Illinois General Assembly - Full Text of HB0164
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Full Text of HB0164  100th General Assembly

HB0164ham001 100TH GENERAL ASSEMBLY

Rep. Gregory Harris

Filed: 3/23/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 164

2    AMENDMENT NO. ______. Amend House Bill 164 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 13-305 and 13-601 as follows:
 
6    (40 ILCS 5/13-305)  (from Ch. 108 1/2, par. 13-305)
7    Sec. 13-305. Surviving spouse's annuity; eligibility. A
8surviving spouse who was married to an employee on the date of
9the employee's death while in service, or was married to an
10employee on the date of withdrawal from service and remained
11married to that employee until the employee's death, shall be
12entitled to a surviving spouse's annuity payable for life.
13However, the annuity shall not be payable to the surviving
14spouse of (1) an employee who withdraws from service before
15attaining the minimum retirement age unless the deceased
16employee had at least 10 years of service, or at least 5 years

 

 

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1of service if the employee was eligible for an annuity upon
2attainment of age 62 pursuant to Section 13-301(b) or had been
3receiving a retirement annuity pursuant to Section 13-301(d),
4or (2) an employee not described in item (1) who first enters
5service on or after the effective date of this amendatory Act
6of 1997 and who has been employed as an employee for (i) less
7than 36 months from the date of the employee's original entry
8into service or (ii) less than 12 months from the employee's
9date of latest re-entry into service; except as otherwise
10provided in Section 13-306(a) for an employee whose death
11arises out of or in the course of the employee's service to the
12employer.
13    Notwithstanding any other provision of this Section and
14notwithstanding the forfeiture of rights provisions under
15subsection (e) of Section 13-601, surviving spouse annuity
16eligibility or eligibility for alternative survivor's
17benefits, if applicable, shall be extended to the spouse or
18civil union partner of an annuitant who retired prior to June
191, 2011 and received a refund of surviving spouse annuity
20contributions as provided in subsection (b) of Section 13-601
21if the annuitant (i) repaid the surviving spouse annuity
22contributions under subsection (b-5) of Section 13-601, (ii)
23could not enter into either a civil union or marriage
24recognized in the State of Illinois prior to that date, and
25(iii) became:
26        (A) a party to a civil union or a party to a legal

 

 

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1    relationship that is recognized as a civil union or
2    marriage under the Illinois Religious Freedom Protection
3    and Civil Union Act on or after June 1, 2011 and before
4    July 1, 2016 and remains such a party;
5        (B) a party to a marriage under the Illinois Marriage
6    and Dissolution of Marriage Act on or after February 26,
7    2014 and before July 1, 2016 and remains such a party; or
8        (C) a party to a marriage, civil union, or other legal
9    relationship that, at the time it was formed, was not
10    legally recognized in Illinois but was subsequently
11    recognized as a civil union or marriage under the Illinois
12    Religious Freedom Protection and Civil Union Act on or
13    after June 1, 2011 and before July 1, 2016, a marriage
14    under the Illinois Marriage and Dissolution of Marriage Act
15    on or after February 26, 2014 and before July 1, 2016, or
16    both, and remains such a party.
17    A dissolution of marriage after retirement shall not divest
18the employee's spouse of the entitlement to a surviving
19spouse's annuity upon the subsequent death of the employee,
20provided that the surviving spouse and the deceased employee
21had been married to each other for a period of not less than 10
22continuous years on the date of retirement.
23    For purposes of Section 1-103.1, the changes made by this
24amendatory Act of the 100th General Assembly apply to persons
25not in service on or after the effective date of this
26amendatory Act of the 100th General Assembly.

 

 

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1(Source: P.A. 94-621, eff. 8-18-05.)
 
2    (40 ILCS 5/13-601)  (from Ch. 108 1/2, par. 13-601)
3    Sec. 13-601. Refunds.
4    (a) Withdrawal from service. Upon withdrawal from service,
5an employee who first became a member before January 1, 2011,
6who is under age 55 (age 50 if the employee first entered
7service before June 13, 1997), or an employee age 55 (age 50 if
8the employee first entered service before June 13, 1997) or
9over but less than age 60 having less than 20 years of service,
10or an employee age 60 or over having less than 5 years of
11service shall be entitled, upon application, to a refund of
12total contributions from salary deductions or amounts
13otherwise paid under this Article by the employee. An employee
14who first becomes a member on or after January 1, 2011, who
15withdraws before age 62 regardless of length of service, or who
16withdraws with less than 10 years of service regardless of age
17is entitled to a refund of total contributions from salary
18deductions or amounts otherwise paid under this Article by the
19employee. The refund shall not include interest credited to the
20contributions. The Board may, in its discretion, withhold
21payment of a refund for a period not to exceed one year from
22the date of filing an application for refund.
23    (b) Surviving spouse's annuity contributions. A refund of
24all amounts deducted from salary or otherwise contributed by an
25employee for the surviving spouse's annuity shall be paid upon

 

 

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1retirement to any employee who on the date of retirement is
2either not married or is married but whose spouse is not
3eligible for a surviving spouse's annuity paid wholly or in
4part under this Article. The refund shall include interest on
5each contribution at the rate of 3% per annum compounded
6annually from the date of the contribution to the date of the
7refund.
8    (b-5) An annuitant who (i) retired prior to June 1, 2011,
9(ii) received a refund of surviving spouse's annuity
10contributions under subsection (b), and (iii) thereafter
11became and remains a party to a civil union or marriage, as
12described in Section 13-305, may, within a period of one year
13beginning 5 months after the effective date of this amendatory
14Act of the 100th General Assembly, and in accordance with any
15rules adopted by the Board and consents required by the Board,
16make an irrevocable election to re-establish rights to a
17surviving spouse annuity under Sections 13-305 and 13-306 or to
18alternative survivor's benefits under subsection (d) of
19Section 13-314, whichever is applicable, by paying to the Fund:
20(1) the total amount of the refund received for surviving
21spouse's annuity contributions; and (2) interest thereon at the
22actuarially assumed rate of return at the time of the election
23from the date of the refund to the date of repayment in full.
24Such election may only be made by the annuitant.
25    The Fund shall allow the annuitant to repay the total
26amount of the refund, plus interest, over a period not to

 

 

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1exceed 24 months. To the extent permitted by the Internal
2Revenue Code of 1986, as amended, and for federal and State tax
3purposes, if a member pays in monthly installments by reducing
4the monthly annuity by the amount of the otherwise applicable
5contribution, the monthly amount by which the annuitant's
6benefit is reduced shall not be treated as a contribution by
7the annuitant, but rather as a reduction of the annuitant's
8monthly annuity. In the event of the death of the annuitant
9prior to repayment of the total amount of the refund, plus
10interest, the amount owed as of the date of death shall be
11deducted from the spouse annuity by a reduction in the
12surviving spouse's monthly annuity. The death of the spouse or
13civil union partner prior to the annuitant's death shall not
14void the election.
15    (c) Payment of Refunds After Death. Whenever any refund is
16payable after the death of the employee or annuitant as
17provided for in this Article, the refund shall be paid as
18follows: to the employee's surviving spouse, but if there is no
19surviving spouse then in accordance with the employee's written
20designation of beneficiary filed with the Board on the
21prescribed form before the employee's death. If there is no
22such designation of beneficiary, then to the employee's
23surviving children in equal parts to each. If there are no such
24children, the refund shall be paid to the heirs of the employee
25according to the law of descent and distribution of the State
26of Illinois.

 

 

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1    If a personal representative of the estate has not been
2appointed within 90 days from the date on which a refund became
3payable, the refund may be applied, in the discretion of the
4Board, toward the payment of the employee's or the surviving
5spouse's burial expenses. Any remaining balance shall be paid
6to the heirs of the employee according to the law of descent
7and distribution of the State of Illinois.
8    Whenever the total accumulations to the account of an
9employee from employee contributions other than the
10contribution for the cost of living increase, including
11interest to the employee's date of withdrawal, have not been
12paid to the employee and surviving spouse as a retirement or
13spouse's annuity before the death of the employee and spouse, a
14refund shall be paid as follows: an amount equal to the excess
15of such amounts over the amounts paid on such annuities without
16interest on either such amount.
17    If a reversionary annuity becomes payable under Section
1813-303, the refund provided in this section shall not be paid
19until the death of the reversionary annuitant and the refund
20otherwise payable under this section shall be then further
21reduced by the amount of the reversionary annuity paid.
22    (d) In lieu of annuity. Notwithstanding the provisions set
23forth in subsection (a) of this section, whenever an employee's
24or surviving spouse's annuity will be less than $200 per month,
25the employee or surviving spouse, as the case may be, may elect
26to receive a refund of accumulated employee contributions;

 

 

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1provided, however, that if the election is made by a surviving
2spouse the refund shall be reduced by any amounts theretofore
3paid to the employee in the form of an annuity.
4    (e) Forfeiture of rights. An employee or surviving spouse
5who receives a refund forfeits the right to receive an annuity
6or any other benefit payable under this Article except that if
7the refund is to a surviving spouse, any child or children of
8the employee shall not be deprived of the right to receive a
9child's annuity as provided in Section 13-308 of this Article,
10and the payment of a child's annuity shall not reduce the
11amount refundable to the surviving spouse.
12(Source: P.A. 95-586, eff. 8-31-07; 96-251, eff. 8-11-09;
1396-1490, eff. 1-1-11.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".