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Public Act 100-0244
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| HB0164 Enrolled | LRB100 02315 RPS 12320 b |
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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, |
represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing |
Sections 13-305 and 13-601 as follows:
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(40 ILCS 5/13-305) (from Ch. 108 1/2, par. 13-305)
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Sec. 13-305. Surviving spouse's annuity; eligibility. A |
surviving spouse
who was married to an employee on the date of |
the employee's death
while in service, or was married to an |
employee on the date of withdrawal from
service and remained |
married to that employee until the employee's
death, shall be |
entitled to a surviving spouse's annuity payable for
life. |
However, the annuity shall not be payable to the surviving |
spouse of (1)
an employee who withdraws from service
before |
attaining the minimum retirement age unless the deceased |
employee had at least 10 years of service, or at least 5
years |
of service if the employee was eligible for an annuity upon |
attainment of age 62 pursuant to Section 13-301(b) or had been |
receiving a retirement annuity
pursuant to Section
13-301(d), |
or (2) an employee not described in item (1) who first enters
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service on or after the effective date of this amendatory Act |
of 1997 and who
has been employed as an employee for (i) less |
than 36 months from the date of
the employee's original entry |
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into service or (ii) less than 12 months from the
employee's |
date of latest re-entry into service; except as otherwise |
provided
in Section 13-306(a) for an employee whose death |
arises out of or in the course
of the employee's service to the |
employer.
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Notwithstanding any other provision of this Section and |
notwithstanding the forfeiture of rights provisions under |
subsection (e) of Section 13-601, surviving spouse annuity |
eligibility or eligibility for alternative survivor's |
benefits, if applicable, shall be extended to the spouse or |
civil union partner of an annuitant who retired prior to June |
1, 2011 and received a refund of surviving spouse annuity |
contributions as provided in subsection (b) of Section 13-601 |
if the annuitant (i) repaid the surviving spouse annuity |
contributions under subsection (b-5) of Section 13-601, (ii) |
could not enter into either a civil union or marriage |
recognized in the State of Illinois prior to that date, and |
(iii) became: |
(A) a party to a civil union or a party to a legal |
relationship that is recognized as a civil union or |
marriage under the Illinois Religious Freedom Protection |
and Civil Union Act on or after June 1, 2011 and before |
July 1, 2016 and remains such a party; |
(B) a party to a marriage under the Illinois Marriage |
and Dissolution of Marriage Act on or after February 26, |
2014 and before July 1, 2016 and remains such a party; or |
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(C) a party to a marriage, civil union, or other legal |
relationship that, at the time it was formed, was not |
legally recognized in Illinois but was subsequently |
recognized as a civil union or marriage under the Illinois |
Religious Freedom Protection and Civil Union Act on or |
after June 1, 2011 and before July 1, 2016, a marriage |
under the Illinois Marriage and Dissolution of Marriage Act |
on or after February 26, 2014 and before July 1, 2016, or |
both, and remains such a party. |
A dissolution of marriage after retirement shall not divest |
the
employee's spouse of the entitlement to a surviving |
spouse's annuity upon
the subsequent death of the employee, |
provided that the surviving spouse
and the deceased employee |
had been married to each other for a period of
not less than 10 |
continuous years on the date of retirement.
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For purposes of Section 1-103.1, the changes made by this |
amendatory Act of the 100th General Assembly apply to persons |
not in service on or after the effective date of this |
amendatory Act of the 100th General Assembly. |
(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, |
an employee
who first became a member before January 1, 2011, |
who is under age 55 (age 50 if the employee first entered |
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service before June
13, 1997), or an employee age 55 (age 50 if |
the employee first entered
service before June 13, 1997) or |
over but less than age 60 having less
than 20 years of service, |
or an employee age 60 or over having less than 5
years of |
service shall be entitled, upon application, to a refund of |
total
contributions from salary deductions or amounts |
otherwise paid under this
Article by the employee. An employee |
who first becomes a member on or after January 1, 2011, who |
withdraws before age 62 regardless of length of service, or who |
withdraws with less than 10 years of service regardless of age |
is entitled to a refund of total contributions from salary |
deductions or amounts otherwise paid under this Article by the |
employee. The refund shall not include interest credited to
the |
contributions. The Board may, in its discretion, withhold |
payment of a
refund for a period not to exceed one year from |
the date of filing an
application for refund.
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(b) Surviving spouse's annuity contributions. A refund of |
all amounts
deducted from salary or otherwise contributed by an |
employee for the
surviving spouse's annuity shall be paid upon |
retirement to any employee
who on the date of retirement is |
either not married or is married but whose
spouse is not |
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 |
annually from the
date of the contribution to the date of the |
refund.
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(b-5) An annuitant who (i) retired prior to June 1, 2011, |
(ii) received a refund of surviving spouse's annuity |
contributions under subsection (b), and (iii) thereafter |
became and remains a party to a civil union or marriage, as |
described in Section 13-305, may, within a period of one year |
beginning 5 months after the effective date of this amendatory |
Act of the 100th General Assembly, and in accordance with any |
rules adopted by the Board and consents required by the Board, |
make an irrevocable election to re-establish rights to a |
surviving spouse annuity under Sections 13-305 and 13-306 or to |
alternative survivor's benefits under subsection (d) of |
Section 13-314, whichever is applicable, by paying to the Fund: |
(1) the total amount of the refund received for surviving |
spouse's annuity contributions; and (2) interest thereon at the |
actuarially assumed rate of return at the time of the election |
from the date of the refund to the date of repayment in full. |
Such election may only be made by the annuitant. |
The Fund shall allow the annuitant to repay the total |
amount of the refund, plus interest, over a period not to |
exceed 24 months. To the extent permitted by the Internal |
Revenue Code of 1986, as amended, and for federal and State tax |
purposes, if a member pays in monthly installments by reducing |
the monthly annuity by the amount of the otherwise applicable |
contribution, the monthly amount by which the annuitant's |
benefit is reduced shall not be treated as a contribution by |
the annuitant, but rather as a reduction of the annuitant's |
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monthly annuity. In the event of the death of the annuitant |
prior to repayment of the total amount of the refund, plus |
interest, the amount owed as of the date of death shall be |
deducted from the spouse annuity by a reduction in the |
surviving spouse's monthly annuity. The death of the spouse or |
civil union partner prior to the annuitant's death shall not |
void the election. |
(c) Payment of Refunds After Death. Whenever any refund is |
payable after the death of the employee or annuitant as |
provided for in this Article, the refund shall be paid as |
follows: to the employee's surviving spouse, but if there is no |
surviving spouse then in accordance with the employee's written |
designation of beneficiary filed with the Board on the |
prescribed form before the employee's death. If there is no |
such designation of beneficiary, then to the employee's |
surviving children in equal parts to each. If there are no such |
children, the refund shall be paid to the heirs of the employee |
according to the law of descent and distribution of the State |
of Illinois.
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If a personal representative of the estate has not been |
appointed within
90 days from the date on which a refund became |
payable, the refund may be
applied, in the discretion of the |
Board, toward the payment of the
employee's or the surviving |
spouse's burial expenses. Any remaining
balance shall be paid |
to the heirs of the employee according to the law of
descent |
and distribution of the State of Illinois.
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Whenever the total accumulations to the account of an |
employee from employee contributions other than the |
contribution for the cost of living increase, including |
interest to the employee's date of withdrawal, have not been |
paid to the employee and surviving spouse as a retirement or |
spouse's annuity before the death of the employee and spouse, a |
refund shall be paid as follows: an amount equal to the excess |
of such amounts over the amounts paid on such annuities without |
interest on either such amount.
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If a reversionary annuity becomes payable under Section |
13-303, the
refund provided in this section shall not be paid |
until the death of the
reversionary annuitant and the refund |
otherwise payable under this section
shall be then further |
reduced by the amount of the reversionary annuity paid.
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(d) In lieu of annuity. Notwithstanding the provisions set |
forth in
subsection (a) of this section, whenever an employee's |
or surviving
spouse's annuity will be less than $200 per month, |
the employee or
surviving spouse, as the case may be, may elect |
to receive a refund of
accumulated employee contributions; |
provided, however, that if the election
is made by a surviving |
spouse the refund shall be reduced by any amounts
theretofore |
paid to the employee in the form of an annuity.
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(e) Forfeiture of rights. An employee or surviving spouse |
who receives
a refund forfeits the right to receive an annuity |
or any other benefit
payable under this Article except that if |
the refund is to a surviving
spouse, any child or children of |