Illinois General Assembly - Full Text of HB4108
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Full Text of HB4108  97th General Assembly




State of Illinois
2011 and 2012


Introduced , by Rep. Daniel J. Burke


40 ILCS 5/13-310  from Ch. 108 1/2, par. 13-310
40 ILCS 5/13-601  from Ch. 108 1/2, par. 13-601

    Amends the Metropolitan Water Reclamation District (MWRD) Article of the Illinois Pension Code. Provides that an employee who first enters service on or after January 1, 2013 and becomes disabled shall, on and after the 31st day of disability, be entitled to ordinary disability benefits during the remainder of that disability, provided all sick leave is exhausted. Provides that if employee contributions (including interest to the date of withdrawal) in the account of an employee who enters service on or after January 1, 2013 have not, before his or her death and the death of his or her spouse, been paid as a retirement, spouse's, or child's annuity, then a refund shall be paid in an amount equal to the excess of the contributions over the amounts paid on those annuities. Specifies that if there are surviving children of the employee or annuitant who are eligible for a child's annuity, then that refund may not be paid until the youngest eligible child reaches age 23.

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HB4108LRB097 16953 EFG 62142 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
5Sections 13-310 and 13-601 as follows:
6    (40 ILCS 5/13-310)  (from Ch. 108 1/2, par. 13-310)
7    Sec. 13-310. Ordinary disability benefit.
8    (a) Any employee who becomes disabled as the result of any
9cause other than injury or illness incurred in the performance
10of duty for the employer or any other employer, or while
11engaged in self-employment activities, shall be entitled to an
12ordinary disability benefit, provided all sick leave is
13exhausted. The eligible period for this benefit shall be 25% of
14the employee's total actual service prior to the date of
15disability with a cumulative maximum period of 5 years.
16    (b) The benefit shall be allowed only if the employee files
17an application in writing with the Board, and a medical report
18is submitted by at least one licensed and practicing physician
19as part of the employee's application.
20    The benefit is not payable for any disability which begins
21during any period of unpaid leave of absence. No benefit shall
22be allowed for any period of disability prior to 30 days before
23application is made, unless the Board finds good cause for the



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1delay in filing the application. The benefit shall not be paid
2during any period for which the employee receives or is
3entitled to receive any part of salary.
4    The benefit is not payable for any disability which begins
5during any period of absence from duty other than allowable
6vacation time in any calendar year. An employee whose
7disability begins during any such ineligible period of absence
8from service may not receive benefits until the employee
9recovers from the disability and is in service for at least 15
10consecutive working days after such recovery.
11    (b-1) In the case of an employee who first enters service
12on or after June 13, 1997, an ordinary disability benefit is
13not payable for the first 3 days of disability that would
14otherwise be payable under this Section if the disability does
15not continue for at least 11 additional days.
16    (b-2) Beginning on August 18, 2005 (the effective date of
17Public Act 94-621) this amendatory Act of the 94th General
18Assembly, an employee who first entered service on or after
19June 13, 1997 and becomes disabled on or after August 18, 2005
20is also eligible for ordinary disability benefits on the 31st
21day after the last day worked, provided all sick leave is
23    (b-3) An employee who first enters service on or after
24January 1, 2013 and becomes disabled shall, on and after the
2531st day of disability, be entitled to ordinary disability
26benefits during the remainder of that disability.



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1    (c) The benefit shall be 50% of the employee's salary at
2the date of disability, and shall terminate when the earliest
3of the following occurs:
4        (1) The employee returns to work or receives a
5    retirement annuity paid wholly or in part under this
6    Article;
7        (2) The disability ceases;
8        (3) The employee willfully and continuously refuses to
9    follow medical advice and treatment to enable the employee
10    to return to work. However this provision does not apply to
11    an employee who relies in good faith on treatment by prayer
12    through spiritual means alone in accordance with the tenets
13    and practice of a recognized church or religious
14    denomination, by a duly accredited practitioner thereof;
15        (4) The employee (i) refuses to submit to a reasonable
16    physical examination within 30 days of application by a
17    physician appointed by the Board, (ii) in the case of
18    chronic alcoholism, the employee refuses to join a
19    rehabilitation program licensed by the Department of
20    Public Health of the State of Illinois and certified by the
21    Joint Commission on the Accreditation of Hospitals, (iii)
22    fails or refuses to consent to and sign an authorization
23    allowing the Board to receive copies of or to examine the
24    employee's medical and hospital records, or (iv) fails or
25    refuses to provide complete information regarding any
26    other employment for compensation he or she has received



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1    since becoming disabled; or
2        (5) The eligible period for this benefit has been
3    exhausted.
4    Effective January 1, 2013, the The first payment of the
5benefit shall be made not later than one month after the
6benefit is same has been granted, and each subsequent payment
7payments shall be made monthly at intervals of not more than 30
9(Source: P.A. 94-621, eff. 8-18-05.)
10    (40 ILCS 5/13-601)  (from Ch. 108 1/2, par. 13-601)
11    Sec. 13-601. Refunds.
12    (a) Withdrawal from service. Upon withdrawal from service,
13an employee who first became a member before January 1, 2011,
14who is under age 55 (age 50 if the employee first entered
15service before June 13, 1997), or an employee age 55 (age 50 if
16the employee first entered service before June 13, 1997) or
17over but less than age 60 having less than 20 years of service,
18or an employee age 60 or over having less than 5 years of
19service shall be entitled, upon application, to a refund of
20total contributions from salary deductions or amounts
21otherwise paid under this Article by the employee. An employee
22who first becomes a member on or after January 1, 2011, who
23withdraws before age 62 regardless of length of service, or who
24withdraws with less than 10 years of service regardless of age
25is entitled to a refund of total contributions from salary



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1deductions or amounts otherwise paid under this Article by the
2employee. The refund shall not include interest credited to the
3contributions. The Board may, in its discretion, withhold
4payment of a refund for a period not to exceed one year from
5the date of filing an application for refund.
6    (b) Surviving spouse's annuity contributions. A refund of
7all amounts deducted from salary or otherwise contributed by an
8employee for the surviving spouse's annuity shall be paid upon
9retirement to any employee who on the date of retirement is
10either not married or is married but whose spouse is not
11eligible for a surviving spouse's annuity paid wholly or in
12part under this Article. The refund shall include interest on
13each contribution at the rate of 3% per annum compounded
14annually from the date of the contribution to the date of the
16    (c) Payment of Refunds After Death. Whenever any refund is
17payable after the death of the employee or annuitant as
18provided for in this Article, the refund shall be paid as
19follows: to the employee's surviving spouse, but if there is no
20surviving spouse then in accordance with the employee's written
21designation of beneficiary filed with the Board on the
22prescribed form before the employee's death. If there is no
23such designation of beneficiary, then to the employee's
24surviving children in equal parts to each. If there are no such
25children, the refund shall be paid to the heirs of the employee
26according to the law of descent and distribution of the State



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1of Illinois.
2    If a personal representative of the estate has not been
3appointed within 90 days from the date on which a refund became
4payable, the refund may be applied, in the discretion of the
5Board, toward the payment of the employee's or the surviving
6spouse's burial expenses. Any remaining balance shall be paid
7to the heirs of the employee according to the law of descent
8and distribution of the State of Illinois.
9    Whenever the total accumulations to the account of an
10employee from employee contributions other than the
11contribution for the cost of living increase, including
12interest to the employee's date of withdrawal, have not been
13paid to the employee and surviving spouse as a retirement or
14spouse's annuity before the death of the employee and spouse, a
15refund shall be paid as follows: an amount equal to the excess
16of such amounts over the amounts paid on such annuities without
17interest on either such amount.
18    If employee contributions in the account of an employee who
19enters service on o after January 1, 2013 (excluding
20contributions for the cost of living increase, but including
21interest up to the date of the employee's withdrawal) have not,
22before his or her death and the death of his or her spouse,
23been paid as a retirement annuity to the employee, a spouse's
24annuity to his or her surviving spouse, or a child's annuity to
25his or her surviving child or children, then a refund shall be
26paid in an amount equal to the excess of the contributions over



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1the amounts paid on the annuities. If there are surviving
2children of the employee or annuitant who are eligible for a
3child's annuity under Section 13-308, then the refund may not
4be paid until the youngest eligible child reaches age 23.
5    If a reversionary annuity becomes payable under Section
613-303, the refund provided in this section shall not be paid
7until the death of the reversionary annuitant and the refund
8otherwise payable under this section shall be then further
9reduced by the amount of the reversionary annuity paid.
10    (d) In lieu of annuity. Notwithstanding the provisions set
11forth in subsection (a) of this section, whenever an employee's
12or surviving spouse's annuity will be less than $200 per month,
13the employee or surviving spouse, as the case may be, may elect
14to receive a refund of accumulated employee contributions;
15provided, however, that if the election is made by a surviving
16spouse the refund shall be reduced by any amounts theretofore
17paid to the employee in the form of an annuity.
18    (e) Forfeiture of rights. An employee or surviving spouse
19who receives a refund forfeits the right to receive an annuity
20or any other benefit payable under this Article except that if
21the refund is to a surviving spouse, any child or children of
22the employee shall not be deprived of the right to receive a
23child's annuity as provided in Section 13-308 of this Article,
24and the payment of a child's annuity shall not reduce the
25amount refundable to the surviving spouse.
26(Source: P.A. 95-586, eff. 8-31-07; 96-251, eff. 8-11-09;



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196-1490, eff. 1-1-11.)