102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2106

 

Introduced 2/26/2021, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Pension Code. In the General Assembly, State Employee, and Judges Articles, provides that certain survivors' and widows' annuities shall become payable on a specified date or December 1 of the calendar year in which the deceased spouse would have attained age 72 (instead of 70 1/2), whichever occurs last. In the Illinois Municipal Retirement Fund (IMRF) Article, provides that retirement annuities shall be payable upon attainment of the required age of distribution under a specified provision of the Internal Revenue Code of 1986 (instead of age 70 1/2). In the State Universities Article, provides that if a participant is not an employee of an employer participating in the System or in a reciprocal system on April 1 of the calendar year next following the calendar year in which the participant attains the age specified under a provision of the Internal Revenue Code of 1986 (instead of the age of 70 1/2), the annuity payment period shall begin on that date. In a provision of the Downstate Teacher Article concerning the required distribution of monthly survivor benefits for certain persons, provides that the distribution shall become payable on certain dates or December 1 of the calendar year in which the deceased member or annuitant would have attained age 72 (instead of 70 1/2), whichever occurs latest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB102 12565 RPS 17903 b

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

 

 

A BILL FOR

 

SB2106LRB102 12565 RPS 17903 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
5changing Sections 2-121.3, 7-141, 14-121.1, 15-135, 16-142.3,
6and 18-128.3 as follows:
 
7    (40 ILCS 5/2-121.3)  (from Ch. 108 1/2, par. 2-121.3)
8    Sec. 2-121.3. Required distributions. (a) A person who
9would be eligible to receive a survivor's annuity under this
10Article but for the fact that the person has not yet attained
11age 50, shall be eligible for a monthly distribution under
12this subsection (a), provided that the payment of such
13distribution is required by federal law.
14    The distribution shall become payable on (i) July 1, 1987,
15(ii) December 1 of the calendar year immediately following the
16calendar year in which the deceased spouse died, or (iii)
17December 1 of the calendar year in which the deceased spouse
18would have attained age 72 70 1/2, whichever occurs last, and
19shall remain payable until the first of the following to
20occur: (1) the person becomes eligible to receive a survivor's
21annuity under this Article; (2) the end of the month in which
22the person ceases to be eligible to receive a survivor's
23annuity upon attainment of age 50, due to remarriage or death;

 

 

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1or (3) the end of the month in which such distribution ceases
2to be required by federal law.
3    The amount of the distribution shall be fixed at the time
4the distribution first becomes payable, and shall be
5calculated in the same manner as a survivor's annuity under
6Sections 2-121, 2-121.1 and 2-121.2, but excluding: (A) any
7requirement for an application for the distribution; (B) any
8automatic annual increases, supplemental increases, or
9one-time increases that may be provided by law for survivor's
10annuities; and (C) any lump-sum or death benefit.
11    (b) For the purpose of this Section, a distribution shall
12be deemed to be required by federal law if: (1) directly
13mandated by federal statute, rule, or administrative or court
14decision; or (2) indirectly mandated through imposition of
15substantial tax or other penalties for noncompliance.
16    (c) Notwithstanding Section 1-103.1 of this Code, a member
17need not be in service on or after the effective date of this
18amendatory Act of 1989 for the member's surviving spouse to be
19eligible for a distribution under this Section.
20(Source: P.A. 86-273.)
 
21    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
22    Sec. 7-141. Retirement annuities - Conditions. Retirement
23annuities shall be payable as hereinafter set forth:
24    (a) A participating employee who, regardless of cause, is
25separated from the service of all participating municipalities

 

 

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1and instrumentalities thereof and participating
2instrumentalities shall be entitled to a retirement annuity
3provided:
4        1. He is at least age 55, or in the case of a person
5    who is eligible to have his annuity calculated under
6    Section 7-142.1, he is at least age 50;
7        2. He is not entitled to receive earnings for
8    employment in a position requiring him, or entitling him
9    to elect, to be a participating employee;
10        3. The amount of his annuity, before the application
11    of paragraph (b) of Section 7-142 is at least $10 per
12    month;
13        4. If he first became a participating employee after
14    December 31, 1961, he has at least 8 years of service. This
15    service requirement shall not apply to any participating
16    employee, regardless of participation date, if the General
17    Assembly terminates the Fund.
18    (b) Retirement annuities shall be payable:
19        1. As provided in Section 7-119;
20        2. Except as provided in item 3, upon receipt by the
21    fund of a written application. The effective date may be
22    not more than one year prior to the date of the receipt by
23    the fund of the application;
24        3. Upon attainment of the required age of distribution
25    under Section 401(a)(9) of the Internal Revenue Code of
26    1986, as amended, age 70 1/2 if the member (i) is no longer

 

 

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1    in service, and (ii) is otherwise entitled to an annuity
2    under this Article;
3        4. To the beneficiary of the deceased annuitant for
4    the unpaid amount accrued to date of death, if any.
5(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
 
6    (40 ILCS 5/14-121.1)  (from Ch. 108 1/2, par. 14-121.1)
7    Sec. 14-121.1. Required distributions. (a) A person who
8would be eligible to receive a widow's or survivor's annuity
9under this Article but for the fact that the person has not yet
10attained age 50, shall be eligible for a monthly distribution
11under this subsection (a), provided that the payment of such
12distribution is required by federal law.
13    The distribution shall become payable on (i) July 1, 1987,
14(ii) December 1 of the calendar year immediately following the
15calendar year in which the deceased spouse died, or (iii)
16December 1 of the calendar year in which the deceased spouse
17would have attained age 72 70 1/2, whichever occurs last, and
18shall remain payable until the first of the following to
19occur: (1) the person becomes eligible to receive a widow's or
20survivor's annuity under this Article; (2) the end of the
21month in which the person ceases to be eligible to receive a
22widow's or survivor's annuity upon attainment of age 50, due
23to remarriage or death; or (3) the end of the month in which
24such distribution ceases to be required by federal law.
25    The amount of the distribution shall be fixed at the time

 

 

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1the distribution first becomes payable, and shall be
2calculated in the same manner as a survivor's annuity under
3Sections 14-120, 14-121 and 14-122 (or, in the case of a person
4who has elected to receive a widow's annuity instead of a
5survivor's annuity, in the same manner as the widow's annuity
6under Sections 14-118 and 14-119), but excluding: (A) any
7requirement for an application for the distribution; (B) any
8automatic annual increases, supplemental increases, or
9one-time increases that may be provided by law for survivor's
10or widow's annuities; and (C) any lump-sum or death benefit.
11    (b) For the purpose of this Section, a distribution shall
12be deemed to be required by federal law if: (1) directly
13mandated by federal statute, rule, or administrative or court
14decision; or (2) indirectly mandated through imposition of
15substantial tax or other penalties for noncompliance.
16    (c) Notwithstanding Section 1-103.1 of this Code, a member
17need not be in service on or after the effective date of this
18amendatory Act of 1989 for the member's surviving spouse to be
19eligible for a distribution under this Section.
20(Source: P.A. 86-273.)
 
21    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
22    Sec. 15-135. Retirement annuities - Conditions.
23    (a) This subsection (a) applies only to a Tier 1 member. A
24participant who retires in one of the following specified
25years with the specified amount of service is entitled to a

 

 

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1retirement annuity at any age under the retirement program
2applicable to the participant:
3        35 years if retirement is in 1997 or before;
4        34 years if retirement is in 1998;
5        33 years if retirement is in 1999;
6        32 years if retirement is in 2000;
7        31 years if retirement is in 2001;
8        30 years if retirement is in 2002 or later.
9    A participant with 8 or more years of service after
10September 1, 1941, is entitled to a retirement annuity on or
11after attainment of age 55.
12    A participant with at least 5 but less than 8 years of
13service after September 1, 1941, is entitled to a retirement
14annuity on or after attainment of age 62.
15    A participant who has at least 25 years of service in this
16system as a police officer or firefighter is entitled to a
17retirement annuity on or after the attainment of age 50, if
18Rule 4 of Section 15-136 is applicable to the participant.
19    (a-5) A Tier 2 member is entitled to a retirement annuity
20upon written application if he or she has attained age 67 and
21has at least 10 years of service credit and is otherwise
22eligible under the requirements of this Article. A Tier 2
23member who has attained age 62 and has at least 10 years of
24service credit and is otherwise eligible under the
25requirements of this Article may elect to receive the lower
26retirement annuity provided in subsection (b-5) of Section

 

 

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115-136 of this Article.
2    (a-10) A Tier 2 member who has at least 20 years of service
3in this system as a police officer or firefighter is entitled
4to a retirement annuity upon written application on or after
5the attainment of age 60 if Rule 4 of Section 15-136 is
6applicable to the participant. The changes made to this
7subsection by this amendatory Act of the 101st General
8Assembly apply retroactively to January 1, 2011.
9    (b) The annuity payment period shall begin on the date
10specified by the participant or the recipient of a disability
11retirement annuity submitting a written application. For a
12participant, the date on which the annuity payment period
13begins shall not be prior to termination of employment or more
14than one year before the application is received by the board;
15however, if the participant is not an employee of an employer
16participating in this System or in a participating system as
17defined in Article 20 of this Code on April 1 of the calendar
18year next following the calendar year in which the participant
19attains the age specified under Section 401(a)(9) of the
20Internal Revenue Code of 1986, as amended 70 1/2, the annuity
21payment period shall begin on that date regardless of whether
22an application has been filed. For a recipient of a disability
23retirement annuity, the date on which the annuity payment
24period begins shall not be prior to the discontinuation of the
25disability retirement annuity under Section 15-153.2.
26    (c) An annuity is not payable if the amount provided under

 

 

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1Section 15-136 is less than $10 per month.
2(Source: P.A. 100-556, eff. 12-8-17; 101-610, eff. 1-1-20.)
 
3    (40 ILCS 5/16-142.3)  (from Ch. 108 1/2, par. 16-142.3)
4    Sec. 16-142.3. Required distributions.
5    (a) A person who would be eligible to receive a monthly
6survivor benefit under this Article but for the fact that the
7person has not yet attained age 50, and who has not elected to
8receive a lump sum distribution under subsection (a) of
9Section 16-141, shall be eligible for a monthly distribution
10under this subsection (a), provided that the payment of such
11distribution is required by federal law.
12    The distribution shall become payable on (i) July 1, 1987,
13(ii) December 1 of the calendar year immediately following the
14calendar year in which the member or annuitant died, or (iii)
15December 1 of the calendar year in which the deceased member or
16annuitant would have attained age 72 70 1/2, whichever occurs
17latest, and shall remain payable until the first of the
18following to occur: (1) the person becomes eligible to receive
19a monthly survivor benefit under this Article; (2) the day
20following the date on which the member ceases to be eligible to
21receive a monthly survivor benefit upon attainment of age 50,
22due to remarriage or death; or (3) the day on which such
23distribution ceases to be required by federal law.
24    The amount of the distribution shall be fixed at the time
25the distribution first becomes payable, and shall be

 

 

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1calculated in the same manner as the monthly survivor benefit
2under Sections 16-141, 16-142, 16-142.1 and 16-142.2, but
3excluding any automatic annual increases, supplemental
4increases, or one-time increases that may be provided by law
5for monthly survivor benefits.
6    (b) For the purpose of this Section, a distribution shall
7be deemed to be required by federal law if: (1) directly
8mandated by federal statute, rule, or administrative or court
9decision; or (2) indirectly mandated through imposition of
10substantial tax or other penalties for noncompliance.
11    (c) Notwithstanding Section 1-103.1 of this Code, a member
12need not be in service on or after the effective date of this
13amendatory Act of 1989 for the member's surviving spouse to be
14eligible for a distribution under this Section.
15(Source: P.A. 86-273.)
 
16    (40 ILCS 5/18-128.3)  (from Ch. 108 1/2, par. 18-128.3)
17    Sec. 18-128.3. Required distributions. (a) A person who
18would be eligible to receive a survivor's annuity under this
19Article but for the fact that the person has not yet attained
20age 50, shall be eligible for a monthly distribution under
21this subsection (a), provided that the payment of such
22distribution is required by federal law.
23    The distribution shall become payable on (i) July 1, 1987,
24(ii) December 1 of the calendar year immediately following the
25calendar year in which the deceased spouse died, or (iii)

 

 

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1December 1 of the calendar year in which the deceased spouse
2would have attained age 72 70 1/2, whichever occurs last, and
3shall remain payable until the first of the following to
4occur: (1) the person becomes eligible to receive a survivor's
5annuity under this Article; (2) the end of the month in which
6the person ceases to be eligible to receive a survivor's
7annuity upon attainment of age 50, due to remarriage or death;
8or (3) the end of the month in which such distribution ceases
9to be required by federal law.
10    The amount of the distribution shall be fixed at the time
11the distribution first becomes payable, and shall be
12calculated in the same manner as a survivor's annuity under
13Sections 18-128 through 18-128.2, but excluding: (A) any
14requirement for an application for the distribution; (B) any
15automatic annual increases, supplemental increases, or
16one-time increases that may be provided by law for survivor's
17annuities; and (C) any lump-sum or death benefit.
18    (b) For the purpose of this Section, a distribution shall
19be deemed to be required by federal law if: (1) directly
20mandated by federal statute, rule, or administrative or court
21decision; or (2) indirectly mandated through imposition of
22substantial tax or other penalties for noncompliance.
23    (c) Notwithstanding Section 1-103.1 of this Code, a member
24need not be in service on or after the effective date of this
25amendatory Act of 1989 for the member's surviving spouse to be
26eligible for a distribution under this Section.

 

 

SB2106- 11 -LRB102 12565 RPS 17903 b

1(Source: P.A. 86-273.)
 
2    Section 90. The State Mandates Act is amended by adding
3Section 8.45 as follows:
 
4    (30 ILCS 805/8.45 new)
5    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
68 of this Act, no reimbursement by the State is required for
7the implementation of any mandate created by this amendatory
8Act of the 102nd General Assembly.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.

 

 

SB2106- 12 -LRB102 12565 RPS 17903 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/2-121.3from Ch. 108 1/2, par. 2-121.3
4    40 ILCS 5/7-141from Ch. 108 1/2, par. 7-141
5    40 ILCS 5/14-121.1from Ch. 108 1/2, par. 14-121.1
6    40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
7    40 ILCS 5/16-142.3from Ch. 108 1/2, par. 16-142.3
8    40 ILCS 5/18-128.3from Ch. 108 1/2, par. 18-128.3
9    30 ILCS 805/8.45 new