Full Text of HB4292 102nd General Assembly
HB4292enr 102ND 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 General Obligation Bond Act is amended by | 5 | | changing Sections 2, 2.5, and 7.7 as follows: | 6 | | (30 ILCS 330/2) (from Ch. 127, par. 652) | 7 | | Sec. 2. Authorization for Bonds. The State of Illinois is | 8 | | authorized to
issue, sell and provide for the retirement of | 9 | | General Obligation Bonds of
the State of Illinois for the | 10 | | categories and specific purposes expressed in
Sections 2 | 11 | | through 8 of this Act, in the total amount of $79,256,839,969 | 12 | | $78,256,839,969 . | 13 | | The bonds authorized in this Section 2 and in Section 16 of | 14 | | this Act are
herein called "Bonds". | 15 | | Of the total amount of Bonds authorized in this Act, up to | 16 | | $2,200,000,000
in aggregate original principal amount may be | 17 | | issued and sold in accordance
with the Baccalaureate Savings | 18 | | Act in the form of General Obligation
College Savings Bonds. | 19 | | Of the total amount of Bonds authorized in this Act, up to | 20 | | $300,000,000 in
aggregate original principal amount may be | 21 | | issued and sold in accordance
with the Retirement Savings Act | 22 | | in the form of General Obligation
Retirement Savings Bonds. | 23 | | Of the total amount of Bonds authorized in this Act, the |
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| 1 | | additional
$10,000,000,000 authorized by Public Act 93-2, the | 2 | | $3,466,000,000 authorized by Public Act 96-43, and the | 3 | | $4,096,348,300 authorized by Public Act 96-1497 shall be used | 4 | | solely as provided in Section 7.2. | 5 | | Of the total amount of Bonds authorized in this Act, the | 6 | | additional $6,000,000,000 authorized by Public Act 100-23 | 7 | | shall be used solely as provided in Section 7.6 and shall be | 8 | | issued by December 31, 2017. | 9 | | Of the total amount of Bonds authorized in this Act, | 10 | | $2,000,000,000 $1,000,000,000 of the additional amount | 11 | | authorized by Public Act 100-587 and this amendatory Act of | 12 | | the 102nd General Assembly shall be used solely as provided in | 13 | | Section 7.7. | 14 | | The issuance and sale of Bonds pursuant to the General | 15 | | Obligation Bond
Act is an economical and efficient method of | 16 | | financing the long-term capital needs of
the State. This Act | 17 | | will permit the issuance of a multi-purpose General
Obligation | 18 | | Bond with uniform terms and features. This will not only lower
| 19 | | the cost of registration but also reduce the overall cost of | 20 | | issuing debt
by improving the marketability of Illinois | 21 | | General Obligation Bonds. | 22 | | (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; | 23 | | 101-30, eff. 6-28-19.) | 24 | | (30 ILCS 330/2.5) | 25 | | Sec. 2.5. Limitation on issuance of Bonds. |
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| 1 | | (a) Except as provided in subsection (b), no Bonds may be | 2 | | issued if, after the issuance, in the next State fiscal year | 3 | | after the issuance of the Bonds, the amount of debt service | 4 | | (including principal, whether payable at maturity or pursuant | 5 | | to mandatory sinking fund installments, and interest) on all | 6 | | then-outstanding Bonds, other than (i) Bonds authorized by | 7 | | Public Act 100-23, (ii) Bonds issued by Public Act 96-43, | 8 | | (iii) Bonds authorized by Public Act 96-1497, and (iv) Bonds | 9 | | authorized by Public Act 100-587 , and (v) Bonds authorized by | 10 | | this amendatory Act of the 102nd General Assembly , would | 11 | | exceed 7% of the aggregate appropriations from the general | 12 | | funds, the State Construction Account Fund, and the Road Fund | 13 | | for the fiscal year immediately prior to the fiscal year of the | 14 | | issuance. For the purposes of this subsection (a), "general | 15 | | funds" has the same meaning as ascribed to that term under | 16 | | Section 50-40 of the State Budget Law of the Civil | 17 | | Administrative Code of Illinois. | 18 | | (b) If the Comptroller and Treasurer each consent in | 19 | | writing, Bonds may be issued even if the issuance does not | 20 | | comply with subsection (a). In addition, $2,000,000,000 in | 21 | | Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7, | 22 | | and $2,000,000,000 in Refunding Bonds under Section 16, may be | 23 | | issued during State fiscal year 2017 without complying with | 24 | | subsection (a). In addition, $2,000,000,000 in Bonds for the | 25 | | purposes set forth in Sections 3, 4, 5, 6, and 7, and | 26 | | $2,000,000,000 in Refunding Bonds under Section 16, may be |
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| 1 | | issued during State fiscal year 2018 without complying with | 2 | | subsection (a).
| 3 | | (Source: P.A. 100-23, Article 25, Section 25-5, eff. 7-6-17; | 4 | | 100-23, Article 75, Section 75-10, eff. 7-6-17; 100-587, eff. | 5 | | 6-4-18; 100-863, eff. 8-14-18; 101-30, eff. 6-28-19.) | 6 | | (30 ILCS 330/7.7) | 7 | | Sec. 7.7. State Pension Obligation Acceleration Bonds. | 8 | | (a) As used in this Act, "State Pension Obligation | 9 | | Acceleration Bonds" means Bonds authorized by Public Act | 10 | | 100-587 and this amendatory Act of the 102nd General Assembly | 11 | | this amendatory Act of the 100th General Assembly and used for | 12 | | the purpose of making accelerated pension benefit payments | 13 | | under Articles 14, 15, and 16 of the Illinois Pension Code. | 14 | | (b) State Pension Obligation Acceleration Bonds in the | 15 | | amount of $2,000,000,000 $1,000,000,000 are hereby authorized | 16 | | to be used for the purpose of making accelerated pension | 17 | | benefit payments under Articles 14, 15, and 16 of the Illinois | 18 | | Pension Code. | 19 | | (c) The proceeds of State Pension Obligation Acceleration | 20 | | Bonds authorized in subsection (b) of this Section, less the | 21 | | amounts authorized in the Bond Sale Order to be directly paid | 22 | | out for bond sale expenses under Section 8, shall be deposited | 23 | | directly into the State Pension Obligation Acceleration Bond | 24 | | Fund, and the Comptroller and the Treasurer shall, as soon as | 25 | | practical, make accelerated pension benefit payments under |
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| 1 | | Articles 14, 15, and 16 of the Illinois Pension Code. | 2 | | (d) There is created the State Pension Obligation | 3 | | Acceleration Bond Fund as a special fund in the State | 4 | | Treasury. Funds deposited in the State Pension Obligation | 5 | | Acceleration Bond Fund may only be used for the purpose of | 6 | | making accelerated pension benefit payments under Articles 14, | 7 | | 15, and 16 of the Illinois Pension Code or for the payment of | 8 | | principal and interest due on State Pension Obligation | 9 | | Acceleration Bonds. This subsection shall constitute an | 10 | | irrevocable and continuing appropriation of all amounts | 11 | | necessary for such purposes.
| 12 | | (Source: P.A. 100-587, eff. 6-4-18.) | 13 | | Section 10. The Illinois Pension Code is amended by | 14 | | changing Sections 14-147.5, 14-147.6, 15-185.5, 15-185.6, | 15 | | 16-190.5, and 16-190.6 as follows: | 16 | | (40 ILCS 5/14-147.5) | 17 | | Sec. 14-147.5. Accelerated pension benefit payment in lieu | 18 | | of any pension benefit. | 19 | | (a) As used in this Section: | 20 | | "Eligible person" means a person who: | 21 | | (1) has terminated service; | 22 | | (2) has accrued sufficient service credit to be | 23 | | eligible to receive a retirement annuity under this | 24 | | Article; |
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| 1 | | (3) has not received any retirement annuity under this | 2 | | Article; and | 3 | | (4) has not made the election under Section 14-147.6. | 4 | | "Pension benefit" means the benefits under this Article, | 5 | | or Article 1 as it relates to those benefits, including any | 6 | | anticipated annual increases, that an eligible person is | 7 | | entitled to upon attainment of the applicable retirement age. | 8 | | "Pension benefit" also includes applicable survivor's or | 9 | | disability benefits. | 10 | | (b) As soon as practical after June 4, 2018 (the effective | 11 | | date of Public Act 100-587), the System shall calculate, using | 12 | | actuarial tables and other assumptions adopted by the Board, | 13 | | the present value of pension benefits for each eligible person | 14 | | who requests that information and shall offer each eligible | 15 | | person the opportunity to irrevocably elect to receive an | 16 | | amount determined by the System to be equal to 60% of the | 17 | | present value of his or her pension benefits in lieu of | 18 | | receiving any pension benefit. The offer shall specify the | 19 | | dollar amount that the eligible person will receive if he or | 20 | | she so elects and shall expire when a subsequent offer is made | 21 | | to an eligible person. An eligible person is limited to one | 22 | | calculation and offer per calendar year. The System shall make | 23 | | a good faith effort to contact every eligible person to notify | 24 | | him or her of the election. | 25 | | Until June 30, 2026 2024 , an eligible person may | 26 | | irrevocably elect to receive an accelerated pension benefit |
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| 1 | | payment in the amount that the System offers under this | 2 | | subsection in lieu of receiving any pension benefit. A person | 3 | | who elects to receive an accelerated pension benefit payment | 4 | | under this Section may not elect to proceed under the | 5 | | Retirement Systems Reciprocal Act with respect to service | 6 | | under this Article. | 7 | | (c) A person's creditable service under this Article shall | 8 | | be terminated upon the person's receipt of an accelerated | 9 | | pension benefit payment under this Section, and no other | 10 | | benefit shall be paid under this Article based on the | 11 | | terminated creditable service, including any retirement, | 12 | | survivor, or other benefit; except that to the extent that | 13 | | participation, benefits, or premiums under the State Employees | 14 | | Group Insurance Act of 1971 are based on the amount of service | 15 | | credit, the terminated service credit shall be used for that | 16 | | purpose. | 17 | | (d) If a person who has received an accelerated pension | 18 | | benefit payment under this Section returns to active service | 19 | | under this Article, then: | 20 | | (1) Any benefits under the System earned as a result | 21 | | of that return to active service shall be based solely on | 22 | | the person's creditable service arising from the return to | 23 | | active service. | 24 | | (2) The accelerated pension benefit payment may not be | 25 | | repaid to the System, and the terminated creditable | 26 | | service may not under any circumstances be reinstated. |
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| 1 | | (e) As a condition of receiving an accelerated pension | 2 | | benefit payment, the accelerated pension benefit payment must | 3 | | be transferred into a tax qualified retirement plan or | 4 | | account. The accelerated pension benefit payment under this | 5 | | Section may be subject to withholding or payment of applicable | 6 | | taxes, but to the extent permitted by federal law, a person who | 7 | | receives an accelerated pension benefit payment under this | 8 | | Section must direct the System to pay all of that payment as a | 9 | | rollover into another retirement plan or account qualified | 10 | | under the Internal Revenue Code of 1986, as amended. | 11 | | (f) Upon receipt of a member's irrevocable election to | 12 | | receive an accelerated pension benefit payment under this | 13 | | Section, the System shall submit a voucher to the Comptroller | 14 | | for payment of the member's accelerated pension benefit | 15 | | payment. The Comptroller shall transfer the amount of the | 16 | | voucher from the State Pension Obligation
Acceleration Bond | 17 | | Fund to the System, and the System shall transfer the amount | 18 | | into the member's eligible retirement plan or qualified | 19 | | account. | 20 | | (g) The Board shall adopt any rules, including emergency | 21 | | rules, necessary to implement this Section. | 22 | | (h) No provision of this Section shall be interpreted in a | 23 | | way that would cause the applicable System to cease to be a | 24 | | qualified plan under the Internal Revenue Code of 1986.
| 25 | | (Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.) |
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| 1 | | (40 ILCS 5/14-147.6) | 2 | | Sec. 14-147.6. Accelerated pension benefit payment for a | 3 | | reduction in annual retirement annuity and survivor's annuity | 4 | | increases. | 5 | | (a) As used in this Section: | 6 | | "Accelerated pension benefit payment" means a lump sum | 7 | | payment equal to 70% of the difference of the present value of | 8 | | the automatic annual increases to a Tier 1 member's retirement | 9 | | annuity and survivor's annuity using the formula applicable to | 10 | | the Tier 1 member and the present value of the automatic annual | 11 | | increases to the Tier 1 member's retirement annuity using the | 12 | | formula provided under subsection (b-5) and survivor's annuity | 13 | | using the formula provided under subsection (b-6). | 14 | | "Eligible person" means a person who: | 15 | | (1) is a Tier 1 member; | 16 | | (2) has submitted an application for a retirement | 17 | | annuity under this Article; | 18 | | (3) meets the age and service requirements for | 19 | | receiving a retirement annuity under this Article; | 20 | | (4) has not received any retirement annuity under this | 21 | | Article; and | 22 | | (5) has not made the election under Section 14-147.5. | 23 | | (b) As soon as practical after June 4, 2018 (the effective | 24 | | date of Public Act 100-587) and until June 30, 2026 2024 , the | 25 | | System shall implement an accelerated pension benefit payment | 26 | | option for eligible persons. Upon the request of an eligible |
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| 1 | | person, the System shall calculate, using actuarial tables and | 2 | | other assumptions adopted by the Board, an accelerated pension | 3 | | benefit payment amount and shall offer that eligible person | 4 | | the opportunity to irrevocably elect to have his or her | 5 | | automatic annual increases in retirement annuity calculated in | 6 | | accordance with the formula provided under subsection (b-5) | 7 | | and any increases in survivor's annuity payable to his or her | 8 | | survivor's annuity beneficiary calculated in accordance with | 9 | | the formula provided under subsection (b-6) in exchange for | 10 | | the accelerated pension benefit payment. The election under | 11 | | this subsection must be made before the eligible person | 12 | | receives the first payment of a retirement annuity otherwise | 13 | | payable under this Article. | 14 | | (b-5) Notwithstanding any other provision of law, the | 15 | | retirement annuity of a person who made the election under | 16 | | subsection (b) shall be subject to annual increases on the | 17 | | January 1 occurring either on or after the attainment of age 67 | 18 | | or the first anniversary of the annuity start date, whichever | 19 | | is later. Each annual increase shall be calculated at 1.5% of | 20 | | the originally granted retirement annuity. | 21 | | (b-6) Notwithstanding any other provision of law, a | 22 | | survivor's annuity payable to a survivor's annuity beneficiary | 23 | | of a person who made the election under subsection (b) shall be | 24 | | subject to annual increases on the January 1 occurring on or | 25 | | after the first anniversary of the commencement of the | 26 | | annuity. Each annual increase shall be calculated at 1.5% of |
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| 1 | | the originally granted survivor's annuity. | 2 | | (c) If a person who has received an accelerated pension | 3 | | benefit payment returns to active service under this Article, | 4 | | then: | 5 | | (1) the calculation of any future automatic annual | 6 | | increase in retirement annuity shall be calculated in | 7 | | accordance with the formula provided under subsection | 8 | | (b-5); and | 9 | | (2) the accelerated pension benefit payment may not be | 10 | | repaid to the System. | 11 | | (d) As a condition of receiving an accelerated pension | 12 | | benefit payment, the accelerated pension benefit payment must | 13 | | be transferred into a tax qualified retirement plan or | 14 | | account. The accelerated pension benefit payment under this | 15 | | Section may be subject to withholding or payment of applicable | 16 | | taxes, but to the extent permitted by federal law, a person who | 17 | | receives an accelerated pension benefit payment under this | 18 | | Section must direct the System to pay all of that payment as a | 19 | | rollover into another retirement plan or account qualified | 20 | | under the Internal Revenue Code of 1986, as amended. | 21 | | (d-5) Upon receipt of a member's irrevocable election to | 22 | | receive an accelerated pension benefit payment under this | 23 | | Section, the System shall submit a voucher to the Comptroller | 24 | | for payment of the member's accelerated pension benefit | 25 | | payment. The Comptroller shall transfer the amount of the | 26 | | voucher to the System, and the System shall transfer the |
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| 1 | | amount into a member's eligible retirement plan or qualified | 2 | | account. | 3 | | (e) The Board shall adopt any rules, including emergency | 4 | | rules, necessary to implement this Section. | 5 | | (f) No provision of this Section shall be interpreted in a | 6 | | way that would cause the applicable System to cease to be a | 7 | | qualified plan under the Internal Revenue Code of 1986.
| 8 | | (Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.) | 9 | | (40 ILCS 5/15-185.5) | 10 | | Sec. 15-185.5. Accelerated pension benefit payment in lieu | 11 | | of any pension benefit. | 12 | | (a) As used in this Section: | 13 | | "Eligible person" means a person who: | 14 | | (1) has terminated service; | 15 | | (2) has accrued sufficient service credit to be | 16 | | eligible to receive a retirement annuity under this | 17 | | Article; | 18 | | (3) has not received any retirement annuity under this | 19 | | Article; | 20 | | (4) has not made the election under Section 15-185.6; | 21 | | and | 22 | | (5) is not a participant in the self-managed plan | 23 | | under Section 15-158.2. | 24 | | "Implementation date" means the earliest date upon which | 25 | | the Board authorizes eligible persons to begin irrevocably |
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| 1 | | electing the accelerated pension benefit payment option under | 2 | | this Section. The Board shall endeavor to make such | 3 | | participation available as soon as possible after June 4, 2018 | 4 | | (the effective date of Public Act 100-587) and shall establish | 5 | | an implementation date by Board resolution. | 6 | | "Pension benefit" means the benefits under this Article, | 7 | | or Article 1 as it relates to those benefits, including any | 8 | | anticipated annual increases, that an eligible person is | 9 | | entitled to upon attainment of the applicable retirement age. | 10 | | "Pension benefit" also includes applicable survivors benefits, | 11 | | disability benefits, or disability retirement annuity | 12 | | benefits. | 13 | | (b) Beginning on the implementation date, the System shall | 14 | | offer each eligible person the opportunity to irrevocably | 15 | | elect to receive an amount determined by the System to be equal | 16 | | to 60% of the present value of his or her pension benefits in | 17 | | lieu of receiving any pension benefit. The System shall | 18 | | calculate, using actuarial tables and other assumptions | 19 | | adopted by the Board, the present value of pension benefits | 20 | | for each eligible person upon his or her request in writing to | 21 | | the System. The System shall not perform more than one | 22 | | calculation per eligible member in a State fiscal year. The | 23 | | offer shall specify the dollar amount that the eligible person | 24 | | will receive if he or she so elects and shall expire when a | 25 | | subsequent offer is made to an eligible person. The System | 26 | | shall make a good faith effort to contact every eligible |
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| 1 | | person to notify him or her of the election. | 2 | | Beginning on the implementation date and until June 30, | 3 | | 2026 2024 , an eligible person may irrevocably elect to receive | 4 | | an accelerated pension benefit payment in the amount that the | 5 | | System offers under this subsection in lieu of receiving any | 6 | | pension benefit. A person who elects to receive an accelerated | 7 | | pension benefit payment under this Section may not elect to | 8 | | proceed under the Retirement Systems Reciprocal Act with | 9 | | respect to service under this Article. | 10 | | (c) Upon payment of an accelerated pension benefit payment | 11 | | under this Section, the person forfeits all accrued rights and | 12 | | credits in the System and no other benefit shall be paid under | 13 | | this Article based on those forfeited rights and credits, | 14 | | including any retirement, survivor, or other benefit; except | 15 | | that to the extent that participation, benefits, or premiums | 16 | | under the State Employees Group Insurance Act of 1971 are | 17 | | based on the amount of service credit, the terminated service | 18 | | credit shall be used for that purpose. | 19 | | (d) If a person who has received an accelerated pension | 20 | | benefit payment under this Section returns to participation | 21 | | under this Article, any benefits under the System earned as a | 22 | | result of that return to participation shall be based solely | 23 | | on the person's credits and creditable service arising from | 24 | | the return to participation. Upon return to participation, the | 25 | | person shall be considered a new employee subject to all the | 26 | | qualifying conditions for participation and eligibility for |
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| 1 | | benefits applicable to new employees. | 2 | | (d-5) The accelerated pension benefit payment may not be | 3 | | repaid to the System, and the forfeited rights and credits may | 4 | | not under any circumstances be reinstated. | 5 | | (e) As a condition of receiving an accelerated pension | 6 | | benefit payment, the accelerated pension benefit payment must | 7 | | be deposited into a tax qualified retirement plan or account | 8 | | identified by the eligible person at the time of the election. | 9 | | The accelerated pension benefit payment under this Section may | 10 | | be subject to withholding or payment of applicable taxes, but | 11 | | to the extent permitted by federal law, a person who receives | 12 | | an accelerated pension benefit payment under this Section must | 13 | | direct the System to pay all of that payment as a rollover into | 14 | | another retirement plan or account qualified under the | 15 | | Internal Revenue Code of 1986, as amended. | 16 | | (f) The System shall submit vouchers to the State | 17 | | Comptroller for the payment of accelerated pension benefit | 18 | | payments under this Section. The State Comptroller shall pay | 19 | | the amounts of the vouchers from the State Pension Obligation | 20 | | Acceleration Bond Fund to the System, and the System shall | 21 | | deposit the amounts into the applicable tax qualified plans or | 22 | | accounts. | 23 | | (g) The Board shall adopt any rules, including emergency | 24 | | rules, necessary to implement this Section. | 25 | | (h) No provision of this Section shall be interpreted in a | 26 | | way that would cause the System to cease to be a qualified plan |
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| 1 | | under the Internal Revenue Code of 1986.
| 2 | | (Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.) | 3 | | (40 ILCS 5/15-185.6) | 4 | | Sec. 15-185.6. Accelerated pension benefit payment for a | 5 | | reduction in an annual increase to a retirement annuity and an | 6 | | annuity benefit payable as a result of death. | 7 | | (a) As used in this Section: | 8 | | "Accelerated pension benefit payment" means a lump sum | 9 | | payment equal to 70% of the difference of: (i) the present | 10 | | value of the automatic annual increases to a Tier 1 member's | 11 | | retirement annuity, including any increases to any annuity | 12 | | benefit payable as a result of his or her death, using the | 13 | | formula applicable to the Tier 1 member; and (ii) the present | 14 | | value of the automatic annual increases to the Tier 1 member's | 15 | | retirement annuity, including any increases to any annuity | 16 | | benefit payable as a result of his or her death, using the | 17 | | formula provided under subsection (b-5). | 18 | | "Eligible person" means a person who: | 19 | | (1) is a Tier 1 member; | 20 | | (2) has submitted an application for a retirement | 21 | | annuity under this Article; | 22 | | (3) meets the age and service requirements for | 23 | | receiving a retirement annuity under this Article; | 24 | | (4) has not received any retirement annuity under this | 25 | | Article; |
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| 1 | | (5) has not made the election under Section 15-185.5; | 2 | | and | 3 | | (6) is not a participant in the self-managed plan | 4 | | under Section 15-158.2. | 5 | | "Implementation date" means the earliest date upon which | 6 | | the Board authorizes eligible persons to begin irrevocably | 7 | | electing the accelerated pension benefit payment option under | 8 | | this Section. The Board shall endeavor to make such | 9 | | participation available as soon as possible after June 4, 2018 | 10 | | (the effective date of Public Act 100-587) and shall establish | 11 | | an implementation date by Board resolution. | 12 | | (b) Beginning on the implementation date and until June | 13 | | 30, 2026 2024 , the System shall implement an accelerated | 14 | | pension benefit payment option for eligible persons. The | 15 | | System shall calculate, using actuarial tables and other | 16 | | assumptions adopted by the Board, an accelerated pension | 17 | | benefit payment amount for an eligible person upon his or her | 18 | | request in writing to the System and shall offer that eligible | 19 | | person the opportunity to irrevocably elect to have his or her | 20 | | automatic annual increases in retirement annuity and any | 21 | | annuity benefit payable as a result of his or her death | 22 | | calculated in accordance with the formula provided in | 23 | | subsection (b-5) in exchange for the accelerated pension | 24 | | benefit payment. The System shall not perform more than one | 25 | | calculation under this Section per eligible person in a State | 26 | | fiscal year. The election under this subsection must be made |
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| 1 | | before any retirement annuity is paid to the eligible person, | 2 | | and the eligible survivor, spouse, or contingent annuitant, as | 3 | | applicable, must consent to the election under this | 4 | | subsection. | 5 | | (b-5) Notwithstanding any other provision of law, the | 6 | | retirement annuity of a person who made the election under | 7 | | subsection (b) shall be increased annually beginning on the | 8 | | January 1 occurring either on or after the attainment of age 67 | 9 | | or the first anniversary of the annuity start date, whichever | 10 | | is later, and any annuity benefit payable as a result of his or | 11 | | her death shall be increased annually beginning on: (1) the | 12 | | January 1 occurring on or after the commencement of the | 13 | | annuity if the deceased Tier 1 member died while receiving a | 14 | | retirement annuity; or (2) the January 1 occurring after the | 15 | | first anniversary of the commencement of the benefit. Each | 16 | | annual increase shall be calculated at 1.5% of the originally | 17 | | granted retirement annuity or annuity benefit payable as a | 18 | | result of the Tier 1 member's death. | 19 | | (c) If an annuitant who has received an accelerated | 20 | | pension benefit payment returns to participation under this | 21 | | Article, the calculation of any future automatic annual | 22 | | increase in retirement annuity under subsection (c) of Section | 23 | | 15-139 shall be calculated in accordance with the formula | 24 | | provided in subsection (b-5). | 25 | | (c-5) The accelerated pension benefit payment may not be | 26 | | repaid to the System. |
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| 1 | | (d) As a condition of receiving an accelerated pension | 2 | | benefit payment, the accelerated pension benefit payment must | 3 | | be deposited into a tax qualified retirement plan or account | 4 | | identified by the eligible person at the time of election. The | 5 | | accelerated pension benefit payment under this Section may be | 6 | | subject to withholding or payment of applicable taxes, but to | 7 | | the extent permitted by federal law, a person who receives an | 8 | | accelerated pension benefit payment under this Section must | 9 | | direct the System to pay all of that payment as a rollover into | 10 | | another retirement plan or account qualified under the | 11 | | Internal Revenue Code of 1986, as amended. | 12 | | (d-5) The System shall submit vouchers to the State | 13 | | Comptroller for the payment of accelerated pension benefit | 14 | | payments under this Section. The State Comptroller shall pay | 15 | | the amounts of the vouchers from the State Pension Obligation | 16 | | Acceleration Bond Fund to the System, and the System shall | 17 | | deposit the amounts into the applicable tax qualified plans or | 18 | | accounts. | 19 | | (e) The Board shall adopt any rules, including emergency | 20 | | rules, necessary to implement this Section. | 21 | | (f) No provision of this Section shall be interpreted in a | 22 | | way that would cause the System to cease to be a qualified plan | 23 | | under the Internal Revenue Code of 1986.
| 24 | | (Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.) | 25 | | (40 ILCS 5/16-190.5) |
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| 1 | | Sec. 16-190.5. Accelerated pension benefit payment in lieu | 2 | | of any pension benefit. | 3 | | (a) As used in this Section: | 4 | | "Eligible person" means a person who: | 5 | | (1) has terminated service; | 6 | | (2) has accrued sufficient service credit to be | 7 | | eligible to receive a retirement annuity under this | 8 | | Article; | 9 | | (3) has not received any retirement annuity under this | 10 | | Article; and | 11 | | (4) has not made the election under Section 16-190.6. | 12 | | "Pension benefit" means the benefits under this Article, | 13 | | or Article 1 as it relates to those benefits, including any | 14 | | anticipated annual increases, that an eligible person is | 15 | | entitled to upon attainment of the applicable retirement age. | 16 | | "Pension benefit" also includes applicable survivor's or | 17 | | disability benefits. | 18 | | (b) As soon as practical after June 4, 2018 (the effective | 19 | | date of Public Act 100-587), the System shall calculate, using | 20 | | actuarial tables and other assumptions adopted by the Board, | 21 | | the present value of pension benefits for each eligible person | 22 | | who requests that information and shall offer each eligible | 23 | | person the opportunity to irrevocably elect to receive an | 24 | | amount determined by the System to be equal to 60% of the | 25 | | present value of his or her pension benefits in lieu of | 26 | | receiving any pension benefit. The offer shall specify the |
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| 1 | | dollar amount that the eligible person will receive if he or | 2 | | she so elects and shall expire when a subsequent offer is made | 3 | | to an eligible person. The System shall make a good faith | 4 | | effort to contact every eligible person to notify him or her of | 5 | | the election. | 6 | | Until June 30, 2026 2024 , an eligible person may | 7 | | irrevocably elect to receive an accelerated pension benefit | 8 | | payment in the amount that the System offers under this | 9 | | subsection in lieu of receiving any pension benefit. A person | 10 | | who elects to receive an accelerated pension benefit payment | 11 | | under this Section may not elect to proceed under the | 12 | | Retirement Systems Reciprocal Act with respect to service | 13 | | under this Article. | 14 | | (c) A person's creditable service under this Article shall | 15 | | be terminated upon the person's receipt of an accelerated | 16 | | pension benefit payment under this Section, and no other | 17 | | benefit shall be paid under this Article based on the | 18 | | terminated creditable service, including any retirement, | 19 | | survivor, or other benefit; except that to the extent that | 20 | | participation, benefits, or premiums under the State Employees | 21 | | Group Insurance Act of 1971 are based on the amount of service | 22 | | credit, the terminated service credit shall be used for that | 23 | | purpose. | 24 | | (d) If a person who has received an accelerated pension | 25 | | benefit payment under this Section returns to active service | 26 | | under this Article, then: |
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| 1 | | (1) Any benefits under the System earned as a result | 2 | | of that return to active service shall be based solely on | 3 | | the person's creditable service arising from the return to | 4 | | active service. | 5 | | (2) The accelerated pension benefit payment may not be | 6 | | repaid to the System, and the terminated creditable | 7 | | service may not under any circumstances be reinstated. | 8 | | (e) As a condition of receiving an accelerated pension | 9 | | benefit payment, the accelerated pension benefit payment must | 10 | | be transferred into a tax qualified retirement plan or | 11 | | account. The accelerated pension benefit payment under this | 12 | | Section may be subject to withholding or payment of applicable | 13 | | taxes, but to the extent permitted by federal law, a person who | 14 | | receives an accelerated pension benefit payment under this | 15 | | Section must direct the System to pay all of that payment as a | 16 | | rollover into another retirement plan or account qualified | 17 | | under the Internal Revenue Code of 1986, as amended. | 18 | | (f) Upon receipt of a member's irrevocable election to | 19 | | receive an accelerated pension benefit payment under this | 20 | | Section, the System shall submit a voucher to the Comptroller | 21 | | for payment of the member's accelerated pension benefit | 22 | | payment. The Comptroller shall transfer the amount of the | 23 | | voucher from the State Pension Obligation
Acceleration Bond | 24 | | Fund to the System, and the System shall transfer the amount | 25 | | into the member's eligible retirement plan or qualified | 26 | | account. |
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| 1 | | (g) The Board shall adopt any rules, including emergency | 2 | | rules, necessary to implement this Section. | 3 | | (h) No provision of Public Act 100-587 shall be | 4 | | interpreted in a way that would cause the applicable System to | 5 | | cease to be a qualified plan under the Internal Revenue Code of | 6 | | 1986.
| 7 | | (Source: P.A. 101-10, eff. 6-5-19; 102-558, eff. 8-20-21.) | 8 | | (40 ILCS 5/16-190.6) | 9 | | Sec. 16-190.6. Accelerated pension benefit payment for a | 10 | | reduction in annual retirement annuity and survivor's annuity | 11 | | increases. | 12 | | (a) As used in this Section: | 13 | | "Accelerated pension benefit payment" means a lump sum | 14 | | payment equal to 70% of the difference of the present value of | 15 | | the automatic annual increases to a Tier 1 member's retirement | 16 | | annuity and survivor's annuity using the formula applicable to | 17 | | the Tier 1 member and the present value of the automatic annual | 18 | | increases to the Tier 1 member's retirement annuity using the | 19 | | formula provided under subsection (b-5) and the survivor's | 20 | | annuity using the formula provided under subsection (b-6). | 21 | | "Eligible person" means a person who: | 22 | | (1) is a Tier 1 member; | 23 | | (2) has submitted an application for a retirement | 24 | | annuity under this Article; | 25 | | (3) meets the age and service requirements for |
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| 1 | | receiving a retirement annuity under this Article; | 2 | | (4) has not received any retirement annuity under this | 3 | | Article; and | 4 | | (5) has not made the election under Section 16-190.5. | 5 | | (b) As soon as practical after June 4, 2018 the effective | 6 | | date of Public Act 100-587) and until June 30, 2026 2024 , the | 7 | | System shall implement an accelerated pension benefit payment | 8 | | option for eligible persons. Upon the request of an eligible | 9 | | person, the System shall calculate, using actuarial tables and | 10 | | other assumptions adopted by the Board, an accelerated pension | 11 | | benefit payment amount and shall offer that eligible person | 12 | | the opportunity to irrevocably elect to have his or her | 13 | | automatic annual increases in retirement annuity calculated in | 14 | | accordance with the formula provided under subsection (b-5) | 15 | | and any increases in survivor's annuity payable to his or her | 16 | | survivor's annuity beneficiary calculated in accordance with | 17 | | the formula provided under subsection (b-6) in exchange for | 18 | | the accelerated pension benefit payment. The election under | 19 | | this subsection must be made before the eligible person | 20 | | receives the first payment of a retirement annuity otherwise | 21 | | payable under this Article. | 22 | | (b-5) Notwithstanding any other provision of law, the | 23 | | retirement annuity of a person who made the election under | 24 | | subsection (b) shall be subject to annual increases on the | 25 | | January 1 occurring either on or after the attainment of age 67 | 26 | | or the first anniversary of the annuity start date, whichever |
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| 1 | | is later. Each annual increase shall be calculated at 1.5% of | 2 | | the originally granted retirement annuity. | 3 | | (b-6) Notwithstanding any other provision of law, a | 4 | | survivor's annuity payable to a survivor's annuity beneficiary | 5 | | of a person who made the election under subsection (b) shall be | 6 | | subject to annual increases on the January 1 occurring on or | 7 | | after the first anniversary of the commencement of the | 8 | | annuity. Each annual increase shall be calculated at 1.5% of | 9 | | the originally granted survivor's annuity. | 10 | | (c) If a person who has received an accelerated pension | 11 | | benefit payment returns to active service under this Article, | 12 | | then: | 13 | | (1) the calculation of any future automatic annual | 14 | | increase in retirement annuity shall be calculated in | 15 | | accordance with the formula provided in subsection (b-5); | 16 | | and | 17 | | (2) the accelerated pension benefit payment may not be | 18 | | repaid to the System. | 19 | | (d) As a condition of receiving an accelerated pension | 20 | | benefit payment, the accelerated pension benefit payment must | 21 | | be transferred into a tax qualified retirement plan or | 22 | | account. The accelerated pension benefit payment under this | 23 | | Section may be subject to withholding or payment of applicable | 24 | | taxes, but to the extent permitted by federal law, a person who | 25 | | receives an accelerated pension benefit payment under this | 26 | | Section must direct the System to pay all of that payment as a |
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| 1 | | rollover into another retirement plan or account qualified | 2 | | under the Internal Revenue Code of 1986, as amended. | 3 | | (d-5) Upon receipt of a member's irrevocable election to | 4 | | receive an accelerated pension benefit payment under this | 5 | | Section, the System shall submit a voucher to the Comptroller | 6 | | for payment of the member's accelerated pension benefit | 7 | | payment. The Comptroller shall transfer the amount of the | 8 | | voucher from the State Pension Obligation
Acceleration Bond | 9 | | Fund to the System, and the System shall transfer the amount | 10 | | into the member's eligible retirement plan or qualified | 11 | | account. | 12 | | (e) The Board shall adopt any rules, including emergency | 13 | | rules, necessary to implement this Section. | 14 | | (f) No provision of this Section shall be interpreted in a | 15 | | way that would cause the applicable System to cease to be a | 16 | | qualified plan under the Internal Revenue Code of 1986.
| 17 | | (Source: P.A. 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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