Full Text of SB0043 102nd General Assembly
SB0043 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB0043 Introduced 1/29/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-121.3 | from Ch. 108 1/2, par. 2-121.3 | 40 ILCS 5/7-141 | from Ch. 108 1/2, par. 7-141 | 40 ILCS 5/14-121.1 | from Ch. 108 1/2, par. 14-121.1 | 40 ILCS 5/15-135 | from Ch. 108 1/2, par. 15-135 | 40 ILCS 5/16-142.3 | from Ch. 108 1/2, par. 16-142.3 | 40 ILCS 5/18-128.3 | from Ch. 108 1/2, par. 18-128.3 | 30 ILCS 805/8.45 new | |
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Amends the Illinois Pension Code. 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.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | 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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 2-121.3, 7-141, 14-121.1, 15-135, 16-142.3, | 6 | | and 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. | 9 | | (a) A person who would be
eligible to receive a survivor's | 10 | | annuity under this Article but for the
fact that the person has | 11 | | not yet attained age 50, shall be eligible for a
monthly | 12 | | distribution under this subsection (a), provided that the | 13 | | payment
of such distribution 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 | 16 | | calendar year in which the
deceased spouse died, or (iii) | 17 | | December 1 of the calendar year in which the
deceased spouse | 18 | | would have attained age 72 70 1/2 , whichever occurs last, and
| 19 | | shall remain payable until the first of the following to | 20 | | occur: (1) the
person becomes eligible to receive a survivor's | 21 | | annuity under this Article;
(2) the end of the month in which | 22 | | the person ceases to be eligible to
receive a survivor's | 23 | | annuity upon attainment of age 50, due to remarriage
or death; |
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| 1 | | or (3) the end of the month in which such distribution ceases | 2 | | to
be required by federal law.
| 3 | | The amount of the distribution shall be fixed at the time | 4 | | the
distribution first becomes payable, and shall be | 5 | | calculated in the same
manner as a survivor's annuity under | 6 | | Sections 2-121, 2-121.1 and 2-121.2,
but excluding: (A) any | 7 | | requirement for an application for the distribution;
(B) any | 8 | | automatic annual increases, supplemental increases, or | 9 | | one-time
increases that may be provided by law for survivor's | 10 | | annuities; and (C) any
lump-sum or death benefit.
| 11 | | (b) For the purpose of this Section, a distribution shall | 12 | | be deemed to be
required by federal law if: (1) directly | 13 | | mandated by federal statute, rule,
or administrative or court | 14 | | decision; or (2) indirectly mandated through
imposition of | 15 | | substantial tax or other penalties for noncompliance.
| 16 | | (c) Notwithstanding Section 1-103.1 of this Code, a member | 17 | | need not be
in service on or after the effective date of this | 18 | | amendatory Act of 1989
for the member's surviving spouse to be | 19 | | eligible 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 annuities - | 23 | | Conditions . Retirement annuities shall be payable as | 24 | | hereinafter set forth:
| 25 | | (a) A participating employee who, regardless of cause, is |
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| 1 | | separated
from the service of all participating municipalities | 2 | | and
instrumentalities thereof and participating | 3 | | instrumentalities shall be
entitled to a retirement annuity | 4 | | provided:
| 5 | | 1. He is at least age 55, or in the case of a person | 6 | | who is eligible
to have his annuity calculated under | 7 | | Section 7-142.1, he is at least age 50;
| 8 | | 2. He is not entitled to receive earnings for | 9 | | employment in a position requiring him, or entitling him | 10 | | to elect, to be a participating employee;
| 11 | | 3. The amount of his annuity, before the application | 12 | | of paragraph (b) of
Section 7-142 is at least $10 per | 13 | | month;
| 14 | | 4. If he first became a participating employee after | 15 | | December 31,
1961, he has at least 8 years of service. This | 16 | | service requirement shall not
apply to any participating | 17 | | employee, regardless of participation date, if the
General | 18 | | Assembly terminates the Fund.
| 19 | | (b) Retirement annuities shall be payable:
| 20 | | 1. As provided in Section 7-119;
| 21 | | 2. Except as provided in item 3, upon receipt by the | 22 | | fund of a written
application. The effective date may be | 23 | | not more than one
year prior to the date of the receipt by | 24 | | the fund of the application;
| 25 | | 3. Upon attainment of the required age of distribution | 26 | | under Section 401(a)(9) of the Internal Revenue Code of |
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| 1 | | 1986, as amended, age 70 1/2 if the member (i) is no longer | 2 | | in
service,
and (ii) is otherwise entitled to an annuity | 3 | | under this Article;
| 4 | | 4. To the beneficiary of the deceased annuitant for | 5 | | the unpaid amount
accrued to date of death, if any.
| 6 | | (Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
| 7 | | (40 ILCS 5/14-121.1) (from Ch. 108 1/2, par. 14-121.1)
| 8 | | Sec. 14-121.1. Required distributions. | 9 | | (a) A person who would be
eligible to receive a widow's or | 10 | | survivor's annuity under this Article but
for the fact that | 11 | | the person has not yet attained age 50, shall be eligible
for a | 12 | | monthly distribution under this subsection (a), provided that | 13 | | the
payment of such distribution 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 | 16 | | calendar year in which the
deceased spouse died, or (iii) | 17 | | December 1 of the calendar year in which the
deceased spouse | 18 | | would have attained age 72 70 1/2 , whichever occurs last, and
| 19 | | shall remain payable until the first of the following to | 20 | | occur: (1) the
person becomes eligible to receive a widow's or | 21 | | survivor's annuity under
this Article; (2) the end of the | 22 | | month in which the person
ceases to be eligible to receive a | 23 | | widow's or survivor's annuity upon
attainment of age 50, due | 24 | | to remarriage or death; or (3) the end of the
month in which | 25 | | such distribution ceases to be required by federal law.
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| 1 | | The amount of the distribution shall be fixed at the time | 2 | | the
distribution first becomes payable, and shall be | 3 | | calculated in the same
manner as a survivor's annuity under | 4 | | Sections 14-120, 14-121 and 14-122
(or, in the case of a person | 5 | | who has elected to receive a widow's annuity
instead of a | 6 | | survivor's annuity, in the same manner as the widow's annuity
| 7 | | under Sections 14-118 and 14-119), but excluding: (A) any | 8 | | requirement for
an application for the distribution; (B) any | 9 | | automatic annual increases,
supplemental increases, or | 10 | | one-time increases that may be provided by law
for survivor's | 11 | | or widow's annuities; and (C) any lump-sum or death benefit.
| 12 | | (b) For the purpose of this Section, a distribution shall | 13 | | be deemed to be
required by federal law if: (1) directly | 14 | | mandated by federal statute, rule,
or administrative or court | 15 | | decision; or (2) indirectly mandated through
imposition of | 16 | | substantial tax or other penalties for noncompliance.
| 17 | | (c) Notwithstanding Section 1-103.1 of this Code, a member | 18 | | need not be
in service on or after the effective date of this | 19 | | amendatory Act of 1989
for the member's surviving spouse to be | 20 | | eligible for a
distribution under this Section.
| 21 | | (Source: P.A. 86-273.)
| 22 | | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| 23 | | Sec. 15-135. Retirement annuities; conditions annuities - | 24 | | Conditions .
| 25 | | (a) This subsection (a) applies only to a Tier 1 member. A |
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| 1 | | participant who retires in one of the following specified | 2 | | years with
the specified amount of service is entitled to a | 3 | | retirement annuity at any age
under the retirement program | 4 | | applicable to the participant:
| 5 | | 35 years if retirement is in 1997 or before;
| 6 | | 34 years if retirement is in 1998;
| 7 | | 33 years if retirement is in 1999;
| 8 | | 32 years if retirement is in 2000;
| 9 | | 31 years if retirement is in 2001;
| 10 | | 30 years if retirement is in 2002 or later.
| 11 | | A participant with 8 or more years of service after | 12 | | September 1, 1941, is
entitled to a retirement annuity on or | 13 | | after attainment of age 55.
| 14 | | A participant with at least 5 but less than 8 years
of | 15 | | service after September 1, 1941, is entitled to a retirement | 16 | | annuity on
or after attainment of age 62.
| 17 | | A participant who has at least 25 years of service in this | 18 | | system as a
police officer or firefighter is entitled to a | 19 | | retirement
annuity on or after the attainment of age 50, if | 20 | | Rule 4 of Section
15-136 is applicable to the participant.
| 21 | | (a-5) A Tier 2 member is entitled to a retirement annuity | 22 | | upon written application if he or she has attained age 67 and | 23 | | has at least 10 years of service credit and is otherwise | 24 | | eligible under the requirements of this Article. A Tier 2 | 25 | | member who has attained age 62 and has at least 10 years of | 26 | | service credit and is otherwise eligible under the |
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| 1 | | requirements of this Article may elect to receive the lower | 2 | | retirement annuity provided in subsection (b-5) of Section | 3 | | 15-136 of this Article. | 4 | | (a-10) A Tier 2 member who has at least 20 years of service | 5 | | in this system as a police officer or firefighter is entitled | 6 | | to a retirement annuity upon written application on or after | 7 | | the attainment of age 60 if Rule 4 of Section 15-136 is | 8 | | applicable to the participant. The changes made to this | 9 | | subsection by this amendatory Act of the 101st General | 10 | | Assembly apply retroactively to January 1, 2011. | 11 | | (b) The annuity payment period shall begin on the date | 12 | | specified by the
participant or the recipient of a disability | 13 | | retirement annuity submitting a written application. For a | 14 | | participant, the date on which the annuity payment period | 15 | | begins shall not be prior
to termination of employment or more | 16 | | than one year before the application is
received by the board; | 17 | | however, if the participant is not an employee of an
employer | 18 | | participating in this System or in a participating system as | 19 | | defined
in Article 20 of this Code on April 1 of the calendar | 20 | | year next following
the calendar year in which the participant | 21 | | attains the age specified under Section 401(a)(9) of the | 22 | | Internal Revenue Code of 1986, as amended 70 1/2 , the annuity
| 23 | | payment period shall begin on that date regardless of whether | 24 | | an application
has been filed. For a recipient of a disability | 25 | | retirement annuity, the date on which the annuity payment | 26 | | period begins shall not be prior to the discontinuation of the |
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| 1 | | disability retirement annuity under Section 15-153.2.
| 2 | | (c) An annuity is not payable if the amount provided under | 3 | | Section
15-136 is less than $10 per month.
| 4 | | (Source: P.A. 100-556, eff. 12-8-17; 101-610, eff. 1-1-20.)
| 5 | | (40 ILCS 5/16-142.3) (from Ch. 108 1/2, par. 16-142.3)
| 6 | | Sec. 16-142.3. Required distributions. | 7 | | (a) A person who would be
eligible to receive a monthly | 8 | | survivor benefit under this Article but for
the fact that the | 9 | | person has not yet attained age 50, and who has not elected
to | 10 | | receive a lump sum distribution under subsection (a) of | 11 | | Section 16-141,
shall be eligible for a monthly distribution | 12 | | under this subsection (a),
provided that the payment of such | 13 | | distribution 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 | 16 | | calendar year in which the
member or annuitant died, or (iii) | 17 | | December 1 of the calendar year in which
the deceased member or | 18 | | annuitant would have attained age 72 70 1/2 , whichever
occurs | 19 | | latest, and shall remain payable until the first of the | 20 | | following to
occur: (1) the person becomes eligible to receive | 21 | | a monthly survivor
benefit under this Article; (2) the day | 22 | | following the date on which the
member ceases to be eligible to | 23 | | receive a monthly survivor benefit upon
attainment of age 50, | 24 | | due to remarriage or death; or (3) the day on which
such | 25 | | distribution ceases to be required by federal law.
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| 1 | | The amount of the distribution shall be fixed at the time | 2 | | the
distribution first becomes payable, and shall be | 3 | | calculated in the same
manner as the monthly survivor benefit | 4 | | under Sections 16-141, 16-142,
16-142.1 and 16-142.2, but | 5 | | excluding any
automatic annual increases, supplemental | 6 | | increases, or one-time increases
that may be provided by law | 7 | | for monthly survivor benefits.
| 8 | | (b) For the purpose of this Section, a distribution shall | 9 | | be deemed to
be required by federal law if: (1) directly | 10 | | mandated by federal statute,
rule, or administrative or court | 11 | | decision; or (2) indirectly mandated
through imposition of | 12 | | substantial tax or other penalties for noncompliance.
| 13 | | (c) Notwithstanding Section 1-103.1 of this Code, a member | 14 | | need not be
in service on or after the effective date of this | 15 | | amendatory Act of 1989
for the member's surviving spouse to be | 16 | | eligible for a distribution under this Section.
| 17 | | (Source: P.A. 86-273 .)
| 18 | | (40 ILCS 5/18-128.3) (from Ch. 108 1/2, par. 18-128.3)
| 19 | | Sec. 18-128.3. Required distributions. | 20 | | (a) A person who would be
eligible to receive a survivor's | 21 | | annuity under this Article but for the
fact that the person has | 22 | | not yet attained age 50, shall be eligible for a
monthly | 23 | | distribution under this subsection (a), provided that the | 24 | | payment
of such distribution is required by federal law.
| 25 | | The distribution shall become payable on (i) July 1, 1987, |
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| 1 | | (ii) December
1 of the calendar year immediately following the | 2 | | calendar year in which the
deceased spouse died, or (iii) | 3 | | December 1 of the calendar year in which the
deceased spouse | 4 | | would have attained age 72 70 1/2 , whichever occurs last, and
| 5 | | shall remain payable until the first of the following to | 6 | | occur: (1) the
person becomes eligible to receive a survivor's | 7 | | annuity under this Article;
(2) the end of the month in which | 8 | | the person ceases to be eligible to
receive a survivor's | 9 | | annuity upon attainment of age 50, due to remarriage
or death; | 10 | | or (3) the end of the month in which such distribution ceases | 11 | | to
be required by federal law.
| 12 | | The amount of the distribution shall be fixed at the time | 13 | | the
distribution first becomes payable, and shall be | 14 | | calculated in the same
manner as a survivor's annuity under | 15 | | Sections 18-128 through 18-128.2,
but excluding: (A) any | 16 | | requirement for
an application for the distribution; (B) any | 17 | | automatic annual increases,
supplemental increases, or | 18 | | one-time increases that may be provided by law
for survivor's | 19 | | annuities; and (C) any lump-sum or death benefit.
| 20 | | (b) For the purpose of this Section, a distribution shall | 21 | | be deemed to be
required by federal law if: (1) directly | 22 | | mandated by federal statute, rule,
or administrative or court | 23 | | decision; or (2) indirectly mandated through
imposition of | 24 | | substantial tax or other penalties for noncompliance.
| 25 | | (c) Notwithstanding Section 1-103.1 of this Code, a member | 26 | | need not be
in service on or after the effective date of this |
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| 1 | | amendatory Act of 1989
for the member's surviving spouse to be | 2 | | eligible for a
distribution under this Section.
| 3 | | (Source: P.A. 86-273.)
| 4 | | Section 90. The State Mandates Act is amended by adding | 5 | | Section 8.45 as follows: | 6 | | (30 ILCS 805/8.45 new) | 7 | | Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and | 8 | | 8 of this Act, no reimbursement by the State is required for | 9 | | the implementation of any mandate created by this amendatory | 10 | | Act of the 102nd General Assembly.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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