98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB0040

 

Introduced 1/16/2013, by Sen. Tim Bivins

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-117  from Ch. 108 1/2, par. 2-117
40 ILCS 5/2-123  from Ch. 108 1/2, par. 2-123

    Amends the General Assembly Article of the Illinois Pension Code. Provides that a person who is a member on the effective date of the amendatory Act may file a written notice of election not to participate in the General Assembly Retirement System within 24 months from the date of becoming a member or 18 months after the effective date of the amendatory Act, whichever is later. Provides that a person who makes that election shall, upon written request, receive a refund of his or her total contributions, without interest. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 2-117 and 2-123 as follows:
 
6    (40 ILCS 5/2-117)  (from Ch. 108 1/2, par. 2-117)
7    Sec. 2-117. Participants - Election not to participate.
8    (a) Every person who was a member on November 1, 1947, or
9in military service on such date, is subject to the provisions
10of this system beginning upon such date, unless prior to such
11date he or she filed with the board a written notice of
12election not to participate.
13    Except as provided in subsection (a-1), every Every person
14who becomes a member after November 1, 1947, and who is then
15not a participant becomes a participant beginning upon the date
16of becoming a member unless, within 24 months from that date,
17he or she has filed with the board a written notice of election
18not to participate.
19    (a-1) A person who is a member on the effective date of
20this amendatory Act of the 98th General Assembly may file his
21or her written notice of election not to participate within 24
22months from the date of becoming a member or 18 months after
23the effective date of this amendatory Act of the 98th General

 

 

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1Assembly, whichever is later.
2    (b) A member who has filed notice of an election not to
3participate (and a former member who has not yet begun to
4receive a retirement annuity under this Article) may become a
5participant with respect to the period for which the member
6elected not to participate upon filing with the board, before
7April 1, 1993, a written rescission of the election not to
8participate. Upon contributing an amount equal to the
9contributions he or she would have made as a participant from
10November 1, 1947, or the date of becoming a member, whichever
11is later, to the date of becoming a participant, with interest
12at the rate of 4% per annum until the contributions are paid,
13the participant shall receive credit for service as a member
14prior to the date of the rescission, both before and after
15November 1, 1947. The required contributions shall be made
16before commencement of the retirement annuity; otherwise no
17credit for service prior to the date of participation shall be
18granted.
19(Source: P.A. 86-273; 87-1265.)
 
20    (40 ILCS 5/2-123)  (from Ch. 108 1/2, par. 2-123)
21    Sec. 2-123. Refunds.
22    (a) A participant who ceases to be a member, other than an
23annuitant, and a member who ceases to be a participant under
24subsection (a-1) of Section 2-117 shall, upon written request,
25receive a refund of his or her total contributions, without

 

 

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1interest. The refund shall include the additional
2contributions for the automatic increase in retirement
3annuity. By accepting the refund, a participant forfeits all
4accrued rights and benefits in the System and loses credit for
5all service. However, if he or she again becomes a member, he
6or she may resume status as a participant and reestablish any
7forfeited service credit by paying to the System the full
8amount refunded, together with interest at 4% per annum from
9the time the refund is paid to the date the member again
10becomes a participant.
11    A former member of the General Assembly may reestablish any
12service credit forfeited by acceptance of a refund by paying to
13the System on or before February 1, 1993, the full amount
14refunded, together with interest at 4% per annum from the date
15of payment of the refund to the date of repayment.
16    When a member or former member owes money to the System,
17interest at the rate of 4% per annum shall accrue and be
18payable on such amounts owed beginning on the date of
19termination of service as a member until the contributions due
20have been paid in full.
21    (b) A participant who (1) has elected to cease making
22contributions for survivor's annuity under subsection (b) of
23Section 2-126, (2) has no eligible survivor's annuity
24beneficiary upon becoming an annuitant, or (3) terminates
25service with less than 8 years of service is entitled to a
26refund of the contributions for a survivor's annuity, without

 

 

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1interest. If the person later marries, a survivor's annuity
2shall not be payable upon his or her death, unless the amount
3of the refund is repaid to the System, together with interest
4at the rate of 4% per year from the date of refund to the date
5of repayment.
6    (c) If at the date of retirement or death of a participant
7who served as an officer of the General Assembly, the total
8period of such service is less than 4 years, the additional
9contributions made by such member on the additional salary as
10an officer shall be refunded unless the participant served as
11an officer for at least 2 years and has contributed the amount
12he or she would have contributed if he or she had served as an
13officer for 4 years as provided in Section 2-126.
14    (d) Upon the termination of the last survivor's annuity
15payable to a survivor of a deceased participant, the excess, if
16any, of the total contributions made by the participant for
17retirement and survivor's annuity, without interest, over the
18total amount of retirement and survivor's annuity payments
19received by the participant and the participant's survivors
20shall be refunded upon request:
21        (i) if there was a surviving spouse of the deceased
22    participant who was eligible for a survivor's annuity, to
23    the designated beneficiary of that spouse or, if the
24    designated beneficiary is deceased or there is no
25    designated beneficiary, to that spouse's estate;
26        (ii) if there was no eligible surviving spouse of the

 

 

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1    deceased participant, to the designated beneficiary of the
2    deceased participant or, if the designated beneficiary is
3    deceased or there is no designated beneficiary, to the
4    deceased participant's estate.
5    (e) Upon the death of a participant, if a survivor's
6annuity is not payable under this Article, a beneficiary
7designated by the participant shall be entitled to a refund of
8all contributions made by the participant. If the participant
9has not designated a refund beneficiary, the surviving spouse
10shall be entitled to the refund of contributions; if there is
11no surviving spouse, the contributions shall be refunded to the
12participant's surviving children, if any, and if no children
13survive, the refund payment shall be made to the participant's
14estate.
15(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.