HB6021 EnrolledLRB099 19304 EFG 43696 b

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 7-154, 7-159, 15-139, 15-145, 15-154, and 16-143.2 as
6follows:
 
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
17    death, or (ii) was married to the annuitant or person
18    entitled to a retirement annuity for at least one year
19    prior to the date of termination of service, or (iii) was
20    married to the deceased annuitant for at least one year on
21    the date of the deceased annuitant's death, if at the time
22    of termination of service the deceased annuitant was
23    married for at least one year to a spouse who does not

 

 

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1    survive the deceased annuitant. (Item (iii) applies to the
2    spouses of annuitants who die on or after the effective
3    date of this amendatory Act of the 99th General Assembly,
4    notwithstanding whether the annuitant was in service on or
5    after that effective date or the effective date of Public
6    Act 87-850.)
7        (2) The male deceased employee annuitant or such other
8    person entitled to a retirement annuity had contributed to
9    this fund for surviving spouse annuity purposes for at
10    least 1 year or continuously since the effective date of
11    the participating municipality or participating
12    instrumentality.
13        (3) The female deceased employee annuitant or such
14    other person entitled to a retirement annuity was in
15    service on or after July 27, 1972, provided that the
16    annuity shall not be computed on the basis of any
17    retirement annuity effective before that date.
18        (4) If the employee dies before termination of service,
19    the employee did not exclude the spouse from any death
20    benefit or surviving spouse annuity pursuant to subsection
21    (b) of Section 7-118. A designation of beneficiary naming a
22    spouse and children jointly or a trust pursuant to
23    subsection (b) of Section 7-118 shall preclude payment of a
24    surviving spouse annuity.
25    (b) If a person is the spouse of a retiring participating
26employee on the date of the initial payment of a retirement

 

 

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1annuity and is qualified to receive a surviving spouse annuity
2upon the death of the employee and the surviving spouse
3contributions are not refunded to the employee, then a
4surviving spouse annuity shall be payable to that person even
5if the marriage to the employee is dissolved after that date.
6    (c) Eligibility of a surviving spouse shall be determined
7as of the date of death. Only one surviving spouse annuity
8shall be paid on account of the death of any employee.
9(Source: P.A. 87-740; 87-850.)
 
10    (40 ILCS 5/7-159)  (from Ch. 108 1/2, par. 7-159)
11    Sec. 7-159. Surviving spouse annuity - refund of survivor
12credits.
13    (a) Any employee annuitant who (1) upon the date a
14retirement annuity begins is not then married, or (2) is
15married to a person who would not qualify for surviving spouse
16annuity if the person died on such date, is entitled to a
17refund of the survivor credits including interest accumulated
18on the date the annuity begins, excluding survivor credits and
19interest thereon credited during periods of disability, and no
20spouse shall have a right to any surviving spouse annuity from
21this Fund. If the employee annuitant reenters service and upon
22subsequent retirement has a spouse who would qualify for a
23surviving spouse annuity, the employee annuitant may pay the
24fund the amount of the refund plus interest at the effective
25rate at the date of payment. The payment shall qualify the

 

 

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1spouse for a surviving spouse annuity and the amount paid shall
2be considered as survivor contributions.
3    (b) Instead of a refund under subsection (a), the retiring
4employee may elect to convert the amount of the refund into an
5annuity, payable separately from the retirement annuity. If the
6annuitant dies before the guaranteed amount has been
7distributed, the remainder shall be paid in a lump sum to the
8designated beneficiary of the annuitant. The Board shall adopt
9any rules necessary for the implementation of this subsection.
10    (c) An annuitant who retired prior to June 1, 2011 and
11received a refund of survivor credits under subsection (a), and
12who thereafter became, and remains, either:
13        (1) a party to a civil union or a party to a legal
14    relationship that is recognized as a civil union or
15    marriage under the Illinois Religious Freedom Protection
16    and Civil Union Act on or after June 1, 2011; or
17        (2) a party to a marriage under the Illinois Marriage
18    and Dissolution of Marriage Act on or after February 26,
19    2014; or
20        (3) a party to a marriage, civil union or other legal
21    relationship that, at the time it was formed, was not
22    legally recognized in Illinois but was subsequently
23    recognized as a civil union or marriage under the Illinois
24    Religious Freedom Protection and Civil Union Act on or
25    after June 1, 2011, a marriage under the Illinois Marriage
26    and Dissolution of Marriage Act on or after February 26,

 

 

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1    2014, or both;
2may, within a period of one year beginning 5 months after the
3effective date of this amendatory Act of the 99th General
4Assembly, make an election to re-establish rights to a
5surviving spouse annuity under Sections 7-154 through 7-158
6(notwithstanding the eligibility requirements of paragraph
7(a)(1) of Section 7-154), by paying to the Fund: (1) the total
8amount of the refund received for survivor credits; and (2)
9interest thereon at the actuarially assumed rate of return from
10the date of the refund to the date of payment. Such election
11must be made prior to the date of death of the annuitant.
12    The Fund may allow the annuitant to repay this refund over
13a period of not more than 24 months. To the extent permitted by
14the Internal Revenue Code of 1986, as amended, for federal and
15State tax purposes, if a member pays in monthly installments by
16reducing the monthly benefit by the amount of the otherwise
17applicable contribution, the monthly amount by which the
18annuitant's benefit is reduced shall not be treated as a
19contribution by the annuitant but rather as a reduction of the
20annuitant's monthly benefit.
21    If an annuitant makes an election under this subsection (c)
22and the contributions required are not paid in full, an
23otherwise qualifying spouse shall be given the option to make
24an additional lump sum payment of the remaining contributions
25and qualify for a surviving spouse annuity. Otherwise, an
26additional refund representing contributions made hereunder

 

 

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1shall be paid at the annuitant's death and there shall be no
2surviving spouse annuity paid.
3(Source: P.A. 90-766, eff. 8-14-98.)
 
4    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
5    Sec. 15-139. Retirement annuities; cancellation; suspended
6during employment.
7    (a) If an annuitant returns to employment for an employer
8within 60 days after the beginning of the retirement annuity
9payment period, the retirement annuity shall be cancelled, and
10the annuitant shall refund to the System the total amount of
11the retirement annuity payments which he or she received. If
12the retirement annuity is cancelled, the participant shall
13continue to participate in the System.
14    (b) If an annuitant retires prior to age 60 and receives or
15becomes entitled to receive during any month compensation in
16excess of the monthly retirement annuity (including any
17automatic annual increases) for services performed after the
18date of retirement for any employer under this System, that
19portion of the monthly retirement annuity provided by employer
20contributions shall not be payable.
21    If an annuitant retires at age 60 or over and receives or
22becomes entitled to receive during any academic year
23compensation in excess of the difference between his or her
24highest annual earnings prior to retirement and his or her
25annual retirement annuity computed under Rule 1, Rule 2, Rule

 

 

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13, or Rule 4 of Section 15-136, or under Section 15-136.4, for
2services performed after the date of retirement for any
3employer under this System, that portion of the monthly
4retirement annuity provided by employer contributions shall be
5reduced by an amount equal to the compensation that exceeds
6such difference.
7    However, any remuneration received for serving as a member
8of the Illinois Educational Labor Relations Board shall be
9excluded from "compensation" for the purposes of this
10subsection (b), and serving as a member of the Illinois
11Educational Labor Relations Board shall not be deemed to be a
12return to employment for the purposes of this Section. This
13provision applies without regard to whether service was
14terminated prior to the effective date of this amendatory Act
15of 1991.
16    "Academic year", as used in this subsection (b), means the
1712-month period beginning September 1.
18    (c) If an employer certifies that an annuitant has been
19reemployed on a permanent and continuous basis or in a position
20in which the annuitant is expected to serve for at least 9
21months, the annuitant shall resume his or her status as a
22participating employee and shall be entitled to all rights
23applicable to participating employees upon filing with the
24board an election to forgo all annuity payments during the
25period of reemployment. Upon subsequent retirement, the
26retirement annuity shall consist of the annuity which was

 

 

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1terminated by the reemployment, plus the additional retirement
2annuity based upon service granted during the period of
3reemployment, but the combined retirement annuity shall not
4exceed the maximum annuity applicable on the date of the last
5retirement.
6    The total service and earnings credited before and after
7the initial date of retirement shall be considered in
8determining eligibility of the employee or the employee's
9beneficiary to benefits under this Article, and in calculating
10final rate of earnings.
11    In determining the death benefit payable to a beneficiary
12of an annuitant who again becomes a participating employee
13under this Section, accumulated normal and additional
14contributions shall be considered as the sum of the accumulated
15normal and additional contributions at the date of initial
16retirement and the accumulated normal and additional
17contributions credited after that date, less the sum of the
18annuity payments received by the annuitant.
19    The survivors insurance benefits provided under Section
2015-145 shall not be applicable to an annuitant who resumes his
21or her status as a participating employee, unless the
22annuitant, at the time of initial retirement, has a survivors
23insurance beneficiary who could qualify for such benefits or
24the annuitant repaid the survivors insurance contribution
25refund or additional annuity under subsection (c-5) of Section
2615-154.

 

 

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1    If the participant's employment is terminated because of
2circumstances other than death before 9 months from the date of
3reemployment, the provisions of this Section regarding
4resumption of status as a participating employee shall not
5apply. The normal and survivors insurance contributions which
6are deducted during this period shall be refunded to the
7annuitant without interest, and subsequent benefits under this
8Article shall be the same as those which were applicable prior
9to the date the annuitant resumed employment.
10    The amendments made to this Section by this amendatory Act
11of the 91st General Assembly apply without regard to whether
12the annuitant was in service on or after the effective date of
13this amendatory Act.
14(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1598-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
 
16    (40 ILCS 5/15-145)  (from Ch. 108 1/2, par. 15-145)
17    Sec. 15-145. Survivors insurance benefits; conditions and
18amounts.
19    (a) The survivors insurance benefits provided under this
20Section shall be payable to the eligible survivors of a Tier 1
21member covered under the traditional benefit package upon the
22death of (1) a participating employee with at least 1 1/2 years
23of service, (2) a participant who terminated employment with at
24least 10 years of service, and (3) an annuitant in receipt of a
25retirement annuity or disability retirement annuity under this

 

 

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1Article.
2    Service under the State Employees' Retirement System of
3Illinois, the Teachers' Retirement System of the State of
4Illinois and the Public School Teachers' Pension and Retirement
5Fund of Chicago shall be considered in determining eligibility
6for survivors benefits under this Section.
7    If by law, a function of a governmental unit, as defined by
8Section 20-107, is transferred in whole or in part to an
9employer, and an employee transfers employment from this
10governmental unit to such employer within 6 months after the
11transfer of this function, the service credits in the
12governmental unit's retirement system which have been
13validated under Section 20-109 shall be considered in
14determining eligibility for survivors benefits under this
15Section.
16    (b) A surviving spouse of a deceased participant, or of a
17deceased annuitant who did not take a refund or additional
18annuity consisting of accumulated survivors insurance
19contributions or who repaid the refund or additional annuity,
20shall receive a survivors annuity of 30% of the final rate of
21earnings. Payments shall begin on the day following the
22participant's or annuitant's death or the date the surviving
23spouse attains age 50, whichever is later, and continue until
24the death of the surviving spouse. The annuity shall be payable
25to the surviving spouse prior to attainment of age 50 if the
26surviving spouse has in his or her care a deceased

 

 

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1participant's or annuitant's dependent unmarried child under
2age 18 (under age 22 if a full-time student) who is eligible
3for a survivors annuity.
4    Remarriage of a surviving spouse prior to attainment of age
555 that occurs before the effective date of this amendatory Act
6of the 91st General Assembly shall disqualify him or her for
7the receipt of a survivors annuity until July 6, 2000.
8    A surviving spouse whose survivors annuity has been
9terminated due to remarriage may apply for reinstatement of
10that annuity. The reinstated annuity shall begin to accrue on
11July 6, 2000, except that if, on July 6, 2000, the annuity is
12payable to an eligible surviving child or parent, payment of
13the annuity to the surviving spouse shall not be reinstated
14until the annuity is no longer payable to any eligible
15surviving child or parent. The reinstated annuity shall include
16any one-time or annual increases received prior to the date of
17termination, as well as any increases that would otherwise have
18accrued from the date of termination to the date of
19reinstatement. An eligible surviving spouse whose expectation
20of receiving a survivors annuity was lost due to remarriage
21before attainment of age 50 shall also be entitled to
22reinstatement under this subsection, but the resulting
23survivors annuity shall not begin to accrue sooner than upon
24the surviving spouse's attainment of age 50.
25    The changes made to this subsection by this amendatory Act
26of the 92nd General Assembly (pertaining to remarriage prior to

 

 

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1age 55 or 50) apply without regard to whether the deceased
2participant or annuitant was in service on or after the
3effective date of this amendatory Act.
4    (c) Each dependent unmarried child under age 18 (under age
522 if a full-time student) of a deceased participant, or of a
6deceased annuitant who did not take a refund or additional
7annuity consisting of accumulated survivors insurance
8contributions or who repaid the refund or additional annuity,
9shall receive a survivors annuity equal to the sum of (1) 20%
10of the final rate of earnings, and (2) 10% of the final rate of
11earnings divided by the number of children entitled to this
12benefit. Payments shall begin on the day following the
13participant's or annuitant's death and continue until the child
14marries, dies, or attains age 18 (age 22 if a full-time
15student). If the child is in the care of a surviving spouse who
16is eligible for survivors insurance benefits, the child's
17benefit shall be paid to the surviving spouse.
18    Each unmarried child over age 18 of a deceased participant
19or of a deceased annuitant who had a survivor's insurance
20beneficiary at the time of his or her retirement, and who was
21dependent upon the participant or annuitant by reason of a
22physical or mental disability which began prior to the date the
23child attained age 18 (age 22 if a full-time student), shall
24receive a survivor's annuity equal to the sum of (1) 20% of the
25final rate of earnings, and (2) 10% of the final rate of
26earnings divided by the number of children entitled to

 

 

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1survivors benefits. Payments shall begin on the day following
2the participant's or annuitant's death and continue until the
3child marries, dies, or is no longer disabled. If the child is
4in the care of a surviving spouse who is eligible for survivors
5insurance benefits, the child's benefit may be paid to the
6surviving spouse. For the purposes of this Section, disability
7means inability to engage in any substantial gainful activity
8by reason of any medically determinable physical or mental
9impairment that can be expected to result in death or that has
10lasted or can be expected to last for a continuous period of at
11least one year.
12    (d) Each dependent parent of a deceased participant, or of
13a deceased 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 final rate of earnings, and (2) 10% of final rate of
18earnings divided by the number of parents who qualify for the
19benefit. Payments shall begin when the parent reaches age 55 or
20the day following the participant's or annuitant's death,
21whichever is later, and continue until the parent dies.
22Remarriage of a parent prior to attainment of age 55 shall
23disqualify the parent for the receipt of a survivors annuity.
24    (e) In addition to the survivors annuity provided above,
25each survivors insurance beneficiary shall, upon death of the
26participant or annuitant, receive a lump sum payment of $1,000

 

 

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1divided by the number of such beneficiaries.
2    (f) The changes made in this Section by Public Act 81-712
3pertaining to survivors annuities in cases of remarriage prior
4to age 55 shall apply to each survivors insurance beneficiary
5who remarries after June 30, 1979, regardless of the date that
6the participant or annuitant terminated his employment or died.
7    The change made to this Section by this amendatory Act of
8the 91st General Assembly, pertaining to remarriage prior to
9age 55, applies without regard to whether the deceased
10participant or annuitant was in service on or after the
11effective date of this amendatory Act of the 91st General
12Assembly.
13    (g) On January 1, 1981, any person who was receiving a
14survivors annuity on or before January 1, 1971 shall have the
15survivors annuity then being paid increased by 1% for each full
16year which has elapsed from the date the annuity began. On
17January 1, 1982, any survivor whose annuity began after January
181, 1971, but before January 1, 1981, shall have the survivor's
19annuity then being paid increased by 1% for each year which has
20elapsed from the date the survivor's annuity began. On January
211, 1987, any survivor who began receiving a survivor's annuity
22on or before January 1, 1977, shall have the monthly survivor's
23annuity increased by $1 for each full year which has elapsed
24since the date the survivor's annuity began.
25    (h) If the sum of the lump sum and total monthly survivor
26benefits payable under this Section upon the death of a

 

 

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1participant amounts to less than the sum of the death benefits
2payable under items (2) and (3) of Section 15-141, the
3difference shall be paid in a lump sum to the beneficiary of
4the participant who is living on the date that this additional
5amount becomes payable.
6    (i) If the sum of the lump sum and total monthly survivor
7benefits payable under this Section upon the death of an
8annuitant receiving a retirement annuity or disability
9retirement annuity amounts to less than the death benefit
10payable under Section 15-142, the difference shall be paid to
11the beneficiary of the annuitant who is living on the date that
12this additional amount becomes payable.
13    (j) Effective on the later of (1) January 1, 1990, or (2)
14the January 1 on or next after the date on which the survivor
15annuity begins, if the deceased member died while receiving a
16retirement annuity, or in all other cases the January 1 nearest
17the first anniversary of the date the survivor annuity payments
18begin, every survivors insurance beneficiary shall receive an
19increase in his or her monthly survivors annuity of 3%. On each
20January 1 after the initial increase, the monthly survivors
21annuity shall be increased by 3% of the total survivors annuity
22provided under this Article, including previous increases
23provided by this subsection. Such increases shall apply to the
24survivors insurance beneficiaries of each participant and
25annuitant, whether or not the employment status of the
26participant or annuitant terminates before the effective date

 

 

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1of this amendatory Act of 1990. This subsection (j) also
2applies to persons receiving a survivor annuity under the
3portable benefit package.
4    (k) If the Internal Revenue Code of 1986, as amended,
5requires that the survivors benefits be payable at an age
6earlier than that specified in this Section the benefits shall
7begin at the earlier age, in which event, the survivor's
8beneficiary shall be entitled only to that amount which is
9equal to the actuarial equivalent of the benefits provided by
10this Section.
11    (l) The changes made to this Section and Section 15-131 by
12this amendatory Act of 1997, relating to benefits for certain
13unmarried children who are full-time students under age 22,
14apply without regard to whether the deceased member was in
15service on or after the effective date of this amendatory Act
16of 1997. These changes do not authorize the repayment of a
17refund or a re-election of benefits, and any benefit or
18increase in benefits resulting from these changes is not
19payable retroactively for any period before the effective date
20of this amendatory Act of 1997.
21(Source: P.A. 98-92, eff. 7-16-13.)
 
22    (40 ILCS 5/15-154)  (from Ch. 108 1/2, par. 15-154)
23    Sec. 15-154. Refunds.
24    (a) A participant whose status as an employee is
25terminated, regardless of cause, or who has been on lay off

 

 

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1status for more than 120 days, and who is not on leave of
2absence, is entitled to a refund of contributions upon
3application; except that not more than one such refund
4application may be made during any academic year.
5    Except as set forth in subsections (a-1) and (a-2), the
6refund shall be the sum of the accumulated normal, additional,
7and survivors insurance contributions, plus the entire
8contribution made by the participant under Section 15-113.3,
9less the amount of interest credited on these contributions
10each year in excess of 4 1/2% of the amount on which interest
11was calculated.
12    (a-1) A person who elects, in accordance with the
13requirements of Section 15-134.5, to participate in the
14portable benefit package and who becomes a participating
15employee under that retirement program upon the conclusion of
16the one-year waiting period applicable to the portable benefit
17package election shall have his or her refund calculated in
18accordance with the provisions of subsection (a-2).
19    (a-2) The refund payable to a participant described in
20subsection (a-1) shall be the sum of the participant's
21accumulated normal and additional contributions, as defined in
22Sections 15-116 and 15-117, plus the entire contribution made
23by the participant under Section 15-113.3. If the participant
24terminates with 5 or more years of service for employment as
25defined in Section 15-113.1, he or she shall also be entitled
26to a distribution of employer contributions in an amount equal

 

 

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

 

 

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1If a participant covered under the traditional benefit package
2has made survivors insurance contributions, but has no
3survivors insurance beneficiary upon retirement, he or she
4shall be entitled to elect a refund of the accumulated
5survivors insurance contributions, or to elect an additional
6annuity the value of which is equal to the accumulated
7survivors insurance contributions. This election must be made
8prior to the date the person's retirement annuity is approved
9by the System.
10    (c-5) Notwithstanding subsection (c), an annuitant who
11retired prior to June 1, 2011 and made the election under
12subsection (c), and who thereafter became, and remains, either:
13        (1) a party to a civil union or a party to a legal
14    relationship that is recognized as a civil union or
15    marriage under the Illinois Religious Freedom Protection
16    and Civil Union Act on or after June 1, 2011; or
17        (2) a party to a marriage under the Illinois Marriage
18    and Dissolution of Marriage Act on or after February 26,
19    2014; or
20        (3) a party to a marriage, civil union or other legal
21    relationship that, at the time it was formed, was not
22    legally recognized in Illinois but was subsequently
23    recognized as a civil union or marriage under the Illinois
24    Religious Freedom Protection and Civil Union Act on or
25    after June 1, 2011, a marriage under the Illinois Marriage
26    and Dissolution of Marriage Act on or after February 26,

 

 

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1    2014, or both;
2may make a one-time, irrevocable election to repay the refund
3or additional annuity payments received under subsection (c),
4together with compound interest thereon at the actuarially
5assumed rate of return from the date the refund was issued or
6the date each additional annuity payment was issued to the date
7of repayment. The annuitant shall submit proof of party status
8for item (1), (2), or (3) in the form of a valid marriage
9certificate or a civil union certificate with any additional
10requirements the Board prescribes by rulemaking. The election
11must be received by the System (i) within a period of one year
12beginning 5 months after the effective date of this amendatory
13Act of the 99th General Assembly and (ii) prior to the date of
14death of the annuitant.
15    To the extent permitted under the Internal Revenue Code of
161986, as amended, the full repayment shall be made within a
17period beginning on the date of the election and ending on the
18earlier of the 24th month thereafter or the date of the
19annuitant's death. If an annuitant fails to make the repayment
20within the required period, any payments made shall be
21returned, without interest, to the annuitant (or to the
22annuitant's estate if the payments ceased due to death), and
23survivors insurance benefits under Section 15-145 shall not be
24payable upon the annuitant's death.
25    Upon such repayment, all forfeited survivors insurance
26benefit rights and credits under Section 15-145 shall be

 

 

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1restored. This repayment right shall not alter or modify any
2eligibility requirement for survivors insurance beneficiaries
3under this Article applicable upon the annuitant's death. The
4repayment shall be irrevocable. No person shall have a claim or
5right to the repaid amounts in a manner not otherwise provided
6for under this Article in the event that: the marriage, civil
7union, or other legal relationship described in this subsection
8is dissolved, annulled, or declared invalid by a court of
9competent jurisdiction; or the other party to the marriage,
10civil union, or other legal relationship predeceases the
11annuitant or otherwise fails to qualify as a survivors
12insurance beneficiary upon the annuitant's death.
13    For purposes of this subsection (c-5), the term "annuitant"
14shall include an annuitant who resumed his or her status as a
15participating employee under Section 15-139(c).
16    (d) A participant, upon application, is entitled to a
17refund of his or her accumulated additional contributions
18attributable to the additional contributions described in the
19last sentence of subsection (c) of Section 15-157. Upon the
20acceptance of such a refund of accumulated additional
21contributions, the participant forfeits all rights and credits
22which may have accrued because of such contributions.
23    (e) A participant who terminates his or her employee status
24and elects to waive service credit under Section 15-154.2, is
25entitled to a refund of the accumulated normal, additional and
26survivors insurance contributions, if any, which were credited

 

 

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1the participant for this service, or to an additional annuity
2the value of which is equal to the accumulated normal,
3additional and survivors insurance contributions, if any;
4except that not more than one such refund application may be
5made during any academic year. Upon acceptance of this refund,
6the participant forfeits all rights and credits accrued because
7of this service.
8    (f) If a police officer or firefighter receives a
9retirement annuity under Rule 1 or 3 of Section 15-136, he or
10she shall be entitled at retirement to a refund of the
11difference between his or her accumulated normal contributions
12and the normal contributions which would have accumulated had
13such person filed a waiver of the retirement formula provided
14by Rule 4 of Section 15-136.
15    (g) If, at the time of retirement, a participant would be
16entitled to a retirement annuity under Rule 1, 2, 3, 4, or 5 of
17Section 15-136, or under Section 15-136.4, that exceeds the
18maximum specified in clause (1) of subsection (c) of Section
1915-136, he or she shall be entitled to a refund of the employee
20contributions, if any, paid under Section 15-157 after the date
21upon which continuance of such contributions would have
22otherwise caused the retirement annuity to exceed this maximum,
23plus compound interest at the effective rates.
24(Source: P.A. 99-450, eff. 8-24-15.)
 
25    (40 ILCS 5/16-143.2)  (from Ch. 108 1/2, par. 16-143.2)

 

 

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1    Sec. 16-143.2. Refund of contributions for survivor
2benefits at retirement.
3    (a) If at the time of applying for a retirement annuity
4under Section 16-132, or while in receipt of such a retirement
5annuity, a member does not have a dependent beneficiary as
6defined in paragraph (3) of Section 16-140, such member may be
7granted, upon written request, a refund of actual contributions
8for survivor benefits, without interest. Members will be
9eligible for a refund of contributions for survivor benefits as
10provided in the previous sentence notwithstanding the fact that
11they began receiving retirement benefits prior to this
12amendatory Act of 1985. Acceptance of the refund will forfeit
13all rights to survivor benefits under Sections 16-140 through
1416-143.
15    (b) Except as provided under subsection (c), an An
16annuitant who reestablishes membership following acceptance of
17refund of contributions for survivor benefits under subsection
18(a) of this Section may reinstate eligibility for benefits
19provided under Sections 16-140 through 16-143 only through: (1)
20repayment of such refund together with regular interest thereon
21from the date of the refund to the date of repayment, and (2)
22completion of one year of creditable service following
23acceptance of such refund. If membership is reestablished and
24the above conditions (1) and (2) are not met, an additional
25refund, representing contributions made following the previous
26refund will be provided upon the member's death or retirement,

 

 

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1whichever is applicable.
2    (c) Notwithstanding subsection (b), an annuitant who has
3received a refund under subsection (a) may, during a period of
4one year beginning 5 months after the effective date of this
5amendatory Act of the 99th General Assembly, make an election
6to reestablish rights to survivor benefits under Sections
716-140 through 16-143 by paying to the System:
8        (1) the total amount of the refund received for actual
9    contributions; and
10        (2) interest on the amount of the refund at the
11    actuarially assumed rate of return for the period starting
12    on the date of receipt of the refund and ending when the
13    annuitant has made an election under this subsection (c).
14    The System may allow an individual to repay this refund
15through: a tax-deferred lump sum payment in full; substantially
16equal monthly installments over a period of at least one but
17not more than 24 months by reducing the annuitant's monthly
18benefit over the established number of months by the amount of
19the otherwise applicable contribution; or a combination
20thereof. To the extent permitted under the Internal Revenue
21Code of 1986, as amended, for federal and State tax purposes,
22the monthly amount by which the annuitant's benefit is reduced
23shall not be treated as a contribution by the annuitant, but
24rather as a reduction of the annuitant's monthly benefit.
25    If a member makes an election under this subsection (c) and
26the contributions required in items (1) and (2) of this

 

 

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1subsection (c) are not paid in full, an additional one-time
2lump sum refund representing contributions made following the
3previous refund shall be provided to the named beneficiary or
4beneficiaries on file with the System or, if none, to the
5member's estate, when the member dies.
6(Source: P.A. 87-794.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.