103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4508

 

Introduced 1/31/2024, by Rep. Stephanie A. Kifowit

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/3-144.3 new
40 ILCS 5/15-135  from Ch. 108 1/2, par. 15-135
40 ILCS 5/15-198
30 ILCS 805/8.48 new

    Amends the Illinois Pension Code. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police Article, but only with respect to a person who, on or after the effective date of the amendatory Act, is entitled under those Articles or through a participating system under the Retirement Systems Reciprocal Act to begin receiving a retirement annuity or survivor's annuity and who elects to proceed under the Retirement Systems Reciprocal Act. In the State Universities Article, provides that a Tier 2 member who has at least 20 years of service in the System as a police officer is entitled to a retirement annuity upon written application on or after the attainment of age 55 (instead of age 60) if a specified rule is applicable to the participant. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Amends the State Mandates Act to require implementation without reimbursement.


LRB103 36501 RPS 66607 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB4508LRB103 36501 RPS 66607 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 15-135 and 15-198 and by adding Section
63-144.3 as follows:
 
7    (40 ILCS 5/3-144.3 new)
8    Sec. 3-144.3. Retirement Systems Reciprocal Act. The
9Retirement Systems Reciprocal Act, Article 20 of this Code, is
10adopted and made a part of this Article, but only with respect
11to a person who, on or after the effective date of this
12amendatory Act of the 103rd General Assembly, is entitled
13under this Article or through a participating system under the
14Retirement Systems Reciprocal Act, as defined in Section
1520-108, to begin receiving a retirement annuity or survivor's
16annuity (as those terms are defined in Article 20) and who
17elects to proceed under the Retirement Systems Reciprocal Act.
 
18    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
19    Sec. 15-135. Retirement annuities; conditions.
20    (a) This subsection (a) applies only to a Tier 1 member. A
21participant who retires in one of the following specified
22years with the specified amount of service is entitled to a

 

 

HB4508- 2 -LRB103 36501 RPS 66607 b

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

 

 

HB4508- 3 -LRB103 36501 RPS 66607 b

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. A Tier 2 member who has at least
720 years of service in this system as a police officer is
8entitled to a retirement annuity upon written application on
9or after the attainment of age 55 if Rule 4 of Section 15-136
10is applicable to the participant. The changes made to this
11subsection by this amendatory Act of the 101st General
12Assembly apply retroactively to January 1, 2011.
13    (b) The annuity payment period shall begin on the date
14specified by the participant or the recipient of a disability
15retirement annuity submitting a written application. For a
16participant, the date on which the annuity payment period
17begins shall not be prior to termination of employment or more
18than one year before the application is received by the board;
19however, if the participant is not an employee of an employer
20participating in this System or in a participating system as
21defined in Article 20 of this Code on April 1 of the calendar
22year next following the calendar year in which the participant
23attains the age specified under Section 401(a)(9) of the
24Internal Revenue Code of 1986, as amended, the annuity payment
25period shall begin on that date regardless of whether an
26application has been filed. For a recipient of a disability

 

 

HB4508- 4 -LRB103 36501 RPS 66607 b

1retirement annuity, the date on which the annuity payment
2period begins shall not be prior to the discontinuation of the
3disability retirement annuity under Section 15-153.2.
4    (c) An annuity is not payable if the amount provided under
5Section 15-136 is less than $10 per month.
6(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
 
7    (40 ILCS 5/15-198)
8    Sec. 15-198. Application and expiration of new benefit
9increases.
10    (a) As used in this Section, "new benefit increase" means
11an increase in the amount of any benefit provided under this
12Article, or an expansion of the conditions of eligibility for
13any benefit under this Article, that results from an amendment
14to this Code that takes effect after June 1, 2005 (the
15effective date of Public Act 94-4). "New benefit increase",
16however, does not include any benefit increase resulting from
17the changes made to Article 1 or this Article by Public Act
18100-23, Public Act 100-587, Public Act 100-769, Public Act
19101-10, Public Act 101-610, Public Act 102-16, Public Act
20103-80, Public Act 103-548, or this amendatory Act of the
21103rd General Assembly or this amendatory Act of the 103rd
22General Assembly.
23    (b) Notwithstanding any other provision of this Code or
24any subsequent amendment to this Code, every new benefit
25increase is subject to this Section and shall be deemed to be

 

 

HB4508- 5 -LRB103 36501 RPS 66607 b

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

 

 

HB4508- 6 -LRB103 36501 RPS 66607 b

1Assembly from extending or re-creating a new benefit increase
2by law.
3    (e) Except as otherwise provided in the language creating
4the new benefit increase, a new benefit increase that expires
5under this Section continues to apply to persons who applied
6and qualified for the affected benefit while the new benefit
7increase was in effect and to the affected beneficiaries and
8alternate payees of such persons, but does not apply to any
9other person, including, without limitation, a person who
10continues in service after the expiration date and did not
11apply and qualify for the affected benefit while the new
12benefit increase was in effect.
13(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
14103-548, eff. 8-11-23; revised 8-31-23.)
 
15    Section 90. The State Mandates Act is amended by adding
16Section 8.48 as follows:
 
17    (30 ILCS 805/8.48 new)
18    Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
198 of this Act, no reimbursement by the State is required for
20the implementation of any mandate created by this amendatory
21Act of the 103rd General Assembly.