100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0368

 

Introduced , by Rep. Elaine Nekritz

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-113  from Ch. 108 1/2, par. 15-113
40 ILCS 5/15-135  from Ch. 108 1/2, par. 15-135
40 ILCS 5/15-152  from Ch. 108 1/2, par. 15-152
40 ILCS 5/15-153.2  from Ch. 108 1/2, par. 15-153.2
40 ILCS 5/15-168.1

    Amends the State Universities Article of the Illinois Pension Code. Changes the definition of "service" to include periods where earnings credits were established for periods of voluntary pay reduction in lieu of furlough. In a provision concerning retirement annuity payment periods, provides that for a recipient of a disability retirement annuity, the date on which a retirement annuity payment period begins shall not be prior to the discontinuation of the disability retirement annuity. Provides for the discontinuation of a disability retirement annuity when the recipient refuses to submit to a reasonable physical examination by a physician approved by the board or when the recipient fails to provide an earnings verification necessary to determine continuance of benefits. Requires the board to prescribe rules governing the filing, investigation, control, and supervision of disability retirement annuity claims. Adds provisions concerning costs incurred in connection with completing a claim for a disability retirement annuity. Authorizes the secretary of the board to issue subpoenas to obtain information to assist in the collection of sums due to the System, the determination of the death of a benefit recipient or a potential benefit recipient, or obtaining personal identifying information necessary for the administration of benefits. Makes other changes. Effective immediately.


LRB100 05689 RPS 15708 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0368LRB100 05689 RPS 15708 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 15-113, 15-135, 15-152, 15-153.2, and 15-168.1 as
6follows:
 
7    (40 ILCS 5/15-113)  (from Ch. 108 1/2, par. 15-113)
8    Sec. 15-113. Service. "Service": The periods defined in
9Sections 15-113.1 through 15-113.9 and Sections 15-113.11
10through 15-113.12.
11(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
12    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
13    Sec. 15-135. Retirement annuities - Conditions.
14    (a) This subsection (a) applies only to a Tier 1 member. A
15participant who retires in one of the following specified years
16with the specified amount of service is entitled to a
17retirement annuity at any age under the retirement program
18applicable to the participant:
19        35 years if retirement is in 1997 or before;
20        34 years if retirement is in 1998;
21        33 years if retirement is in 1999;
22        32 years if retirement is in 2000;

 

 

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1        31 years if retirement is in 2001;
2        30 years if retirement is in 2002 or later.
3    A participant with 8 or more years of service after
4September 1, 1941, is entitled to a retirement annuity on or
5after attainment of age 55.
6    A participant with at least 5 but less than 8 years of
7service after September 1, 1941, is entitled to a retirement
8annuity on or after attainment of age 62.
9    A participant who has at least 25 years of service in this
10system as a police officer or firefighter is entitled to a
11retirement annuity on or after the attainment of age 50, if
12Rule 4 of Section 15-136 is applicable to the participant.
13    (a-5) A Tier 2 member is entitled to a retirement annuity
14upon written application if he or she has attained age 67 and
15has at least 10 years of service credit and is otherwise
16eligible under the requirements of this Article. A Tier 2
17member who has attained age 62 and has at least 10 years of
18service credit and is otherwise eligible under the requirements
19of this Article may elect to receive the lower retirement
20annuity provided in subsection (b-5) of Section 15-136 of this
21Article.
22    (b) The annuity payment period shall begin on the date
23specified by the participant or the recipient of a disability
24retirement annuity submitting a written application. For a
25participant, the date on which the annuity payment period
26begins , which date shall not be prior to termination of

 

 

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1employment or more than one year before the application is
2received by the board; however, if the participant is not an
3employee of an employer participating in this System or in a
4participating system as defined in Article 20 of this Code on
5April 1 of the calendar year next following the calendar year
6in which the participant attains age 70 1/2, the annuity
7payment period shall begin on that date regardless of whether
8an application has been filed. For a recipient of a disability
9retirement annuity, the date on which the annuity payment
10period begins shall not be prior to the discontinuation of the
11disability retirement annuity under Section 15-153.2.
12    (c) An annuity is not payable if the amount provided under
13Section 15-136 is less than $10 per month.
14(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1598-92, eff. 7-16-13.)
 
16    (40 ILCS 5/15-152)  (from Ch. 108 1/2, par. 15-152)
17    Sec. 15-152. Disability benefits - Duration. Disability
18benefits shall be discontinued when the earliest of the
19following occurs: (1) when disability ceases, (2) upon refusal
20of the participant to submit to a reasonable physical
21examination by a physician approved by the board, (3) upon
22refusal of the participant to accept any position, assigned in
23good faith by an employer, the duties of which could reasonably
24be performed by the participant and the earnings of which would
25be at least equal to the disability benefit payable under this

 

 

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1Article, (4) upon September 1, following the participant's 70th
2birthday, if the disability benefit commenced prior to
3attainment of age 65, (5) the end of the month following the
4fifth anniversary of the date disability benefits commenced, if
5such benefits began after the attainment of age 65, or (6) when
6the total disability benefits paid equal 50% of the
7participant's total earnings for the entire period of
8employment for which service has been granted prior to the date
9disability benefits began to accrue, or (7) upon failure of the
10participant to provide an earnings verification necessary to
11determine continuance of benefits. If the disability was caused
12by an on-the-job accident, and the participant is granted
13workers' compensation or occupational disease payments from
14the employer or the State of Illinois, the limitation in clause
15(6) shall not be applicable.
16    Service and earnings credits under the State Employees'
17Retirement System of Illinois and the Teachers' Retirement
18System of the State of Illinois shall be considered in
19determining the employee's eligibility for, and the duration of
20disability benefits.
21    If, by law, a function of a governmental unit, as defined
22by Section 20-107 is transferred in whole or in part to an
23employer and an employee transfers employment from the
24governmental unit to such employer within 6 months after the
25transfer of this function, the pension credits in the
26governmental unit's retirement system which have been

 

 

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1validated under Section 20-109, shall be treated the same as
2pension credits in this Section in determining an employee's
3eligibility for, and the duration of disability benefits.
4(Source: P.A. 86-273.)
 
5    (40 ILCS 5/15-153.2)  (from Ch. 108 1/2, par. 15-153.2)
6    Sec. 15-153.2. Disability retirement annuity. A
7participant whose disability benefits are discontinued under
8the provisions of clause (6) of Section 15-152 and who is not a
9participant in the optional retirement plan established under
10Section 15-158.2 is entitled to a disability retirement annuity
11of 35% of the basic compensation which was payable to the
12participant at the time that disability began, provided that
13the board determines that the participant has a medically
14determinable physical or mental impairment that prevents him or
15her from engaging in any substantial gainful activity, and
16which can be expected to result in death or which has lasted or
17can be expected to last for a continuous period of not less
18than 12 months.
19    The board's determination of whether a participant is
20disabled shall be based upon:
21        (i) a written certificate from one or more licensed and
22    practicing physicians appointed by or acceptable to the
23    board, stating that the participant is unable to engage in
24    any substantial gainful activity; and
25        (ii) any other medical examinations, hospital records,

 

 

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1    laboratory results, or other information necessary for
2    determining the employment capacity and condition of the
3    participant.
4    The terms "medically determinable physical or mental
5impairment" and "substantial gainful activity" shall have the
6meanings ascribed to them in the federal Social Security Act,
7as now or hereafter amended, and the regulations issued
8thereunder.
9    The disability retirement annuity payment period shall
10begin immediately following the expiration of the disability
11benefit payments under clause (6) of Section 15-152 and shall
12be discontinued for a recipient of a disability retirement
13annuity when (1) the physical or mental impairment no longer
14prevents the recipient participant from engaging in any
15substantial gainful activity, (2) the recipient participant
16dies, or (3) the recipient participant elects to receive a
17retirement annuity under Sections 15-135 and 15-136, (4) the
18recipient refuses to submit to a reasonable physical
19examination by a physician approved by the board, or (5) the
20recipient fails to provide an earnings verification necessary
21to determine continuance of benefits. If a person's disability
22retirement annuity is discontinued under clause (1), all rights
23and credits accrued in the system on the date that the
24disability retirement annuity began shall be restored, and the
25disability retirement annuity paid shall be considered as
26disability payments under clause (6) of Section 15-152.

 

 

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1    The board shall prescribe rules governing the filing,
2investigation, control, and supervision of disability
3retirement annuity claims. Costs incurred by a claimant in
4connection with completing a claim for a disability retirement
5annuity shall be paid (A) by the claimant, in the case of the
6one required medical examination, medical certificate, and any
7other requirements generally imposed by the board on all
8disability retirement annuity claimants; and (B) by the System,
9in the case of any additional medical examination or other
10additional requirement imposed on a particular claimant that is
11not imposed generally on all disability retirement annuity
12claimants.
13(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
14    (40 ILCS 5/15-168.1)
15    Sec. 15-168.1. Testimony and the production of records. The
16secretary of the Board shall have the power to issue subpoenas
17to compel the attendance of witnesses and the production of
18documents and records, including law enforcement records
19maintained by law enforcement agencies, in conjunction with:
20        (1) the determination of employer payments required
21    under subsection (g) of Section 15-155; ,
22        (2) a disability claim; ,
23        (3) an administrative review proceeding; ,
24        (4) an attempt to obtain information to assist in the
25    collection of sums due to the System, including, but not

 

 

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1    limited to, bank and other financial records;
2        (5) obtaining any and all personal identifying
3    information necessary for the administration of benefits;
4        (6) the determination of the death of a benefit
5    recipient or a potential benefit recipient; or
6        (7) a felony forfeiture investigation.
7    The fees of witnesses for attendance and travel shall be
8the same as the fees of witnesses before the circuit courts of
9this State and shall be paid by the party seeking the subpoena.
10The Board may apply to any circuit court in the State for an
11order requiring compliance with a subpoena issued under this
12Section. Subpoenas issued under this Section shall be subject
13to applicable provisions of the Code of Civil Procedure.
14(Source: P.A. 94-1057, eff. 7-31-06.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.