93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6590


 
Introduced 02/09/04, by Bill Mitchell
 
SYNOPSIS AS INTRODUCED:
 		













40 ILCS 5/7-137.1
  from Ch. 108 1/2, par. 7-137.1







    Amends the Municipal Retirement Fund (IMRF) Article of the Pension Code to
allow appointed sanitary district trustees to elect to cease participating in
the Fund with respect to that office.  Allows nonparticipating trustees to
receive a retirement annuity from the Fund while still serving as trustees.
Effective immediately.
















LRB093 15013 LRD 40584 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB6590

LRB093 15013 LRD 40584 b






1
    AN ACT in relation to 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
Section
7-137.1 as follows:


 
6
    (40 ILCS 5/7-137.1)  (from Ch. 108 1/2, par. 7-137.1)

7
    Sec. 7-137.1. Elected officials and appointed sanitary 
8
district
trustees.


9
    (a) A person holding an elective office who has elected
to 
10
participate in the Fund while in that office may revoke that 
11
election
and cease participating in the Fund by notifying the 
12
Board in writing
before January 1, 1992.


13
    Upon such revocation, the person shall forfeit all 
14
creditable service
earned while holding that office, and the 
15
Board shall refund to the person,
without interest, all 
16
employee contributions paid for the forfeited
creditable 
17
service.  The Board shall also refund or credit to the employing

18
municipality, without interest, the employer contributions 
19
relating to the
forfeited service, except those for death and 
20
disability.


21
    (b) Notwithstanding the provisions of Sections 7-141 and 
22
7-144,
beginning January 1, 1992, a person who holds an 
23
elective office and has
not elected to participate in the Fund 
24
with respect to that office (or has
revoked his election to 
25
participate with respect to that office under
subsection (a) of 
26
this Section) shall not be disqualified from receiving a

27
retirement annuity by reason of holding such office, provided 
28
that the
annuity is not based on any credits received for 
29
participating while
holding that office.


30
    (c) An appointed sanitary district trustee may elect, at 
31
any time while
holding that office, to cease participating in 
32
the Fund with respect to that
office.

 


 






HB6590
- 2 -
LRB093 15013 LRD 40584 b




1
    Upon making that election, the trustee shall forfeit all 
2
creditable service
earned for holding that office, and the 
3
Board shall refund to the trustee,
without interest, all 
4
employee contributions paid for the forfeited creditable

5
service.  The Board shall also refund or credit to the employing 
6
municipality,
without interest, the employer contributions 
7
relating to the forfeited service,
except those for death and 
8
disability.

9
    Notwithstanding the provisions of Sections 7-141 and 
10
7-144, an appointed
sanitary district trustee who has elected 
11
to cease participating in the Fund
with respect to that office 
12
shall not be disqualified from receiving a
retirement annuity 
13
by reason of holding that office, provided that the annuity
is 
14
not
based on any credits received for service in that office.


15
(Source: P.A. 87-740.)


 
16
    Section 99. Effective date. This Act takes effect upon 
17
becoming law.