Full Text of HB1383 94th General Assembly
HB1383 94TH GENERAL ASSEMBLY
|
|
|
94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB1383
Introduced 2/9/2005, by Rep. Rich Brauer SYNOPSIS AS INTRODUCED: |
|
40 ILCS 5/14-130 |
from Ch. 108 1/2, par. 14-130 |
|
Amends the State Employee Article of the Illinois Pension Code. Provides that, instead of repaying the entire amount of a refund, a member may repay a portion of the refund and receive credit for the portion of the refund that was repaid. Effective immediately.
|
| |
|
|
| PENSION IMPACT NOTE ACT MAY APPLY | |
|
|
A BILL FOR
|
|
|
|
|
HB1383 |
|
LRB094 06345 EFG 36421 b |
|
| 1 |
| AN ACT concerning public employee benefits.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 14-130 as follows:
| 6 |
| (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
| 7 |
| Sec. 14-130. Refunds; rules.
| 8 |
| (a) Upon withdrawal a member is entitled to receive, upon | 9 |
| written
request, a refund of the member's contributions, | 10 |
| including credits granted
while in receipt of disability | 11 |
| benefits, without credited interest. The
board, in its | 12 |
| discretion may withhold payment of the refund of a member's
| 13 |
| contributions for a period not to exceed 1 year after the | 14 |
| member has ceased
to be an employee.
| 15 |
| For purposes of this Section, a member will be considered | 16 |
| to have
withdrawn from service if a change in, or transfer of, | 17 |
| his position
results in his becoming ineligible for continued | 18 |
| membership in this
System and eligible for membership in | 19 |
| another public retirement system
under this Act.
| 20 |
| (b) A member receiving a refund forfeits and relinquishes | 21 |
| all
accrued rights in the System, including all accumulated | 22 |
| creditable
service. If the person again becomes a member of the | 23 |
| System and
establishes at least 2 years of creditable service, | 24 |
| the member may repay
all the moneys previously refunded or a | 25 |
| portion of the moneys previously refunded representing | 26 |
| contributions for one or more whole months of creditable | 27 |
| service. If a member repays a portion of moneys previously | 28 |
| refunded, he or she may later repay some or all of the | 29 |
| remaining portion of those previously refunded moneys . | 30 |
| However, a former member may restore
credits previously | 31 |
| forfeited by acceptance of a refund without returning to
| 32 |
| service by applying in writing and repaying to the System, by |
|
|
|
HB1383 |
- 2 - |
LRB094 06345 EFG 36421 b |
|
| 1 |
| April 1,
1993, the amount of the refund plus regular interest | 2 |
| calculated from the
date of refund to the date of repayment.
| 3 |
| The repayment of refunds issued prior to January 1, 1984 | 4 |
| shall consist
of the amount refunded plus 5% interest per annum | 5 |
| compounded annually for
the period from the date of the refund | 6 |
| to the end of the month in which
repayment is made. The | 7 |
| repayment of refunds issued after January 1, 1984
shall consist | 8 |
| of the amount refunded plus regular interest for the period
| 9 |
| from the date of refund to the end of the month in which | 10 |
| repayment is made.
The repayment of the refund of a person who | 11 |
| accepts an alternative retirement cancellation payment under | 12 |
| Section 14-108.5 shall consist of the entire amount paid to the | 13 |
| person under subsection (c) of Section 14-108.5 plus regular | 14 |
| interest for the period from the date of the refund to the end | 15 |
| of the month in which repayment is made. However, in the case | 16 |
| of a refund that is repaid in a lump sum between
January 1, | 17 |
| 1991 and July 1, 1991, repayment shall consist of the amount
| 18 |
| refunded plus interest at the rate of 2.5% per annum compounded | 19 |
| annually
from the date of the refund to the end of the month in | 20 |
| which repayment is made.
| 21 |
| Upon repayment, the member shall receive credit for the
| 22 |
| service for which the refund has been repaid, and the | 23 |
| corresponding , member contributions and regular interest that | 24 |
| was forfeited by
acceptance of the refund , as well as regular | 25 |
| interest for the period of
non-membership. Such repayment shall | 26 |
| be made in full before retirement
either in a lump sum or in | 27 |
| installment payments in accordance with such
rules as may be | 28 |
| adopted by the board.
| 29 |
| (b-5) The Board may adopt rules governing the repayment of | 30 |
| refunds
and establishment of credits in cases involving awards | 31 |
| of back pay or
reinstatement. The rules may authorize repayment | 32 |
| of a refund in installment
payments and may waive the payment | 33 |
| of interest on refund amounts repaid in
full within a specified | 34 |
| period.
| 35 |
| (c) A member no longer in service who is unmarried and does | 36 |
| not have an eligible survivors annuity
beneficiary on the date |
|
|
|
HB1383 |
- 3 - |
LRB094 06345 EFG 36421 b |
|
| 1 |
| of application therefor is
entitled to a refund of | 2 |
| contributions for widow's annuity or survivors
annuity | 3 |
| purposes, or both, as the case may be, without interest. A | 4 |
| widow's
annuity or survivors annuity shall not be payable upon | 5 |
| the death of a person
who has received this refund, unless | 6 |
| prior to that death the amount of the
refund has been repaid to | 7 |
| the System, together with regular interest from the
date of the | 8 |
| refund to the date of repayment.
| 9 |
| (d) Any member who has service credit in any position for | 10 |
| which an
alternative retirement annuity is provided and in | 11 |
| relation to which an
increase in the rate of employee | 12 |
| contribution is required, shall be
entitled to a refund, | 13 |
| without interest, of that part of the member's
employee | 14 |
| contribution which results from that increase in the employee
| 15 |
| rate if the member does not qualify for that alternative | 16 |
| retirement
annuity at the time of retirement.
| 17 |
| (Source: P.A. 93-839, eff. 7-30-04.)
| 18 |
| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.
|
|