Full Text of SB0040 98th General Assembly
SB0040 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB0040 Introduced 1/16/2013, by Sen. Tim Bivins SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-117 | from Ch. 108 1/2, par. 2-117 | 40 ILCS 5/2-123 | from Ch. 108 1/2, par. 2-123 |
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Amends the General Assembly Article of the Illinois Pension Code. Provides that a person who is a member on the effective date of the amendatory Act may file a written notice of election not to participate in the General Assembly Retirement System within 24 months from the date of becoming a member or 18 months after the effective date of the amendatory Act, whichever is later. Provides that a person who makes that election shall,
upon written request, receive a refund of his or her total contributions,
without interest. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 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 | | Sections 2-117 and 2-123 as follows:
| 6 | | (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
| 7 | | Sec. 2-117. Participants - Election not to participate.
| 8 | | (a) Every person who was a member on November 1, 1947, or | 9 | | in military
service on such date, is subject to the provisions | 10 | | of this system beginning
upon such date, unless prior to such | 11 | | date he or she filed with the board a
written notice of | 12 | | election not to participate.
| 13 | | Except as provided in subsection (a-1), every Every person | 14 | | who becomes a member after November 1, 1947, and who is
then | 15 | | not a participant becomes a participant beginning upon the date | 16 | | of
becoming a member unless, within 24 months from that date, | 17 | | he or she has
filed with the board a written notice of election | 18 | | not to participate.
| 19 | | (a-1) A person who is a member on the effective date of | 20 | | this amendatory Act of the 98th General Assembly may file his | 21 | | or her written notice of election not to participate within 24 | 22 | | months from the date of becoming a member or 18 months after | 23 | | the effective date of this amendatory Act of the 98th General |
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| 1 | | Assembly, whichever is later. | 2 | | (b) A member who has filed notice of an election not to | 3 | | participate
(and a former member who has not yet begun to | 4 | | receive a retirement
annuity under this Article) may become a | 5 | | participant with respect to the period
for which the member | 6 | | elected not to participate upon filing with the board,
before | 7 | | April 1, 1993, a written rescission of the election not to | 8 | | participate.
Upon contributing an amount equal to the | 9 | | contributions he or she would have
made as a participant from | 10 | | November 1, 1947, or the date of becoming a member,
whichever | 11 | | is later, to the date of becoming a participant, with interest | 12 | | at the
rate of 4% per annum until the contributions are paid, | 13 | | the participant shall
receive credit for service as a member | 14 | | prior to the date of the rescission,
both before and after | 15 | | November 1, 1947. The required contributions shall be
made | 16 | | before commencement of the retirement annuity; otherwise no | 17 | | credit for
service prior to the date of participation shall be | 18 | | granted.
| 19 | | (Source: P.A. 86-273; 87-1265.)
| 20 | | (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
| 21 | | Sec. 2-123. Refunds.
| 22 | | (a) A participant who ceases to be a member, other than an | 23 | | annuitant, and a member who ceases to be a participant under | 24 | | subsection (a-1) of Section 2-117 shall,
upon written request, | 25 | | receive a refund of his or her total contributions,
without |
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| 1 | | interest. The refund shall include the additional | 2 | | contributions for
the automatic increase in retirement | 3 | | annuity. By accepting the refund, a
participant forfeits all | 4 | | accrued rights and benefits in the System and loses
credit for | 5 | | all service. However, if he or she again becomes a member, he | 6 | | or
she may resume status as a participant and reestablish any | 7 | | forfeited service
credit by paying to the System the full | 8 | | amount refunded, together with interest
at 4% per annum from | 9 | | the time the refund is paid to the date the member again
| 10 | | becomes a participant.
| 11 | | A former member of the General Assembly may reestablish any | 12 | | service
credit forfeited by acceptance of a refund by paying to | 13 | | the System on or
before February 1, 1993, the full amount | 14 | | refunded, together with interest at
4% per annum from the date | 15 | | of payment of the refund to the date of repayment.
| 16 | | When a member or former member owes money to the System, | 17 | | interest at
the rate of 4% per annum shall accrue and be | 18 | | payable on such amounts owed
beginning on the date of | 19 | | termination of service as a member until the
contributions due | 20 | | have been paid in full.
| 21 | | (b) A participant who (1) has elected to cease making | 22 | | contributions for
survivor's annuity under subsection (b) of | 23 | | Section 2-126, (2) has no eligible
survivor's annuity | 24 | | beneficiary upon becoming an annuitant,
or (3) terminates | 25 | | service with less than 8 years of service is
entitled to a | 26 | | refund of the contributions for a survivor's annuity, without
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| 1 | | interest. If the person later marries, a survivor's annuity | 2 | | shall
not be payable upon his or her death, unless the amount | 3 | | of the
refund is repaid to the System, together with interest | 4 | | at the rate of 4% per
year from the date of refund to the date | 5 | | of repayment.
| 6 | | (c) If at the date of retirement or death of a participant | 7 | | who
served as an officer of the General Assembly, the total | 8 | | period of
such service is less than 4 years, the additional | 9 | | contributions made
by such member on the additional salary as | 10 | | an officer shall be refunded
unless the participant served as | 11 | | an officer for at least 2 years and has
contributed the amount | 12 | | he or she would have contributed if he or she had
served as an | 13 | | officer for 4 years as provided in Section 2-126.
| 14 | | (d) Upon the termination of the last survivor's annuity | 15 | | payable to a
survivor of a deceased participant, the excess, if | 16 | | any, of the total
contributions made by the participant for | 17 | | retirement and survivor's annuity,
without interest, over the | 18 | | total amount of retirement and survivor's annuity
payments | 19 | | received by the participant and the participant's survivors | 20 | | shall be
refunded upon request:
| 21 | | (i) if there was a surviving spouse of the deceased | 22 | | participant who was
eligible for a survivor's annuity, to | 23 | | the designated beneficiary of that spouse
or, if the | 24 | | designated beneficiary is deceased or there is no | 25 | | designated
beneficiary, to that spouse's estate;
| 26 | | (ii) if there was no eligible surviving spouse of the |
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| 1 | | deceased
participant, to the designated beneficiary of the | 2 | | deceased participant or, if
the designated beneficiary is | 3 | | deceased or there is no designated beneficiary,
to the | 4 | | deceased participant's estate.
| 5 | | (e) Upon the death of a participant, if a survivor's | 6 | | annuity is not
payable under this Article, a beneficiary | 7 | | designated by the participant
shall be entitled to a refund of | 8 | | all contributions made by the participant.
If the participant | 9 | | has not designated a refund beneficiary, the surviving
spouse | 10 | | shall be entitled to the refund of contributions; if there is | 11 | | no
surviving spouse, the contributions shall be refunded to
the | 12 | | participant's surviving children, if any, and if no children
| 13 | | survive, the refund payment shall be made to the participant's | 14 | | estate.
| 15 | | (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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