100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2491

 

Introduced , by Rep. Thomas M. Bennett

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-119

    Amends the General Provisions Article of the Illinois Pension Code. Provides that for the purposes of a specified formula for calculating the amount of a Qualified Illinois Domestic Relations Order (QILDRO), the gross amount of the member's monthly retirement benefit shall be calculated as of the member's effective date of retirement, but using the member's salary on the date the QILDRO is issued if that date is after January 1, 2018. Effective immediately.


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PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2491LRB100 07133 EFG 17188 b

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 1-119 as follows:
 
6    (40 ILCS 5/1-119)
7    Sec. 1-119. Qualified Illinois Domestic Relations Orders.
8    (a) For the purposes of this Section:
9        (1) "Alternate payee" means the spouse, former spouse,
10    child, or other dependent of a member, as designated in a
11    QILDRO.
12        (2) "Death benefit" means any nonperiodic benefit
13    payable upon the death of a member to a survivor of the
14    member or to the member's estate or designated beneficiary,
15    including any refund of contributions following the
16    member's death, whether or not the benefit is so called
17    under the applicable Article of this Code.
18        (3) "Disability benefit" means any periodic or
19    nonperiodic benefit payable to a disabled member based on
20    occupational or nonoccupational disability or disease,
21    including any periodic or nonperiodic increases in the
22    benefit, whether or not the benefit is so called under the
23    applicable Article of this Code.

 

 

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1        (4) "Member" means any person who participates in or
2    has service credits in a retirement system, including a
3    person who is receiving or is eligible to receive a
4    retirement or disability benefit, without regard to
5    whether the person has withdrawn from service.
6        (5) "Member's refund" means a return of all or a
7    portion of a member's contributions that is elected by the
8    member (or provided by operation of law) and is payable
9    before the member's death.
10        (5.5) "Permissive service" means service credit
11    purchased by the member, unused vacation, and unused sick
12    leave that the retirement system includes by statute in a
13    member's benefit calculations.
14        (6) "Qualified Illinois Domestic Relations Order" or
15    "QILDRO" means an Illinois court order that creates or
16    recognizes the existence of an alternate payee's right to
17    receive all or a portion of a member's accrued benefits in
18    a retirement system, is issued pursuant to this Section and
19    Section 503(b)(2) of the Illinois Marriage and Dissolution
20    of Marriage Act, and meets the requirements of this
21    Section. A QILDRO is not the same as a qualified domestic
22    relations order or QDRO issued pursuant to Section 414(p)
23    of the Internal Revenue Code of 1986. The requirements of
24    paragraphs (2) and (3) of that Section do not apply to
25    orders issued under this Section and shall not be deemed a
26    guide to the interpretation of this Section; a QILDRO is

 

 

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1    intended to be a domestic relations order within the
2    meaning of paragraph (11) of that Section.
3        (7) "Regular payee" means the person to whom a benefit
4    would be payable in the absence of an effective QILDRO.
5        (7.5) "Regular service" means service credit earned by
6    the member, including a repayment of a refund for regular
7    service that the retirement system includes by statute in a
8    member's benefit calculations. "Regular service" does not
9    include service credit purchased by the member, unused
10    vacation, or unused sick leave.
11        (8) "Retirement benefit" means any periodic or
12    nonperiodic benefit payable to a retired member based on
13    age or service, or on the amounts accumulated to the credit
14    of the member for retirement purposes, including any
15    periodic or nonperiodic increases in the benefit, whether
16    or not the benefit is so called under the applicable
17    Article of this Code.
18        (9) "Retirement system" or "system" means any
19    retirement system, pension fund, or other public employee
20    retirement benefit plan that is maintained or established
21    under any of Articles 2 through 18 of this Code.
22        (10) "Surviving spouse" means the spouse of a member at
23    the time of the member's death.
24        (11) "Survivor's benefit" means any periodic benefit
25    payable to a surviving spouse, child, parent, or other
26    survivor of a deceased member, including any periodic or

 

 

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1    nonperiodic increases in the benefit or nonperiodic
2    payment included with the benefit, whether or not the
3    benefit is so called under the applicable Article of this
4    Code.
5    (b) (1) An Illinois court of competent jurisdiction in a
6proceeding for declaration of invalidity of marriage, legal
7separation, or dissolution of marriage that provides for
8support or the distribution of property, or any proceeding to
9amend or enforce such support or property distribution, may
10order that all or any part of any (i) member's retirement
11benefit, (ii) member's refund payable to or on behalf of the
12member, or (iii) death benefit, or portion thereof, that would
13otherwise be payable to the member's death benefit
14beneficiaries or estate be instead paid by the retirement
15system to the alternate payee.
16    (2) An order issued under this Section provides only for
17the diversion to an alternate payee of certain benefits
18otherwise payable by the retirement system under the provisions
19of this Code. The existence of a QILDRO shall not cause the
20retirement system to pay any benefit, or any amount of benefit,
21to an alternate payee that would not have been payable by the
22system to a regular payee in the absence of the QILDRO.
23    (3) A QILDRO shall not affect the vesting, accrual, or
24amount of any benefit, nor the date or conditions upon which
25any benefit becomes payable, nor the right of the member or the
26member's survivors to make any election otherwise authorized

 

 

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1under this Code, except as provided in subsections (i) and (j).
2    (4) A QILDRO shall not apply to or affect the payment of
3any survivor's benefit, disability benefit, life insurance
4benefit, or health insurance benefit.
5    (c) (1) A QILDRO must contain the name, mailing address,
6and social security number of the member and of the alternate
7payee and must identify the retirement system to which it is
8directed and the court issuing the order.
9    (2) A QILDRO must specify each benefit to which it applies,
10and it must specify the amount of the benefit to be paid to the
11alternate payee. In the case of a non-periodic benefit, this
12amount must be specified as a dollar amount or as a percentage
13as specifically provided in subsection (n). In the case of a
14periodic benefit, this amount must be specified as a dollar
15amount per month or as a percentage per month as specifically
16provided in subsection (n).
17    (3) With respect to each benefit to which it applies, a
18QILDRO must specify when the order will take effect. In the
19case of a lump sum benefit payable to an alternate payee of a
20participant in the self-managed plan authorized under Article
2115 of this Code, the benefit shall be paid upon the proper
22request of the alternate payee. In the case of a periodic
23benefit that is being paid at the time the order is received, a
24QILDRO shall take effect immediately or on a specified later
25date; if it takes effect immediately, it shall become effective
26on the first benefit payment date occurring at least 30 days

 

 

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1after the order is received by the retirement system. In the
2case of any other benefit, a QILDRO shall take effect when the
3benefit becomes payable, unless some later date is specified
4pursuant to subsection (n). However, in no event shall a QILDRO
5apply to any benefit paid by the retirement system before or
6within 30 days after the order is received. A retirement system
7may adopt rules to prorate the amount of the first and final
8periodic payments to an alternate payee.
9    (4) A QILDRO must also contain any provisions required
10under subsection (n) or (p).
11    (5) If a QILDRO indicates that the alternate payee is to
12receive a percentage of any retirement system benefit, the
13calculations required shall be performed by the member, the
14alternate payee, their designated representatives or their
15designated experts. The results of said calculations shall be
16provided to the retirement system via a QILDRO Calculation
17Court Order issued by an Illinois court of competent
18jurisdiction in a proceeding for declaration of invalidity of
19marriage, legal separation, or dissolution of marriage. The
20QILDRO Calculation Court Order shall follow the form provided
21in subsection (n-5). The retirement system shall have no duty
22or obligation to assist in such calculations or in completion
23of the QILDRO Calculation Court Order, other than to provide
24the information required to be provided pursuant to subsection
25(h).
26    (6) Within 45 days after the receipt of a QILDRO

 

 

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1Calculation Court Order, the retirement system shall notify the
2member and the alternate payee (or one designated
3representative of each) of the receipt of the Order. If a valid
4QILDRO underlying the QILDRO Calculation Court Order has not
5been filed with the retirement system, or if the QILDRO
6Calculation Court Order does not clearly indicate the amount
7the retirement system is to pay to the alternate payee, then
8the retirement system shall at the same time notify the member
9and the alternate payee (or one designated representative of
10each) of the situation. Unless a valid QILDRO has not been
11filed with the retirement system, or the QILDRO Calculation
12Court Order does not clearly indicate the amount the retirement
13system is to pay the alternate payee, the retirement system
14shall implement the QILDRO based on the QILDRO Calculation
15Court Order as soon as administratively possible once benefits
16are payable. The retirement system shall have no obligation to
17make any determination as to whether the calculations in the
18QILDRO Calculation Court Order are accurate or whether the
19calculations are in accordance with the parties' QILDRO,
20agreement, or judgment. The retirement system shall not reject
21a QILDRO Calculation Court Order because the calculations are
22not accurate or not in accordance with the parties' QILDRO,
23agreement, or judgment. The retirement system shall have no
24responsibility for the consequences of its implementation of a
25QILDRO Calculation Court Order that is inaccurate or not in
26accordance with the parties' QILDRO, agreement, or judgment.

 

 

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1    (d) (1) An order issued under this Section shall not be
2implemented unless a certified copy of the order has been filed
3with the retirement system. The system shall promptly notify
4the member and the alternate payee by first class mail of its
5receipt of the order.
6    (2) Neither the retirement system, nor its board, nor any
7of its employees shall be liable to the member, the regular
8payee, or any other person for any amount of a benefit that is
9paid in good faith to an alternate payee in accordance with a
10QILDRO.
11    (3) Each new or modified QILDRO or QILDRO Calculation Court
12Order that is submitted to the retirement system shall be
13accompanied by a nonrefundable $50 processing fee payable to
14the retirement system, to be used by the system to defer any
15administrative costs arising out of the implementation of the
16order.
17    (e) (1) Each alternate payee is responsible for maintaining
18a current mailing address on file with the retirement system.
19The retirement system shall have no duty to attempt to locate
20any alternate payee by any means other than sending written
21notice to the last known address of the alternate payee on file
22with the system.
23    (2) In the event that the system cannot locate an alternate
24payee when a benefit becomes payable, the system shall hold the
25amount of the benefit payable to the alternate payee and make
26payment to the alternate payee if he or she is located within

 

 

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1the following 180 days. If the alternate payee has not been
2located within 180 days from the date the benefit becomes
3payable, the system shall pay the benefit and the amounts held
4to the regular payee. If the alternate payee is subsequently
5located, the system shall thereupon implement the QILDRO, but
6the interest of the alternate payee in any amounts already paid
7to the regular payee shall be extinguished. Amounts held under
8this subsection shall not bear interest.
9    (f) (1) If the amount of a benefit that is specified in a
10QILDRO or QILDRO Calculation Court Order for payment to an
11alternate payee exceeds the actual amount of that benefit
12payable by the retirement system, the excess shall be
13disregarded. The retirement system shall have no liability to
14any alternate payee or any other person for the disregarded
15amounts.
16    (2) In the event of multiple QILDROs against a member, the
17retirement system shall honor all of the QILDROs to the extent
18possible. However, if the total amount of a benefit to be paid
19to alternate payees under all QILDROs in effect against the
20member exceeds the actual amount of that benefit payable by the
21system, the QILDROs shall be satisfied in the order of their
22receipt by the system until the amount of the benefit is
23exhausted, and shall not be adjusted pro rata. Any amounts that
24cannot be paid due to exhaustion of the benefit shall remain
25unpaid, and the retirement system shall have no liability to
26any alternate payee or any other person for such amounts.

 

 

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1    (3) A modification of a QILDRO shall be filed with the
2retirement system in the same manner as a new QILDRO. A
3modification that does not increase the amount of any benefit
4payable to the alternate payee, as that amount was designated
5in the QILDRO, and does not expand the QILDRO to affect any
6benefit not affected by the unmodified QILDRO, does not affect
7the priority of payment under subdivision (f)(2); the priority
8of payment of a QILDRO that has been modified to increase the
9amount of any benefit payable to the alternate payee, or to
10expand the QILDRO to affect a benefit not affected by the
11unmodified QILDRO, shall be based on the date on which the
12system receives the modification of the QILDRO.
13    (4) A modification of a QILDRO Calculation Court Order
14shall be filed with the retirement system in the same manner as
15a new QILDRO Calculation Court Order.
16    (g) (1) Upon the death of the alternate payee under a
17QILDRO, the QILDRO shall expire and cease to be effective, and
18in the absence of another QILDRO, the right to receive any
19affected benefit shall revert to the regular payee.
20    (2) All QILDROs relating to a member's participation in a
21particular retirement system shall expire and cease to be
22effective upon the issuance of a member's refund that
23terminates the member's participation in that retirement
24system, without regard to whether the refund was paid to the
25member or to an alternate payee under a QILDRO. An expired
26QILDRO shall not be automatically revived by any subsequent

 

 

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1return by the member to service under that retirement system.
2    (h) (1) Within 45 days after receiving a subpoena from any
3party to a proceeding for declaration of invalidity of
4marriage, legal separation, or dissolution of marriage in which
5a QILDRO may be issued, or after receiving a request from the
6member, a retirement system shall provide in response a
7statement of a member's accumulated contributions, accrued
8benefits, and other interests in the plan administered by the
9retirement system based on the data on file with the system on
10the date the subpoena is received. If so requested in the
11subpoena, the retirement system shall also provide in response
12general retirement plan information available to a member and
13any relevant procedures, rules, or modifications to the model
14QILDRO form that have been adopted by the retirement system.
15    (1.5) If a QILDRO provides for the alternate payee to
16receive a percentage of a retirement benefit (as opposed to
17providing for the alternate payee to receive specified dollar
18amounts of a retirement benefit), then the retirement system
19shall provide the applicable information to the member and to
20the alternate payee, or to one designated representative of
21each (e.g., the member's attorney and the alternate payee's
22attorney) as indicated below:
23        (A) If the member is a participant in the self-managed
24    plan authorized under Article 15 of this Code and the
25    QILDRO provides that the only benefit the alternate payee
26    is to receive is a percentage of a lump sum benefit as of a

 

 

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1    specific date that has already past, then, within 45 days
2    after the retirement system receives the QILDRO, the
3    retirement system shall provide the lump sum amount to
4    which the QILDRO percentage is to be applied.
5        (B) For all situations except that situation described
6    in item (A), if the retirement system receives the QILDRO
7    before the member's effective date of retirement, then,
8    within 45 days after the retirement system receives the
9    QILDRO, the retirement system shall provide all of the
10    following information:
11            (i) The date of the member's initial membership in
12        the retirement system, expressed as month, day, and
13        year, if available, or the most exact date that is
14        available to the retirement system.
15            (ii) The amount of permissive and regular service
16        the member accumulated in the retirement system from
17        the time of initial membership through the most recent
18        date available prior to the retirement system
19        receiving the QILDRO (the dates used by the retirement
20        system shall also be provided). Service amounts shall
21        be expressed using the most exact time increments
22        available to the retirement system (e.g., months or
23        fractions of years).
24            (iii) The gross amount of the member's non-reduced
25        monthly annuity benefit earned, calculated as of the
26        most recent date available prior to the retirement

 

 

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1        system receiving the QILDRO, the date used by the
2        retirement system, and the earliest date the member may
3        be eligible to commence the benefit. This amount shall
4        include any permissive service and upgrades purchased
5        by the member, and those amounts shall be noted
6        separately.
7            (iv) The gross amount of the member's refund or
8        partial refund, including any interest payable on
9        those amounts, calculated as of the most recent date
10        available prior to the retirement system receiving the
11        QILDRO (the date used by the retirement system shall
12        also be provided).
13            (v) The gross amount of the death benefits that
14        would be payable to the member's death benefit
15        beneficiaries or estate, assuming the member died on
16        the date or a date as close as possible to the date the
17        QILDRO was received by the retirement system,
18        including any interest payable on the amounts,
19        calculated as of the most recent date available prior
20        to the retirement system receiving the QILDRO (the date
21        used by the retirement system shall also be provided).
22            (vi) Whether the member has notified the
23        retirement system of the date the member intends to
24        retire, and if so, that date.
25            (vii) If the member has provided a date that he or
26        she intends to retire, the date, if available, that the

 

 

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1        retirement system reasonably believes will be the
2        member's effective date of retirement.
3        (C) For all situations except that situation described
4    in item (A), if the retirement system receives the QILDRO
5    after the effective date of retirement, then, within 45
6    days after the retirement system receives the QILDRO, or,
7    if the retirement system receives the QILDRO before the
8    member's effective date of retirement, then as soon as
9    administratively possible before or after the member's
10    effective date of retirement (but not later than 45 days
11    after the member's effective date of retirement), the
12    retirement system shall provide all of the following
13    information:
14            (i) The member's effective date of retirement.
15            (ii) The date the member commenced benefits or, if
16        not yet commenced, the date the retirement system has
17        scheduled the member's benefits to commence.
18            (iii) The amount of permissive and regular service
19        the member accumulated in the retirement system from
20        the time of initial membership through the member's
21        effective date of retirement. Service amounts shall be
22        expressed using the most exact time increments
23        available to the retirement system (e.g., months or
24        fractions of years).
25            (iv) The gross amount of the member's monthly
26        retirement benefit, calculated as of the member's

 

 

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1        effective date of retirement, but using the member's
2        salary on the date the QILDRO order is issued if that
3        date is after January 1, 2018. This amount shall
4        include any permissive service and upgrades purchased
5        by the member, and those amounts shall be noted
6        separately.
7            (v) The gross amount of the member's refund or
8        partial refund, including any interest payable on
9        those amounts, calculated as of the member's effective
10        date of retirement.
11            (vi) The gross amount of death benefits that would
12        be payable to the member's death benefit beneficiaries
13        or estate, assuming the member died on the member's
14        effective date of retirement, including any interest
15        payable on those amounts.
16        (D) If, and only if, the alternate payee is entitled to
17    benefits under Section VII of the QILDRO, then, within 45
18    days after the retirement system receives notice of the
19    member's death, the retirement system shall provide the
20    gross amount of death benefits payable, including any
21    interest payable on those amounts, calculated as of the
22    member's date of death.
23    (2) In no event shall the retirement system be required to
24furnish to any person an actuarial opinion as to the present
25value of the member's benefits or other interests.
26    (3) The papers, entries, and records, or parts thereof, of

 

 

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1any retirement system may be proved by a copy thereof,
2certified under the signature of the secretary of the system or
3other duly appointed keeper of the records of the system and
4the corporate seal, if any.
5    (i) In a retirement system in which a member or beneficiary
6is required to apply to the system for payment of a benefit,
7the required application may be made by an alternate payee who
8is entitled to all of a termination refund or retirement
9benefit or part of a death benefit that is payable under a
10QILDRO, provided that all other qualifications and
11requirements have been met. However, the alternate payee may
12not make the required application for death benefits while the
13member is alive or for a member's refund or a retirement
14benefit if the member is in active service or below the minimum
15age for receiving an undiscounted retirement annuity in the
16retirement system that has received the QILDRO or in any other
17retirement system in which the member has regular or permissive
18service and in which the member's rights under the Retirement
19Systems Reciprocal Act would be affected as a result of the
20alternate payee's application for a member's refund or
21retirement benefit.
22    (j) (1) So long as there is in effect a QILDRO relating to
23a member's retirement benefit, the affected member may not
24elect a form of payment that has the effect of diminishing the
25amount of the payment to which any alternate payee is entitled,
26unless the alternate payee has consented to the election in a

 

 

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1writing that includes the alternate payee's notarized
2signature, and this written and notarized consent has been
3filed with the retirement system.
4    (2) If a member attempts to make an election prohibited
5under subdivision (j)(1), the retirement system shall reject
6the election and advise the member of the need to obtain the
7alternate payee's consent.
8    (3) If a retirement system discovers that it has mistakenly
9allowed an election prohibited under subdivision (j)(1), it
10shall thereupon disallow that election and recalculate any
11benefits affected thereby. If the system determines that an
12amount paid to a regular payee should have been paid to an
13alternate payee, the system shall, if possible, recoup the
14amounts as provided in subsection (k) of this Section.
15    (k) In the event that a regular payee or an alternate payee
16is overpaid, the retirement system shall have the authority to
17and shall recoup the amounts by deducting the overpayment from
18future payments and making payment to the other payee. The
19system may make deductions for recoupment over a period of time
20in the same manner as is provided by law or rule for the
21recoupment of other amounts incorrectly disbursed by the system
22in instances not involving a QILDRO. The retirement system
23shall incur no liability to either the alternate payee or the
24regular payee as a result of any payment made in good faith,
25regardless of whether the system is able to accomplish
26recoupment.

 

 

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1    (l) (1) A retirement system that has, before the effective
2date of this Section, received and implemented a domestic
3relations order that directs payment of a benefit to a person
4other than the regular payee may continue to implement that
5order, and shall not be liable to the regular payee for any
6amounts paid in good faith to that other person in accordance
7with the order.
8    (2) A domestic relations order directing payment of a
9benefit to a person other than the regular payee that was
10issued by a court but not implemented by a retirement system
11prior to the effective date of this Section shall be void.
12However, a person who is the beneficiary or alternate payee of
13a domestic relations order that is rendered void under this
14subsection may petition the court that issued the order for an
15amended order that complies with this Section.
16    (3) A retirement system that received a valid QILDRO before
17the effective date of this amendatory Act of the 94th General
18Assembly shall continue to implement the QILDRO and shall not
19be liable to any party for amounts paid in good faith pursuant
20to the QILDRO.
21    (m) (1) In accordance with Article XIII, Section 5 of the
22Illinois Constitution, which prohibits the impairment or
23diminishment of benefits granted under this Code, a QILDRO
24issued against a member of a retirement system established
25under an Article of this Code that exempts the payment of
26benefits or refunds from attachment, garnishment, judgment or

 

 

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1other legal process shall not be effective without the written
2consent of the member if the member began participating in the
3retirement system on or before the effective date of this
4Section. That consent must specify the retirement system, the
5court case number, and the names and social security numbers of
6the member and the alternate payee. The consent must accompany
7the QILDRO when it is filed with the retirement system, and
8must be in substantially the following form:
 
9
CONSENT TO ISSUANCE OF QILDRO

 
10Case Caption: ...................................
11Court Case Number: ....................
12Member's Name: ..................................
13Member's Social Security Number: ........................
14Alternate payee's Name: .........................
15Alternate payee's Social Security Number: ...............
16    I, (name), a member of the (retirement system), hereby
17irrevocably consent to the issuance of a Qualified Illinois
18Domestic Relations Order. I understand that under the Order,
19certain benefits that would otherwise be payable to me, or to
20my death benefit beneficiaries or estate, will instead be
21payable to (name of alternate payee). I also understand that my
22right to elect certain forms of payment of my retirement
23benefit or member's refund may be limited as a result of the
24Order.

 

 

HB2491- 20 -LRB100 07133 EFG 17188 b

1    DATED:.......................
2    SIGNED:......................
 
3    (2) A member's consent to the issuance of a QILDRO shall be
4irrevocable, and shall apply to any QILDRO that pertains to the
5alternate payee and retirement system named in the consent.
6    (n) A QILDRO issued under this Section shall be in
7substantially the following form (omitting any provisions that
8are not applicable to benefits that are or may be ultimately
9payable to the member):
 
10
QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER

 
11...................................
12(Enter Case Caption Here)
13...................................
14(Enter Retirement System Name Here)
 
15    THIS CAUSE coming before the Court for the purpose of the
16entry of a Qualified Illinois Domestic Relations Order under
17the provisions of Section 1-119 of the Illinois Pension Code
18(40 ILCS 5/1-119), the Court having jurisdiction over the
19parties and the subject matter hereof; the Court finding that
20one of the parties to this proceeding is a member of a
21retirement system subject to Section 1-119 of the Illinois
22Pension Code (40 ILCS 5/1-119), this Order is entered to

 

 

HB2491- 21 -LRB100 07133 EFG 17188 b

1implement a division of that party's interest in the retirement
2system; and the Court being fully advised;
 
3IT IS HEREBY ORDERED AS FOLLOWS:
 
4    I. The definitions and other provisions of Section 1-119 of
5the Illinois Pension Code (40 ILCS 5/1-119) are adopted by
6reference and made a part of this Order.
7    II. Identification of Retirement System and parties:
 
8Retirement System:              ............................
9                                (Name)
10
11
............................
  
12                                (Address)
 
13Member:                         ............................
14                                (Name)
15
16
............................
  
17                                (Mailing Address)
18
19
............................
  
20                                (Social Security Number)
 

 

 

HB2491- 22 -LRB100 07133 EFG 17188 b

1Alternate payee:                ............................
2                                (Name)
3
4
............................
  
5                                (Mailing Address)
6
7
............................
  
8                                (Social Security Number)
 
9The alternate payee is the member's .... current or former
10spouse/ .... child or other dependent [check one].
 
11    III. The Retirement System shall pay the indicated amounts
12of the member's retirement benefits to the alternate payee
13under the following terms and conditions:
14        (A) The Retirement System shall pay the alternate payee
15    pursuant to one of the following methods [complete the ONE
16    option that applies]:
17            (1) $...... per month [enter amount]; or
18            (2) .......% [enter percentage] per month of the
19        marital portion of said benefit with the marital
20        portion defined using the formula in Section IX; or
21            (3) ........% [enter percentage] per month of the
22        gross amount of said benefit calculated as of the date
23        the .... member's/ .... alternate payee's [check one]

 

 

HB2491- 23 -LRB100 07133 EFG 17188 b

1        benefit commences [check alternate payee only if the
2        alternate payee will commence benefits after the
3        member commences benefits, e.g. if the member is
4        receiving retirement benefits at the time this Order is
5        entered].
6        (B) If the member's retirement benefit has already
7    commenced, payments to the alternate payee shall commence
8    either [check/complete the ONE option that applies]:
9            (1) .... as soon as administratively possible upon
10        this order being received and accepted by the
11        Retirement System; or
12            (2) .... on the date of ........ [enter any benefit
13        payment date that will occur at least 30 days after the
14        date the retirement system receives a valid QILDRO, but
15        ONLY if payment to the alternate payee is to be delayed
16        to some future date; otherwise, check item (1) above].
17        (C) If the member's retirement benefit has not yet
18    commenced, payments to the alternate payee shall commence
19    as of the date the member's retirement benefit commences.
20        (D) Payments to the alternate payee under this Section
21    III shall terminate [check/complete the ONE option that
22    applies]:
23            (1) .... upon the death of the member or the death
24        of the alternate payee, whichever is the first to
25        occur; or
26            (2) .... after ........ payments are made to the

 

 

HB2491- 24 -LRB100 07133 EFG 17188 b

1        alternate payee [enter any set number] or upon the
2        death of the member or the death of the alternate
3        payee, whichever is the first to occur.
4    IV. If the member's retirement benefits are subject to
5annual post-retirement increases, the alternate payee's share
6of said benefits .... shall/ .... shall not [check one] be
7recalculated or increased annually to include a proportionate
8share of the applicable annual increases.
9    V. The Retirement System shall pay to the alternate payee
10the indicated amounts of any refund upon termination or any
11lump sum retirement benefit that becomes payable to the member,
12under the following terms and conditions:
13        (A) The Retirement System shall pay the alternate payee
14    pursuant to one of the following methods [complete the ONE
15    option that applies]:
16            (1) $..... [enter amount]; or
17            (2) .....% [enter percentage] of the marital
18        portion of the refund or lump sum retirement benefit,
19        with the marital portion defined using the formula in
20        Section IX; or
21            (3) ......% [enter percentage] of the gross amount
22        of the refund or lump sum retirement benefit,
23        calculated when the member's refund or lump sum
24        retirement benefit is paid.
25        (B) The amount payable to an alternate payee under
26    Section V(A)(2) or V(A)(3) shall include any applicable

 

 

HB2491- 25 -LRB100 07133 EFG 17188 b

1    interest that would otherwise be payable to the member
2    under the rules of the Retirement System.
3        (C) The alternate payee's share of the refund or lump
4    sum retirement benefit under this Section V shall be paid
5    when the member's refund or lump sum retirement benefit is
6    paid.
7    VI. The Retirement System shall pay to the alternate payee
8the indicated amounts of any partial refund that becomes
9payable to the member under the following terms and conditions:
10        (A) The Retirement System shall pay the alternate payee
11    pursuant to one of the following methods [complete the ONE
12    option that applies]:
13            (1) $...... [enter amount]; or
14            (2) ......% [enter percentage] of the marital
15        portion of said benefit, with the marital portion
16        defined using the formula in Section IX; or
17            (3) ......% [enter percentage] of the gross amount
18        of the benefit calculated when the member's refund is
19        paid.
20        (B) The amount payable to an alternate payee under
21    Section VI(A)(2) or VI(A)(3) shall include any applicable
22    interest that would otherwise be payable to the member
23    under the rules of the Retirement System.
24        (C) The alternate payee's share of the refund under
25    this Section VI shall be paid when the member's refund is
26    paid.

 

 

HB2491- 26 -LRB100 07133 EFG 17188 b

1    VII. The Retirement System shall pay to the alternate payee
2the indicated amounts of any death benefits that become payable
3to the member's death benefit beneficiaries or estate under the
4following terms and conditions:
5        (A) To the extent and only to the extent required to
6    effectuate this Section VII, the alternate payee shall be
7    designated as and considered to be a beneficiary of the
8    member at the time of the member's death and shall receive
9    [complete ONE of the following options]:
10            (1) $...... [enter amount]; or
11            (2) ......% [enter percentage] of the marital
12        portion of death benefits, with the marital portion
13        defined using the formula in Section IX; or
14            (3) ......% [enter percentage] of the gross amount
15        of death benefits calculated when said benefits become
16        payable.
17        (B) The amount payable to an alternate payee under
18    Section VII(A)(2) or VII(A)(3) shall include any
19    applicable interest payable to the death benefit
20    beneficiaries under the rules of the Retirement System.
21        (C) The alternate payee's share of death benefits under
22    this Section VII shall be paid as soon as administratively
23    possible after the member's death.
24    VIII. If this Order indicates that the alternate payee is
25to receive a percentage of any retirement benefit or refund,
26upon receipt of the information required to be provided by the

 

 

HB2491- 27 -LRB100 07133 EFG 17188 b

1Retirement System under Section 1-119 of the Illinois Pension
2Code (40 ILCS 5/1-119), the calculations required shall be
3performed by the member, by the alternate payee, or by their
4designated representatives or designated experts. The results
5of the calculations shall be provided to the Retirement System
6via a QILDRO Calculation Court Order in accordance with Section
71-119 of the Illinois Pension Code.
8    IX. Marital Portion Benefit Calculation Formula (Option to
9calculate benefit in items III(A)(2), V(A)(2), VI(A)(2), and
10VII(A)(2) above). If in this Section "other" is circled in the
11definition of A, B, or C, then a supplemental order must be
12entered simultaneously with this QILDRO clarifying the intent
13of the parties or the Court as to that item. The supplemental
14order cannot require the Retirement System to take any action
15not permitted under Illinois law or the Retirement System's
16administrative rules. To the extent that the supplemental order
17does not conform to Illinois law or administrative rule, it
18shall not be binding upon the Retirement System.
19        (1) The amount of the alternate payee's benefit shall
20    be the result of (A/B) x C x D where:
21            "A" equals the number of months of .... regular/
22        .... regular plus permissive/ .... other [check only
23        one] service that the member accumulated in the
24        Retirement System from the date of marriage
25        ....................... [enter date MM/DD/YYYY] to the
26        date of divorce .................... [enter date

 

 

HB2491- 28 -LRB100 07133 EFG 17188 b

1        MM/DD/YYYY]. This number of months of service shall be
2        calculated as whole months after receipt of
3        information required from the Retirement System
4        pursuant to Section 1-119 of the Illinois Pension Code
5        (40 ILCS 5/1-119).
6            "B" equals the number of months of .... regular/
7        .... regular plus permissive/ .... other [check only
8        one] service that the member accumulated in the
9        Retirement System from the time of initial membership
10        in the Retirement System through the member's
11        effective date of retirement. The number of months of
12        service shall be calculated as whole months after
13        receipt of information required from the Retirement
14        System pursuant to Section 1-119 of the Illinois
15        Pension Code (40 ILCS 5/1-119).
16            "C" equals the gross amount of:
17                (i) the member's monthly retirement benefit
18            (Section III(A)) calculated as of the member's
19            effective date of retirement, but using the
20            member's salary on the date this Order is issued if
21            that date is after January 1, 2018, .... including/
22            .... not including/ .... other [check only one]
23            permissive service, upgrades purchased, and other
24            benefit formula enhancements;
25                (ii) the member's refund payable upon
26            termination or lump sum retirement benefit that

 

 

HB2491- 29 -LRB100 07133 EFG 17188 b

1            becomes payable, including any payable interest
2            (Section V(A)) calculated as of the time said
3            refund becomes payable to the member;
4                (iii) the member's partial refund, including
5            any payable interest (Section VI(A)) calculated as
6            of the time said partial refund becomes payable to
7            the member; or
8                (iv) the death benefit payable to the member's
9            death benefit beneficiaries or estate, including
10            any payable interest (Section VII(A)) calculated
11            as of the time said benefit becomes payable to the
12            member's beneficiary;
13        whichever are applicable pursuant to Section III, V,
14        VI, or VII of this Order. These gross amounts shall be
15        provided by the Retirement System pursuant to Section
16        1-119 of the Illinois Pension Code (40 ILCS 5/1-119).
17            "D" equals the percentage noted in Section
18        III(A)(2), V(A)(2), VI(A)(2), or VII(A)(2), whichever
19        are applicable.
20        (2) The alternate payee's benefit under this Section IX
21    shall be paid in accordance with all Sections of this Order
22    that apply.
23    X. In accordance with subsection (j) of Section 1-119 of
24the Illinois Pension Code (40 ILCS 5/1-119), so long as this
25QILDRO is in effect, the member may not elect a form of payment
26of the retirement benefit that has the effect of diminishing

 

 

HB2491- 30 -LRB100 07133 EFG 17188 b

1the amount of the payment to which the alternate payee is
2entitled, unless the alternate payee has consented to the
3election in writing, the consent has been notarized, and the
4consent has been filed with the Retirement System.
5    XI. If the member began participating in the Retirement
6System before July 1, 1999, this Order shall not take effect
7unless accompanied by the written consent of the member as
8required under subsection (m) of Section 1-119 of the Illinois
9Pension Code (40 ILCS 5/1-119).
10    XII. The Court retains jurisdiction over this matter for
11all of the following purposes:
12        (1) To establish or maintain this Order as a Qualified
13    Illinois Domestic Relations Order.
14        (2) To enter amended QILDROs and QILDRO Calculation
15    Court Orders to conform to the parties' Marital Settlement
16    Agreement or Agreement for Legal Separation ("Agreement"),
17    to the parties' Judgment for Dissolution of Marriage or
18    Judgment for Legal Separation ("Judgment"), to any
19    modifications of the parties' Agreement or Judgment, or to
20    any supplemental orders entered to clarify the parties'
21    Agreement or Judgment.
22        (3) To enter supplemental orders to clarify the intent
23    of the parties or the Court regarding the benefits
24    allocated herein in accordance with the parties' Agreement
25    or Judgment, with any modifications of the parties'
26    Agreement or Judgment, or with any supplemental orders

 

 

HB2491- 31 -LRB100 07133 EFG 17188 b

1    entered to clarify the parties' Agreement or Judgment. A
2    supplemental order may not require the Retirement System to
3    take any action not permitted under Illinois law or the
4    Retirement System's administrative rules. To the extent
5    that the supplemental order does not conform to Illinois
6    law or administrative rule, it shall not be binding upon
7    the Retirement System.
 
8    DATED: ......................
 
9    SIGNED: .....................
10            [Judge's Signature]
 
11    (n-5) A QILDRO Calculation Court Order issued under this
12Section shall be in substantially the following form:
 
13
QILDRO Calculation Court Order

 
14...................................
15[Enter case caption here]
16...................................
17[Enter Retirement System name here]
 
18    THIS CAUSE coming before the Court for the purpose of the
19entry of a QILDRO Calculation Court Order under the provisions
20of Section 1-119 of the Illinois Pension Code (40 ILCS

 

 

HB2491- 32 -LRB100 07133 EFG 17188 b

15/1-119), the Court having jurisdiction over the parties and
2the subject matter hereof; the Court finding that a QILDRO has
3previously been entered in this matter, that the QILDRO has
4been received and accepted by the Retirement System, and that
5the QILDRO requires percentage calculations to allocate the
6alternate payee's share of the member's benefit or refund, the
7Court not having found that the QILDRO has become void or
8invalid, and the Court being fully advised;
 
9    IT IS HEREBY ORDERED AS FOLLOWS:
10    (1) The definitions and other provisions of Section 1-119
11of the Illinois Pension Code [40 ILCS 5/1-119] are adopted by
12reference and made a part of this Order.
13    (2) Identification of Retirement System and parties:
 
14Retirement System:              ............................
15                                (Name)
16
17
............................
  
18                                (Address)
 
19Member:                         ............................
20                                (Name)
21
22
............................
  
23                                (Mailing Address)

 

 

HB2491- 33 -LRB100 07133 EFG 17188 b

1
2
............................
  
3                                (Social Security Number)
 
4Alternate payee:                ............................
5                                (Name)
6
7
............................
  
8                                (Mailing Address)
9
10
............................
  
11                                (Social Security Number)
 
12The Alternate payee is the member's .... current or former
13spouse/ .... child or other dependent [check one].
 
14    (3) The following shall apply if and only if the QILDRO
15allocated benefits to the alternate payee in the specific
16Section noted. The Retirement System shall pay the amounts as
17directed below, but only if and when the benefits are payable
18pursuant to the QILDRO and Section 1-119 of the Illinois
19Pension Code (40 ILCS 5/1-119). Parties shall see QILDRO
20Section IX for the definitions of A, B, C and D as used below.
21        (a) The alternate payee's benefit pursuant to QILDRO

 

 

HB2491- 34 -LRB100 07133 EFG 17188 b

1    Section III(A)(2) shall be calculated pursuant to Section
2    IX of the QILDRO and paid as follows:
 
3(......./.......) X ....... X .............. = ............
4[Enter A] [Enter B] [Enter C]    [Enter D]   [Monthly Amount]
 
5        (b) The alternate payee's benefit pursuant to QILDRO
6    Section V(A)(2) shall be calculated pursuant to Section IX
7    of the QILDRO and paid as follows:
 
8(......./.......) X ....... X .............. = ............
9[Enter A] [Enter B] [Enter C]    [Enter D]       [Amount]
 
10        (c) The alternate payee's benefit pursuant to QILDRO
11    Section VI(A)(2) shall be calculated pursuant to Section IX
12    of the QILDRO and paid as follows:
 
13(......./.......)  X ....... X ............. = ............
14[Enter A] [Enter B] [Enter C]    [Enter D]       [Amount]
 
15        (d) The alternate payee's benefit pursuant to QILDRO
16    Section VII(A)(2) shall be calculated pursuant to Section
17    IX of the QILDRO and paid as follows:
 
18(......./.......) X ....... X .............. = ............
19[Enter A] [Enter B] [Enter C]   [Enter D]        [Amount]
 

 

 

HB2491- 35 -LRB100 07133 EFG 17188 b

1The Retirement System's sole obligation with respect to the
2equations in this paragraph (3) is to pay the amounts indicated
3as the result of the equations. The Retirement System shall
4have no obligation to review or verify the equations or to
5assist in the calculations used to determine such amounts.
 
6    (4) The following shall apply only if the QILDRO allocated
7benefits to the alternate payee in the specific Section noted.
8The Retirement System shall pay the amounts as directed below,
9but only if and when the benefits are payable pursuant to the
10QILDRO and Section 1-119 of the Illinois Pension Code (40 ILCS
115/1-119).
12        (A) The alternate payee's benefit pursuant to QILDRO
13    Section III(A)(3) shall be calculated and paid as follows:
 
14.................... X ............... = .................
15[Gross benefit amount]  [Percentage]     [Monthly Amount]
 
16        (B) The alternate payee's benefit pursuant to QILDRO
17    Section V(A)(3) shall be calculated and paid as follows:
 
18..................... X ............... = .................
19[Gross benefit amount]   [Percentage]        [Amount]
 
20        (C) The alternate payee's benefit pursuant to QILDRO

 

 

HB2491- 36 -LRB100 07133 EFG 17188 b

1    Section VI(A)(3) shall be calculated and paid as follows:
 
2..................... X ............... = .................
3[Gross benefit amount]   [Percentage]        [Amount]
 
4        (D) The alternate payee's benefit pursuant to QILDRO
5    Section VII(A)(3) shall be calculated and paid as follows:
 
6..................... X ............... = .................
7[Gross benefit amount]   [Percentage]        [Amount]
 
8The Retirement System's sole obligation with respect to the
9equations in this paragraph (4) is to pay the amounts indicated
10as the result of the equations. The Retirement System shall
11have no obligation to review or verify the equations or to
12assist in the calculations used to determine such amounts.
 
13    (5) The Court retains jurisdiction over this matter for the
14following purposes:
15        (A) to establish or maintain this Order as a QILDRO
16    Calculation Court Order;
17        (B) to enter amended QILDROs and QILDRO Calculation
18    Court Orders to conform to the parties' QILDRO, Marital
19    Settlement Agreement or Agreement for Legal Separation
20    ("Agreement"), to the parties' Judgment for Dissolution of
21    Marriage or Judgment for Legal Separation ("Judgment"), to

 

 

HB2491- 37 -LRB100 07133 EFG 17188 b

1    any modifications of the parties' QILDRO, Agreement, or
2    Judgment, or to any supplemental orders entered to clarify
3    the parties' QILDRO, Agreement, or Judgment; and
4        (C) To enter supplemental orders to clarify the intent
5    of the parties or the Court regarding the benefits
6    allocated herein in accordance with the parties' Agreement
7    or Judgment, with any modifications of the parties'
8    Agreement or Judgment, or with any supplemental orders
9    entered to clarify the parties' Agreement or Judgment. A
10    supplemental order may not require the Retirement System to
11    take any action not permitted under Illinois law or the
12    Retirement System's administrative rules. To the extent
13    the supplemental order does not conform to Illinois law or
14    administrative rule, it shall not be binding upon the
15    Retirement System.
 
16    DATED: ......................
 
17    SIGNED: .....................
18            [Judge's Signature]
 
19    (o) (1) A court in Illinois that has issued a QILDRO shall
20retain jurisdiction of all issues relating to the modification
21of the QILDRO as indicated in Section XII of the QILDRO and in
22accordance with Illinois law. A court in Illinois that has
23issued a QILDRO Calculation Court Order shall retain

 

 

HB2491- 38 -LRB100 07133 EFG 17188 b

1jurisdiction of all issues relating to the modification of the
2QILDRO Calculation Court Order as indicated in Section 5 of the
3QILDRO Calculation Court Order and in accordance with Illinois
4law.
5    (2) The Administrative Review Law and the rules adopted
6pursuant thereto shall govern and apply to all proceedings for
7judicial review of final administrative decisions of the board
8of trustees of the retirement system arising under this
9Section.
10     The term "administrative decision" is defined as in
11Section 3-101 of the Code of Civil Procedure. The venue for
12review under the Administrative Review Law shall be the same as
13is provided by law for judicial review of other administrative
14decisions of the retirement system.
15    (p) (1) Each retirement system may adopt any procedures or
16rules that it deems necessary or useful for the implementation
17of this Section.
18    (2) Each retirement system may by rule modify the model
19QILDRO form provided in subsection (n), except that no
20retirement system may change that form in a way that limits the
21choices provided to the alternate payee in subsections (n) or
22(n-5). Each retirement system may by rule require that
23additional information be included in QILDROs presented to the
24system, as may be necessary to meet the needs of the retirement
25system.
26    (3) Each retirement system shall define its blank model

 

 

HB2491- 39 -LRB100 07133 EFG 17188 b

1QILDRO form and blank model QILDRO Calculation Court Order form
2as an original of the forms or a paper copy of the forms. Each
3retirement system shall, whenever possible, make the forms
4available on the internet in non-modifiable computer format
5(for example, Adobe Portable Document Format files) for
6printing purposes.
7    (4) If a retirement system in good faith implements an
8order under this Section that follows substantially the same
9form as the model order and the retirement system later
10discovers that the implemented order was not absolutely
11identical to the retirement system's model order, the
12retirement system's implementation shall not be a violation of
13this Section and the retirement system shall have no
14responsibility to compensate the member or the alternate payee
15for moneys that would have been paid or not paid had the order
16been identical to the model order.
17(Source: P.A. 93-347, eff. 7-24-03; 94-657, eff. 7-1-06.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.