HB4588 101ST GENERAL ASSEMBLY

LRB101 18379 RPS 67826 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4588

Introduced 2/5/2020, by Rep. Margo McDermed

SYNOPSIS AS INTRODUCED:

40 ILCS 5/16-121.5 new

Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that "gainful employment" means employment from which a member realizes earned income, as that term is defined in a provision of the Internal Revenue Code, in excess of $20,000 in any calendar year, unreduced by contributions to a tax-deferred retirement plan account authorized by the Internal Revenue Code, or the pro rata share of $20,000 if less than a calendar year, while in receipt of a disability or occupational disability benefit. Provides that the $20,000 referred to in the definition of "gainful employment" shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by adding Section 16-121.5 as follows:

(40 ILCS 5/16-121.5 new)

Sec. 16-121.5. Gainful employment. "Gainful employment": Employment from which a member realizes earned income, as that term is defined in Section 32(c)(2) of the Internal Revenue Code, in excess of $20,000 in any calendar year, unreduced by contributions to a tax-deferred retirement plan account authorized by the Internal Revenue Code, or the pro rata share of $20,000 if less than a calendar year, while in receipt of a disability or occupational disability benefit. However, the $20,000 referred to in this definition shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.

For the purposes of this definition, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year.

Section 99. Effective date. This Act takes effect upon becoming law.