101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3054

 

Introduced , by Rep. Jaime M. Andrade, Jr.

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-144  from Ch. 108 1/2, par. 7-144
30 ILCS 805/8.43 new

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that a participating municipality or participating instrumentality that (i) employs or re-employs an annuitant who must be considered a participating employee under specified provisions or whose age enhancement and creditable service under an early retirement program is subject to forfeiture (currently, an annuitant who must be considered a participating employee under specified provisions) and (ii) knowingly fails to notify the Board to suspend the annuity may be required to reimburse the Fund for an amount up to the total (instead of one-half of the total) of any annuity payments made to the annuitant after the date the annuity should have been suspended. Amends the State Mandates Act to require implementation without reimbursement.


LRB101 09915 RPS 55017 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3054LRB101 09915 RPS 55017 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 7-144 as follows:
 
6    (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
7    Sec. 7-144. Retirement annuities - suspended during
8employment.
9    (a) If any person receiving any annuity again becomes an
10employee and receives earnings from employment in a position
11requiring him, or entitling him to elect, to become a
12participating employee, then the annuity payable to such
13employee shall be suspended as of the 1st day of the month
14coincidental with or next following the date upon which such
15person becomes such an employee, unless the person is
16authorized under subsection (b) of Section 7-137.1 of this Code
17to continue receiving a retirement annuity during that period.
18Upon proper qualification of the participating employee
19payment of such annuity may be resumed on the 1st day of the
20month following such qualification and upon proper application
21therefor. The participating employee in such case shall be
22entitled to a supplemental annuity arising from service and
23credits earned subsequent to such re-entry as a participating

 

 

HB3054- 2 -LRB101 09915 RPS 55017 b

1employee.
2    Notwithstanding any other provision of this Article, an
3annuitant shall be considered a participating employee if he or
4she returns to work as an employee with a participating
5employer and works more than 599 hours annually (or 999 hours
6annually with a participating employer that has adopted a
7resolution pursuant to subsection (e) of Section 7-137 of this
8Code). Each of these annual periods shall commence on the month
9and day upon which the annuitant is first employed with the
10participating employer following the effective date of the
11annuity.
12    (a-5) If any annuitant under this Article must be
13considered a participating employee per the provisions of
14subsection (a) of this Section or if the annuitant's age
15enhancement and creditable service under Section 7-141.1 is
16subject to forfeiture under subsection (g) of Section 7-141.1,
17and the participating municipality or participating
18instrumentality that employs or re-employs that annuitant
19knowingly fails to notify the Board to suspend the annuity, the
20participating municipality or participating instrumentality
21may be required to reimburse the Fund for an amount up to
22one-half of the total of any annuity payments made to the
23annuitant after the date the annuity should have been
24suspended, as determined by the Board. In no case shall the
25total amount repaid by the annuitant plus any amount reimbursed
26by the employer to the Fund be more than the total of all

 

 

HB3054- 3 -LRB101 09915 RPS 55017 b

1annuity payments made to the annuitant after the date the
2annuity should have been suspended. This subsection shall not
3apply if the annuitant returned to work for the employer for
4less than 12 months.
5    The Fund shall notify all annuitants that they must notify
6the Fund immediately if they return to work for any
7participating employer. The notification by the Fund shall
8occur upon retirement and no less than annually thereafter in a
9format determined by the Fund. The Fund shall also develop and
10maintain a system to track annuitants who have returned to work
11and notify the participating employer and annuitant at least
12annually of the limitations on returning to work under this
13Section.
14    (b) Supplemental annuities to persons who return to service
15for less than 48 months shall be computed under the provisions
16of Sections 7-141, 7-142 and 7-143. In determining whether an
17employee is eligible for an annuity which requires a minimum
18period of service, his entire period of service shall be taken
19into consideration but the supplemental annuity shall be based
20on earnings and service in the supplemental period only. The
21effective date of the suspended and supplemental annuity for
22the purpose of increases after retirement shall be considered
23to be the effective date of the suspended annuity.
24    (c) Supplemental annuities to persons who return to service
25for 48 months or more shall be a monthly amount determined as
26follows:

 

 

HB3054- 4 -LRB101 09915 RPS 55017 b

1        (1) An amount shall be computed under subparagraph b of
2    paragraph (1) of subsection (a) of Section 7-142,
3    considering all of the service credits of the employee;
4        (2) The actuarial value in monthly payments for life of
5    the annuity payments made before suspension shall be
6    determined and subtracted from the amount determined in (1)
7    above;
8        (3) The monthly amount of the suspended annuity, with
9    any applicable increases after retirement computed from
10    the effective date to the date of reinstatement, shall be
11    subtracted from the amount determined in (2) above and the
12    remainder shall be the amount of the supplemental annuity
13    provided that this amount shall not be less than the amount
14    computed under subsection (b) of this Section.
15        (4) The suspended annuity shall be reinstated at an
16    amount including any increases after retirement from the
17    effective date to date of reinstatement.
18        (5) The effective date of the combined suspended and
19    supplemental annuities for the purposes of increases after
20    retirement shall be considered to be the effective date of
21    the supplemental annuity.
22(Source: P.A. 98-389, eff. 8-16-13; 99-745, eff. 8-5-16.)
 
23    Section 90. The State Mandates Act is amended by adding
24Section 8.43 as follows:
 

 

 

HB3054- 5 -LRB101 09915 RPS 55017 b

1    (30 ILCS 805/8.43 new)
2    Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 101st General Assembly.