HB1334eng 99TH GENERAL ASSEMBLY

HB1334 Engrossed LRB099 06219 RPS 26284 b

AN ACT concerning public employee benefits, which may also be referred to as the Retirement Means Retirement Act.

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 changing Sections 3-124.1, 4-117, 5-159, and 6-156 as follows:

(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)

Sec. 3-124.1. Re-entry into active service.

(a) If a police officer who is receiving pension payments other than as provided in Section 3-109.3 re-enters active service, pension payment shall be suspended while he or she is in service. When he or she again retires, pension payments shall be resumed. If the police officer remains in service after re-entry for a period of less than 5 years, the pension shall be the same as upon first retirement. If the officer's service after re-entry is at least 5 years and the officer makes the required contributions during the period of re-entry, his or her pension shall be recomputed by taking into account the additional period of service and salary.

(b) If a person who first entered service under this Article after January 1, 2017 is receiving pension payments (other than as provided in Section 3-109.3) and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, he or she shall immediately notify the pension fund that is making those pension payments of his or her participation or membership under a system or fund created by this Code and the pension payments shall be suspended while the person is employed full-time. The suspension shall end upon termination of that full-time employment.

(Source: P.A. 91-939, eff. 2-1-01.)

(40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)

Sec. 4-117. Reentry into active service.

(a) If a firefighter receiving pension payments reenters active service, pension payments shall be suspended while he or she is in service. If the firefighter again retires or is discharged, his or her monthly pension shall be resumed in the same amount as was paid upon first retirement or discharge unless he or she remained in active service 3 or more years after re-entry in which case the monthly pension shall be based on the salary attached to the firefighter's rank at the date of last retirement.

(b) If a deferred pensioner re-enters active service, and again retires or is discharged from the fire service, his or her pension shall be based on the salary attached to the rank held in the fire service at the date of earlier retirement, unless the firefighter remains in active service for 3 or more years after re-entry, in which case the monthly pension shall be based on the salary attached to the firefighter's rank at the date of last retirement.

(c) If a pensioner or deferred pensioner re-enters or is recalled to active service and is thereafter injured, and the injury is not related to an injury for which he or she was previously receiving a disability pension, the 3 year service requirement shall not apply in order for the firefighter to qualify for the increased pension based on the rate of pay at the time of the new injury.

(d) If a person who first entered service under this Article after January 1, 2017 is receiving pension payments and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, he or she shall immediately notify the pension fund that is making those pension payments and the pension payments shall be suspended while that person is employed full-time. The suspension shall end upon termination of that full-time employment.

(Source: P.A. 83-1440.)

(40 ILCS 5/5-159) (from Ch. 108 1/2, par. 5-159)

Sec. 5-159. Re-entry of pensioner or annuitant into service.

(a) When a policeman who has withdrawn after the effective date re-enters service, any annuity previously granted to him and any annuity fixed for his wife shall be cancelled. The policeman shall be credited for annuity purposes with sums sufficient to provide annuities equal to those cancelled for him and his wife, as of their respective ages on the date of re-entrance into service.

Deductions from salary and contributions by the city for all purposes of this Article shall be made, and upon subsequent retirement new annuities based upon the amount then to his credit for annuity purposes and the entire term of his service shall be fixed for the policeman and his wife.

If such policeman's wife, for whom annuity has been fixed prior to his re-entrance into service, has died or her marriage to such policeman has been dissolved or declared invalid before he re-entered service, no part, of any sum or sums to the credit of such policeman for widow's annuity or for widow's prior service annuity at the time annuity for such wife was fixed shall be credited to such policeman at the time of re-entry. No part of any such sum or sums shall be used to provide annuity for any wife of such policeman who is his wife at any time after his re-entry into service unless she was his wife at the time of his withdrawal.

However, the payment of the pension or annuity shall continue if re-entry into service is for the purpose of serving on a part time basis as a street crossing guard.

(b) If a person who first entered service under this Article after January 1, 2017 is receiving pension or annuity payments and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, he or she shall immediately notify the Fund and the pension or annuity payments shall be suspended while that person is employed full-time. The suspension shall end upon termination of that full-time employment.

(Source: P.A. 86-272.)

(40 ILCS 5/6-156) (from Ch. 108 1/2, par. 6-156)

Sec. 6-156. Re-entry of pensioner or annuitant into service.

(a) When a fireman who has withdrawn after the effective date re-enters the service before age 63, any annuity previously granted to him and any annuity fixed for his wife shall be cancelled. The fireman shall be credited with the actuarial value of the annuities cancelled for him and his wife as of their respective ages on the date of his re-entry into service; provided, that for present employees and future entrants who entered service prior to July 1, 1953, the maximum age of a wife for this purpose shall not be more than 5 years less than his age, and for future entrants who entered service after June 30, 1953, the age, for annuity purposes, of a wife who is older than her husband shall be assumed to be equal to his age. Such sums shall be credited to the fireman to provide for annuities in the future.

Deductions from salary and contributions by the city for all purposes of this Article shall be made as provided herein, and upon subsequent retirement, new annuities based upon the amount then to his credit for annuity purposes and the entire term of his service shall be fixed for him and his wife.

If such fireman's wife, for whom annuity has been fixed prior to his re-entrance into service, has died, or the marriage was dissolved before he re-entered service, no part of any sum or sums to the credit of such fireman for widow's prior service annuity at the time annuity for such wife was fixed shall be credited to such fireman at the time of re-entry. No part of any such sum or sums shall be used to provide annuity for any wife of such fireman who is his wife at any time after his re-entry into service.

(b) If a fireman re-enters service after age 63, payments of pension or annuity previously granted shall be suspended. When he again withdraws, payments upon such pension or annuity shall be resumed. If the fireman dies in service, his widow shall receive the annuity previously fixed for her.

(c) If a person who first entered service under this Article after January 1, 2017 is receiving pension or annuity payments and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, he or she shall immediately notify the Fund and the pension or annuity payments shall be suspended while that person is employed full-time. The suspension shall end upon termination of that full-time employment.

(Source: P.A. 81-1536.)

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