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91_HB0320
LRB9100225EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 11-124, 11-134.2, 11-167, 11-181, 11-182, and
3 11-223.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 11-124, 11-134.2, 11-167, 11-181, 11-182,
8 and 11-223 as follows:
9 (40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
10 Sec. 11-124. Annuity.
11 "Annuity": Equal monthly payments for life, unless
12 terminated earlier under Section 11-148, 11-152, 11-153, or
13 11-230.
14 For annuities taking effect before January 1, 1998, the
15 first payment shall be due and payable one month after the
16 occurrence of the event upon which payment of the annuity
17 depends. Until July 1, 1999, and payment shall be made for
18 any part of a monthly period in which death of the annuitant
19 occurs. Beginning July 1, 1999, all payments shall be made
20 on the first day of the calendar month and shall be for the
21 entire calendar month, without proration. The last payment
22 shall be made on the first day of the calendar month in which
23 the annuity payment period ends. A pro rata amount shall be
24 paid for that part of the month from the June 1999 annuity
25 payment date through June 30, 1999.
26 For annuities taking effect on or after January 1, 1998,
27 payments shall be made as of the first day of the calendar
28 month, with the first payment to be made as of the first day
29 of the calendar month coincidental with or next following the
30 first day of the annuity payment period, and the last payment
31 to be made as of the first day of the calendar month in which
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1 the annuity payment period ends. For annuities taking effect
2 on or after January 1, 1998, all payments shall be for the
3 entire calendar month, without proration.
4 For the purposes of this Section, the "annuity payment
5 period" means the period beginning on the day after the
6 occurrence of the event upon which payment of the annuity
7 depends, and ending on the day upon which the death of the
8 annuitant or other event terminating the annuity occurs.
9 (Source: P.A. 90-31, eff. 6-27-97.)
10 (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
11 Sec. 11-134.2. Reversionary annuity.
12 (a) An employee, prior to retirement on annuity, may
13 elect to take a lesser amount of annuity and provide, with
14 the actuarial value of the amount by which his annuity is
15 reduced, a reversionary annuity for a wife, husband, parent,
16 child, brother or sister. The option shall be exercised by
17 filing a written designation with the board prior to
18 retirement, and may be revoked by the employee at any time
19 before retirement. The death of the employee prior to his
20 retirement shall automatically void the option.
21 (b) The death of the designated reversionary annuitant
22 prior to the employee's retirement shall automatically void
23 the option. If the reversionary annuitant dies after the
24 employee's retirement, and before the death of the employee
25 annuitant, the reduced annuity being paid to the retired
26 employee annuitant shall be increased to the amount of
27 annuity before reduction for the reversionary annuity and no
28 reversionary annuity shall be payable.
29 The option is subject to the further condition that no
30 reversionary annuity shall be paid to a parent, child,
31 brother, or sister if the employee dies before the expiration
32 of 365 days from the date his written designation was filed
33 with the board, even though he has retired and is receiving a
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1 reduced annuity.
2 (c) The employee exercising this option shall not reduce
3 his retirement annuity by more than $400 per month, or elect
4 to provide a reversionary annuity of less than $50 per month.
5 No option shall be permitted if the reversionary annuity for
6 a widow, when added to the widow's annuity payable under this
7 Article, exceeds 100% of the reduced annuity payable to the
8 employee.
9 (d) A reversionary annuity shall begin on the day
10 following the death of the annuitant and shall be paid as
11 provided in Section 11-124.
12 (e) The increases in annuity provided in Section
13 11-134.1 of this Article shall, as to an employee so electing
14 a reduced annuity, relate to the amount of the original
15 annuity, and such amount shall constitute the annuity on
16 which such increases shall be based.
17 (f) For annuities elected after June 30, 1983, the
18 amount of the monthly reversionary annuity shall be
19 determined by multiplying the amount of the monthly reduction
20 in the employee's annuity by the factor in the following
21 table based on the age of the employee and the difference in
22 the age of the employee and the age of the reversionary
23 annuitant at the starting date of the employee's annuity:
24 Employee's Age
25 Reversionary
26 Annuitant's
27 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
28 Over
29 30 or
30 more
31 years
32 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
33 25-29
34 years
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1 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
2 20-24
3 years
4 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
5 15-19
6 years
7 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
8 10-14
9 years
10 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
11 5-9
12 years
13 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
14 0-4
15 years
16 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
17 1-5
18 years
19 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
20 6-10
21 years
22 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
23 11-15
24 years
25 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
26 16-20
27 years
28 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
29 21-25
30 years
31 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
32 26-30
33 years
34 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
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1 31 or
2 more
3 years
4 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
5 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
6 (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
7 Sec. 11-167. Refunds in lieu of annuity. In lieu of an
8 annuity, an employee who withdraws, and whose annuity would
9 amount to less than $800 $300 a month for life may elect to
10 receive a refund of the total sum accumulated to his credit
11 from employee contributions for annuity purposes.
12 The widow of any employee, eligible for annuity upon the
13 death of her husband, whose annuity would amount to less than
14 $800 $300 a month for life, may, in lieu of a widow's
15 annuity, elect to receive a refund of the accumulated
16 contributions for annuity purposes, based on the amounts
17 contributed by her deceased employee husband, but reduced by
18 any amounts theretofore paid to him in the form of an annuity
19 or refund out of such accumulated contributions.
20 Accumulated contributions shall mean the amounts
21 including interest credited thereon contributed by the
22 employee for age and service and widow's annuity to the date
23 of his withdrawal or death, whichever first occurs, and
24 including the accumulations from any amounts contributed for
25 him as salary deductions while receiving duty disability
26 benefits; provided that such amounts contributed by the city
27 after December 31, 1983 while the employee is receiving duty
28 disability benefits shall not be included.
29 The acceptance of such refund in lieu of widow's annuity,
30 on the part of a widow, shall not deprive a child or children
31 of the right to receive a child's annuity as provided for in
32 Sections 11-153 and 11-154 of this Article, and neither shall
33 the payment of a child's annuity in the case of such refund
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1 to a widow reduce the amount herein set forth as refundable
2 to such widow electing a refund in lieu of widow's annuity.
3 (Source: P.A. 90-655, eff. 7-30-98.)
4 (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
5 Sec. 11-181. Board created. A board of 8 members shall
6 constitute the board of trustees authorized to carry out the
7 provisions of this Article. The board shall be known as the
8 Retirement Board of the Laborers' and Retirement Board
9 Employees' Annuity and Benefit Fund of the city. The board
10 shall consist of 5 persons appointed and 2 employees and one
11 annuitant elected in the manner hereinafter prescribed.
12 The appointed members of the board shall be appointed as
13 follows:
14 One member shall be appointed by the comptroller of the
15 city, who may be himself or anyone chosen from among
16 employees of the city who are versed in the affairs of the
17 comptroller's office; one member shall be appointed by the
18 City Treasurer of the city, who may be himself or a person
19 chosen from among employees of the city who are versed in the
20 affairs of the City Treasurer's office; one member shall be
21 an employee of the city appointed by the president of the
22 local labor organization representing a majority of the
23 employees participating in the Fund; and 2 members shall be
24 appointed by the civil service commission or the Department
25 of Personnel of the city from among employees of the city who
26 are versed in the affairs of the civil service commission's
27 office or the Department of Personnel.
28 The member appointed by the comptroller shall hold office
29 for a term ending on December 1st of the first year following
30 the year of appointment. The member appointed by the City
31 Treasurer shall hold office for a term ending on December 1st
32 of the second year following the year of appointment. The
33 member appointed by the civil service commission shall hold
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1 office for a term ending on the first day in the month of
2 December of the third year following the year of appointment.
3 The additional member appointed by the civil service
4 commission under this amendatory Act of 1998 shall hold
5 office for an initial term ending on December 1, 2000, and
6 the member appointed by the labor organization president
7 shall hold office for an initial term ending on December 1,
8 2001. Thereafter each appointive member shall be appointed
9 by the officer or body that appointed his predecessor, for a
10 term of 3 years.
11 The 2 employee members of the board shall be elected as
12 follows:
13 Within 30 days from and after the appointive members have
14 been appointed and have qualified, the appointive members
15 shall arrange for and hold an election.
16 One employee shall be elected for a term ending on
17 December 1st of the first year next following the effective
18 date; one for a term ending on December 1st of the following
19 year.
20 The initial annuitant member shall be appointed by the
21 other members of the board for an initial term ending on
22 December 1, 1999. In 1999 Thereafter, the annuitant member
23 shall be elected for a 2-year term ending on December 1,
24 2001. Thereafter, the annuitant member shall be elected for
25 a 3-year term ending on December 1st of the third year
26 following the election 1st of the next odd-numbered year.
27 (Source: P.A. 90-766, eff. 8-14-98.)
28 (40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
29 Sec. 11-182. Board elections; qualification; oath.
30 (a) In each year, the board shall conduct a regular
31 election, under rules adopted by it, at least 30 days prior
32 to the expiration of the term of the employee member whose
33 term next expires, for the election of a successor for a term
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1 of 3 2 years. Each employee member and his or her successor
2 shall be an employee who holds a position by certification
3 and appointment as a result of competitive civil service
4 examination as distinguished from temporary appointment, or
5 so holds a position which is not exempt from the classified
6 service or the personnel ordinance of a city that has adopted
7 a career service ordinance, for a period of not less than 5
8 years prior to date of election. At any such election, all
9 persons who are employees at the time such election is held
10 shall have a right to vote. The ballot shall be of secret
11 character.
12 (b) In each odd-numbered year, The board shall conduct a
13 regular election, under rules adopted by it, at least 30 days
14 prior to the expiration of the term of the annuitant member,
15 for the election of a successor for a term of 2 years. Each
16 annuitant member and his or her successor shall be a former
17 employee receiving a retirement (age and service or prior
18 service) annuity from the Fund. At any such election, all
19 persons who are receiving a retirement (age and service or
20 prior service) annuity from the Fund at the time the election
21 is held have a right to vote. The ballot shall be of secret
22 character.
23 (c) Any appointive or elective member of the board shall
24 hold office until his or her successor is elected and
25 qualified.
26 Any person elected or appointed as a member of the board
27 shall qualify for the office by taking an oath of office to
28 be administered by the city clerk or any person designated by
29 the city clerk. A copy thereof shall be kept in the office
30 of the city clerk.
31 Any appointment shall be in writing and the written
32 instrument shall be filed with the oath.
33 (Source: P.A. 90-766, eff. 8-14-98.)
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1 (40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223)
2 Sec. 11-223. Annuities, etc., exempt.
3 (a) All annuities, refunds, pensions, and disability
4 benefits granted under this Article shall be exempt from
5 attachment or garnishment process and shall not be seized,
6 taken, subjected to, detained, or levied upon by virtue of
7 any judgment, or any process or proceeding whatsoever issued
8 out of or by any court in this State, for the payment and
9 satisfaction in whole or in part of any debt, damage, claim,
10 demand, or judgment against any annuitant, participant,
11 refund applicant, or other beneficiary hereunder.
12 No annuitant, refund applicant, or other beneficiary may
13 transfer or assign his annuity, refund, or disability benefit
14 or any part thereof by way of mortgage or otherwise, except
15 as provided in Section 11-223.1, and except in the case of
16 refunds, when a participant has pledged by assignment, power
17 of attorney, or otherwise, as security for a loan from a
18 legally operating credit union making loans only to
19 participants in certain public employee pension funds
20 described in the Illinois Pension Code, all or part of any
21 refund which may become payable to him in the event of his
22 separation from service. The board in its discretion may,
23 however, pay to the wife or to the unmarried child under 18
24 years of age of any annuitant, refund applicant, or
25 disability beneficiary, such an amount out of her husband's
26 annuity refund, or disability benefit as any court may order,
27 or such an amount as the board may consider necessary for the
28 support of his wife or children or both in the event of his
29 disappearance or unexplained absence or of his failure to
30 support such wife or children.
31 (b) The board may retain out of any future annuity,
32 refund, or disability benefit payments, such amount, or
33 amounts as it may require for the repayment of any moneys
34 paid to any annuitant, pensioner, refund applicant, or
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1 disability beneficiary through misrepresentation, fraud or
2 error. Any such action of the board shall relieve and
3 release the board and the fund from any liability for any
4 moneys so withheld.
5 (c) Whenever an annuity or disability benefit is payable
6 to a minor or to a person certified by a medical doctor
7 adjudged to be under legal disability, the board, in its
8 discretion and when it is in to the best interest of the
9 person concerned, may waive guardianship or conservatorship
10 proceedings and pay the annuity or benefit to the person
11 providing or caring for the minor or and to the wife, parent
12 or blood relative providing or caring for the person under
13 legal disability.
14 In the event that a person certified by a medical doctor
15 to be under legal disability (i) has no spouse, blood
16 relative, or other person providing or caring for him or
17 her, (ii) has no guardian of his or her estate, and (iii) is
18 confined to a Medicare approved, State certified nursing home
19 or to a publicly owned and operated nursing home, hospital,
20 or mental institution, the Board may pay any benefit due that
21 person to the nursing home, hospital, or mental institution,
22 to be used for the sole benefit of the person under legal
23 disability.
24 Payment in accordance with this subsection to a person,
25 nursing home, hospital, or mental institution for the benefit
26 of a minor or person under legal disability shall be an
27 absolute discharge of the Fund's liability with respect to
28 the amount so paid. Any person, nursing home, hospital, or
29 mental institution accepting payment under this subsection
30 shall notify the Fund of the death or any other relevant
31 change in the status of the minor or person under legal
32 disability.
33 (d) Whenever an annuitant, applicant for refund or
34 disability beneficiary disappears and his whereabouts are
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1 unknown, and it cannot be ascertained that he is alive, there
2 shall be paid to his wife or children or both such amount as
3 will not be in excess of the amount payable to them in the
4 event such annuitant, applicant for refund or disability
5 beneficiary had died on the date of disappearance. If he
6 returns, or upon satisfactory proof of his being alive, the
7 amount theretofore paid to such beneficiaries shall be
8 charged against any moneys payable to him under this Article
9 as though such payment to such beneficiaries had been an
10 allowance to them out of the moneys payable to the employee
11 as an annuitant, applicant for refund or disability
12 beneficiary.
13 (Source: P.A. 83-706.)
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.