Rep. Sam Yingling

Filed: 3/24/2016

 

 


 

 


 
09900HB6021ham001LRB099 19304 EFG 45521 a

1
AMENDMENT TO HOUSE BILL 6021

2    AMENDMENT NO. ______. Amend House Bill 6021 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 7-154, 7-159, 15-139, 15-145, 15-154, and
616-143.2 as follows:
 
7    (40 ILCS 5/7-154)  (from Ch. 108 1/2, par. 7-154)
8    Sec. 7-154. Surviving spouse annuities - Eligibility.
9    (a) A surviving spouse annuity shall be payable to the
10eligible surviving spouse of a participating employee, an
11employee annuitant, or a person who on the date of death would
12have been entitled to a retirement annuity, had he applied for
13such annuity, and who dies at any time when a surviving spouse
14annuity equals at least $5 per month, provided:
15        (1) The surviving spouse (i) was married to the
16    participating employee for at least one year on the date of

 

 

09900HB6021ham001- 2 -LRB099 19304 EFG 45521 a

1    death, or (ii) was married to the annuitant or person
2    entitled to a retirement annuity for at least one year
3    prior to the date of termination of service, or (iii) was
4    married to the deceased annuitant for at least one year on
5    the date of the deceased annuitant's death, if at the time
6    of termination of service the deceased annuitant was
7    married for at least one year to a spouse who does not
8    survive the deceased annuitant. (Item (iii) applies to the
9    spouses of annuitants who die on or after the effective
10    date of this amendatory Act of the 99th General Assembly,
11    notwithstanding whether the annuitant was in service on or
12    after that effective date or the effective date of Public
13    Act 87-850.)
14        (2) The male deceased employee annuitant or such other
15    person entitled to a retirement annuity had contributed to
16    this fund for surviving spouse annuity purposes for at
17    least 1 year or continuously since the effective date of
18    the participating municipality or participating
19    instrumentality.
20        (3) The female deceased employee annuitant or such
21    other person entitled to a retirement annuity was in
22    service on or after July 27, 1972, provided that the
23    annuity shall not be computed on the basis of any
24    retirement annuity effective before that date.
25        (4) If the employee dies before termination of service,
26    the employee did not exclude the spouse from any death

 

 

09900HB6021ham001- 3 -LRB099 19304 EFG 45521 a

1    benefit or surviving spouse annuity pursuant to subsection
2    (b) of Section 7-118. A designation of beneficiary naming a
3    spouse and children jointly or a trust pursuant to
4    subsection (b) of Section 7-118 shall preclude payment of a
5    surviving spouse annuity.
6    (b) If a person is the spouse of a retiring participating
7employee on the date of the initial payment of a retirement
8annuity and is qualified to receive a surviving spouse annuity
9upon the death of the employee and the surviving spouse
10contributions are not refunded to the employee, then a
11surviving spouse annuity shall be payable to that person even
12if the marriage to the employee is dissolved after that date.
13    (c) Eligibility of a surviving spouse shall be determined
14as of the date of death. Only one surviving spouse annuity
15shall be paid on account of the death of any employee.
16(Source: P.A. 87-740; 87-850.)
 
17    (40 ILCS 5/7-159)  (from Ch. 108 1/2, par. 7-159)
18    Sec. 7-159. Surviving spouse annuity - refund of survivor
19credits.
20    (a) Any employee annuitant who (1) upon the date a
21retirement annuity begins is not then married, or (2) is
22married to a person who would not qualify for surviving spouse
23annuity if the person died on such date, is entitled to a
24refund of the survivor credits including interest accumulated
25on the date the annuity begins, excluding survivor credits and

 

 

09900HB6021ham001- 4 -LRB099 19304 EFG 45521 a

1interest thereon credited during periods of disability, and no
2spouse shall have a right to any surviving spouse annuity from
3this Fund. If the employee annuitant reenters service and upon
4subsequent retirement has a spouse who would qualify for a
5surviving spouse annuity, the employee annuitant may pay the
6fund the amount of the refund plus interest at the effective
7rate at the date of payment. The payment shall qualify the
8spouse for a surviving spouse annuity and the amount paid shall
9be considered as survivor contributions.
10    (b) Instead of a refund under subsection (a), the retiring
11employee may elect to convert the amount of the refund into an
12annuity, payable separately from the retirement annuity. If the
13annuitant dies before the guaranteed amount has been
14distributed, the remainder shall be paid in a lump sum to the
15designated beneficiary of the annuitant. The Board shall adopt
16any rules necessary for the implementation of this subsection.
17    (c) An annuitant who retired prior to June 1, 2011 and
18received a refund of survivor credits under subsection (a), and
19who thereafter became, and remains, either:
20        (1) a party to a civil union or a party to a legal
21    relationship that is recognized as a civil union or
22    marriage under the Illinois Religious Freedom Protection
23    and Civil Union Act on or after June 1, 2011; or
24        (2) a party to a marriage under the Illinois Marriage
25    and Dissolution of Marriage Act on or after February 26,
26    2014; or

 

 

09900HB6021ham001- 5 -LRB099 19304 EFG 45521 a

1        (3) a party to a marriage, civil union or other legal
2    relationship that, at the time it was formed, was not
3    legally recognized in Illinois but was subsequently
4    recognized as a civil union or marriage under the Illinois
5    Religious Freedom Protection and Civil Union Act on or
6    after June 1, 2011, a marriage under the Illinois Marriage
7    and Dissolution of Marriage Act on or after February 26,
8    2014, or both;
9may, within a period of one year beginning 5 months after the
10effective date of this amendatory Act of the 99th General
11Assembly, make an election to re-establish rights to a
12surviving spouse annuity under Sections 7-154 through 7-158
13(notwithstanding the eligibility requirements of paragraph
14(a)(1) of Section 7-154), by paying to the Fund: (1) the total
15amount of the refund received for survivor credits; and (2)
16interest thereon at the actuarially assumed rate of return from
17the date of the refund to the date of payment. Such election
18must be made prior to the date of death of the annuitant.
19    The Fund may allow the annuitant to repay this refund over
20a period of not more than 24 months. To the extent permitted by
21the Internal Revenue Code of 1986, as amended, for federal and
22State tax purposes, if a member pays in monthly installments by
23reducing the monthly benefit by the amount of the otherwise
24applicable contribution, the monthly amount by which the
25annuitant's benefit is reduced shall not be treated as a
26contribution by the annuitant but rather as a reduction of the

 

 

09900HB6021ham001- 6 -LRB099 19304 EFG 45521 a

1annuitant's monthly benefit.
2    If an annuitant makes an election under this subsection (c)
3and the contributions required are not paid in full, an
4otherwise qualifying spouse shall be given the option to make
5an additional lump sum payment of the remaining contributions
6and qualify for a surviving spouse annuity. Otherwise, an
7additional refund representing contributions made hereunder
8shall be paid at the annuitant's death and there shall be no
9surviving spouse annuity paid.
10(Source: P.A. 90-766, eff. 8-14-98.)
 
11    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
12    Sec. 15-139. Retirement annuities; cancellation; suspended
13during employment.
14    (a) If an annuitant returns to employment for an employer
15within 60 days after the beginning of the retirement annuity
16payment period, the retirement annuity shall be cancelled, and
17the annuitant shall refund to the System the total amount of
18the retirement annuity payments which he or she received. If
19the retirement annuity is cancelled, the participant shall
20continue to participate in the System.
21    (b) If an annuitant retires prior to age 60 and receives or
22becomes entitled to receive during any month compensation in
23excess of the monthly retirement annuity (including any
24automatic annual increases) for services performed after the
25date of retirement for any employer under this System, that

 

 

09900HB6021ham001- 7 -LRB099 19304 EFG 45521 a

1portion of the monthly retirement annuity provided by employer
2contributions shall not be payable.
3    If an annuitant retires at age 60 or over and receives or
4becomes entitled to receive during any academic year
5compensation in excess of the difference between his or her
6highest annual earnings prior to retirement and his or her
7annual retirement annuity computed under Rule 1, Rule 2, Rule
83, or Rule 4 of Section 15-136, or under Section 15-136.4, for
9services performed after the date of retirement for any
10employer under this System, that portion of the monthly
11retirement annuity provided by employer contributions shall be
12reduced by an amount equal to the compensation that exceeds
13such difference.
14    However, any remuneration received for serving as a member
15of the Illinois Educational Labor Relations Board shall be
16excluded from "compensation" for the purposes of this
17subsection (b), and serving as a member of the Illinois
18Educational Labor Relations Board shall not be deemed to be a
19return to employment for the purposes of this Section. This
20provision applies without regard to whether service was
21terminated prior to the effective date of this amendatory Act
22of 1991.
23    "Academic year", as used in this subsection (b), means the
2412-month period beginning September 1.
25    (c) If an employer certifies that an annuitant has been
26reemployed on a permanent and continuous basis or in a position

 

 

09900HB6021ham001- 8 -LRB099 19304 EFG 45521 a

1in which the annuitant is expected to serve for at least 9
2months, the annuitant shall resume his or her status as a
3participating employee and shall be entitled to all rights
4applicable to participating employees upon filing with the
5board an election to forgo all annuity payments during the
6period of reemployment. Upon subsequent retirement, the
7retirement annuity shall consist of the annuity which was
8terminated by the reemployment, plus the additional retirement
9annuity based upon service granted during the period of
10reemployment, but the combined retirement annuity shall not
11exceed the maximum annuity applicable on the date of the last
12retirement.
13    The total service and earnings credited before and after
14the initial date of retirement shall be considered in
15determining eligibility of the employee or the employee's
16beneficiary to benefits under this Article, and in calculating
17final rate of earnings.
18    In determining the death benefit payable to a beneficiary
19of an annuitant who again becomes a participating employee
20under this Section, accumulated normal and additional
21contributions shall be considered as the sum of the accumulated
22normal and additional contributions at the date of initial
23retirement and the accumulated normal and additional
24contributions credited after that date, less the sum of the
25annuity payments received by the annuitant.
26    The survivors insurance benefits provided under Section

 

 

09900HB6021ham001- 9 -LRB099 19304 EFG 45521 a

115-145 shall not be applicable to an annuitant who resumes his
2or her status as a participating employee, unless the
3annuitant, at the time of initial retirement, has a survivors
4insurance beneficiary who could qualify for such benefits or
5the annuitant repaid the survivors insurance contribution
6refund or additional annuity under subsection (c-5) of Section
715-154.
8    If the participant's employment is terminated because of
9circumstances other than death before 9 months from the date of
10reemployment, the provisions of this Section regarding
11resumption of status as a participating employee shall not
12apply. The normal and survivors insurance contributions which
13are deducted during this period shall be refunded to the
14annuitant without interest, and subsequent benefits under this
15Article shall be the same as those which were applicable prior
16to the date the annuitant resumed employment.
17    The amendments made to this Section by this amendatory Act
18of the 91st General Assembly apply without regard to whether
19the annuitant was in service on or after the effective date of
20this amendatory Act.
21(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
2298-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
 
23    (40 ILCS 5/15-145)  (from Ch. 108 1/2, par. 15-145)
24    Sec. 15-145. Survivors insurance benefits; conditions and
25amounts.

 

 

09900HB6021ham001- 10 -LRB099 19304 EFG 45521 a

1    (a) The survivors insurance benefits provided under this
2Section shall be payable to the eligible survivors of a Tier 1
3member covered under the traditional benefit package upon the
4death of (1) a participating employee with at least 1 1/2 years
5of service, (2) a participant who terminated employment with at
6least 10 years of service, and (3) an annuitant in receipt of a
7retirement annuity or disability retirement annuity under this
8Article.
9    Service under the State Employees' Retirement System of
10Illinois, the Teachers' Retirement System of the State of
11Illinois and the Public School Teachers' Pension and Retirement
12Fund of Chicago shall be considered in determining eligibility
13for survivors benefits under this Section.
14    If by law, a function of a governmental unit, as defined by
15Section 20-107, is transferred in whole or in part to an
16employer, and an employee transfers employment from this
17governmental unit to such employer within 6 months after the
18transfer of this function, the service credits in the
19governmental unit's retirement system which have been
20validated under Section 20-109 shall be considered in
21determining eligibility for survivors benefits under this
22Section.
23    (b) A surviving spouse of a deceased participant, or of a
24deceased annuitant who did not take a refund or additional
25annuity consisting of accumulated survivors insurance
26contributions or who repaid the refund or additional annuity,

 

 

09900HB6021ham001- 11 -LRB099 19304 EFG 45521 a

1shall receive a survivors annuity of 30% of the final rate of
2earnings. Payments shall begin on the day following the
3participant's or annuitant's death or the date the surviving
4spouse attains age 50, whichever is later, and continue until
5the death of the surviving spouse. The annuity shall be payable
6to the surviving spouse prior to attainment of age 50 if the
7surviving spouse has in his or her care a deceased
8participant's or annuitant's dependent unmarried child under
9age 18 (under age 22 if a full-time student) who is eligible
10for a survivors annuity.
11    Remarriage of a surviving spouse prior to attainment of age
1255 that occurs before the effective date of this amendatory Act
13of the 91st General Assembly shall disqualify him or her for
14the receipt of a survivors annuity until July 6, 2000.
15    A surviving spouse whose survivors annuity has been
16terminated due to remarriage may apply for reinstatement of
17that annuity. The reinstated annuity shall begin to accrue on
18July 6, 2000, except that if, on July 6, 2000, the annuity is
19payable to an eligible surviving child or parent, payment of
20the annuity to the surviving spouse shall not be reinstated
21until the annuity is no longer payable to any eligible
22surviving child or parent. The reinstated annuity shall include
23any one-time or annual increases received prior to the date of
24termination, as well as any increases that would otherwise have
25accrued from the date of termination to the date of
26reinstatement. An eligible surviving spouse whose expectation

 

 

09900HB6021ham001- 12 -LRB099 19304 EFG 45521 a

1of receiving a survivors annuity was lost due to remarriage
2before attainment of age 50 shall also be entitled to
3reinstatement under this subsection, but the resulting
4survivors annuity shall not begin to accrue sooner than upon
5the surviving spouse's attainment of age 50.
6    The changes made to this subsection by this amendatory Act
7of the 92nd General Assembly (pertaining to remarriage prior to
8age 55 or 50) apply without regard to whether the deceased
9participant or annuitant was in service on or after the
10effective date of this amendatory Act.
11    (c) Each dependent unmarried child under age 18 (under age
1222 if a full-time student) of a deceased participant, or of a
13deceased annuitant who did not take a refund or additional
14annuity consisting of accumulated survivors insurance
15contributions or who repaid the refund or additional annuity,
16shall receive a survivors annuity equal to the sum of (1) 20%
17of the final rate of earnings, and (2) 10% of the final rate of
18earnings divided by the number of children entitled to this
19benefit. Payments shall begin on the day following the
20participant's or annuitant's death and continue until the child
21marries, dies, or attains age 18 (age 22 if a full-time
22student). If the child is in the care of a surviving spouse who
23is eligible for survivors insurance benefits, the child's
24benefit shall be paid to the surviving spouse.
25    Each unmarried child over age 18 of a deceased participant
26or of a deceased annuitant who had a survivor's insurance

 

 

09900HB6021ham001- 13 -LRB099 19304 EFG 45521 a

1beneficiary at the time of his or her retirement, and who was
2dependent upon the participant or annuitant by reason of a
3physical or mental disability which began prior to the date the
4child attained age 18 (age 22 if a full-time student), shall
5receive a survivor's annuity equal to the sum of (1) 20% of the
6final rate of earnings, and (2) 10% of the final rate of
7earnings divided by the number of children entitled to
8survivors benefits. Payments shall begin on the day following
9the participant's or annuitant's death and continue until the
10child marries, dies, or is no longer disabled. If the child is
11in the care of a surviving spouse who is eligible for survivors
12insurance benefits, the child's benefit may be paid to the
13surviving spouse. For the purposes of this Section, disability
14means inability to engage in any substantial gainful activity
15by reason of any medically determinable physical or mental
16impairment that can be expected to result in death or that has
17lasted or can be expected to last for a continuous period of at
18least one year.
19    (d) Each dependent parent of a deceased participant, or of
20a deceased annuitant who did not take a refund or additional
21annuity consisting of accumulated survivors insurance
22contributions or who repaid the refund or additional annuity,
23shall receive a survivors annuity equal to the sum of (1) 20%
24of final rate of earnings, and (2) 10% of final rate of
25earnings divided by the number of parents who qualify for the
26benefit. Payments shall begin when the parent reaches age 55 or

 

 

09900HB6021ham001- 14 -LRB099 19304 EFG 45521 a

1the day following the participant's or annuitant's death,
2whichever is later, and continue until the parent dies.
3Remarriage of a parent prior to attainment of age 55 shall
4disqualify the parent for the receipt of a survivors annuity.
5    (e) In addition to the survivors annuity provided above,
6each survivors insurance beneficiary shall, upon death of the
7participant or annuitant, receive a lump sum payment of $1,000
8divided by the number of such beneficiaries.
9    (f) The changes made in this Section by Public Act 81-712
10pertaining to survivors annuities in cases of remarriage prior
11to age 55 shall apply to each survivors insurance beneficiary
12who remarries after June 30, 1979, regardless of the date that
13the participant or annuitant terminated his employment or died.
14    The change made to this Section by this amendatory Act of
15the 91st General Assembly, pertaining to remarriage prior to
16age 55, applies without regard to whether the deceased
17participant or annuitant was in service on or after the
18effective date of this amendatory Act of the 91st General
19Assembly.
20    (g) On January 1, 1981, any person who was receiving a
21survivors annuity on or before January 1, 1971 shall have the
22survivors annuity then being paid increased by 1% for each full
23year which has elapsed from the date the annuity began. On
24January 1, 1982, any survivor whose annuity began after January
251, 1971, but before January 1, 1981, shall have the survivor's
26annuity then being paid increased by 1% for each year which has

 

 

09900HB6021ham001- 15 -LRB099 19304 EFG 45521 a

1elapsed from the date the survivor's annuity began. On January
21, 1987, any survivor who began receiving a survivor's annuity
3on or before January 1, 1977, shall have the monthly survivor's
4annuity increased by $1 for each full year which has elapsed
5since the date the survivor's annuity began.
6    (h) If the sum of the lump sum and total monthly survivor
7benefits payable under this Section upon the death of a
8participant amounts to less than the sum of the death benefits
9payable under items (2) and (3) of Section 15-141, the
10difference shall be paid in a lump sum to the beneficiary of
11the participant who is living on the date that this additional
12amount becomes payable.
13    (i) If the sum of the lump sum and total monthly survivor
14benefits payable under this Section upon the death of an
15annuitant receiving a retirement annuity or disability
16retirement annuity amounts to less than the death benefit
17payable under Section 15-142, the difference shall be paid to
18the beneficiary of the annuitant who is living on the date that
19this additional amount becomes payable.
20    (j) Effective on the later of (1) January 1, 1990, or (2)
21the January 1 on or next after the date on which the survivor
22annuity begins, if the deceased member died while receiving a
23retirement annuity, or in all other cases the January 1 nearest
24the first anniversary of the date the survivor annuity payments
25begin, every survivors insurance beneficiary shall receive an
26increase in his or her monthly survivors annuity of 3%. On each

 

 

09900HB6021ham001- 16 -LRB099 19304 EFG 45521 a

1January 1 after the initial increase, the monthly survivors
2annuity shall be increased by 3% of the total survivors annuity
3provided under this Article, including previous increases
4provided by this subsection. Such increases shall apply to the
5survivors insurance beneficiaries of each participant and
6annuitant, whether or not the employment status of the
7participant or annuitant terminates before the effective date
8of this amendatory Act of 1990. This subsection (j) also
9applies to persons receiving a survivor annuity under the
10portable benefit package.
11    (k) If the Internal Revenue Code of 1986, as amended,
12requires that the survivors benefits be payable at an age
13earlier than that specified in this Section the benefits shall
14begin at the earlier age, in which event, the survivor's
15beneficiary shall be entitled only to that amount which is
16equal to the actuarial equivalent of the benefits provided by
17this Section.
18    (l) The changes made to this Section and Section 15-131 by
19this amendatory Act of 1997, relating to benefits for certain
20unmarried children who are full-time students under age 22,
21apply without regard to whether the deceased member was in
22service on or after the effective date of this amendatory Act
23of 1997. These changes do not authorize the repayment of a
24refund or a re-election of benefits, and any benefit or
25increase in benefits resulting from these changes is not
26payable retroactively for any period before the effective date

 

 

09900HB6021ham001- 17 -LRB099 19304 EFG 45521 a

1of this amendatory Act of 1997.
2(Source: P.A. 98-92, eff. 7-16-13.)
 
3    (40 ILCS 5/15-154)  (from Ch. 108 1/2, par. 15-154)
4    Sec. 15-154. Refunds.
5    (a) A participant whose status as an employee is
6terminated, regardless of cause, or who has been on lay off
7status for more than 120 days, and who is not on leave of
8absence, is entitled to a refund of contributions upon
9application; except that not more than one such refund
10application may be made during any academic year.
11    Except as set forth in subsections (a-1) and (a-2), the
12refund shall be the sum of the accumulated normal, additional,
13and survivors insurance contributions, plus the entire
14contribution made by the participant under Section 15-113.3,
15less the amount of interest credited on these contributions
16each year in excess of 4 1/2% of the amount on which interest
17was calculated.
18    (a-1) A person who elects, in accordance with the
19requirements of Section 15-134.5, to participate in the
20portable benefit package and who becomes a participating
21employee under that retirement program upon the conclusion of
22the one-year waiting period applicable to the portable benefit
23package election shall have his or her refund calculated in
24accordance with the provisions of subsection (a-2).
25    (a-2) The refund payable to a participant described in

 

 

09900HB6021ham001- 18 -LRB099 19304 EFG 45521 a

1subsection (a-1) shall be the sum of the participant's
2accumulated normal and additional contributions, as defined in
3Sections 15-116 and 15-117, plus the entire contribution made
4by the participant under Section 15-113.3. If the participant
5terminates with 5 or more years of service for employment as
6defined in Section 15-113.1, he or she shall also be entitled
7to a distribution of employer contributions in an amount equal
8to the sum of the accumulated normal and additional
9contributions, as defined in Sections 15-116 and 15-117.
10    (b) Upon acceptance of a refund, the participant forfeits
11all accrued rights and credits in the System, and if
12subsequently reemployed, the participant shall be considered a
13new employee subject to all the qualifying conditions for
14participation and eligibility for benefits applicable to new
15employees. If such person again becomes a participating
16employee and continues as such for 2 years, or is employed by
17an employer and participates for at least 2 years in the
18Federal Civil Service Retirement System, all such rights,
19credits, and previous status as a participant shall be restored
20upon repayment of the amount of the refund, together with
21compound interest thereon from the date the refund was issued
22to the date of repayment at the rate of 6% per annum through
23August 31, 1982, and at the effective rates after that date.
24When a participant in the portable benefit package who received
25a refund which included a distribution of employer
26contributions repays a refund pursuant to this Section,

 

 

09900HB6021ham001- 19 -LRB099 19304 EFG 45521 a

1one-half of the amount repaid shall be deemed the member's
2reinstated accumulated normal and additional contributions and
3the other half shall be allocated as an employer contribution
4to the System, except that any amount repaid for previously
5purchased military service credit under Section 15-113.3 shall
6be accounted for as such.
7    (c) Except as otherwise provided under subsection (c-5), if
8If a participant covered under the traditional benefit package
9has made survivors insurance contributions, but has no
10survivors insurance beneficiary upon retirement, he or she
11shall be entitled to elect a refund of the accumulated
12survivors insurance contributions, or to elect an additional
13annuity the value of which is equal to the accumulated
14survivors insurance contributions. This election must be made
15prior to the date the person's retirement annuity is approved
16by the System.
17    (c-5) Notwithstanding subsection (c), an annuitant who
18retired prior to June 1, 2011 and made the election under
19subsection (c), and who thereafter became, and remains, either:
20        (1) a party to a civil union or a party to a legal
21    relationship that is recognized as a civil union or
22    marriage under the Illinois Religious Freedom Protection
23    and Civil Union Act on or after June 1, 2011; or
24        (2) a party to a marriage under the Illinois Marriage
25    and Dissolution of Marriage Act on or after February 26,
26    2014; or

 

 

09900HB6021ham001- 20 -LRB099 19304 EFG 45521 a

1        (3) a party to a marriage, civil union or other legal
2    relationship that, at the time it was formed, was not
3    legally recognized in Illinois but was subsequently
4    recognized as a civil union or marriage under the Illinois
5    Religious Freedom Protection and Civil Union Act on or
6    after June 1, 2011, a marriage under the Illinois Marriage
7    and Dissolution of Marriage Act on or after February 26,
8    2014, or both;
9may make a one-time, irrevocable election to repay the refund
10or additional annuity payments received under subsection (c),
11together with compound interest thereon at the actuarially
12assumed rate of return from the date the refund was issued or
13the date each additional annuity payment was issued to the date
14of repayment. The annuitant shall submit proof of party status
15for item (1), (2), or (3) in the form of a valid marriage
16certificate or a civil union certificate with any additional
17requirements the Board prescribes by rulemaking. The election
18must be received by the System (i) within a period of one year
19beginning 5 months after the effective date of this amendatory
20Act of the 99th General Assembly and (ii) prior to the date of
21death of the annuitant.
22    To the extent permitted under the Internal Revenue Code of
231986, as amended, the full repayment shall be made within a
24period beginning on the date of the election and ending on the
25earlier of the 24th month thereafter or the date of the
26annuitant's death. If an annuitant fails to make the repayment

 

 

09900HB6021ham001- 21 -LRB099 19304 EFG 45521 a

1within the required period, any payments made shall be
2returned, without interest, to the annuitant (or to the
3annuitant's estate if the payments ceased due to death), and
4survivors insurance benefits under Section 15-145 shall not be
5payable upon the annuitant's death.
6    Upon such repayment, all forfeited survivors insurance
7benefit rights and credits under Section 15-145 shall be
8restored. This repayment right shall not alter or modify any
9eligibility requirement for survivors insurance beneficiaries
10under this Article applicable upon the annuitant's death. The
11repayment shall be irrevocable. No person shall have a claim or
12right to the repaid amounts in a manner not otherwise provided
13for under this Article in the event that: the marriage, civil
14union, or other legal relationship described in this subsection
15is dissolved, annulled, or declared invalid by a court of
16competent jurisdiction; or the other party to the marriage,
17civil union, or other legal relationship predeceases the
18annuitant or otherwise fails to qualify as a survivors
19insurance beneficiary upon the annuitant's death.
20    For purposes of this subsection (c-5), the term "annuitant"
21shall include an annuitant who resumed his or her status as a
22participating employee under Section 15-139(c).
23    (d) A participant, upon application, is entitled to a
24refund of his or her accumulated additional contributions
25attributable to the additional contributions described in the
26last sentence of subsection (c) of Section 15-157. Upon the

 

 

09900HB6021ham001- 22 -LRB099 19304 EFG 45521 a

1acceptance of such a refund of accumulated additional
2contributions, the participant forfeits all rights and credits
3which may have accrued because of such contributions.
4    (e) A participant who terminates his or her employee status
5and elects to waive service credit under Section 15-154.2, is
6entitled to a refund of the accumulated normal, additional and
7survivors insurance contributions, if any, which were credited
8the participant for this service, or to an additional annuity
9the value of which is equal to the accumulated normal,
10additional and survivors insurance contributions, if any;
11except that not more than one such refund application may be
12made during any academic year. Upon acceptance of this refund,
13the participant forfeits all rights and credits accrued because
14of this service.
15    (f) If a police officer or firefighter receives a
16retirement annuity under Rule 1 or 3 of Section 15-136, he or
17she shall be entitled at retirement to a refund of the
18difference between his or her accumulated normal contributions
19and the normal contributions which would have accumulated had
20such person filed a waiver of the retirement formula provided
21by Rule 4 of Section 15-136.
22    (g) If, at the time of retirement, a participant would be
23entitled to a retirement annuity under Rule 1, 2, 3, 4, or 5 of
24Section 15-136, or under Section 15-136.4, that exceeds the
25maximum specified in clause (1) of subsection (c) of Section
2615-136, he or she shall be entitled to a refund of the employee

 

 

09900HB6021ham001- 23 -LRB099 19304 EFG 45521 a

1contributions, if any, paid under Section 15-157 after the date
2upon which continuance of such contributions would have
3otherwise caused the retirement annuity to exceed this maximum,
4plus compound interest at the effective rates.
5(Source: P.A. 99-450, eff. 8-24-15.)
 
6    (40 ILCS 5/16-143.2)  (from Ch. 108 1/2, par. 16-143.2)
7    Sec. 16-143.2. Refund of contributions for survivor
8benefits at retirement.
9    (a) If at the time of applying for a retirement annuity
10under Section 16-132, or while in receipt of such a retirement
11annuity, a member does not have a dependent beneficiary as
12defined in paragraph (3) of Section 16-140, such member may be
13granted, upon written request, a refund of actual contributions
14for survivor benefits, without interest. Members will be
15eligible for a refund of contributions for survivor benefits as
16provided in the previous sentence notwithstanding the fact that
17they began receiving retirement benefits prior to this
18amendatory Act of 1985. Acceptance of the refund will forfeit
19all rights to survivor benefits under Sections 16-140 through
2016-143.
21    (b) Except as provided under subsection (c), an An
22annuitant who reestablishes membership following acceptance of
23refund of contributions for survivor benefits under subsection
24(a) of this Section may reinstate eligibility for benefits
25provided under Sections 16-140 through 16-143 only through: (1)

 

 

09900HB6021ham001- 24 -LRB099 19304 EFG 45521 a

1repayment of such refund together with regular interest thereon
2from the date of the refund to the date of repayment, and (2)
3completion of one year of creditable service following
4acceptance of such refund. If membership is reestablished and
5the above conditions (1) and (2) are not met, an additional
6refund, representing contributions made following the previous
7refund will be provided upon the member's death or retirement,
8whichever is applicable.
9    (c) Notwithstanding subsection (b), an annuitant who has
10received a refund under subsection (a) may, during a period of
11one year beginning 5 months after the effective date of this
12amendatory Act of the 99th General Assembly, make an election
13to reestablish rights to survivor benefits under Sections
1416-140 through 16-143 by paying to the System:
15        (1) the total amount of the refund received for actual
16    contributions; and
17        (2) interest on the amount of the refund at the
18    actuarially assumed rate of return for the period starting
19    on the date of receipt of the refund and ending when the
20    annuitant has made an election under this subsection (c).
21    The System may allow an individual to repay this refund
22through: a tax-deferred lump sum payment in full; substantially
23equal monthly installments over a period of at least one but
24not more than 24 months by reducing the annuitant's monthly
25benefit over the established number of months by the amount of
26the otherwise applicable contribution; or a combination

 

 

09900HB6021ham001- 25 -LRB099 19304 EFG 45521 a

1thereof. To the extent permitted under the Internal Revenue
2Code of 1986, as amended, for federal and State tax purposes,
3the monthly amount by which the annuitant's benefit is reduced
4shall not be treated as a contribution by the annuitant, but
5rather as a reduction of the annuitant's monthly benefit.
6    If a member makes an election under this subsection (c) and
7the contributions required in items (1) and (2) of this
8subsection (c) are not paid in full, an additional one-time
9lump sum refund representing contributions made following the
10previous refund shall be provided to the named beneficiary or
11beneficiaries on file with the System or, if none, to the
12member's estate, when the member dies.
13(Source: P.A. 87-794.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".