and except as otherwise provided | 22 |
| in Section 14-133 and 14-152.2), the offset under this | 23 |
| subsection (g) shall no
longer be applied to any survivors | 24 |
| annuity.
| 25 |
| (h) The minimum payment to a beneficiary hereunder shall be | 26 |
| $60 per month,
which shall be reduced in accordance with the |
|
|
|
HB1697 |
- 7 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| limitation prescribed on the
combined payments to all | 2 |
| beneficiaries of a member.
| 3 |
| (i) Subject to the conditions set forth in Section 14-120, | 4 |
| the minimum
total survivors annuity benefit payable to the | 5 |
| survivors annuity beneficiaries
of a deceased member or | 6 |
| annuitant whose death occurs on or after January
1, 1984, shall | 7 |
| be 50% of the amount of retirement annuity that was or would
| 8 |
| have been payable to the deceased on the date of death, | 9 |
| regardless of the
age of the deceased on such date. If the | 10 |
| minimum total benefit provided
by this subsection exceeds the | 11 |
| maximum otherwise imposed by this Section,
the minimum total | 12 |
| benefit shall nevertheless be payable. Any increase in
the | 13 |
| total survivors annuity benefit resulting from the operation of | 14 |
| this
subsection shall be divided among the survivors annuity | 15 |
| beneficiaries of
the deceased in proportion to their shares of | 16 |
| the total survivors annuity
benefit otherwise payable under | 17 |
| this Section.
| 18 |
| (j) Any survivors annuity beneficiary whose annuity | 19 |
| terminates due to any
condition specified in this Article other | 20 |
| than death shall be entitled to
a refund of the excess, if any, | 21 |
| of the accumulated contributions of the
member plus credited | 22 |
| interest over all payments to the member and beneficiary
or | 23 |
| beneficiaries, exclusive of the single sum payment of $1,000, | 24 |
| provided
no future survivors or reversionary annuity benefits | 25 |
| are payable.
| 26 |
| (k) Upon the death of the last eligible recipient of a |
|
|
|
HB1697 |
- 8 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| survivors
annuity the excess, if any, of the member's | 2 |
| accumulated contributions plus
credited interest over all | 3 |
| annuity payments to the member and survivors
exclusive of the | 4 |
| single sum payment of $1000, shall be paid to the named
| 5 |
| beneficiary of the last eligible survivor, or if none has been | 6 |
| named, to
the estate of the last eligible survivor, provided no | 7 |
| reversionary annuity
is payable.
| 8 |
| (l) On January 1, 1981, any survivor who was receiving a | 9 |
| survivors
annuity on or before January 1, 1971, shall have his | 10 |
| survivors annuity then
being paid increased by 1% for each full | 11 |
| year which has elapsed from the
date the annuity began. On | 12 |
| January 1, 1982, any survivor who began receiving
a survivor's | 13 |
| annuity after January 1, 1971, but before January 1, 1981,
| 14 |
| shall have his survivor's annuity then being paid increased by | 15 |
| 1% for each
full year that has elapsed from the date the | 16 |
| annuity began.
On January 1, 1987, any survivor who began | 17 |
| receiving a survivor's annuity
on or before January 1, 1977, | 18 |
| shall have the monthly survivor's annuity
increased by $1 for | 19 |
| each full year which has elapsed since the date the
survivor's | 20 |
| annuity began.
| 21 |
| (m) Beginning January 1, 1990, every survivor's annuity | 22 |
| shall be increased
(1) on each January 1 occurring on or after | 23 |
| the commencement of the annuity if
the deceased member died | 24 |
| while receiving a retirement annuity, or (2) in
other cases, on | 25 |
| each January 1 occurring on or after the first anniversary
of | 26 |
| the commencement of the annuity, by an amount equal to 3% of |
|
|
|
HB1697 |
- 9 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| the current
amount of the annuity, including any previous | 2 |
| increases under this Article.
Such increases shall apply | 3 |
| without regard to whether the deceased member
was in service on | 4 |
| or after the effective date of Public Act 86-1488,
but shall | 5 |
| not accrue for any period prior to January 1, 1990.
| 6 |
| (Source: P.A. 86-273; 86-1488; 87-794.)
| 7 |
| (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
| 8 |
| Sec. 14-130. Refunds; rules.
| 9 |
| (a) Upon withdrawal a member is entitled to receive, upon | 10 |
| written
request, a refund of the member's contributions, | 11 |
| including credits granted
while in receipt of disability | 12 |
| benefits, without credited interest. The
board, in its | 13 |
| discretion may withhold payment of the refund of a member's
| 14 |
| contributions for a period not to exceed 1 year after the | 15 |
| member has ceased
to be an employee.
| 16 |
| For purposes of this Section, a member will be considered | 17 |
| to have
withdrawn from service if a change in, or transfer of, | 18 |
| his position
results in his becoming ineligible for continued | 19 |
| membership in this
System and eligible for membership in | 20 |
| another public retirement system
under this Act.
| 21 |
| (b) A member receiving a refund forfeits and relinquishes | 22 |
| all
accrued rights in the System, including all accumulated | 23 |
| creditable
service. If the person again becomes a member of the | 24 |
| System and
establishes at least 2 years of creditable service, | 25 |
| the member may repay
all the moneys previously refunded or a |
|
|
|
HB1697 |
- 10 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| portion of the moneys previously refunded representing | 2 |
| contributions for one or more whole months of creditable | 3 |
| service. If a member repays a portion of moneys previously | 4 |
| refunded, he or she may later repay some or all of the | 5 |
| remaining portion of those previously refunded moneys. | 6 |
| However, a former member may restore
credits previously | 7 |
| forfeited by acceptance of a refund without returning to
| 8 |
| service by applying in writing and repaying to the System, by | 9 |
| April 1,
1993, the amount of the refund plus regular interest | 10 |
| calculated from the
date of refund to the date of repayment.
| 11 |
| The repayment of refunds issued prior to January 1, 1984 | 12 |
| shall consist
of the amount refunded plus 5% interest per annum | 13 |
| compounded annually for
the period from the date of the refund | 14 |
| to the end of the month in which
repayment is made. The | 15 |
| repayment of refunds issued after January 1, 1984
shall consist | 16 |
| of the amount refunded plus regular interest for the period
| 17 |
| from the date of refund to the end of the month in which | 18 |
| repayment is made.
The repayment of the refund of a person who | 19 |
| accepts an alternative retirement cancellation payment under | 20 |
| Section 14-108.5 shall consist of the entire amount paid to the | 21 |
| person under subsection (c) of Section 14-108.5 plus regular | 22 |
| interest for the period from the date of the refund to the end | 23 |
| of the month in which repayment is made. However, in the case | 24 |
| of a refund that is repaid in a lump sum between
January 1, | 25 |
| 1991 and July 1, 1991, repayment shall consist of the amount
| 26 |
| refunded plus interest at the rate of 2.5% per annum compounded |
|
|
|
HB1697 |
- 11 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| annually
from the date of the refund to the end of the month in | 2 |
| which repayment is made.
| 3 |
| Upon repayment, the member shall receive credit for the
| 4 |
| service for which the refund has been repaid, and the | 5 |
| corresponding member contributions and regular interest that | 6 |
| was forfeited by
acceptance of the refund, as well as regular | 7 |
| interest for the period of
non-membership. Such repayment shall | 8 |
| be made in full before retirement
either in a lump sum or in | 9 |
| installment payments in accordance with such
rules as may be | 10 |
| adopted by the board.
| 11 |
| (b-5) The Board may adopt rules governing the repayment of | 12 |
| refunds
and establishment of credits in cases involving awards | 13 |
| of back pay or
reinstatement. The rules may authorize repayment | 14 |
| of a refund in installment
payments and may waive the payment | 15 |
| of interest on refund amounts repaid in
full within a specified | 16 |
| period.
| 17 |
| (c) A member no longer in service who is unmarried and does | 18 |
| not have an eligible survivors annuity
beneficiary on the date | 19 |
| of application therefor is
entitled to a refund of | 20 |
| contributions for widow's annuity or survivors
annuity | 21 |
| purposes, or both, as the case may be, including the increased | 22 |
| amounts paid pursuant to the increase in contribution rates for | 23 |
| widow or survivors annuity purposes under Section 14-133 by | 24 |
| this amendatory Act of the 95th General Assembly, without | 25 |
| interest. A widow's
annuity or survivors annuity shall not be | 26 |
| payable upon the death of a person
who has received this |
|
|
|
HB1697 |
- 12 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| refund, unless prior to that death the amount of the
refund has | 2 |
| been repaid to the System, together with regular interest from | 3 |
| the
date of the refund to the date of repayment.
| 4 |
| (d) Any member who has service credit in any position for | 5 |
| which an
alternative retirement annuity is provided and in | 6 |
| relation to which an
increase in the rate of employee | 7 |
| contribution is required, shall be
entitled to a refund, | 8 |
| without interest, of that part of the member's
employee | 9 |
| contribution which results from that increase in the employee
| 10 |
| rate if the member does not qualify for that alternative | 11 |
| retirement
annuity at the time of retirement.
| 12 |
| (Source: P.A. 93-839, eff. 7-30-04; 94-455, eff. 8-4-05.)
| 13 |
| (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| 14 |
| Sec. 14-133. Contributions on behalf of members.
| 15 |
| (a) Each participating employee shall make contributions | 16 |
| to the System,
based on the employee's compensation, as | 17 |
| follows:
| 18 |
| (1) Covered employees, except as indicated below, 3.5% | 19 |
| for
retirement annuity, and 0.5% for a widow or survivors
| 20 |
| annuity . After January 1, 2008, the retirement | 21 |
| contribution for covered employees is increased 0.5% to | 22 |
| remove the Social Security offset from their widow's or | 23 |
| survivor's annuity, thus making their total contribution | 24 |
| for that purpose 1.0%. On or before January 1, 2008 and at | 25 |
| future dates as established by the System, the covered |
|
|
|
HB1697 |
- 13 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| employee may elect not to increase or to decrease his or | 2 |
| her contribution under this paragraph (1), thus making his | 3 |
| or her widow's or survivor's annuity subject to the Social | 4 |
| Security offset. After January 1, 2008, any contributions | 5 |
| already made to the System for the purpose of removing the | 6 |
| Social Security offset shall not be refunded and any | 7 |
| election with reference to the Social Security offset shall | 8 |
| be made within the limitations specified by the System. ;
| 9 |
| (2) Noncovered employees, except as indicated below, | 10 |
| 7% for retirement
annuity and 1% for a widow or survivors | 11 |
| annuity . ;
| 12 |
| (3) Noncovered employees serving in a position in which | 13 |
| "eligible
creditable service" as defined in Section 14-110 | 14 |
| may be earned, 1% for a widow
or survivors annuity
plus the | 15 |
| following amount for retirement annuity: 8.5% through | 16 |
| December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | 17 |
| in 2004 and thereafter . ;
| 18 |
| (4) Covered employees serving in a position in which | 19 |
| "eligible creditable
service" as defined in Section 14-110 | 20 |
| may be earned, 0.5% for a widow or survivors annuity ,
plus | 21 |
| the following amount for retirement annuity: 5% through | 22 |
| December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 23 |
| and thereafter . After January 1, 2008, the retirement | 24 |
| contribution for covered employees is increased 0.5% to | 25 |
| remove the Social Security offset from their widow's or | 26 |
| survivor's annuity, thus making their total contribution |
|
|
|
HB1697 |
- 14 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| for that purpose 1.0%. On or before January 1, 2008 and at | 2 |
| future dates as established by the System, the covered | 3 |
| employee may elect not to increase or to decrease his or | 4 |
| her contribution under this paragraph (4), thus making his | 5 |
| or her widow's or survivor's annuity subject to the Social | 6 |
| Security offset. After January 1, 2008, any contributions | 7 |
| already made to the System for the purpose of removing the | 8 |
| Social Security offset shall not be refunded and any | 9 |
| election with reference to the Social Security offset shall | 10 |
| be made within the limitations specified by the System. ;
| 11 |
| (5) Each security employee of the Department of | 12 |
| Corrections
or of the Department of Human Services who is a | 13 |
| covered employee, 0.5% for a widow or survivors annuity ,
| 14 |
| plus the following amount for retirement annuity: 5% | 15 |
| through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | 16 |
| in 2004 and thereafter . After January 1, 2008, the | 17 |
| retirement contribution for covered employees is increased | 18 |
| 0.5% to remove the Social Security offset from their | 19 |
| widow's or survivor's annuity, thus making their total | 20 |
| contribution for that purpose 1.0%. On or before January 1, | 21 |
| 2008 and at future dates as established by the System, the | 22 |
| covered employee may elect not to increase or to decrease | 23 |
| his or her contribution under this paragraph (5), thus | 24 |
| making his or her widow's or survivor's annuity subject to | 25 |
| the Social Security offset. After January 1, 2008, any | 26 |
| contributions already made to the System for the purpose of |
|
|
|
HB1697 |
- 15 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| removing the Social Security offset shall not be refunded | 2 |
| and any election with reference to the Social Security | 3 |
| offset shall be made within the limitations specified by | 4 |
| the System. ;
| 5 |
| (6) Each security employee of the Department of | 6 |
| Corrections
or of the Department of Human Services who is | 7 |
| not a covered employee, 1% for a widow or survivors annuity
| 8 |
| plus the following amount for retirement annuity: 8.5% | 9 |
| through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 10 |
| 11.5% in 2004 and thereafter.
| 11 |
| (b) Contributions shall be in the form of a deduction from
| 12 |
| compensation and shall be made notwithstanding that the | 13 |
| compensation
paid in cash to the employee shall be reduced | 14 |
| thereby below the minimum
prescribed by law or regulation. Each | 15 |
| member is deemed to consent and
agree to the deductions from | 16 |
| compensation provided for in this Article,
and shall receipt in | 17 |
| full for salary or compensation.
| 18 |
| (c) The increase in contributions by covered members for | 19 |
| widow or survivors annuity purposes provided by this amendatory | 20 |
| Act of the 95th General Assembly does not apply to persons who | 21 |
| first become members of the System on or after January 1, 2013, | 22 |
| if the new benefit increase created by this amendatory Act | 23 |
| expires in accordance with Section 14-152.1(d) and Section | 24 |
| 14-152.2.
| 25 |
| (Source: P.A. 92-14, eff. 6-28-01.)
|
|
|
|
HB1697 |
- 16 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| (40 ILCS 5/14-152.2 new)
| 2 |
| Sec. 14-152.2. New benefit increases. The General Assembly | 3 |
| finds and declares that the amendment to Sections 14-119 and | 4 |
| 14-121 made by this amendatory Act of the 95th General | 5 |
| Assembly, which removes the social security offset from widow's | 6 |
| and survivor's annuities beginning January 1, 2008, | 7 |
| constitutes a new benefit increase within the meaning of | 8 |
| Section 14-152.1. Funding for this new benefit increase will be | 9 |
| provided by the additional employee contributions made under | 10 |
| Section 14-133 by this amendatory Act. | 11 |
| Unless this new benefit increase is extended by the General | 12 |
| Assembly, it will expire on January 1, 2013. If this new | 13 |
| benefit increase expires: | 14 |
| (i) for persons who first become members of the System | 15 |
| on or after the January 1, 2013 expiration date (and their | 16 |
| widows and survivors), the social security offsets under | 17 |
| Section 14-119(d) and Section 14-121(g), as they existed | 18 |
| immediately prior to the effective date of this amendatory | 19 |
| Act, are reinstated, and the increase in contributions by | 20 |
| covered members for widow or survivors annuity purposes | 21 |
| under Section 14-133 does not apply; and | 22 |
| (ii) for persons who first become members of the System | 23 |
| before January 1, 2013 and made the required elective | 24 |
| contributions under Section 14-133 (and their widows and | 25 |
| survivors), the social security offsets under Section | 26 |
| 14-119(d) and Section 14-121(g) remain inapplicable after |
|
|
|
HB1697 |
- 17 - |
LRB095 07041 AMC 31868 b |
|
| 1 |
| January 1, 2008 and the increase in contributions by | 2 |
| covered members for widow or survivors annuity purposes | 3 |
| under Section 14-133 remains in effect.
| 4 |
| Section 99. Effective date. This Act takes effect upon | 5 |
| becoming law. |
|