97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1764

 

Introduced , by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/8-139  from Ch. 108 1/2, par. 8-139
30 ILCS 805/8.35 new

    Amends the Chicago Municipal Article of the Illinois Pension Code. Allows an employee annuitant who has elected the reversionary annuity to cancel the election. Prohibits the option for a reversionary annuity if the reversionary annuity (was a reversionary annuity of a widow), when added to the widow's annuity payable under the Article, exceeds 100% of the reduced annuity payable to the employee. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB097 07291 JDS 47400 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB1764LRB097 07291 JDS 47400 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 8-139 as follows:
 
6    (40 ILCS 5/8-139)  (from Ch. 108 1/2, par. 8-139)
7    Sec. 8-139. Reversionary annuity.
8    (a) An employee, prior to retirement on annuity, may elect
9to take a lesser amount of annuity and provide, with the
10actuarial value of the amount by which his annuity is reduced,
11a reversionary annuity for a wife, husband, parent, child,
12brother or sister. The option shall be exercised by filing a
13written designation with the board prior to retirement, and may
14be revoked by the employee at any time before retirement. The
15death of the employee prior to his retirement shall
16automatically void the option.
17    (b) The death of the designated reversionary annuitant
18prior to the employee's retirement shall automatically void the
19option. If the reversionary annuitant dies after the employee's
20retirement, and before the death of the employee annuitant, the
21reduced annuity being paid to the retired employee annuitant
22shall be increased to the amount of annuity before reduction
23for the reversionary annuity and no reversionary annuity shall

 

 

HB1764- 2 -LRB097 07291 JDS 47400 b

1be payable.
2    The option is subject to the further condition that no
3reversionary annuity shall be paid to a parent, child, brother,
4or sister if the employee dies before the expiration of 365
5days from the date his written designation was filed with the
6board, even though he has retired and is receiving a reduced
7annuity.
8    (c) The employee exercising this option shall not reduce
9his retirement annuity by more than $400 a month, or elect to
10provide a reversionary annuity of less than $50 per month. No
11option shall be permitted if the reversionary annuity for a
12widow, when added to the widow's annuity payable under this
13Article, exceeds 100% of the reduced annuity payable to the
14employee.
15    (d) A reversionary annuity shall begin on the day following
16the death of the annuitant and shall be paid as provided in
17Section 8-125.
18    (e) The increases in annuity provided in Section 8-137 of
19this Article shall, as to an employee so electing a reduced
20annuity relate to the amount of the original annuity, and such
21amount shall constitute the annuity on which such automatic
22increases shall be based.
23    (f) For annuities elected after June 30, 1983, the amount
24of the monthly reversionary annuity shall be determined by
25multiplying the amount of the monthly reduction in the
26employee's annuity by the factor in the following table based

 

 

HB1764- 3 -LRB097 07291 JDS 47400 b

1on the age of the employee and the difference in the age of the
2employee and the age of the reversionary annuitant at the
3starting date of the employee's annuity:
4Employee's Age
5Reversionary
6Annuitant's
7Age50-5152-5455-5758-6061-6364-6667-6970 &
8Over
930 or
10more
11years
12younger3.032.562.181.841.551.291.080.91
1325-29
14years
15younger3.162.682.291.941.631.371.150.97
1620-24
17years
18younger3.352.852.442.071.751.481.251.06
1915-19
20years
21younger3.603.082.652.261.921.631.391.19
2210-14
23years
24younger3.963.402.942.532.161.851.591.37
255-9
26years

 

 

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1younger4.463.843.352.902.512.161.881.64
20-4
3years
4younger5.154.473.933.443.002.612.292.02
51-5
6years
7older6.125.364.764.213.713.262.882.56
86-10
9years
10older7.486.615.935.304.714.163.703.29
1111-15
12years
13older9.378.357.586.836.115.404.824.32
1416-20
15years
16older11.9910.789.848.938.027.136.435.87
1721-25
18years
19older15.5914.0612.9111.8210.739.668.888.35
2026-30
21years
22older20.4218.4917.1515.9614.8013.6512.9712.82
2331 or
24more
25years
26older27.0724.7223.3422.3221.4520.6220.8523.28

 

 

HB1764- 5 -LRB097 07291 JDS 47400 b

1    (g) Beginning on the effective date of this amendatory Act
2of the 97th General Assembly, an employee annuitant who has
3elected the reversionary annuity may cancel the election. The
4cancellation must be in writing with the employee's signature
5notarized. The cancellation shall be effective upon its being
6filed with the Board and may not be revoked after it is
7executed and filed. The reduction in annuity shall be restored
8with the first annuity payment made at least 30 days after the
9receipt of the cancellation by the Fund. There shall be no
10refund of money previously deducted from the employee's annuity
11to provide the reversionary annuity.
12(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98;
1391-887, eff. 7-6-00.)
 
14    Section 90. The State Mandates Act is amended by adding
15Section 8.35 as follows:
 
16    (30 ILCS 805/8.35 new)
17    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
18of this Act, no reimbursement by the State is required for the
19implementation of any mandate created by this amendatory Act of
20the 97th General Assembly.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.