101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4641

 

Introduced 2/5/2020, by Rep. Kelly M. Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-163  from Ch. 108 1/2, par. 5-163
30 ILCS 805/8.44 new

    Amends the Chicago Police Article of the Illinois Pension Code. Removes an age limitation on eligibility for a refund of contributions. Deletes language providing that a policeman may receive a refund until the annuity to which he is entitled has been fixed. Provides that any refund under the Article shall be calculated based on the policeman's contributions to the fund, less the amount of any annuity benefit previously received by the policeman and his beneficiaries. Provides that a policeman shall have no such right of refund if the sum of the annuity benefits the policeman and his beneficiaries have received exceeds the sum to which the policeman has contributed to the fund. Amends the State Mandates Act to require implementation without reimbursement.


LRB101 18805 RPS 68262 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB4641LRB101 18805 RPS 68262 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
5Section 5-163 as follows:
 
6    (40 ILCS 5/5-163)  (from Ch. 108 1/2, par. 5-163)
7    Sec. 5-163. Refund - General.
8    (a) A policeman, without regard to his period of service,
9who withdraws before age 50, and a policeman with less than 10
10years of service who withdraws before age 57, is entitled to a
11refund of the amount deducted from his salary for age and
12service annuity or Tier 2 monthly retirement annuity, for
13automatic annual increase in annuity as provided in Section
145-167.1, and for widow's annuity or Tier 2 surviving spouse's
15annuity, together with interest at 1-1/2% per year on each
16deduction from the date of each deduction until the date of his
17withdrawal from the service.
18    (b) Any refund under this Article shall be calculated based
19on the policeman's contributions to the fund, less the amount
20of any annuity benefit previously received by the policeman and
21his beneficiaries. A policeman shall have no such right of
22refund if the sum of the annuity benefits the policeman and his
23beneficiaries have received exceeds the sum to which the

 

 

HB4641- 2 -LRB101 18805 RPS 68262 b

1policeman has contributed to the fund. A policeman may receive
2a refund until the annuity to which he is entitled has been
3fixed. Thereafter, he shall have no such right of refund.
4    (c) A policeman who withdraws the amount credited to him
5surrenders and forfeits all rights to any annuity or other
6benefit from the fund, for himself and for any other person or
7persons who might otherwise have benefited through him. The
8rights so forfeited shall be restored to him, his wife or widow
9and his children upon full repayment as provided in Section
105-164.
11    If the policeman subsequently re-enters service before age
1257, and has not so repaid in full the amounts refunded the
13rights forfeited shall not be restored, but the policeman shall
14retain the right (which is also secured to the widow) to have
15the period of service represented by the refunds counted in the
16compensation of length of service, except as otherwise provided
17in Section 5-164.
18    (d) A policeman who has served less than 10 years who has
19not received a refund shall have all amounts to his credit for
20purposes on the date of his withdrawal improved by interest
21while he is out of service until he attains age 57, if he
22subsequently re-enters the service and attains a right to
23annuity.
24    (e) If a policeman elects to make additional contribution
25for past service as provided in Section 5-174 and fails to pay
26such contributions in full within the time specified in said

 

 

HB4641- 3 -LRB101 18805 RPS 68262 b

1section, a refund of the amount so paid, with interest at
21-1/2% per year, compounded annually, shall be refunded as
3provided in said section.
4    (f) If a policeman makes contributions in accordance with
5the provisions of Section 5-174(b) and subsequently returns to
6the position he holds by certification and appointment as the
7result of competitive civil service examination, he shall
8receive a refund of such contributions, upon application
9therefor, together with interest at 1-1/2% per year on each
10such deduction from the date it was made to the date of refund.
11Application for refund must be made before the annuity to which
12he has a right has been fixed.
13(Source: P.A. 99-905, eff. 11-29-16.)
 
14    Section 90. The State Mandates Act is amended by adding
15Section 8.44 as follows:
 
16    (30 ILCS 805/8.44 new)
17    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
18of this Act, no reimbursement by the State is required for the
19implementation of any mandate created by this amendatory Act of
20the 101st General Assembly.