Personnel and Pensions Committee
Filed: 4/17/2007
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 377




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    AMENDMENT NO. ______. Amend Senate Bill 377, on page l, 
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line 4, after "amended", by inserting "by adding Sections 
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9-134.5 and 10-104.5 and"; and

 
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on page 1, immediately below line 5, by inserting the 
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following:
 
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    "(40 ILCS 5/9-134.5  new)
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    Sec. 9-134.5. Alternative retirement cancellation payment.
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    (a) To be eligible for the alternative retirement 
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cancellation payment provided in this Section, a person must:
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        (1) be a member of this Fund who, on December 31, 2006, 
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    was (i) in active payroll status as an employee and 
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    continuously employed in a position on and after April 15, 
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    2007 and (ii) an active contributor to this Fund with 
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    respect to that employment;
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        (2) have not previously received any retirement 
 


 






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    annuity under this Article;
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        (3) file with the Board on or before 45 days after the 
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    effective date of this Section, a written application 
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    requesting the alternative retirement cancellation payment 
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    provided in this Section;

        (4) terminate employment under 
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    this Article no later than 60 days after the effective date 
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    of this Section.
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        (4) if there is a QILDRO in effect against the person, 
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    file with the Board the written consent of all alternate 
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    payees under the QILDRO to the election of an alternative 
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    retirement cancellation payment under this Section; and

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    (b) In lieu of any retirement annuity or other benefit 
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provided under this Article, a person who qualifies for and 
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elects to receive the alternative retirement cancellation 
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payment under this Section shall be entitled to receive a 
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one-time lump sum retirement cancellation payment equal to the 
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amount of his or her contributions to the Fund (including any 
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employee contributions for optional service credit and 
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including any employee contributions paid by the employer or 
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credited to the employee during disability) on the date of 
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termination, with regular interest, multiplied by 1.5.
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    (c) Notwithstanding any other provision of this Article, a 
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person who receives an alternative retirement cancellation 
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payment under this Section thereby forfeits the right to any 
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other retirement or disability benefit or refund under this 
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Article, and no widow's, survivor's, or death benefit deriving 
 


 






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from that person shall be payable under this Article. Upon 
2
accepting an alternative retirement cancellation payment under 
3
this Section, the person's creditable service and all other 
4
rights in the Fund are terminated for all purposes.
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    (d) To the extent permitted by federal law, a person who 
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receives an alternative retirement cancellation payment under 
7
this Section may direct the Fund to pay all or a portion of 
8
that payment as a rollover into another retirement plan or 
9
account qualified under the Internal Revenue Code of 1986, as 
10
amended.
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    (e) Notwithstanding any other provision of this Article, a 
12
person who has received an alternative retirement cancellation 
13
payment under this Section and who reenters service under this 
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Article must first repay to the Fund the amount by which that 
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alternative retirement cancellation payment exceeded the 
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amount of his or her refundable employee contributions with 
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interest at 6% per annum. For the purposes of re-establishing 
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creditable service that was terminated upon election of the 
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alternative retirement cancellation payment, the portion of 
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the alternative retirement cancellation payment representing 
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refundable employee contributions shall be deemed a refund 
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repayable in accordance with Section 9-163.
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    (f) No individual who receives an alternative retirement 
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cancellation payment under this Section may return to active 
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payroll status within 365 days after separation from service to 
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the employer.
 
 


 






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    (40 ILCS 5/10-104.5  new)
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    Sec. 10-104.5. Alternative retirement cancellation 
3
payment.
4
    (a) To be eligible for the alternative retirement 
5
cancellation payment provided in this Section, a person must:
6
        (1) be a member of this Fund who, on December 31, 2006, 
7
    was (i) in active payroll status as an employee and 
8
    continuously employed in a position on and after April 15, 
9
    2007 and (ii) an active contributor to this Fund with 
10
    respect to that employment;
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        (2) have not previously received any retirement 
12
    annuity under this Article;
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        (3) file with the Board on or before 45 days after the 
14
    effective date of this Section, a written application 
15
    requesting the alternative retirement cancellation payment 
16
    provided in this Section;

        (4) terminate employment under 
17
    this Article no later than 60 days after the effective date 
18
    of this Section.
19
        (4) if there is a QILDRO in effect against the person, 
20
    file with the Board the written consent of all alternate 
21
    payees under the QILDRO to the election of an alternative 
22
    retirement cancellation payment under this Section; and

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    (b) In lieu of any retirement annuity or other benefit 
24
provided under this Article, a person who qualifies for and 
25
elects to receive the alternative retirement cancellation 
 


 






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payment under this Section shall be entitled to receive a 
2
one-time lump sum retirement cancellation payment equal to the 
3
amount of his or her contributions to the Fund (including any 
4
employee contributions for optional service credit and 
5
including any employee contributions paid by the employer or 
6
credited to the employee during disability) on the date of 
7
termination, with regular interest, multiplied by 1.5.
8
    (c) Notwithstanding any other provision of this Article, a 
9
person who receives an alternative retirement cancellation 
10
payment under this Section thereby forfeits the right to any 
11
other retirement or disability benefit or refund under this 
12
Article, and no widow's, survivor's, or death benefit deriving 
13
from that person shall be payable under this Article. Upon 
14
accepting an alternative retirement cancellation payment under 
15
this Section, the person's creditable service and all other 
16
rights in the Fund are terminated for all purposes.
17
    (d) To the extent permitted by federal law, a person who 
18
receives an alternative retirement cancellation payment under 
19
this Section may direct the Fund to pay all or a portion of 
20
that payment as a rollover into another retirement plan or 
21
account qualified under the Internal Revenue Code of 1986, as 
22
amended.
23
    (e) Notwithstanding any other provision of this Article, a 
24
person who has received an alternative retirement cancellation 
25
payment under this Section and who reenters service under this 
26
Article must first repay to the Fund the amount by which that 
 


 






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alternative retirement cancellation payment exceeded the 
2
amount of his or her refundable employee contributions with 
3
interest of 6% per annum. For the purposes of re-establishing 
4
creditable service that was terminated upon election of the 
5
alternative retirement cancellation payment, the portion of 
6
the alternative retirement cancellation payment representing 
7
refundable employee contributions shall be deemed a refund 
8
repayable together with interest at the effective rate from the 
9
application date of such refund to the date of repayment.
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    (f) No individual who receives an alternative retirement 
11
cancellation payment under this Section may return to active 
12
payroll status within 365 days after separation from service to 
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the employer."; and
 
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on page 7, immediately below line 23, by inserting the 
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following:
 
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    "Section 90. The State Mandates Act is amended by adding 
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Section 8.31 as follows:
 
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    (30 ILCS 805/8.31 new)
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    Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 
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of this Act, no reimbursement by the State is required for the 
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implementation of any mandate created by this amendatory Act of 
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the 95th General Assembly.".