Full Text of HB1764 97th General Assembly
HB1764 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB1764 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/8-139 | from Ch. 108 1/2, par. 8-139 | 30 ILCS 805/8.35 new | |
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Amends the Chicago Municipal Article of the Illinois Pension Code. Allows an employee annuitant who has elected the reversionary annuity to cancel the election. Prohibits the option for a reversionary annuity if the
reversionary annuity (was a reversionary annuity of a widow), when added to the widow's annuity payable
under the Article, exceeds 100% of the reduced annuity payable to
the employee. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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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 | | Section 8-139 as follows:
| 6 | | (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
| 7 | | Sec. 8-139. Reversionary annuity.
| 8 | | (a) An employee, prior to retirement on annuity, may elect | 9 | | to take a lesser
amount of annuity and provide, with the | 10 | | actuarial value of the amount by which
his annuity is reduced, | 11 | | a reversionary annuity for a wife, husband, parent,
child, | 12 | | brother or sister. The option shall be exercised by filing a | 13 | | written
designation with the board prior to retirement, and may | 14 | | be revoked by the
employee at any time before retirement. The | 15 | | death of the employee prior to
his retirement shall | 16 | | automatically void the option.
| 17 | | (b) The death of the designated reversionary annuitant | 18 | | prior to the
employee's retirement shall automatically void the | 19 | | option. If the
reversionary annuitant dies after the employee's | 20 | | retirement, and before
the death of the employee annuitant, the | 21 | | reduced
annuity being paid to the retired employee annuitant | 22 | | shall be increased
to the amount of annuity before reduction | 23 | | for the reversionary annuity
and no reversionary annuity shall |
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| 1 | | be payable.
| 2 | | The option is subject to the further condition that no | 3 | | reversionary annuity
shall be paid to a parent, child, brother, | 4 | | or sister if the employee dies
before the expiration of 365 | 5 | | days from the date his written
designation was filed with the | 6 | | board, even though he has retired and is
receiving a reduced | 7 | | annuity.
| 8 | | (c) The employee exercising this option shall not reduce | 9 | | his retirement
annuity by more than $400 a month, or elect to | 10 | | provide a
reversionary annuity of less than $50 per month. No | 11 | | option shall be permitted
if the reversionary annuity for a | 12 | | widow , when added to the widow's annuity
payable under this | 13 | | Article, exceeds 100% of the reduced annuity
payable to the | 14 | | employee.
| 15 | | (d) A reversionary annuity shall begin on the day following | 16 | | the death of
the annuitant and shall be paid as provided in | 17 | | Section 8-125.
| 18 | | (e) The increases in annuity provided in Section 8-137 of | 19 | | this Article
shall, as to an employee so electing a reduced | 20 | | annuity relate to the amount
of the original annuity, and such | 21 | | amount shall
constitute the annuity on
which such automatic | 22 | | increases shall be based.
| 23 | | (f) For annuities elected after June 30, 1983, the amount | 24 | | of the monthly
reversionary annuity shall be determined by | 25 | | multiplying the amount of the
monthly reduction in the | 26 | | employee's annuity by the factor in the following
table based |
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| 1 | | on the age of the employee and the difference in the age of
the | 2 | | employee and the age of the reversionary annuitant at the | 3 | | starting date
of the employee's annuity:
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4 | | Employee's Age |
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5 | | Reversionary |
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6 | | Annuitant's |
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7 | | Age |
50-51 |
52-54 |
55-57 |
58-60 |
61-63 |
64-66 |
67-69 |
70 & |
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8 | | |
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Over |
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9 | | 30 or |
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10 | | more |
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11 | | years |
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12 | | younger |
3.03 |
2.56 |
2.18 |
1.84 |
1.55 |
1.29 |
1.08 |
0.91 |
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13 | | 25-29 |
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14 | | years |
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15 | | younger |
3.16 |
2.68 |
2.29 |
1.94 |
1.63 |
1.37 |
1.15 |
0.97 |
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16 | | 20-24 |
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17 | | years |
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18 | | younger |
3.35 |
2.85 |
2.44 |
2.07 |
1.75 |
1.48 |
1.25 |
1.06 |
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19 | | 15-19 |
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20 | | years |
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21 | | younger |
3.60 |
3.08 |
2.65 |
2.26 |
1.92 |
1.63 |
1.39 |
1.19 |
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22 | | 10-14 |
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23 | | years |
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24 | | younger |
3.96 |
3.40 |
2.94 |
2.53 |
2.16 |
1.85 |
1.59 |
1.37 |
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25 | | 5-9 |
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26 | | years |
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| 1 | | younger |
4.46 |
3.84 |
3.35 |
2.90 |
2.51 |
2.16 |
1.88 |
1.64 |
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2 | | 0-4 |
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3 | | years |
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4 | | younger |
5.15 |
4.47 |
3.93 |
3.44 |
3.00 |
2.61 |
2.29 |
2.02 |
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5 | | 1-5 |
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6 | | years |
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7 | | older |
6.12 |
5.36 |
4.76 |
4.21 |
3.71 |
3.26 |
2.88 |
2.56 |
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8 | | 6-10 |
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9 | | years |
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10 | | older |
7.48 |
6.61 |
5.93 |
5.30 |
4.71 |
4.16 |
3.70 |
3.29 |
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11 | | 11-15 |
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12 | | years |
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13 | | older |
9.37 |
8.35 |
7.58 |
6.83 |
6.11 |
5.40 |
4.82 |
4.32 |
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14 | | 16-20 |
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15 | | years |
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16 | | older |
11.99 |
10.78 |
9.84 |
8.93 |
8.02 |
7.13 |
6.43 |
5.87 |
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17 | | 21-25 |
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18 | | years |
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19 | | older |
15.59 |
14.06 |
12.91 |
11.82 |
10.73 |
9.66 |
8.88 |
8.35 |
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20 | | 26-30 |
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21 | | years |
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22 | | older |
20.42 |
18.49 |
17.15 |
15.96 |
14.80 |
13.65 |
12.97 |
12.82 |
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23 | | 31 or |
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24 | | more |
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25 | | years |
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26 | | older |
27.07 |
24.72 |
23.34 |
22.32 |
21.45 |
20.62 |
20.85 |
23.28 |
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| | | HB1764 | - 5 - | LRB097 07291 JDS 47400 b |
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| 1 | | (g) Beginning on the effective date of this amendatory Act | 2 | | of the 97th General Assembly, an employee annuitant who has | 3 | | elected the reversionary annuity may cancel the election. The | 4 | | cancellation must be in writing with the employee's signature | 5 | | notarized. The cancellation shall be effective upon its being | 6 | | filed with the Board and may not be revoked after it is | 7 | | executed and filed. The reduction in annuity shall be restored | 8 | | with the first annuity payment made at least 30 days after the | 9 | | receipt of the cancellation by the Fund. There shall be no | 10 | | refund of money previously deducted from the employee's annuity | 11 | | to provide the reversionary annuity. | 12 | | (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98; | 13 | | 91-887, eff.
7-6-00 .)
| 14 | | Section 90. The State Mandates Act is amended by adding | 15 | | Section 8.35 as follows: | 16 | | (30 ILCS 805/8.35 new) | 17 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 18 | | of this Act, no reimbursement by the State is required for the | 19 | | implementation of any mandate created by this amendatory Act of | 20 | | the 97th General Assembly. | 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
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