Full Text of HB4008 97th General Assembly
HB4008 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB4008 Introduced 1/18/2012, by Rep. Daniel J. Burke SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/13-310 | from Ch. 108 1/2, par. 13-310 | 40 ILCS 5/13-601 | from Ch. 108 1/2, par. 13-601 |
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Amends the Metropolitan Water Reclamation District (MWRD) Article of the Illinois Pension Code. Provides that an employee who first enters service on or after the January 1, 2013 and becomes disabled shall, on and after the 31st day of disability (rather than the 31st after which he or she last worked), be entitled to ordinary disability benefits during the remainder of that disability (instead of only after having exhausted his or her sick leave). Provides that if employee contributions in the account of an employee who enters service after the effective date of the amendatory Act have not, before his or her death and the death of his or her spouse, been paid as a retirement, spouse's, or child's annuity, then a refund shall be paid in an amount equal to the excess of the contributions over the amounts paid on those annuities, without interest. Specifies that if there are surviving children of the employee or annuitant who are eligible for a child's annuity, then that refund may not be paid until the youngest eligible child reaches age 23.
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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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 13-310 and 13-601 as follows:
| 6 | | (40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
| 7 | | Sec. 13-310. Ordinary disability benefit.
| 8 | | (a) Any employee who becomes disabled as the result of
any | 9 | | cause other than injury or illness incurred in the performance | 10 | | of duty
for the employer or any other employer, or while | 11 | | engaged in self-employment
activities, shall be entitled to an | 12 | | ordinary disability benefit. The
eligible period for this | 13 | | benefit shall be 25% of the employee's total
actual service | 14 | | prior to the date of disability with a cumulative maximum
| 15 | | period of 5 years.
| 16 | | (b) The benefit shall be allowed only if the employee files | 17 | | an
application in writing with the Board, and a medical report | 18 | | is submitted by
at least one licensed and practicing physician | 19 | | as part of the employee's
application.
| 20 | | The benefit is not payable for any disability which begins | 21 | | during any
period of unpaid leave of absence. No benefit shall | 22 | | be allowed for any
period of disability prior to 30 days before | 23 | | application is made, unless
the Board finds good cause for the |
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| 1 | | delay in filing the application. The
benefit shall not be paid | 2 | | during any period for which the employee receives
or is | 3 | | entitled to receive any part of salary.
| 4 | | The benefit is not payable for any disability which begins | 5 | | during any
period of absence from duty other than allowable | 6 | | vacation time in any
calendar year. An employee whose | 7 | | disability begins during any such
ineligible period of absence | 8 | | from service may not receive benefits until
the employee | 9 | | recovers from the disability and is in service for at least 15
| 10 | | consecutive working days after such recovery.
| 11 | | (b-1) In the case of an employee who first enters service | 12 | | on or after June 13,
1997, an ordinary disability benefit
is | 13 | | not payable for the first 3 days of disability that would | 14 | | otherwise be
payable under this Section if the disability does | 15 | | not continue for at least 11
additional days.
| 16 | | (b-2) Beginning on the effective date of this amendatory | 17 | | Act of the 94th General Assembly, an employee who first entered | 18 | | service on or after June 13, 1997 is also eligible for ordinary | 19 | | disability benefits on the 31st day after the last day worked, | 20 | | provided all sick leave is exhausted.
| 21 | | (b-3) An employee who first enters service on or after | 22 | | January 1, 2013 and becomes disabled shall, on and after the | 23 | | 31st day of disability, be entitled to ordinary disability | 24 | | benefits during the remainder of that disability. | 25 | | (c) The benefit shall be 50% of the employee's salary at | 26 | | the date of
disability, and shall terminate when the earliest |
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| 1 | | of the following occurs:
| 2 | | (1) The employee returns to work or receives a | 3 | | retirement annuity paid
wholly or in part under this | 4 | | Article;
| 5 | | (2) The disability ceases;
| 6 | | (3) The employee willfully and continuously refuses to | 7 | | follow medical
advice and treatment to enable the employee | 8 | | to return to
work. However this provision does not apply to | 9 | | an employee who relies in good
faith on treatment by prayer | 10 | | through spiritual means alone in accordance with
the tenets | 11 | | and practice of a recognized church or religious | 12 | | denomination, by a
duly accredited practitioner thereof;
| 13 | | (4) The employee (i) refuses to submit to a reasonable | 14 | | physical
examination within 30 days of application by a | 15 | | physician appointed by the
Board, (ii) in the case of | 16 | | chronic alcoholism, the employee refuses
to join a | 17 | | rehabilitation program licensed by the Department of | 18 | | Public Health of
the State of Illinois and certified by the | 19 | | Joint Commission on the
Accreditation of Hospitals, (iii) | 20 | | fails or refuses to consent to and sign an
authorization | 21 | | allowing the Board to receive copies of or to examine the
| 22 | | employee's medical and hospital records, or (iv) fails or | 23 | | refuses to provide
complete information regarding any | 24 | | other employment for compensation he or she
has received | 25 | | since becoming disabled; or
| 26 | | (5) The eligible period for this benefit has been |
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| 1 | | exhausted.
| 2 | | Effective January 1, 2013, the The first payment of the | 3 | | benefit shall be made not later than one month
after the | 4 | | benefit is same has been granted, and each subsequent payment | 5 | | payments shall be made monthly at
intervals of not more than 30 | 6 | | days .
| 7 | | (Source: P.A. 94-621, eff. 8-18-05.)
| 8 | | (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
| 9 | | Sec. 13-601. Refunds.
| 10 | | (a) Withdrawal from service. Upon withdrawal from service, | 11 | | an employee
who first became a member before January 1, 2011, | 12 | | who is under age 55 (age 50 if the employee first entered | 13 | | service before June
13, 1997), or an employee age 55 (age 50 if | 14 | | the employee first entered
service before June 13, 1997) or | 15 | | over but less than age 60 having less
than 20 years of service, | 16 | | or an employee age 60 or over having less than 5
years of | 17 | | service shall be entitled, upon application, to a refund of | 18 | | total
contributions from salary deductions or amounts | 19 | | otherwise paid under this
Article by the employee. An employee | 20 | | who first becomes a member on or after January 1, 2011, who | 21 | | withdraws before age 62 regardless of length of service, or who | 22 | | withdraws with less than 10 years of service regardless of age | 23 | | is entitled to a refund of total contributions from salary | 24 | | deductions or amounts otherwise paid under this Article by the | 25 | | employee. The refund shall not include interest credited to
the |
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| 1 | | contributions. The Board may, in its discretion, withhold | 2 | | payment of a
refund for a period not to exceed one year from | 3 | | the date of filing an
application for refund.
| 4 | | (b) Surviving spouse's annuity contributions. A refund of | 5 | | all amounts
deducted from salary or otherwise contributed by an | 6 | | employee for the
surviving spouse's annuity shall be paid upon | 7 | | retirement to any employee
who on the date of retirement is | 8 | | either not married or is married but whose
spouse is not | 9 | | eligible for a surviving spouse's annuity paid wholly or in
| 10 | | part under this Article. The refund shall include interest on
| 11 | | each contribution at the rate of 3% per annum compounded | 12 | | annually from the
date of the contribution to the date of the | 13 | | refund.
| 14 | | (c) Payment of Refunds After Death. Whenever any refund is | 15 | | payable after the death of the employee or annuitant as | 16 | | provided for in this Article, the refund shall be paid as | 17 | | follows: to the employee's surviving spouse, but if there is no | 18 | | surviving spouse then in accordance with the employee's written | 19 | | designation of beneficiary filed with the Board on the | 20 | | prescribed form before the employee's death. If there is no | 21 | | such designation of beneficiary, then to the employee's | 22 | | surviving children in equal parts to each. If there are no such | 23 | | children, the refund shall be paid to the heirs of the employee | 24 | | according to the law of descent and distribution of the State | 25 | | of Illinois.
| 26 | | If a personal representative of the estate has not been |
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| 1 | | appointed within
90 days from the date on which a refund became | 2 | | payable, the refund may be
applied, in the discretion of the | 3 | | Board, toward the payment of the
employee's or the surviving | 4 | | spouse's burial expenses. Any remaining
balance shall be paid | 5 | | to the heirs of the employee according to the law of
descent | 6 | | and distribution of the State of Illinois.
| 7 | | Whenever the total accumulations to the account of an | 8 | | employee from employee contributions other than the | 9 | | contribution for the cost of living increase, including | 10 | | interest to the employee's date of withdrawal, have not been | 11 | | paid to the employee and surviving spouse as a retirement or | 12 | | spouse's annuity before the death of the employee and spouse, a | 13 | | refund shall be paid as follows: an amount equal to the excess | 14 | | of such amounts over the amounts paid on such annuities without | 15 | | interest on either such amount.
| 16 | | If employee contributions in the account of an employee who | 17 | | enters service after the effective date of this amendatory Act | 18 | | of the 97th General Assembly (excluding contributions for the | 19 | | cost of living increase, but including interest up to the date | 20 | | of the employee's withdrawal) have not, before his or her death | 21 | | and the death of his or her spouse, been paid as a retirement | 22 | | annuity to the employee, a spouse's annuity to his or her | 23 | | surviving spouse, or a child's annuity to his or her surviving | 24 | | child or children, then a refund shall be paid in an amount | 25 | | equal to the excess of the contributions over the amounts paid | 26 | | on the annuities, without interest. If there are surviving |
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| 1 | | children of the employee or annuitant who are eligible for a | 2 | | child's annuity under Section 13-308, then the refund may not | 3 | | be paid until the youngest eligible child reaches age 23. | 4 | | If a reversionary annuity becomes payable under Section | 5 | | 13-303, the
refund provided in this section shall not be paid | 6 | | until the death of the
reversionary annuitant and the refund | 7 | | otherwise payable under this section
shall be then further | 8 | | reduced by the amount of the reversionary annuity paid.
| 9 | | (d) In lieu of annuity. Notwithstanding the provisions set | 10 | | forth in
subsection (a) of this section, whenever an employee's | 11 | | or surviving
spouse's annuity will be less than $200 per month, | 12 | | the employee or
surviving spouse, as the case may be, may elect | 13 | | to receive a refund of
accumulated employee contributions; | 14 | | provided, however, that if the election
is made by a surviving | 15 | | spouse the refund shall be reduced by any amounts
theretofore | 16 | | paid to the employee in the form of an annuity.
| 17 | | (e) Forfeiture of rights. An employee or surviving spouse | 18 | | who receives
a refund forfeits the right to receive an annuity | 19 | | or any other benefit
payable under this Article except that if | 20 | | the refund is to a surviving
spouse, any child or children of | 21 | | the employee shall not be deprived of the
right to receive a | 22 | | child's annuity as provided in Section 13-308 of this
Article, | 23 | | and the payment of a child's annuity shall not reduce the | 24 | | amount
refundable to the surviving spouse.
| 25 | | (Source: P.A. 95-586, eff. 8-31-07; 96-251, eff. 8-11-09; | 26 | | 96-1490, eff. 1-1-11.)
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