94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0461


 
Introduced 1/26/2005, by Rep. William B. Black
 
SYNOPSIS AS INTRODUCED:
 		













820 ILCS 405/611
  from Ch. 48, par. 441







    Amends the Unemployment Insurance Act.  Provides that none of the amount
received by an individual as primary social security old age and disability
retirement benefits shall constitute disqualifying income.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB0461

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    AN ACT concerning unemployment insurance. 

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


 
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    Section 5. The Unemployment Insurance Act is amended by 
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changing
Section 611 as follows:


 
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    (820 ILCS 405/611)  (from Ch. 48, par. 441)

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    Sec. 611. Retirement pay.  A. For the purposes of this 
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Section
"disqualifying income" means:


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    1.  The entire amount which an individual has received or 
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will
receive with respect to a week in the form of a retirement 
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payment (a)
from an individual or organization (i) for which he

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performed services during his base period or which is liable 
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for benefit
charges or payments in lieu of contributions as a 
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result of the payment of
benefits to such individual and (ii) 
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which pays
all of the cost of such retirement payment, or (b) 
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from a trust, annuity
or insurance fund or under an annuity or 
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insurance contract, to or under
which an individual or 
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organization for which he
performed services during his base 
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period or which is liable for benefit
charges or payments in 
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lieu of contributions as a result of the payment of
benefits to 
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such individual pays or has paid
all of the premiums or 
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contributions; and


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    2. One-half the amount which an individual has received or 
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will
receive with respect to a week in the form of a retirement 
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payment (a)
from an individual or organization (i) for which he

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performed services during his base period or which is liable 
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for benefit
charges or payments in lieu of contributions as a 
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result of the payment of
benefits to such individual and (ii) 
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which pays
some, but not all, of the cost of such retirement 
30
payment, or (b) from a
trust, annuity or insurance fund 
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(including primary social security old
age and disability 
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retirement benefits, including those based on
self-employment) 
 


 






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or under an annuity or insurance
contract, to or under which an 
2
individual or organization for which he
performed
services 
3
during his base period or which is liable for benefit charges 
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or
payments in lieu of contributions as a result of the payment 
5
of benefits to
such individual pays or has paid some, but not 
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all, of the premiums or
contributions.


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    2.1. Notwithstanding paragraphs 1 and 2 above, because the 
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individual
contributed to the cost of the benefits, none of the 
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amount which an individual
has received or will receive with 
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respect to a week in the form of primary
social security old 
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age and disability retirement benefits, including those
based 
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on self-employment, shall constitute disqualifying income.


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    3. Notwithstanding paragraphs
paragraph 1, 2 and 2.1
2

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above, the
entire amount which an individual has received or 
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will
receive, with respect to any week which begins after March 
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31, 1980, of
any governmental or other pension, retirement, or 
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retired pay, annuity
or any other similar periodic payment 
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which is based on any previous work
of such individual during 
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his base period or which is liable for benefit
charges or 
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payments in lieu of contributions as a result of the payment of

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benefits to such individual. This paragraph shall be in effect 
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only if it is
required as a condition for full tax credit 
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against the tax imposed by
the Federal Unemployment Tax Act.


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    B. Whenever an individual has received or will receive a 
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retirement
payment for a month, an amount shall be deemed to 
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have been paid him for
each day equal to one-thirtieth of such 
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retirement payment. If the
retirement payment is for a 
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half-month, an amount shall be deemed to
have been paid the 
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individual for each day equal to one-fifteenth of
such 
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retirement payment. If the retirement payment is for any other

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period, an amount shall be deemed to have been paid the 
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individual for
each day in such period equal to the retirement 
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payment divided by the
number of days in the period.


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    C. An individual shall be ineligible for benefits for any 
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week with
respect to which his disqualifying income equals or 
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exceeds his weekly
benefit amount. If such disqualifying income 
 


 






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with respect to a week
totals less than the benefits for which 
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he would otherwise be eligible
under this Act, he shall be 
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paid, with respect to such week, benefits
reduced by the amount 
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of such disqualifying income.


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    D. To assure full tax credit to the employers of this State 
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against
the tax imposed by the Federal Unemployment Tax Act, 
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the Director shall
take any action as may be necessary in the 
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administration of paragraph 3
of subsection A of this Section 
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to insure that
the application of its provisions
conform to the 
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requirements of such Federal Act as interpreted by the United

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States Secretary of Labor or other appropriate Federal agency.


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(Source: P.A. 86-3.)