101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2452

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code. Provides that the System shall offer an accelerated pension benefit payment option for eligible Tier 1 members. Provides that the accelerated pension benefit payment is a lump sum payment equal to 50% of the difference of the net present value of the Tier 1 member's retirement annuity, including the value of the annual increases to that retirement annuity, and the amount of the old-age payments under Social Security, including the value of the annual increases, that he or she would have been entitled to, as determined by the Board, if he or she had been eligible for Social Security coverage with respect to his or her position. Provides that a person who elects the accelerated pension benefit payment option shall have his or her retirement annuity reduced to the amount of the old age payments under Social Security that he or she would have been entitled to, as determined by the Board, had he or she been participating in Social Security and any increase in retirement annuity shall be the annual unadjusted percentage increase (but not less than zero) in the consumer price index-w for the 12 months ending with the September preceding each November 1 of the originally granted retirement annuity. Contains provisions concerning return to active service; rulemaking; qualified plan status; and new benefit increases. Makes conforming changes. Effective immediately.


LRB101 07898 RPS 52953 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2452LRB101 07898 RPS 52953 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 adding
5Sections 14-147.7, 15-185.7, and 16-190.7 and by changing
6Section 14-147.5, 14-147.6, 14-152.1, 15-185.5, 15-185.6,
715-198, 16-190.5, 16-190.6, and 16-203 as follows:
 
8    (40 ILCS 5/14-147.5)
9    Sec. 14-147.5. Accelerated pension benefit payment in lieu
10of any pension benefit.
11    (a) As used in this Section:
12    "Eligible person" means a person who:
13        (1) has terminated service;
14        (2) has accrued sufficient service credit to be
15    eligible to receive a retirement annuity under this
16    Article;
17        (3) has not received any retirement annuity under this
18    Article; and
19        (4) has not made the election under Section 14-147.6 or
20    14-147.7.
21    "Pension benefit" means the benefits under this Article, or
22Article 1 as it relates to those benefits, including any
23anticipated annual increases, that an eligible person is

 

 

HB2452- 2 -LRB101 07898 RPS 52953 b

1entitled to upon attainment of the applicable retirement age.
2"Pension benefit" also includes applicable survivor's or
3disability benefits.
4    (b) As soon as practical after the effective date of this
5amendatory Act of the 100th General Assembly, the System shall
6calculate, using actuarial tables and other assumptions
7adopted by the Board, the present value of pension benefits for
8each eligible person who requests that information and shall
9offer each eligible person the opportunity to irrevocably elect
10to receive an amount determined by the System to be equal to
1160% of the present value of his or her pension benefits in lieu
12of receiving any pension benefit. The offer shall specify the
13dollar amount that the eligible person will receive if he or
14she so elects and shall expire when a subsequent offer is made
15to an eligible person. An eligible person is limited to one
16calculation and offer per calendar year. The System shall make
17a good faith effort to contact every eligible person to notify
18him or her of the election.
19    Until June 30, 2021, an eligible person may irrevocably
20elect to receive an accelerated pension benefit payment in the
21amount that the System offers under this subsection in lieu of
22receiving any pension benefit. A person who elects to receive
23an accelerated pension benefit payment under this Section may
24not elect to proceed under the Retirement Systems Reciprocal
25Act with respect to service under this Article.
26    (c) A person's creditable service under this Article shall

 

 

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1be terminated upon the person's receipt of an accelerated
2pension benefit payment under this Section, and no other
3benefit shall be paid under this Article based on the
4terminated creditable service, including any retirement,
5survivor, or other benefit; except that to the extent that
6participation, benefits, or premiums under the State Employees
7Group Insurance Act of 1971 are based on the amount of service
8credit, the terminated service credit shall be used for that
9purpose.
10    (d) If a person who has received an accelerated pension
11benefit payment under this Section returns to active service
12under this Article, then:
13        (1) Any benefits under the System earned as a result of
14    that return to active service shall be based solely on the
15    person's creditable service arising from the return to
16    active service.
17        (2) The accelerated pension benefit payment may not be
18    repaid to the System, and the terminated creditable service
19    may not under any circumstances be reinstated.
20    (e) As a condition of receiving an accelerated pension
21benefit payment, the accelerated pension benefit payment must
22be transferred into a tax qualified retirement plan or account.
23The accelerated pension benefit payment under this Section may
24be subject to withholding or payment of applicable taxes, but
25to the extent permitted by federal law, a person who receives
26an accelerated pension benefit payment under this Section must

 

 

HB2452- 4 -LRB101 07898 RPS 52953 b

1direct the System to pay all of that payment as a rollover into
2another retirement plan or account qualified under the Internal
3Revenue Code of 1986, as amended.
4    (f) Upon receipt of a member's irrevocable election to
5receive an accelerated pension benefit payment under this
6Section, the System shall submit a voucher to the Comptroller
7for payment of the member's accelerated pension benefit
8payment. The Comptroller shall transfer the amount of the
9voucher from the State Pension Obligation Acceleration Bond
10Fund to the System, and the System shall transfer the amount
11into the member's eligible retirement plan or qualified
12account.
13    (g) The Board shall adopt any rules, including emergency
14rules, necessary to implement this Section.
15    (h) No provision of this Section shall be interpreted in a
16way that would cause the applicable System to cease to be a
17qualified plan under the Internal Revenue Code of 1986.
18(Source: P.A. 100-587, eff. 6-4-18.)
 
19    (40 ILCS 5/14-147.6)
20    Sec. 14-147.6. Accelerated pension benefit payment for a
21reduction in annual retirement annuity and survivor's annuity
22increases.
23    (a) As used in this Section:
24    "Accelerated pension benefit payment" means a lump sum
25payment equal to 70% of the difference of the present value of

 

 

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1the automatic annual increases to a Tier 1 member's retirement
2annuity and survivor's annuity using the formula applicable to
3the Tier 1 member and the present value of the automatic annual
4increases to the Tier 1 member's retirement annuity using the
5formula provided under subsection (b-5) and survivor's annuity
6using the formula provided under subsection (b-6).
7    "Eligible person" means a person who:
8        (1) is a Tier 1 member;
9        (2) has submitted an application for a retirement
10    annuity under this Article;
11        (3) meets the age and service requirements for
12    receiving a retirement annuity under this Article;
13        (4) has not received any retirement annuity under this
14    Article; and
15        (5) has not made the election under Section 14-147.5 or
16    14-147.7.
17    (b) As soon as practical after the effective date of this
18amendatory Act of the 100th General Assembly and until June 30,
192021, the System shall implement an accelerated pension benefit
20payment option for eligible persons. Upon the request of an
21eligible person, the System shall calculate, using actuarial
22tables and other assumptions adopted by the Board, an
23accelerated pension benefit payment amount and shall offer that
24eligible person the opportunity to irrevocably elect to have
25his or her automatic annual increases in retirement annuity
26calculated in accordance with the formula provided under

 

 

HB2452- 6 -LRB101 07898 RPS 52953 b

1subsection (b-5) and any increases in survivor's annuity
2payable to his or her survivor's annuity beneficiary calculated
3in accordance with the formula provided under subsection (b-6)
4in exchange for the accelerated pension benefit payment. The
5election under this subsection must be made before the eligible
6person receives the first payment of a retirement annuity
7otherwise payable under this Article.
8    (b-5) Notwithstanding any other provision of law, the
9retirement annuity of a person who made the election under
10subsection (b) shall be subject to annual increases on the
11January 1 occurring either on or after the attainment of age 67
12or the first anniversary of the annuity start date, whichever
13is later. Each annual increase shall be calculated at 1.5% of
14the originally granted retirement annuity.
15    (b-6) Notwithstanding any other provision of law, a
16survivor's annuity payable to a survivor's annuity beneficiary
17of a person who made the election under subsection (b) shall be
18subject to annual increases on the January 1 occurring on or
19after the first anniversary of the commencement of the annuity.
20Each annual increase shall be calculated at 1.5% of the
21originally granted survivor's annuity.
22    (c) If a person who has received an accelerated pension
23benefit payment returns to active service under this Article,
24then:
25        (1) the calculation of any future automatic annual
26    increase in retirement annuity shall be calculated in

 

 

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1    accordance with the formula provided under subsection
2    (b-5); and
3        (2) the accelerated pension benefit payment may not be
4    repaid to the System.
5    (d) As a condition of receiving an accelerated pension
6benefit payment, the accelerated pension benefit payment must
7be transferred into a tax qualified retirement plan or account.
8The accelerated pension benefit payment under this Section may
9be subject to withholding or payment of applicable taxes, but
10to the extent permitted by federal law, a person who receives
11an accelerated pension benefit payment under this Section must
12direct the System to pay all of that payment as a rollover into
13another retirement plan or account qualified under the Internal
14Revenue Code of 1986, as amended.
15    (d-5) Upon receipt of a member's irrevocable election to
16receive an accelerated pension benefit payment under this
17Section, the System shall submit a voucher to the Comptroller
18for payment of the member's accelerated pension benefit
19payment. The Comptroller shall transfer the amount of the
20voucher to the System, and the System shall transfer the amount
21into a member's eligible retirement plan or qualified account.
22    (e) The Board shall adopt any rules, including emergency
23rules, necessary to implement this Section.
24    (f) No provision of this Section shall be interpreted in a
25way that would cause the applicable System to cease to be a
26qualified plan under the Internal Revenue Code of 1986.

 

 

HB2452- 8 -LRB101 07898 RPS 52953 b

1(Source: P.A. 100-587, eff. 6-4-18.)
 
2    (40 ILCS 5/14-147.7 new)
3    Sec. 14-147.7. Accelerated pension benefit payment for a
4reduction in retirement annuity.
5    (a) As used in this Section:
6    "Accelerated pension benefit payment" means a lump sum
7payment equal to 50% of the difference of the net present value
8of the Tier 1 member's retirement annuity, including the value
9of the annual increases to that retirement annuity, and the
10amount of the old-age insurance payments under the federal
11Old-Age, Survivors, and Disability Insurance program
12administered by the Social Security Administration, including
13the value of the annual increases under subsection (d), that he
14or she would have been entitled to, as determined by the Board,
15if he or she had been eligible for Social Security coverage
16with respect to his or her position.
17    "Eligible person" means a person who:
18        (1) is a Tier 1 member;
19        (2) is a noncovered employee;
20        (3) does not have a Qualified Illinois Domestic
21    Relations Order in effect against him or her;
22        (4) has submitted an application for a retirement
23    annuity under this Article;
24        (5) meets the age and service requirements for
25    receiving a retirement annuity under this Article;

 

 

HB2452- 9 -LRB101 07898 RPS 52953 b

1        (6) has not received any retirement annuity under this
2    Article; and
3        (7) has not made the election under Section 14-147.5 or
4    14-147.6.
5    "Implementation date" means the earliest date upon which
6the Board authorizes eligible persons to begin irrevocably
7electing the accelerated pension benefit payment option under
8this Section. The Board shall endeavor to make such
9participation available as soon as possible after the effective
10date of this amendatory Act of the 101st General Assembly and
11shall establish an implementation date by Board resolution.
12    (b) Beginning on the implementation date, the System shall
13implement an accelerated pension benefit payment option for
14eligible persons. Upon the request of an eligible person, the
15System shall calculate, using actuarial tables and other
16assumptions adopted by the Board, an accelerated pension
17benefit payment amount and shall offer that eligible person the
18opportunity to irrevocably elect to have his or her retirement
19annuity reduced in accordance with the formula provided under
20subsection (c) and his or her automatic annual increases in
21retirement annuity calculated in accordance with the formula
22provided under subsection (d) in exchange for the accelerated
23pension benefit payment. In determining the amount of the
24accelerated pension benefit payment, the System may use any
25necessary assumptions about what the amounts of the old-age
26insurance payments under the federal Old-Age, Survivors, and

 

 

HB2452- 10 -LRB101 07898 RPS 52953 b

1Disability Insurance program would be for that eligible person.
2The election under this subsection must be made before the
3eligible person receives the first payment of a retirement
4annuity otherwise payable under this Article.
5    (c) Notwithstanding any other provision of law, the
6retirement annuity of a person who made the election under
7subsection (b) shall be equal to the amount of the old-age
8insurance payment under the federal Old-Age, Survivors, and
9Disability Insurance program that he or she would have been
10entitled to, as determined by the Board, had he or she been
11participating in Social Security with respect to his or her
12employment under this Article.
13    (d) Notwithstanding any other provision of law, the
14retirement annuity of a person who made the election under
15subsection (b) shall be subject to annual increases on the
16January 1 occurring either on or after the attainment of age 67
17or the first anniversary of the annuity start date, whichever
18is later. Each annual increase shall be the annual unadjusted
19percentage increase (but not less than zero) in the consumer
20price index-w for the 12 months ending with the September
21preceding each November 1 of the originally granted retirement
22annuity. If the annual unadjusted percentage change in the
23consumer price index-w for the 12 months ending with the
24September preceding each November 1 is zero or there is a
25decrease, then the annuity shall not be increased.
26    For the purposes of this subsection, "consumer price

 

 

HB2452- 11 -LRB101 07898 RPS 52953 b

1index-w" means the index published by the Bureau of Labor
2Statistics of the United States Department of Labor that
3measures the average change in prices of goods and services
4purchased by Urban Wage Earners and Clerical Workers, United
5States city average, all items, 1982-84 = 100. The new amount
6resulting from each annual adjustment shall be determined by
7the Public Pension Division of the Department of Insurance and
8made available to the boards of the retirement systems and
9pension funds by November 1 of each year.
10    (e) If a person who has received an accelerated pension
11benefit payment returns to active service under this Article,
12then any change in the amount of retirement annuity shall be
13calculated in accordance with subsection (c) and any future
14automatic annual increase in retirement annuity shall be
15calculated in accordance with the formula provided under
16subsection (d).
17    (f) The accelerated pension benefit payment may not be
18repaid to the System.
19    (g) As a condition of receiving an accelerated pension
20benefit payment, the accelerated pension benefit payment must
21be transferred into a tax qualified retirement plan or account.
22The accelerated pension benefit payment under this Section may
23be subject to withholding or payment of applicable taxes, but
24to the extent permitted by federal law, a person who receives
25an accelerated pension benefit payment under this Section must
26direct the System to pay all of that payment as a rollover into

 

 

HB2452- 12 -LRB101 07898 RPS 52953 b

1another retirement plan or account qualified under the Internal
2Revenue Code of 1986, as amended.
3    (h) Upon receipt of a member's irrevocable election to
4receive an accelerated pension benefit payment under this
5Section, the System shall submit a voucher to the Comptroller
6for payment of the member's accelerated pension benefit
7payment. The Comptroller shall transfer the amount of the
8voucher to the System, and the System shall transfer the amount
9into a member's eligible retirement plan or qualified account.
10    (i) The Board shall adopt any rules, including emergency
11rules, necessary to implement this Section.
12    (j) No provision of this Section shall be interpreted in a
13way that would cause the System to cease to be a qualified plan
14under the Internal Revenue Code of 1986.
 
15    (40 ILCS 5/14-152.1)
16    Sec. 14-152.1. Application and expiration of new benefit
17increases.
18    (a) As used in this Section, "new benefit increase" means
19an increase in the amount of any benefit provided under this
20Article, or an expansion of the conditions of eligibility for
21any benefit under this Article, that results from an amendment
22to this Code that takes effect after June 1, 2005 (the
23effective date of Public Act 94-4). "New benefit increase",
24however, does not include any benefit increase resulting from
25the changes made to Article 1 or this Article by Public Act

 

 

HB2452- 13 -LRB101 07898 RPS 52953 b

196-37, Public Act 100-23, Public Act 100-587, Public Act
2100-611, or this amendatory Act of the 101st General Assembly
3or this amendatory Act of the 100th General Assembly.
4    (b) Notwithstanding any other provision of this Code or any
5subsequent amendment to this Code, every new benefit increase
6is subject to this Section and shall be deemed to be granted
7only in conformance with and contingent upon compliance with
8the provisions of this Section.
9    (c) The Public Act enacting a new benefit increase must
10identify and provide for payment to the System of additional
11funding at least sufficient to fund the resulting annual
12increase in cost to the System as it accrues.
13    Every new benefit increase is contingent upon the General
14Assembly providing the additional funding required under this
15subsection. The Commission on Government Forecasting and
16Accountability shall analyze whether adequate additional
17funding has been provided for the new benefit increase and
18shall report its analysis to the Public Pension Division of the
19Department of Insurance. A new benefit increase created by a
20Public Act that does not include the additional funding
21required under this subsection is null and void. If the Public
22Pension Division determines that the additional funding
23provided for a new benefit increase under this subsection is or
24has become inadequate, it may so certify to the Governor and
25the State Comptroller and, in the absence of corrective action
26by the General Assembly, the new benefit increase shall expire

 

 

HB2452- 14 -LRB101 07898 RPS 52953 b

1at the end of the fiscal year in which the certification is
2made.
3    (d) Every new benefit increase shall expire 5 years after
4its effective date or on such earlier date as may be specified
5in the language enacting the new benefit increase or provided
6under subsection (c). This does not prevent the General
7Assembly from extending or re-creating a new benefit increase
8by law.
9    (e) Except as otherwise provided in the language creating
10the new benefit increase, a new benefit increase that expires
11under this Section continues to apply to persons who applied
12and qualified for the affected benefit while the new benefit
13increase was in effect and to the affected beneficiaries and
14alternate payees of such persons, but does not apply to any
15other person, including without limitation a person who
16continues in service after the expiration date and did not
17apply and qualify for the affected benefit while the new
18benefit increase was in effect.
19(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
20100-611, eff. 7-20-18; revised 7-25-18.)
 
21    (40 ILCS 5/15-185.5)
22    Sec. 15-185.5. Accelerated pension benefit payment in lieu
23of any pension benefit.
24    (a) As used in this Section:
25    "Eligible person" means a person who:

 

 

HB2452- 15 -LRB101 07898 RPS 52953 b

1        (1) has terminated service;
2        (2) has accrued sufficient service credit to be
3    eligible to receive a retirement annuity under this
4    Article;
5        (3) has not received any retirement annuity under this
6    Article;
7        (4) has not made the election under Section 15-185.6 or
8    15-185.7; and
9        (5) is not a participant in the self-managed plan under
10    Section 15-158.2.
11    "Implementation date" means the earliest date upon which
12the Board authorizes eligible persons to begin irrevocably
13electing the accelerated pension benefit payment option under
14this Section. The Board shall endeavor to make such
15participation available as soon as possible after the effective
16date of this amendatory Act of the 100th General Assembly and
17shall establish an implementation date by Board resolution.
18    "Pension benefit" means the benefits under this Article, or
19Article 1 as it relates to those benefits, including any
20anticipated annual increases, that an eligible person is
21entitled to upon attainment of the applicable retirement age.
22"Pension benefit" also includes applicable survivors benefits,
23disability benefits, or disability retirement annuity
24benefits.
25    (b) Beginning on the implementation date, the System shall
26offer each eligible person the opportunity to irrevocably elect

 

 

HB2452- 16 -LRB101 07898 RPS 52953 b

1to receive an amount determined by the System to be equal to
260% of the present value of his or her pension benefits in lieu
3of receiving any pension benefit. The System shall calculate,
4using actuarial tables and other assumptions adopted by the
5Board, the present value of pension benefits for each eligible
6person upon his or her request in writing to the System. The
7System shall not perform more than one calculation per eligible
8member in a State fiscal year. The offer shall specify the
9dollar amount that the eligible person will receive if he or
10she so elects and shall expire when a subsequent offer is made
11to an eligible person. The System shall make a good faith
12effort to contact every eligible person to notify him or her of
13the election.
14    Beginning on the implementation date and until June 30,
152021, an eligible person may irrevocably elect to receive an
16accelerated pension benefit payment in the amount that the
17System offers under this subsection in lieu of receiving any
18pension benefit. A person who elects to receive an accelerated
19pension benefit payment under this Section may not elect to
20proceed under the Retirement Systems Reciprocal Act with
21respect to service under this Article.
22    (c) Upon payment of an accelerated pension benefit payment
23under this Section, the person forfeits all accrued rights and
24credits in the System and no other benefit shall be paid under
25this Article based on those forfeited rights and credits,
26including any retirement, survivor, or other benefit; except

 

 

HB2452- 17 -LRB101 07898 RPS 52953 b

1that to the extent that participation, benefits, or premiums
2under the State Employees Group Insurance Act of 1971 are based
3on the amount of service credit, the terminated service credit
4shall be used for that purpose.
5    (d) If a person who has received an accelerated pension
6benefit payment under this Section returns to participation
7under this Article, any benefits under the System earned as a
8result of that return to participation shall be based solely on
9the person's credits and creditable service arising from the
10return to participation. Upon return to participation, the
11person shall be considered a new employee subject to all the
12qualifying conditions for participation and eligibility for
13benefits applicable to new employees.
14    (d-5) The accelerated pension benefit payment may not be
15repaid to the System, and the forfeited rights and credits may
16not under any circumstances be reinstated.
17    (e) As a condition of receiving an accelerated pension
18benefit payment, the accelerated pension benefit payment must
19be deposited into a tax qualified retirement plan or account
20identified by the eligible person at the time of the election.
21The accelerated pension benefit payment under this Section may
22be subject to withholding or payment of applicable taxes, but
23to the extent permitted by federal law, a person who receives
24an accelerated pension benefit payment under this Section must
25direct the System to pay all of that payment as a rollover into
26another retirement plan or account qualified under the Internal

 

 

HB2452- 18 -LRB101 07898 RPS 52953 b

1Revenue Code of 1986, as amended.
2    (f) The System shall submit vouchers to the State
3Comptroller for the payment of accelerated pension benefit
4payments under this Section. The State Comptroller shall pay
5the amounts of the vouchers from the State Pension Obligation
6Acceleration Bond Fund to the System, and the System shall
7deposit the amounts into the applicable tax qualified plans or
8accounts.
9    (g) The Board shall adopt any rules, including emergency
10rules, necessary to implement this Section.
11    (h) No provision of this Section shall be interpreted in a
12way that would cause the System to cease to be a qualified plan
13under the Internal Revenue Code of 1986.
14(Source: P.A. 100-587, eff. 6-4-18.)
 
15    (40 ILCS 5/15-185.6)
16    Sec. 15-185.6. Accelerated pension benefit payment for a
17reduction in an annual increase to a retirement annuity and an
18annuity benefit payable as a result of death.
19    (a) As used in this Section:
20    "Accelerated pension benefit payment" means a lump sum
21payment equal to 70% of the difference of: (i) the present
22value of the automatic annual increases to a Tier 1 member's
23retirement annuity, including any increases to any annuity
24benefit payable as a result of his or her death, using the
25formula applicable to the Tier 1 member; and (ii) the present

 

 

HB2452- 19 -LRB101 07898 RPS 52953 b

1value of the automatic annual increases to the Tier 1 member's
2retirement annuity, including any increases to any annuity
3benefit payable as a result of his or her death, using the
4formula provided under subsection (b-5).
5    "Eligible person" means a person who:
6        (1) is a Tier 1 member;
7        (2) has submitted an application for a retirement
8    annuity under this Article;
9        (3) meets the age and service requirements for
10    receiving a retirement annuity under this Article;
11        (4) has not received any retirement annuity under this
12    Article;
13        (5) has not made the election under Section 15-185.5 or
14    15-185.7; and
15        (6) is not a participant in the self-managed plan under
16    Section 15-158.2.
17    "Implementation date" means the earliest date upon which
18the Board authorizes eligible persons to begin irrevocably
19electing the accelerated pension benefit payment option under
20this Section. The Board shall endeavor to make such
21participation available as soon as possible after the effective
22date of this amendatory Act of the 100th General Assembly and
23shall establish an implementation date by Board resolution.
24    (b) Beginning on the implementation date and until June 30,
252021, the System shall implement an accelerated pension benefit
26payment option for eligible persons. The System shall

 

 

HB2452- 20 -LRB101 07898 RPS 52953 b

1calculate, using actuarial tables and other assumptions
2adopted by the Board, an accelerated pension benefit payment
3amount for an eligible person upon his or her request in
4writing to the System and shall offer that eligible person the
5opportunity to irrevocably elect to have his or her automatic
6annual increases in retirement annuity and any annuity benefit
7payable as a result of his or her death calculated in
8accordance with the formula provided in subsection (b-5) in
9exchange for the accelerated pension benefit payment. The
10System shall not perform more than one calculation under this
11Section per eligible person in a State fiscal year. The
12election under this subsection must be made before any
13retirement annuity is paid to the eligible person, and the
14eligible survivor, spouse, or contingent annuitant, as
15applicable, must consent to the election under this subsection.
16    (b-5) Notwithstanding any other provision of law, the
17retirement annuity of a person who made the election under
18subsection (b) shall be increased annually beginning on the
19January 1 occurring either on or after the attainment of age 67
20or the first anniversary of the annuity start date, whichever
21is later, and any annuity benefit payable as a result of his or
22her death shall be increased annually beginning on: (1) the
23January 1 occurring on or after the commencement of the annuity
24if the deceased Tier 1 member died while receiving a retirement
25annuity; or (2) the January 1 occurring after the first
26anniversary of the commencement of the benefit. Each annual

 

 

HB2452- 21 -LRB101 07898 RPS 52953 b

1increase shall be calculated at 1.5% of the originally granted
2retirement annuity or annuity benefit payable as a result of
3the Tier 1 member's death.
4    (c) If an annuitant who has received an accelerated pension
5benefit payment returns to participation under this Article,
6the calculation of any future automatic annual increase in
7retirement annuity under subsection (c) of Section 15-139 shall
8be calculated in accordance with the formula provided in
9subsection (b-5).
10    (c-5) The accelerated pension benefit payment may not be
11repaid to the System.
12    (d) As a condition of receiving an accelerated pension
13benefit payment, the accelerated pension benefit payment must
14be deposited into a tax qualified retirement plan or account
15identified by the eligible person at the time of election. The
16accelerated pension benefit payment under this Section may be
17subject to withholding or payment of applicable taxes, but to
18the extent permitted by federal law, a person who receives an
19accelerated pension benefit payment under this Section must
20direct the System to pay all of that payment as a rollover into
21another retirement plan or account qualified under the Internal
22Revenue Code of 1986, as amended.
23    (d-5) The System shall submit vouchers to the State
24Comptroller for the payment of accelerated pension benefit
25payments under this Section. The State Comptroller shall pay
26the amounts of the vouchers from the State Pension Obligation

 

 

HB2452- 22 -LRB101 07898 RPS 52953 b

1Acceleration Bond Fund to the System, and the System shall
2deposit the amounts into the applicable tax qualified plans or
3accounts.
4    (e) The Board shall adopt any rules, including emergency
5rules, necessary to implement this Section.
6    (f) No provision of this Section shall be interpreted in a
7way that would cause the System to cease to be a qualified plan
8under the Internal Revenue Code of 1986.
9(Source: P.A. 100-587, eff. 6-4-18.)
 
10    (40 ILCS 5/15-185.7 new)
11    Sec. 15-185.7. Accelerated pension benefit payment for a
12reduction in retirement annuity.
13    (a) As used in this Section:
14    "Accelerated pension benefit payment" means a lump sum
15payment equal to 50% of the difference of the net present value
16of the Tier 1 member's retirement annuity, including the value
17of the annual increases to that retirement annuity, and the
18amount of the old-age insurance payments under the federal
19Old-Age, Survivors, and Disability Insurance program
20administered by the Social Security Administration, including
21the value of the annual increases under subsection (d), that he
22or she would have been entitled to, as determined by the Board,
23if he or she had been eligible for Social Security coverage
24with respect to his or her position.
25    "Eligible person" means a person who:

 

 

HB2452- 23 -LRB101 07898 RPS 52953 b

1        (1) is a Tier 1 member;
2        (2) has submitted an application for a retirement
3    annuity under this Article;
4        (3) does not have a Qualified Illinois Domestic
5    Relations Order in effect against him or her;
6        (4) meets the age and service requirements for
7    receiving a retirement annuity under this Article;
8        (5) has not received any retirement annuity under this
9    Article;
10        (6) has not made the election under Section 15-185.5 or
11    15-185.6;
12        (7) is not a participant in the self-managed plan under
13    Section 15-158.2.
14    "Implementation date" means the earliest date upon which
15the Board authorizes eligible persons to begin irrevocably
16electing the accelerated pension benefit payment option under
17this Section. The Board shall endeavor to make such
18participation available as soon as possible after the effective
19date of this amendatory Act of the 101st General Assembly and
20shall establish an implementation date by Board resolution.
21    (b) Beginning on the implementation date, the System shall
22implement an accelerated pension benefit payment option for
23eligible persons. The System shall calculate, using actuarial
24tables and other assumptions adopted by the Board, an
25accelerated pension benefit payment amount for an eligible
26person upon his or her request in writing to the System and

 

 

HB2452- 24 -LRB101 07898 RPS 52953 b

1shall offer that eligible person the opportunity to irrevocably
2elect to have his or her retirement annuity reduced in
3accordance with the formula provided under subsection (c) and
4his or her automatic annual increases in retirement annuity
5calculated in accordance with the formula provided under
6subsection (d) in exchange for the accelerated pension benefit
7payment. In determining the amount of the accelerated pension
8benefit payment, the System may use any necessary assumptions
9about what the amounts of the old-age insurance payments under
10the federal Old-Age, Survivors, and Disability Insurance
11program would be for that eligible person. The election under
12this subsection must be made before any retirement annuity is
13paid to the eligible person.
14    (c) Notwithstanding any other provision of law, the
15retirement annuity of a person who made the election under
16subsection (b) shall be equal to the amount of the old-age
17insurance payment under the federal Old-Age, Survivors, and
18Disability Insurance program that he or she would have been
19entitled to, as determined by the Board, had he or she been
20participating in Social Security with respect to his or her
21employment under this Article.
22    (d) Notwithstanding any other provision of law, the
23retirement annuity of a person who made the election under
24subsection (b) shall be subject to annual increases on the
25January 1 occurring either on or after the attainment of age 67
26or the first anniversary of the annuity start date, whichever

 

 

HB2452- 25 -LRB101 07898 RPS 52953 b

1is later. Each annual increase shall be the annual unadjusted
2percentage increase (but not less than zero) in the consumer
3price index-w for the 12 months ending with the September
4preceding each November 1 of the originally granted retirement
5annuity. If the annual unadjusted percentage change in the
6consumer price index-w for the 12 months ending with the
7September preceding each November 1 is zero or there is a
8decrease, then the annuity shall not be increased.
9    For the purposes of this subsection, "consumer price
10index-w" means the index published by the Bureau of Labor
11Statistics of the United States Department of Labor that
12measures the average change in prices of goods and services
13purchased by Urban Wage Earners and Clerical Workers, United
14States city average, all items, 1982-84 = 100. The new amount
15resulting from each annual adjustment shall be determined by
16the Public Pension Division of the Department of Insurance and
17made available to the boards of the retirement systems and
18pension funds by November 1 of each year.
19    (e) If an annuitant who has received an accelerated pension
20benefit payment returns to participation under this Article,
21then any change in the amount of retirement annuity shall be
22calculated in accordance with subsection (c) and the
23calculation of any future automatic annual increase in
24retirement annuity shall be calculated in accordance with the
25formula provided in subsection (d).
26    (f) The accelerated pension benefit payment may not be

 

 

HB2452- 26 -LRB101 07898 RPS 52953 b

1repaid to the System.
2    (g) As a condition of receiving an accelerated pension
3benefit payment, the accelerated pension benefit payment must
4be deposited into a tax qualified retirement plan or account
5identified by the eligible person at the time of election. The
6accelerated pension benefit payment under this Section may be
7subject to withholding or payment of applicable taxes, but to
8the extent permitted by federal law, a person who receives an
9accelerated pension benefit payment under this Section must
10direct the System to pay all of that payment as a rollover into
11another retirement plan or account qualified under the Internal
12Revenue Code of 1986, as amended.
13    (h) Upon receipt of a member's irrevocable election to
14receive an accelerated pension benefit payment under this
15Section, the System shall submit a voucher to the Comptroller
16for payment of the member's accelerated pension benefit
17payment. The Comptroller shall transfer the amount of the
18voucher to the System, and the System shall transfer the amount
19into a member's eligible retirement plan or qualified account.
20    (i) The Board shall adopt any rules, including emergency
21rules, necessary to implement this Section.
22    (j) No provision of this Section shall be interpreted in a
23way that would cause the System to cease to be a qualified plan
24under the Internal Revenue Code of 1986.
 
25    (40 ILCS 5/15-198)

 

 

HB2452- 27 -LRB101 07898 RPS 52953 b

1    Sec. 15-198. Application and expiration of new benefit
2increases.
3    (a) As used in this Section, "new benefit increase" means
4an increase in the amount of any benefit provided under this
5Article, or an expansion of the conditions of eligibility for
6any benefit under this Article, that results from an amendment
7to this Code that takes effect after the effective date of this
8amendatory Act of the 94th General Assembly. "New benefit
9increase", however, does not include any benefit increase
10resulting from the changes made to Article 1 or this Article by
11Public Act 100-23, Public Act 100-587, Public Act 100-769, or
12this amendatory Act of the 101st General Assembly or this
13amendatory Act of the 100th General Assembly.
14    (b) Notwithstanding any other provision of this Code or any
15subsequent amendment to this Code, every new benefit increase
16is subject to this Section and shall be deemed to be granted
17only in conformance with and contingent upon compliance with
18the provisions of this Section.
19    (c) The Public Act enacting a new benefit increase must
20identify and provide for payment to the System of additional
21funding at least sufficient to fund the resulting annual
22increase in cost to the System as it accrues.
23    Every new benefit increase is contingent upon the General
24Assembly providing the additional funding required under this
25subsection. The Commission on Government Forecasting and
26Accountability shall analyze whether adequate additional

 

 

HB2452- 28 -LRB101 07898 RPS 52953 b

1funding has been provided for the new benefit increase and
2shall report its analysis to the Public Pension Division of the
3Department of Insurance. A new benefit increase created by a
4Public Act that does not include the additional funding
5required under this subsection is null and void. If the Public
6Pension Division determines that the additional funding
7provided for a new benefit increase under this subsection is or
8has become inadequate, it may so certify to the Governor and
9the State Comptroller and, in the absence of corrective action
10by the General Assembly, the new benefit increase shall expire
11at the end of the fiscal year in which the certification is
12made.
13    (d) Every new benefit increase shall expire 5 years after
14its effective date or on such earlier date as may be specified
15in the language enacting the new benefit increase or provided
16under subsection (c). This does not prevent the General
17Assembly from extending or re-creating a new benefit increase
18by law.
19    (e) Except as otherwise provided in the language creating
20the new benefit increase, a new benefit increase that expires
21under this Section continues to apply to persons who applied
22and qualified for the affected benefit while the new benefit
23increase was in effect and to the affected beneficiaries and
24alternate payees of such persons, but does not apply to any
25other person, including without limitation a person who
26continues in service after the expiration date and did not

 

 

HB2452- 29 -LRB101 07898 RPS 52953 b

1apply and qualify for the affected benefit while the new
2benefit increase was in effect.
3(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
4100-769, eff. 8-10-18; revised 9-26-18.)
 
5    (40 ILCS 5/16-190.5)
6    Sec. 16-190.5. Accelerated pension benefit payment in lieu
7of any pension benefit.
8    (a) As used in this Section:
9    "Eligible person" means a person who:
10        (1) has terminated service;
11        (2) has accrued sufficient service credit to be
12    eligible to receive a retirement annuity under this
13    Article;
14        (3) has not received any retirement annuity under this
15    Article; and
16        (4) has not made the election under Section 16-190.6 or
17    16-190.7.
18    "Pension benefit" means the benefits under this Article, or
19Article 1 as it relates to those benefits, including any
20anticipated annual increases, that an eligible person is
21entitled to upon attainment of the applicable retirement age.
22"Pension benefit" also includes applicable survivor's or
23disability benefits.
24    (b) As soon as practical after the effective date of this
25amendatory Act of the 100the General Assembly, the System shall

 

 

HB2452- 30 -LRB101 07898 RPS 52953 b

1calculate, using actuarial tables and other assumptions
2adopted by the Board, the present value of pension benefits for
3each eligible person who requests that information and shall
4offer each eligible person the opportunity to irrevocably elect
5to receive an amount determined by the System to be equal to
660% of the present value of his or her pension benefits in lieu
7of receiving any pension benefit. The offer shall specify the
8dollar amount that the eligible person will receive if he or
9she so elects and shall expire when a subsequent offer is made
10to an eligible person. The System shall make a good faith
11effort to contact every eligible person to notify him or her of
12the election.
13    Until June 30, 2021, an eligible person may irrevocably
14elect to receive an accelerated pension benefit payment in the
15amount that the System offers under this subsection in lieu of
16receiving any pension benefit. A person who elects to receive
17an accelerated pension benefit payment under this Section may
18not elect to proceed under the Retirement Systems Reciprocal
19Act with respect to service under this Article.
20    (c) A person's creditable service under this Article shall
21be terminated upon the person's receipt of an accelerated
22pension benefit payment under this Section, and no other
23benefit shall be paid under this Article based on the
24terminated creditable service, including any retirement,
25survivor, or other benefit; except that to the extent that
26participation, benefits, or premiums under the State Employees

 

 

HB2452- 31 -LRB101 07898 RPS 52953 b

1Group Insurance Act of 1971 are based on the amount of service
2credit, the terminated service credit shall be used for that
3purpose.
4    (d) If a person who has received an accelerated pension
5benefit payment under this Section returns to active service
6under this Article, then:
7        (1) Any benefits under the System earned as a result of
8    that return to active service shall be based solely on the
9    person's creditable service arising from the return to
10    active service.
11        (2) The accelerated pension benefit payment may not be
12    repaid to the System, and the terminated creditable service
13    may not under any circumstances be reinstated.
14    (e) As a condition of receiving an accelerated pension
15benefit payment, the accelerated pension benefit payment must
16be transferred into a tax qualified retirement plan or account.
17The accelerated pension benefit payment under this Section may
18be subject to withholding or payment of applicable taxes, but
19to the extent permitted by federal law, a person who receives
20an accelerated pension benefit payment under this Section must
21direct the System to pay all of that payment as a rollover into
22another retirement plan or account qualified under the Internal
23Revenue Code of 1986, as amended.
24    (f) Upon receipt of a member's irrevocable election to
25receive an accelerated pension benefit payment under this
26Section, the System shall submit a voucher to the Comptroller

 

 

HB2452- 32 -LRB101 07898 RPS 52953 b

1for payment of the member's accelerated pension benefit
2payment. The Comptroller shall transfer the amount of the
3voucher from the State Pension Obligation Acceleration Bond
4Fund to the System, and the System shall transfer the amount
5into the member's eligible retirement plan or qualified
6account.
7    (g) The Board shall adopt any rules, including emergency
8rules, necessary to implement this Section.
9    (h) No provision of this amendatory Act of the 100th
10General Assembly shall be interpreted in a way that would cause
11the applicable System to cease to be a qualified plan under the
12Internal Revenue Code of 1986.
13(Source: P.A. 100-587, eff. 6-4-18.)
 
14    (40 ILCS 5/16-190.6)
15    Sec. 16-190.6. Accelerated pension benefit payment for a
16reduction in annual retirement annuity and survivor's annuity
17increases.
18    (a) As used in this Section:
19    "Accelerated pension benefit payment" means a lump sum
20payment equal to 70% of the difference of the present value of
21the automatic annual increases to a Tier 1 member's retirement
22annuity and survivor's annuity using the formula applicable to
23the Tier 1 member and the present value of the automatic annual
24increases to the Tier 1 member's retirement annuity using the
25formula provided under subsection (b-5) and the survivor's

 

 

HB2452- 33 -LRB101 07898 RPS 52953 b

1annuity using the formula provided under subsection (b-6).
2    "Eligible person" means a person who:
3        (1) is a Tier 1 member;
4        (2) has submitted an application for a retirement
5    annuity under this Article;
6        (3) meets the age and service requirements for
7    receiving a retirement annuity under this Article;
8        (4) has not received any retirement annuity under this
9    Article; and
10        (5) has not made the election under Section 16-190.5 or
11    16-190.7.
12    (b) As soon as practical after the effective date of this
13amendatory Act of the 100th General Assembly and until June 30,
142021, the System shall implement an accelerated pension benefit
15payment option for eligible persons. Upon the request of an
16eligible person, the System shall calculate, using actuarial
17tables and other assumptions adopted by the Board, an
18accelerated pension benefit payment amount and shall offer that
19eligible person the opportunity to irrevocably elect to have
20his or her automatic annual increases in retirement annuity
21calculated in accordance with the formula provided under
22subsection (b-5) and any increases in survivor's annuity
23payable to his or her survivor's annuity beneficiary calculated
24in accordance with the formula provided under subsection (b-6)
25in exchange for the accelerated pension benefit payment. The
26election under this subsection must be made before the eligible

 

 

HB2452- 34 -LRB101 07898 RPS 52953 b

1person receives the first payment of a retirement annuity
2otherwise payable under this Article.
3    (b-5) Notwithstanding any other provision of law, the
4retirement annuity of a person who made the election under
5subsection (b) shall be subject to annual increases on the
6January 1 occurring either on or after the attainment of age 67
7or the first anniversary of the annuity start date, whichever
8is later. Each annual increase shall be calculated at 1.5% of
9the originally granted retirement annuity.
10    (b-6) Notwithstanding any other provision of law, a
11survivor's annuity payable to a survivor's annuity beneficiary
12of a person who made the election under subsection (b) shall be
13subject to annual increases on the January 1 occurring on or
14after the first anniversary of the commencement of the annuity.
15Each annual increase shall be calculated at 1.5% of the
16originally granted survivor's annuity.
17    (c) If a person who has received an accelerated pension
18benefit payment returns to active service under this Article,
19then:
20        (1) the calculation of any future automatic annual
21    increase in retirement annuity shall be calculated in
22    accordance with the formula provided in subsection (b-5);
23    and
24        (2) the accelerated pension benefit payment may not be
25    repaid to the System.
26    (d) As a condition of receiving an accelerated pension

 

 

HB2452- 35 -LRB101 07898 RPS 52953 b

1benefit payment, the accelerated pension benefit payment must
2be transferred into a tax qualified retirement plan or account.
3The accelerated pension benefit payment under this Section may
4be subject to withholding or payment of applicable taxes, but
5to the extent permitted by federal law, a person who receives
6an accelerated pension benefit payment under this Section must
7direct the System to pay all of that payment as a rollover into
8another retirement plan or account qualified under the Internal
9Revenue Code of 1986, as amended.
10    (d-5) Upon receipt of a member's irrevocable election to
11receive an accelerated pension benefit payment under this
12Section, the System shall submit a voucher to the Comptroller
13for payment of the member's accelerated pension benefit
14payment. The Comptroller shall transfer the amount of the
15voucher from the State Pension Obligation Acceleration Bond
16Fund to the System, and the System shall transfer the amount
17into the member's eligible retirement plan or qualified
18account.
19    (e) The Board shall adopt any rules, including emergency
20rules, necessary to implement this Section.
21    (f) No provision of this Section shall be interpreted in a
22way that would cause the applicable System to cease to be a
23qualified plan under the Internal Revenue Code of 1986.
24(Source: P.A. 100-587, eff. 6-4-18.)
 
25    (40 ILCS 5/16-190.7 new)

 

 

HB2452- 36 -LRB101 07898 RPS 52953 b

1    Sec. 16-190.7. Accelerated pension benefit payment for a
2reduction in retirement annuity.
3    (a) As used in this Section:
4    "Accelerated pension benefit payment" means a lump sum
5payment equal to 50% of the difference of the net present value
6of the Tier 1 member's retirement annuity, including the value
7of the annual increases to that retirement annuity, and the
8amount of the old-age insurance payments under the federal
9Old-Age, Survivors, and Disability Insurance program
10administered by the Social Security Administration, including
11the value of the annual increases under subsection (d), that he
12or she would have been entitled to, as determined by the Board,
13if he or she had been eligible for Social Security coverage
14with respect to his or her position.
15    "Eligible person" means a person who:
16        (1) is a Tier 1 member;
17        (2) does not have a Qualified Illinois Domestic
18    Relations Order in effect against him or her;
19        (4) has submitted an application for a retirement
20    annuity under this Article;
21        (5) meets the age and service requirements for
22    receiving a retirement annuity under this Article;
23        (6) has not received any retirement annuity under this
24    Article; and
25        (7) has not made the election under Section 16-190.5 or
26    16-190.6.

 

 

HB2452- 37 -LRB101 07898 RPS 52953 b

1    "Implementation date" means the earliest date upon which
2the Board authorizes eligible persons to begin irrevocably
3electing the accelerated pension benefit payment option under
4this Section. The Board shall endeavor to make such
5participation available as soon as possible after the effective
6date of this amendatory Act of the 101st General Assembly and
7shall establish an implementation date by Board resolution.
8    (b) Beginning on the implementation date, the System shall
9implement an accelerated pension benefit payment option for
10eligible persons. Upon the request of an eligible person, the
11System shall calculate, using actuarial tables and other
12assumptions adopted by the Board, an accelerated pension
13benefit payment amount and shall offer that eligible person the
14opportunity to irrevocably elect to have his or her retirement
15annuity reduced in accordance with the formula provided under
16subsection (c) and his or her automatic annual increases in
17retirement annuity calculated in accordance with the formula
18provided under subsection (d) in exchange for the accelerated
19pension benefit payment. In determining the amount of the
20accelerated pension benefit payment, the System may use any
21necessary assumptions about what the amounts of the old-age
22insurance payments under the federal Old-Age, Survivors, and
23Disability Insurance program would be for that eligible person.
24The election under this subsection must be made before the
25eligible person receives the first payment of a retirement
26annuity otherwise payable under this Article.

 

 

HB2452- 38 -LRB101 07898 RPS 52953 b

1    (c) Notwithstanding any other provision of law, the
2retirement annuity of a person who made the election under
3subsection (b) shall be equal to the amount of the old-age
4insurance payment under the federal Old-Age, Survivors, and
5Disability Insurance program that he or she would have been
6entitled to, as determined by the Board, had he or she been
7participating in Social Security with respect to his or her
8employment under this Article.
9    (d) Notwithstanding any other provision of law, the
10retirement annuity of a person who made the election under
11subsection (b) shall be subject to annual increases on the
12January 1 occurring either on or after the attainment of age 67
13or the first anniversary of the annuity start date, whichever
14is later. Each annual increase shall be the annual unadjusted
15percentage increase (but not less than zero) in the consumer
16price index-w for the 12 months ending with the September
17preceding each November 1 of the originally granted retirement
18annuity. If the annual unadjusted percentage change in the
19consumer price index-w for the 12 months ending with the
20September preceding each November 1 is zero or there is a
21decrease, then the annuity shall not be increased.
22    For the purposes of this subsection, "consumer price
23index-w" means the index published by the Bureau of Labor
24Statistics of the United States Department of Labor that
25measures the average change in prices of goods and services
26purchased by Urban Wage Earners and Clerical Workers, United

 

 

HB2452- 39 -LRB101 07898 RPS 52953 b

1States city average, all items, 1982-84 = 100. The new amount
2resulting from each annual adjustment shall be determined by
3the Public Pension Division of the Department of Insurance and
4made available to the boards of the retirement systems and
5pension funds by November 1 of each year.
6    (e) If a person who has received an accelerated pension
7benefit payment returns to active service under this Article,
8then any change in the amount of retirement annuity shall be
9calculated in accordance with subsection (c) and any future
10automatic annual increase in retirement annuity shall be
11calculated in accordance with the formula provided under
12subsection (d).
13    (f) The accelerated pension benefit payment may not be
14repaid to the System.
15    (g) As a condition of receiving an accelerated pension
16benefit payment, the accelerated pension benefit payment must
17be transferred into a tax qualified retirement plan or account.
18The accelerated pension benefit payment under this Section may
19be subject to withholding or payment of applicable taxes, but
20to the extent permitted by federal law, a person who receives
21an accelerated pension benefit payment under this Section must
22direct the System to pay all of that payment as a rollover into
23another retirement plan or account qualified under the Internal
24Revenue Code of 1986, as amended.
25    (h) Upon receipt of a member's irrevocable election to
26receive an accelerated pension benefit payment under this

 

 

HB2452- 40 -LRB101 07898 RPS 52953 b

1Section, the System shall submit a voucher to the Comptroller
2for payment of the member's accelerated pension benefit
3payment. The Comptroller shall transfer the amount of the
4voucher to the System, and the System shall transfer the amount
5into a member's eligible retirement plan or qualified account.
6    (i) The Board shall adopt any rules, including emergency
7rules, necessary to implement this Section.
8    (j) No provision of this Section shall be interpreted in a
9way that would cause the System to cease to be a qualified plan
10under the Internal Revenue Code of 1986.
 
11    (40 ILCS 5/16-203)
12    Sec. 16-203. Application and expiration of new benefit
13increases.
14    (a) As used in this Section, "new benefit increase" means
15an increase in the amount of any benefit provided under this
16Article, or an expansion of the conditions of eligibility for
17any benefit under this Article, that results from an amendment
18to this Code that takes effect after June 1, 2005 (the
19effective date of Public Act 94-4). "New benefit increase",
20however, does not include any benefit increase resulting from
21the changes made to Article 1 or this Article by Public Act
2295-910, Public Act 100-23, Public Act 100-587, Public Act
23100-743, Public Act 100-769, or this amendatory Act of the
24101st General Assembly or by this amendatory Act of the 100th
25General Assembly.

 

 

HB2452- 41 -LRB101 07898 RPS 52953 b

1    (b) Notwithstanding any other provision of this Code or any
2subsequent amendment to this Code, every new benefit increase
3is subject to this Section and shall be deemed to be granted
4only in conformance with and contingent upon compliance with
5the provisions of this Section.
6    (c) The Public Act enacting a new benefit increase must
7identify and provide for payment to the System of additional
8funding at least sufficient to fund the resulting annual
9increase in cost to the System as it accrues.
10    Every new benefit increase is contingent upon the General
11Assembly providing the additional funding required under this
12subsection. The Commission on Government Forecasting and
13Accountability shall analyze whether adequate additional
14funding has been provided for the new benefit increase and
15shall report its analysis to the Public Pension Division of the
16Department of Insurance. A new benefit increase created by a
17Public Act that does not include the additional funding
18required under this subsection is null and void. If the Public
19Pension Division determines that the additional funding
20provided for a new benefit increase under this subsection is or
21has become inadequate, it may so certify to the Governor and
22the State Comptroller and, in the absence of corrective action
23by the General Assembly, the new benefit increase shall expire
24at the end of the fiscal year in which the certification is
25made.
26    (d) Every new benefit increase shall expire 5 years after

 

 

HB2452- 42 -LRB101 07898 RPS 52953 b

1its effective date or on such earlier date as may be specified
2in the language enacting the new benefit increase or provided
3under subsection (c). This does not prevent the General
4Assembly from extending or re-creating a new benefit increase
5by law.
6    (e) Except as otherwise provided in the language creating
7the new benefit increase, a new benefit increase that expires
8under this Section continues to apply to persons who applied
9and qualified for the affected benefit while the new benefit
10increase was in effect and to the affected beneficiaries and
11alternate payees of such persons, but does not apply to any
12other person, including without limitation a person who
13continues in service after the expiration date and did not
14apply and qualify for the affected benefit while the new
15benefit increase was in effect.
16(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
17100-743, eff. 8-10-18; 100-769, eff. 8-10-18; revised
1810-15-18.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.

 

 

HB2452- 43 -LRB101 07898 RPS 52953 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/14-147.5
4    40 ILCS 5/14-147.6
5    40 ILCS 5/14-147.7 new
6    40 ILCS 5/14-152.1
7    40 ILCS 5/15-185.5
8    40 ILCS 5/15-185.6
9    40 ILCS 5/15-185.7 new
10    40 ILCS 5/15-198
11    40 ILCS 5/16-190.5
12    40 ILCS 5/16-190.6
13    40 ILCS 5/16-190.7 new
14    40 ILCS 5/16-203