97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3856

 

Introduced 10/24/2011, by Rep. Timothy L. Schmitz

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-122  from Ch. 108 1/2, par. 2-122

    Amends the General Assembly Article of the Illinois Pension Code. Provides that, beginning on the effective date of the amendatory Act, if a member is receiving a retirement annuity under the Article and is elected or appointed to a position that is subject to election under the Election Code and if the annual salary the member is to receive in that position exceeds the lowest annual salary paid to a General Assembly member for service in the General Assembly, as calculated on the date of election or appointment, then the person's retirement annuity under the Article shall be suspended during that employment. Provides that, upon termination of that employment, the person's retirement annuity shall resume and, if appropriate, be recalculated. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 2-122 as follows:
 
6    (40 ILCS 5/2-122)  (from Ch. 108 1/2, par. 2-122)
7    Sec. 2-122. Re-entry after retirement. An annuitant who
8re-enters service as a member shall become a participant on the
9date of re-entry and retirement annuity payments shall cease at
10that time. The participant shall resume contributions to the
11system on the date of re-entry at the rates then in effect and
12shall begin to accrue additional service credit. He or she
13shall be entitled to all rights and privileges in the system,
14including death and disability benefits, subject to the
15limitations herein provided, except refund of retirement
16annuity contributions.
17    Upon subsequent retirement, the participant shall be
18entitled to a retirement annuity consisting of: (1) the amount
19of retirement annuity previously granted and terminated by
20re-entry into service; and (2) the amount of additional
21retirement annuity earned during the additional service based
22on the provisions in effect at the date of such subsequent
23retirement. However, the total retirement annuity shall not

 

 

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1exceed the maximum retirement annuity applicable at the date of
2the participant's last retirement. If the salary of the
3participant following the latest re-entry into service is
4higher than that in effect at the date of the previous
5retirement and the participant restores to the system all
6amounts previously received as retirement annuity payments,
7upon subsequent retirement, the retirement annuity shall be
8recalculated for all service credited under the system as
9though the participant had not previously retired.
10    The repayment of retirement annuity payments must be made
11by the participant in a single sum or by a withholding from
12salary within a period of 6 years from date of re-entry and in
13any event before subsequent retirement. If previous annuity
14payments have not been repaid to the system at the date of
15death of the participant, any remaining balance must be fully
16repaid to the system before any further annuity shall be
17payable.
18    Such member, if unmarried at date of his last retirement,
19shall also be entitled to a refund of widow's and widower's
20annuity contributions, without interest, covering the period
21from the date of re-entry into service to the date of last
22retirement.
23    Notwithstanding any other provision of this Article, if a
24person who first becomes a participant under this System on or
25after January 1, 2011 (the effective date of Public Act 96-889)
26is receiving a retirement annuity under this Article and

 

 

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1becomes a member or participant under this Article or any other
2Article of this Code and is employed on a full-time basis, then
3the person's retirement annuity under this System shall be
4suspended during that employment. Upon termination of that
5employment, the person's retirement annuity shall resume and,
6if appropriate, be recalculated under the applicable
7provisions of this Article.
8    Notwithstanding any other provision of this Article,
9beginning on the effective date of this amendatory Act of the
1097th General Assembly, if a member is receiving a retirement
11annuity under this Article and is elected or appointed to a
12position that is subject to election under the Election Code
13and if the annual salary the member is to receive in that
14position exceeds the lowest annual salary paid to a General
15Assembly member for service in the General Assembly, as
16calculated on the date of election or appointment, then the
17member's retirement annuity under this Article shall be
18suspended during employment in that position. Upon termination
19of employment in that position, the member's retirement annuity
20shall resume and, if appropriate, be recalculated under the
21applicable provisions of this Article.
22(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.