Full Text of SB2093 95th General Assembly
SB2093 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2093
Introduced 2/14/2008, by Sen. Todd Sieben SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/14-119 |
from Ch. 108 1/2, par. 14-119 |
40 ILCS 5/14-121 |
from Ch. 108 1/2, par. 14-121 |
40 ILCS 5/14-130 |
from Ch. 108 1/2, par. 14-130 |
40 ILCS 5/14-131 | from Ch. 108 1/2, par. 14-131 |
40 ILCS 5/14-133 |
from Ch. 108 1/2, par. 14-133 |
40 ILCS 5/14-152.2 |
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Amends the State Employee Article of the Illinois Pension Code. Provides that, beginning July 1, 2009, the Social Security offset shall no longer be applied to any widow's or survivor's annuity of any person with military service that is receiving retirement benefits or a widow's annuity or survivor's annuity on the effective date. Provides that, unless a member with military service makes an election to have the Social Security offset apply to his or her widow's or survivors annuity, his or her retirement contribution is increased 0.6%, thus making the total contribution for that purpose 1.1%. Allows a member to change his or her offset status upon the occurrence of a qualifying event. Contains provisions concerning refunds and payment for prior service. Provides that the calculation of the minimum contribution of the State shall not be affected by the changes in the amendatory Act. Specifies the required funding for the new benefit increase; specifies the effects of expiration if the General Assembly fails to extend the new benefit increase. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB2093 |
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LRB095 19108 AMC 45317 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 14-119, 14-121, 14-130, 14-131, 14-133, and 14-152.2 | 6 |
| as follows:
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| (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
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| Sec. 14-119. Amount of widow's annuity.
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| (a) The widow's annuity shall be 50% of the amount of | 10 |
| retirement annuity
payable to the member on the date of death | 11 |
| while on retirement if an
annuitant, or on the date of his | 12 |
| death while in service if an employee,
regardless of his age on | 13 |
| such date, or on the date of withdrawal if death
occurred after | 14 |
| termination of service under the conditions prescribed in
the | 15 |
| preceding Section.
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| (b) If an eligible widow, regardless of age, has in her | 17 |
| care any
unmarried child or children of the member under age 18 | 18 |
| (under age 22 if a
full-time student), the widow's
annuity | 19 |
| shall be increased in the amount of 5% of the retirement | 20 |
| annuity
for each such child, but the combined payments for a | 21 |
| widow and
children shall not exceed 66 2/3% of the member's | 22 |
| earned
retirement annuity.
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| The amount of retirement annuity from which the widow's
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LRB095 19108 AMC 45317 b |
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| annuity is derived shall be that earned by the member without | 2 |
| regard to
whether he attained age 60 prior to his withdrawal | 3 |
| under the conditions
stated or prior to his death.
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| (c) Marriage of a child shall render the child ineligible | 5 |
| for further
consideration in the increase in the amount of the | 6 |
| widow's annuity.
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| Attainment of age 18 (age 22 if a full-time student)
shall | 8 |
| render a child ineligible for
further consideration in the | 9 |
| increase of the widow's annuity, but the
annuity to the widow | 10 |
| shall be continued thereafter, without regard to
her age at | 11 |
| that time.
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| (d) Except as otherwise provided in this subsection (d) and | 13 |
| Section 14-152.2, a A widow's annuity payable on account of any | 14 |
| covered employee who
has shall have been a covered employee for | 15 |
| at least 18 months shall be reduced
by 1/2 of the amount of | 16 |
| survivors benefits to which his beneficiaries are
eligible | 17 |
| under the provisions of the Federal Social Security Act, except
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| that (1) the amount of any widow's annuity payable under this | 19 |
| Article shall
not be reduced by reason of any increase under | 20 |
| that Act which occurs after
the offset required by this | 21 |
| subsection is first applied to that annuity,
and (2) for | 22 |
| benefits granted on or after January 1, 1992, the offset under
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| this subsection (d) shall not exceed 50% of the amount of | 24 |
| widow's annuity
otherwise payable.
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| Beginning on July 1, 2009 (and except as otherwise provided | 26 |
| in Section 14-152.2), the offset under this subsection (d) |
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| shall no
longer be applied to a widow's annuity of any person | 2 |
| with military service that is receiving retirement benefits or | 3 |
| a widow's annuity on the effective date of this amendatory Act | 4 |
| of the 95th General Assembly.
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| Except as otherwise provided in Section 14-152.2, an active | 6 |
| member of the System with military service who is first | 7 |
| employed before January 1, 2009 must file an election to have | 8 |
| the offset under this subsection (d) applied to his or her | 9 |
| widow's annuity with the System before March 1, 2009. If no | 10 |
| election is made by the employee, then the employee must begin | 11 |
| making the additional 0.6% contribution required under Section | 12 |
| 14-133, and he or she may apply before September 1, 2009 to | 13 |
| make the contributions for any prior service. Once the member | 14 |
| has made an election or failed to make the election to have the | 15 |
| offset applied to his or her widow's annuity within the | 16 |
| specified period, the member must maintain that status until a | 17 |
| qualifying event occurs. Upon the occurrence of a qualifying | 18 |
| event, (i) if the member's widow's annuity is subject to the | 19 |
| offset, the member may elect to remove the offset and begin to | 20 |
| make contributions for any service after that date and, within | 21 |
| 60 days after that date, make contributions for any prior | 22 |
| service without interest or (ii) if the member's widow's | 23 |
| annuity is not subject to the offset, the member may elect to | 24 |
| have the offset applied to his or her widow's annuity and cease | 25 |
| making the contributions, but shall receive no refund for the | 26 |
| contributions. |
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| Except as otherwise provided in Section 14-152.2, unless an | 2 |
| active member of the System with military service who is first | 3 |
| employed on or after January 1, 2009 files an election to have | 4 |
| the offset under this subsection (d) applied to his or her | 5 |
| widow's annuity with the System during his or her qualifying | 6 |
| period, he or she shall begin making the 1.1% contribution | 7 |
| required under Section 14-133. After the qualifying period, the | 8 |
| member must maintain his or her offset status until a | 9 |
| qualifying event occurs. Upon the occurrence of a qualifying | 10 |
| event, (i) if the member's widow's annuity is subject to the | 11 |
| offset, the member may elect to remove the offset and begin to | 12 |
| make contributions for any service after that date and, within | 13 |
| 60 days after that date, make contributions for any prior | 14 |
| service without interest or (ii) if the member's widow's | 15 |
| annuity is not subject to the offset, the member may elect to | 16 |
| have the offset applied to his or her widow's annuity and cease | 17 |
| making the contributions, but shall receive no refund for the | 18 |
| contributions. | 19 |
| If a member has a qualifying spouse at the time of | 20 |
| retirement and has made the additional contributions pursuant | 21 |
| to Section 14-133 to remove the offset under this subsection | 22 |
| (d) for all of his or her creditable service, then the offset | 23 |
| under this subsection (d) does not apply to the member's | 24 |
| widow's benefit. If a member has a qualifying spouse at the | 25 |
| time of retirement and has made the additional contributions | 26 |
| pursuant to Section 14-133 to remove the offset under this |
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| subsection (d) for a portion of his or her creditable service, | 2 |
| then the member may either (A) receive a refund of the | 3 |
| additional contributions made and have the offset under this | 4 |
| subsection (d) apply to the member's widow's annuity or (B) | 5 |
| make the required contributions for any period for which he or | 6 |
| she has not contributed, plus interest. If a member does not | 7 |
| have a qualifying spouse at the time of retirement, then the | 8 |
| member may receive a refund of the additional contributions | 9 |
| made pursuant to Section 14-133 to remove the offset under this | 10 |
| subsection (d). | 11 |
| For the purposes of this subsection (d), "qualifying event" | 12 |
| includes a change in marital status (including the death of a | 13 |
| spouse) or the adoption or birth of a child. | 14 |
| (e) Upon the death of a recipient of a widow's annuity the | 15 |
| excess, if
any, of the member's accumulated contributions plus | 16 |
| credited interest over
all annuity payments to the member and | 17 |
| widow, exclusive of the $500 lump
sum payment, shall be paid to | 18 |
| the named beneficiary of the widow, or if
none has been named, | 19 |
| to the estate of the widow, provided no reversionary
annuity is | 20 |
| payable.
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| (f) On January 1, 1981, any recipient of a widow's annuity | 22 |
| who was receiving
a widow's annuity on or before January 1, | 23 |
| 1971, shall have her widow's annuity
then being paid increased | 24 |
| by 1% for each full year which has elapsed from
the date the | 25 |
| widow's annuity began. On January 1, 1982, any recipient
of a | 26 |
| widow's annuity who began receiving a widow's annuity after |
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LRB095 19108 AMC 45317 b |
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| January
1, 1971, but before January 1, 1981, shall have her | 2 |
| widow's annuity then
being paid increased by 1% for each full | 3 |
| year which has elapsed from the
date the widow's annuity began. | 4 |
| On January 1, 1987, any recipient of a
widow's annuity who | 5 |
| began receiving the widow's annuity on or before January
1, | 6 |
| 1977, shall have the monthly widow's annuity increased by $1
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| for each full year which has elapsed since the date the
annuity | 8 |
| began.
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| (g) Beginning January 1, 1990, every widow's annuity shall | 10 |
| be
increased (1) on each January 1 occurring on or after the | 11 |
| commencement
of the annuity if the deceased member died while | 12 |
| receiving a retirement
annuity, or (2) in other cases, on each | 13 |
| January 1 occurring on or after
the first anniversary of the | 14 |
| commencement of the annuity, by an amount
equal to 3% of the | 15 |
| current amount of the annuity, including any previous
increases | 16 |
| under this Article. Such increases shall apply without regard | 17 |
| to
whether the deceased member was in service on or after the | 18 |
| effective date
of Public Act 86-1488, but shall not accrue for | 19 |
| any period prior to January
1, 1990.
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| (Source: P.A. 95-279, eff. 1-1-08.)
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| (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
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| Sec. 14-121. Amount of survivors annuity. A survivors | 23 |
| annuity
beneficiary shall be entitled upon death of the member | 24 |
| to a single sum
payment of $1,000, payable pro rata among all | 25 |
| persons entitled thereto,
together with a survivors annuity |
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LRB095 19108 AMC 45317 b |
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| payable at the rates and under the
conditions specified in this | 2 |
| Article.
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| (a) If the survivors annuity beneficiary is a spouse, the | 4 |
| survivors
annuity shall be 30% of final average compensation | 5 |
| subject to a maximum
payment of $400 per month.
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| (b) If an eligible child or children under the care of a | 7 |
| spouse also
survives the member, such spouse as natural | 8 |
| guardian of the child or
children shall receive, in addition to | 9 |
| the foregoing annuity, 20% of final
average compensation on | 10 |
| account of each such child and 10% of final average
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| compensation divided pro rata among such children, subject to a | 12 |
| maximum
payment on account of all survivor annuity | 13 |
| beneficiaries of $600 per month,
or 80% of the member's final | 14 |
| average compensation, whichever is the lesser.
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| (c) If the survivors annuity beneficiary or beneficiaries | 16 |
| consists of
an unmarried child or children, the amount of | 17 |
| survivors annuity shall be
20% of final average compensation to | 18 |
| each child, and 10% of final average
compensation divided pro | 19 |
| rata among all such children entitled to such annuity,
subject | 20 |
| to a maximum payment to all children combined of $600 per month
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| or 80% of the member's final average compensation, whichever is | 22 |
| the lesser.
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| (d) If the survivors annuity beneficiary is one or more | 24 |
| dependent parents,
the annuity shall be 20% of final average | 25 |
| compensation to each parent and
10% of final average | 26 |
| compensation divided pro rata among the parents who
qualify for |
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LRB095 19108 AMC 45317 b |
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| this annuity, subject to a maximum payment to both dependent
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| parents of $400 per month.
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| (e) The survivors annuity to the spouse, children or | 4 |
| dependent parents of
a member whose death occurs after the date | 5 |
| of last withdrawal, or after
retirement, or while in service | 6 |
| following reentry into service after
retirement but before | 7 |
| completing 1 1/2 years of additional creditable
service, shall | 8 |
| not exceed the lesser of 80% of the member's earned
retirement | 9 |
| annuity at the date of death or the maximum previously
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| established in this Section.
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| (f) In applying the limitation prescribed on the combined | 12 |
| payments to
2 or more survivors annuity beneficiaries, the | 13 |
| annuity on account of each
beneficiary shall be reduced pro | 14 |
| rata until such time as the number of
beneficiaries makes the | 15 |
| reduction no longer applicable.
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| (g) Except as otherwise provided in this subsection (g) and | 17 |
| Section 14-152.2, a survivors annuity payable on account of
any | 18 |
| covered employee who has
shall have been a covered employee for | 19 |
| at
least 18 months at date of death or last withdrawal, | 20 |
| whichever is the later,
shall be reduced by 1/2 of the | 21 |
| survivors benefits to which his beneficiaries
are eligible | 22 |
| under the federal Social Security Act, except that (1) the
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| survivors annuity payable under this Article shall not be | 24 |
| reduced by any
increase under that Act which occurs after the | 25 |
| offset required by this
subsection is first applied to that | 26 |
| annuity, (2) for benefits granted on or
after January 1, 1992, |
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LRB095 19108 AMC 45317 b |
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| the offset under this subsection (g) shall not exceed
50% of | 2 |
| the amount of survivors annuity otherwise payable.
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| Beginning on July 1, 2009 (and except as otherwise provided | 4 |
| in Section 14-152.2), the offset under this subsection (g) | 5 |
| shall no
longer be applied to a survivors annuity of any person | 6 |
| with military service that is receiving retirement benefits or | 7 |
| a survivors annuity on the effective date of this amendatory | 8 |
| Act of the 95th General Assembly.
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| Except as otherwise provided in Section 14-152.2, an active | 10 |
| member of the System with military service who is first | 11 |
| employed before January 1, 2009 must file an election to have | 12 |
| the offset under this subsection (g) applied to his or her | 13 |
| survivors annuity with the System before March 1, 2009. If no | 14 |
| election is made by the employee, then the employee must begin | 15 |
| making the additional 0.6% contribution required pursuant to | 16 |
| Section 14-133, and he or she may apply before September 1, | 17 |
| 2009 to make the contributions for any prior service. Once the | 18 |
| member has made an election or failed to make the election to | 19 |
| have the offset applied to his or her survivors annuity within | 20 |
| the specified period, the member must maintain that status | 21 |
| until a qualifying event occurs. Upon the occurrence of a | 22 |
| qualifying event, (i) if the member's survivors annuity is | 23 |
| subject to the offset, the member may elect to remove the | 24 |
| offset and begin to make contributions for any service after | 25 |
| that date and, within 60 days after that date, make | 26 |
| contributions for any prior service without interest or (ii) if |
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| the member's survivors annuity is not subject to the offset, | 2 |
| the member may elect to have the offset applied to his or her | 3 |
| survivors annuity and cease making the contributions, but shall | 4 |
| receive no refund for the contributions. | 5 |
| Except as otherwise provided in Section 14-152.2, unless an | 6 |
| active member of the System with military service who is first | 7 |
| employed on or after January 1, 2009 files an election to have | 8 |
| the offset under this subsection (g) applied to his or her | 9 |
| survivors annuity with the System during his or her qualifying | 10 |
| period, he or she shall begin making the 1.1% contribution | 11 |
| required under Section 14-133. After the qualifying period, the | 12 |
| member must maintain his or her offset status until a | 13 |
| qualifying event occurs. Upon the occurrence of a qualifying | 14 |
| event, (i) if the member's survivors annuity is subject to the | 15 |
| offset, the member may elect to remove the offset and begin to | 16 |
| make contributions for any service after that date and, within | 17 |
| 60 days after that date, make contributions for any prior | 18 |
| service without interest or (ii) if the member's survivors | 19 |
| annuity is not subject to the offset, the member may elect to | 20 |
| have the offset applied to his or her survivors annuity and | 21 |
| cease making the contributions, but shall receive no refund for | 22 |
| the contributions. | 23 |
| If a member has a qualifying survivor at the time of | 24 |
| retirement and has made the additional contributions pursuant | 25 |
| to Section 14-133 to remove the offset under this subsection | 26 |
| (g) for all of his or her creditable service, then the offset |
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LRB095 19108 AMC 45317 b |
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| under this subsection (d) does not apply to the member's | 2 |
| survivors benefit. If a member has a qualifying survivor at the | 3 |
| time of retirement and has made the additional contributions | 4 |
| under Section 14-133 to remove the offset under this subsection | 5 |
| (g) for a portion of his or her creditable service, then the | 6 |
| member may either (A) receive a refund of the additional | 7 |
| contributions made and have the offset under this subsection | 8 |
| (g) apply to the member's survivors annuity or (B) make the | 9 |
| required contributions for any period for which he or she has | 10 |
| not contributed, plus interest. If a member does not have a | 11 |
| qualifying survivor at the time of retirement, then the member | 12 |
| may receive a refund of the additional contributions made | 13 |
| pursuant to Section 14-133 to remove the offset under this | 14 |
| subsection (g). | 15 |
| For the purposes of this subsection (g), "qualifying event" | 16 |
| includes a change in marital status (including the death of a | 17 |
| spouse) or the adoption or birth of a child.
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| (h) The minimum payment to a beneficiary hereunder shall be | 19 |
| $60 per month,
which shall be reduced in accordance with the | 20 |
| limitation prescribed on the
combined payments to all | 21 |
| beneficiaries of a member.
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| (i) Subject to the conditions set forth in Section 14-120, | 23 |
| the minimum
total survivors annuity benefit payable to the | 24 |
| survivors annuity beneficiaries
of a deceased member or | 25 |
| annuitant whose death occurs on or after January
1, 1984, shall | 26 |
| be 50% of the amount of retirement annuity that was or would
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| have been payable to the deceased on the date of death, | 2 |
| regardless of the
age of the deceased on such date. If the | 3 |
| minimum total benefit provided
by this subsection exceeds the | 4 |
| maximum otherwise imposed by this Section,
the minimum total | 5 |
| benefit shall nevertheless be payable. Any increase in
the | 6 |
| total survivors annuity benefit resulting from the operation of | 7 |
| this
subsection shall be divided among the survivors annuity | 8 |
| beneficiaries of
the deceased in proportion to their shares of | 9 |
| the total survivors annuity
benefit otherwise payable under | 10 |
| this Section.
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| (j) Any survivors annuity beneficiary whose annuity | 12 |
| terminates due to any
condition specified in this Article other | 13 |
| than death shall be entitled to
a refund of the excess, if any, | 14 |
| of the accumulated contributions of the
member plus credited | 15 |
| interest over all payments to the member and beneficiary
or | 16 |
| beneficiaries, exclusive of the single sum payment of $1,000, | 17 |
| provided
no future survivors or reversionary annuity benefits | 18 |
| are payable.
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| (k) Upon the death of the last eligible recipient of a | 20 |
| survivors
annuity the excess, if any, of the member's | 21 |
| accumulated contributions plus
credited interest over all | 22 |
| annuity payments to the member and survivors
exclusive of the | 23 |
| single sum payment of $1000, shall be paid to the named
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| beneficiary of the last eligible survivor, or if none has been | 25 |
| named, to
the estate of the last eligible survivor, provided no | 26 |
| reversionary annuity
is payable.
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| (l) On January 1, 1981, any survivor who was receiving a | 2 |
| survivors
annuity on or before January 1, 1971, shall have his | 3 |
| survivors annuity then
being paid increased by 1% for each full | 4 |
| year which has elapsed from the
date the annuity began. On | 5 |
| January 1, 1982, any survivor who began receiving
a survivor's | 6 |
| annuity after January 1, 1971, but before January 1, 1981,
| 7 |
| shall have his survivor's annuity then being paid increased by | 8 |
| 1% for each
full year that has elapsed from the date the | 9 |
| annuity began.
On January 1, 1987, any survivor who began | 10 |
| receiving a survivor's annuity
on or before January 1, 1977, | 11 |
| shall have the monthly survivor's annuity
increased by $1 for | 12 |
| each full year which has elapsed since the date the
survivor's | 13 |
| annuity began.
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| (m) Beginning January 1, 1990, every survivor's annuity | 15 |
| shall be increased
(1) on each January 1 occurring on or after | 16 |
| the commencement of the annuity if
the deceased member died | 17 |
| while receiving a retirement annuity, or (2) in
other cases, on | 18 |
| each January 1 occurring on or after the first anniversary
of | 19 |
| the commencement of the annuity, by an amount equal to 3% of | 20 |
| the current
amount of the annuity, including any previous | 21 |
| increases under this Article.
Such increases shall apply | 22 |
| without regard to whether the deceased member
was in service on | 23 |
| or after the effective date of Public Act 86-1488,
but shall | 24 |
| not accrue for any period prior to January 1, 1990.
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| (Source: P.A. 86-273; 86-1488; 87-794.)
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| (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
| 2 |
| Sec. 14-130. Refunds; rules.
| 3 |
| (a) Upon withdrawal a member is entitled to receive, upon | 4 |
| written
request, a refund of the member's contributions, | 5 |
| including credits granted
while in receipt of disability | 6 |
| benefits, without credited interest. The
board, in its | 7 |
| discretion may withhold payment of the refund of a member's
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| contributions for a period not to exceed 1 year after the | 9 |
| member has ceased
to be an employee.
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| For purposes of this Section, a member will be considered | 11 |
| to have
withdrawn from service if a change in, or transfer of, | 12 |
| his position
results in his becoming ineligible for continued | 13 |
| membership in this
System and eligible for membership in | 14 |
| another public retirement system
under this Act.
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| (b) A member receiving a refund forfeits and relinquishes | 16 |
| all
accrued rights in the System, including all accumulated | 17 |
| creditable
service. If the person again becomes a member of the | 18 |
| System and
establishes at least 2 years of creditable service, | 19 |
| the member may repay
all the moneys previously refunded or a | 20 |
| portion of the moneys previously refunded representing | 21 |
| contributions for one or more whole months of creditable | 22 |
| service. If a member repays a portion of moneys previously | 23 |
| refunded, he or she may later repay some or all of the | 24 |
| remaining portion of those previously refunded moneys. | 25 |
| However, a former member may restore
credits previously | 26 |
| forfeited by acceptance of a refund without returning to
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LRB095 19108 AMC 45317 b |
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| service by applying in writing and repaying to the System, by | 2 |
| April 1,
1993, the amount of the refund plus regular interest | 3 |
| calculated from the
date of refund to the date of repayment.
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| The repayment of refunds issued prior to January 1, 1984 | 5 |
| shall consist
of the amount refunded plus 5% interest per annum | 6 |
| compounded annually for
the period from the date of the refund | 7 |
| to the end of the month in which
repayment is made. The | 8 |
| repayment of refunds issued after January 1, 1984
shall consist | 9 |
| of the amount refunded plus regular interest for the period
| 10 |
| from the date of refund to the end of the month in which | 11 |
| repayment is made.
The repayment of the refund of a person who | 12 |
| accepts an alternative retirement cancellation payment under | 13 |
| Section 14-108.5 shall consist of the entire amount paid to the | 14 |
| person under subsection (c) of Section 14-108.5 plus regular | 15 |
| interest for the period from the date of the refund to the end | 16 |
| of the month in which repayment is made. However, in the case | 17 |
| of a refund that is repaid in a lump sum between
January 1, | 18 |
| 1991 and July 1, 1991, repayment shall consist of the amount
| 19 |
| refunded plus interest at the rate of 2.5% per annum compounded | 20 |
| annually
from the date of the refund to the end of the month in | 21 |
| which repayment is made.
| 22 |
| Upon repayment, the member shall receive credit for the
| 23 |
| service for which the refund has been repaid, and the | 24 |
| corresponding member contributions and regular interest that | 25 |
| was forfeited by
acceptance of the refund, as well as regular | 26 |
| interest for the period of
non-membership. Such repayment shall |
|
|
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| be made in full before retirement
either in a lump sum or in | 2 |
| installment payments in accordance with such
rules as may be | 3 |
| adopted by the board.
| 4 |
| (b-5) The Board may adopt rules governing the repayment of | 5 |
| refunds
and establishment of credits in cases involving awards | 6 |
| of back pay or
reinstatement. The rules may authorize repayment | 7 |
| of a refund in installment
payments and may waive the payment | 8 |
| of interest on refund amounts repaid in
full within a specified | 9 |
| period.
| 10 |
| (c) A member no longer in service who is unmarried and does | 11 |
| not have an eligible survivors annuity
beneficiary on the date | 12 |
| of application therefor is
entitled to a refund of | 13 |
| contributions for widow's annuity or survivors
annuity | 14 |
| purposes, or both, as the case may be, including the increased | 15 |
| amounts paid pursuant to the increase in contribution rates for | 16 |
| widow or survivors annuity purposes under Section 14-133 by | 17 |
| this amendatory Act of the 95th General Assembly, without | 18 |
| interest. A widow's
annuity or survivors annuity shall not be | 19 |
| payable upon the death of a person
who has received this | 20 |
| refund, unless prior to that death the amount of the
refund has | 21 |
| been repaid to the System, together with regular interest from | 22 |
| the
date of the refund to the date of repayment.
| 23 |
| (d) Any member who has service credit in any position for | 24 |
| which an
alternative retirement annuity is provided and in | 25 |
| relation to which an
increase in the rate of employee | 26 |
| contribution is required, shall be
entitled to a refund, |
|
|
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| 1 |
| without interest, of that part of the member's
employee | 2 |
| contribution which results from that increase in the employee
| 3 |
| rate if the member does not qualify for that alternative | 4 |
| retirement
annuity at the time of retirement.
| 5 |
| (Source: P.A. 93-839, eff. 7-30-04; 94-455, eff. 8-4-05.)
| 6 |
| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| 7 |
| Sec. 14-131. Contributions by State.
| 8 |
| (a) The State shall make contributions to the System by | 9 |
| appropriations of
amounts which, together with other employer | 10 |
| contributions from trust, federal,
and other funds, employee | 11 |
| contributions, investment income, and other income,
will be | 12 |
| sufficient to meet the cost of maintaining and administering | 13 |
| the System
on a 90% funded basis in accordance with actuarial | 14 |
| recommendations.
| 15 |
| For the purposes of this Section and Section 14-135.08, | 16 |
| references to State
contributions refer only to employer | 17 |
| contributions and do not include employee
contributions that | 18 |
| are picked up or otherwise paid by the State or a
department on | 19 |
| behalf of the employee.
| 20 |
| (b) The Board shall determine the total amount of State | 21 |
| contributions
required for each fiscal year on the basis of the | 22 |
| actuarial tables and other
assumptions adopted by the Board, | 23 |
| using the formula in subsection (e).
| 24 |
| The Board shall also determine a State contribution rate | 25 |
| for each fiscal
year, expressed as a percentage of payroll, |
|
|
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| based on the total required State
contribution for that fiscal | 2 |
| year (less the amount received by the System from
| 3 |
| appropriations under Section 8.12 of the State Finance Act and | 4 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 5 |
| Act, if any, for the fiscal year
ending on the June 30 | 6 |
| immediately preceding the applicable November 15
certification | 7 |
| deadline), the estimated payroll (including all forms of
| 8 |
| compensation) for personal services rendered by eligible | 9 |
| employees, and the
recommendations of the actuary.
| 10 |
| For the purposes of this Section and Section 14.1 of the | 11 |
| State Finance Act,
the term "eligible employees" includes | 12 |
| employees who participate in the System,
persons who may elect | 13 |
| to participate in the System but have not so elected,
persons | 14 |
| who are serving a qualifying period that is required for | 15 |
| participation,
and annuitants employed by a department as | 16 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 17 |
| (c) Contributions shall be made by the several departments | 18 |
| for each pay
period by warrants drawn by the State Comptroller | 19 |
| against their respective
funds or appropriations based upon | 20 |
| vouchers stating the amount to be so
contributed. These amounts | 21 |
| shall be based on the full rate certified by the
Board under | 22 |
| Section 14-135.08 for that fiscal year.
From the effective date | 23 |
| of this amendatory Act of the 93rd General
Assembly through the | 24 |
| payment of the final payroll from fiscal year 2004
| 25 |
| appropriations, the several departments shall not make | 26 |
| contributions
for the remainder of fiscal year 2004 but shall |
|
|
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| instead make payments
as required under subsection (a-1) of | 2 |
| Section 14.1 of the State Finance Act.
The several departments | 3 |
| shall resume those contributions at the commencement of
fiscal | 4 |
| year 2005.
| 5 |
| (d) If an employee is paid from trust funds or federal | 6 |
| funds, the
department or other employer shall pay employer | 7 |
| contributions from those funds
to the System at the certified | 8 |
| rate, unless the terms of the trust or the
federal-State | 9 |
| agreement preclude the use of the funds for that purpose, in
| 10 |
| which case the required employer contributions shall be paid by | 11 |
| the State.
From the effective date of this amendatory
Act of | 12 |
| the 93rd General Assembly through the payment of the final
| 13 |
| payroll from fiscal year 2004 appropriations, the department or | 14 |
| other
employer shall not pay contributions for the remainder of | 15 |
| fiscal year
2004 but shall instead make payments as required | 16 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 17 |
| Act. The department or other employer shall
resume payment of
| 18 |
| contributions at the commencement of fiscal year 2005.
| 19 |
| (e) The calculation of the minimum contribution under this | 20 |
| subsection (e) shall not be affected by the changes made to | 21 |
| Sections 14-119, 14-121, 14-130, and 14-133 by this amendatory | 22 |
| Act of the 95th General Assembly. | 23 |
| For State fiscal years 2011 through 2045, the minimum | 24 |
| contribution
to the System to be made by the State for each | 25 |
| fiscal year shall be an amount
determined by the System to be | 26 |
| sufficient to bring the total assets of the
System up to 90% of |
|
|
|
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| the total actuarial liabilities of the System by the end
of | 2 |
| State fiscal year 2045. In making these determinations, the | 3 |
| required State
contribution shall be calculated each year as a | 4 |
| level percentage of payroll
over the years remaining to and | 5 |
| including fiscal year 2045 and shall be
determined under the | 6 |
| projected unit credit actuarial cost method.
| 7 |
| For State fiscal years 1996 through 2005, the State | 8 |
| contribution to
the System, as a percentage of the applicable | 9 |
| employee payroll, shall be
increased in equal annual increments | 10 |
| so that by State fiscal year 2011, the
State is contributing at | 11 |
| the rate required under this Section; except that
(i) for State | 12 |
| fiscal year 1998, for all purposes of this Code and any other
| 13 |
| law of this State, the certified percentage of the applicable | 14 |
| employee payroll
shall be 5.052% for employees earning eligible | 15 |
| creditable service under Section
14-110 and 6.500% for all | 16 |
| other employees, notwithstanding any contrary
certification | 17 |
| made under Section 14-135.08 before the effective date of this
| 18 |
| amendatory Act of 1997, and (ii)
in the following specified | 19 |
| State fiscal years, the State contribution to
the System shall | 20 |
| not be less than the following indicated percentages of the
| 21 |
| applicable employee payroll, even if the indicated percentage | 22 |
| will produce a
State contribution in excess of the amount | 23 |
| otherwise required under this
subsection and subsection (a):
| 24 |
| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 25 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 26 |
| Notwithstanding any other provision of this Article, the |
|
|
|
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| total required State
contribution to the System for State | 2 |
| fiscal year 2006 is $203,783,900.
| 3 |
| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution to the System for State | 5 |
| fiscal year 2007 is $344,164,400.
| 6 |
| For each of State fiscal years 2008 through 2010, the State | 7 |
| contribution to
the System, as a percentage of the applicable | 8 |
| employee payroll, shall be
increased in equal annual increments | 9 |
| from the required State contribution for State fiscal year | 10 |
| 2007, so that by State fiscal year 2011, the
State is | 11 |
| contributing at the rate otherwise required under this Section.
| 12 |
| Beginning in State fiscal year 2046, the minimum State | 13 |
| contribution for
each fiscal year shall be the amount needed to | 14 |
| maintain the total assets of
the System at 90% of the total | 15 |
| actuarial liabilities of the System.
| 16 |
| Amounts received by the System pursuant to Section 25 of | 17 |
| the Budget Stabilization Act in any fiscal year do not reduce | 18 |
| and do not constitute payment of any portion of the minimum | 19 |
| State contribution required under this Article in that fiscal | 20 |
| year. Such amounts shall not reduce, and shall not be included | 21 |
| in the calculation of, the required State contributions under | 22 |
| this Article in any future year until the System has reached a | 23 |
| funding ratio of at least 90%. A reference in this Article to | 24 |
| the "required State contribution" or any substantially similar | 25 |
| term does not include or apply to any amounts payable to the | 26 |
| System under Section 25 of the Budget Stabilization Act.
|
|
|
|
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|
| 1 |
| Notwithstanding any other provision of this Section, the | 2 |
| required State
contribution for State fiscal year 2005 and for | 3 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 4 |
| under this Section and
certified under Section 14-135.08, shall | 5 |
| not exceed an amount equal to (i) the
amount of the required | 6 |
| State contribution that would have been calculated under
this | 7 |
| Section for that fiscal year if the System had not received any | 8 |
| payments
under subsection (d) of Section 7.2 of the General | 9 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 10 |
| total debt service payments for that fiscal
year on the bonds | 11 |
| issued for the purposes of that Section 7.2, as determined
and | 12 |
| certified by the Comptroller, that is the same as the System's | 13 |
| portion of
the total moneys distributed under subsection (d) of | 14 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 15 |
| this maximum for State fiscal years 2008 through 2010, however, | 16 |
| the amount referred to in item (i) shall be increased, as a | 17 |
| percentage of the applicable employee payroll, in equal | 18 |
| increments calculated from the sum of the required State | 19 |
| contribution for State fiscal year 2007 plus the applicable | 20 |
| portion of the State's total debt service payments for fiscal | 21 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 22 |
| of the General
Obligation Bond Act, so that, by State fiscal | 23 |
| year 2011, the
State is contributing at the rate otherwise | 24 |
| required under this Section.
| 25 |
| (f) After the submission of all payments for eligible | 26 |
| employees
from personal services line items in fiscal year 2004 |
|
|
|
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| 1 |
| have been made,
the Comptroller shall provide to the System a | 2 |
| certification of the sum
of all fiscal year 2004 expenditures | 3 |
| for personal services that would
have been covered by payments | 4 |
| to the System under this Section if the
provisions of this | 5 |
| amendatory Act of the 93rd General Assembly had not been
| 6 |
| enacted. Upon
receipt of the certification, the System shall | 7 |
| determine the amount
due to the System based on the full rate | 8 |
| certified by the Board under
Section 14-135.08 for fiscal year | 9 |
| 2004 in order to meet the State's
obligation under this | 10 |
| Section. The System shall compare this amount
due to the amount | 11 |
| received by the System in fiscal year 2004 through
payments | 12 |
| under this Section and under Section 6z-61 of the State Finance | 13 |
| Act.
If the amount
due is more than the amount received, the | 14 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 15 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 16 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 17 |
| Continuing Appropriation Act. If the amount due is less than | 18 |
| the
amount received, the
difference shall be termed the "Fiscal | 19 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 20 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to | 21 |
| the Pension Contribution Fund as soon as practicable
after the | 22 |
| certification.
| 23 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 24 |
| eff. 6-1-05; 94-839, eff. 6-6-06.)
| 25 |
| (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
|
|
|
|
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| 1 |
| Sec. 14-133. Contributions on behalf of members.
| 2 |
| (a) Each participating employee shall make contributions | 3 |
| to the System,
based on the employee's compensation, as | 4 |
| follows:
| 5 |
| (1) Covered employees, except as indicated below, 3.5% | 6 |
| for
retirement annuity, and 0.5% for a widow or survivors
| 7 |
| annuity . After June 30, 2009, the retirement contribution | 8 |
| for a covered employee with military service is increased | 9 |
| 0.6% if the Social Security offset is removed from his or | 10 |
| her widow's or survivors annuity, thus making his or her | 11 |
| total contribution for that purpose 1.1%. ;
| 12 |
| (2) Noncovered employees, except as indicated below, | 13 |
| 7% for retirement
annuity and 1% for a widow or survivors | 14 |
| annuity . ;
| 15 |
| (3) Noncovered employees serving in a position in which | 16 |
| "eligible
creditable service" as defined in Section 14-110 | 17 |
| may be earned, 1% for a widow
or survivors annuity
plus the | 18 |
| following amount for retirement annuity: 8.5% through | 19 |
| December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | 20 |
| in 2004 and thereafter . ;
| 21 |
| (4) Covered employees serving in a position in which | 22 |
| "eligible creditable
service" as defined in Section 14-110 | 23 |
| may be earned, 0.5% for a widow or survivors annuity ,
plus | 24 |
| the following amount for retirement annuity: 5% through | 25 |
| December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 26 |
| and thereafter . After June 30, 2009, the retirement |
|
|
|
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| 1 |
| contribution for a covered employee with military service | 2 |
| is increased 0.6% to remove the Social Security offset from | 3 |
| his or her widow's or survivors annuity, thus making his or | 4 |
| her total contribution for that purpose 1.1%. ;
| 5 |
| (5) Each security employee of the Department of | 6 |
| Corrections
or of the Department of Human Services who is a | 7 |
| covered employee, 0.5% for a widow or survivors annuity ,
| 8 |
| plus the following amount for retirement annuity: 5% | 9 |
| through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | 10 |
| in 2004 and thereafter . After June 30, 2009, the retirement | 11 |
| contribution for a covered employee with military service | 12 |
| is increased 0.6% to remove the Social Security offset from | 13 |
| his or her widow's or survivors annuity, thus making his or | 14 |
| her total contribution for that purpose 1.1%. ;
| 15 |
| (6) Each security employee of the Department of | 16 |
| Corrections
or of the Department of Human Services who is | 17 |
| not a covered employee, 1% for a widow or survivors annuity
| 18 |
| plus the following amount for retirement annuity: 8.5% | 19 |
| through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 20 |
| 11.5% in 2004 and thereafter.
| 21 |
| (b) Contributions shall be in the form of a deduction from
| 22 |
| compensation and shall be made notwithstanding that the | 23 |
| compensation
paid in cash to the employee shall be reduced | 24 |
| thereby below the minimum
prescribed by law or regulation. Each | 25 |
| member is deemed to consent and
agree to the deductions from | 26 |
| compensation provided for in this Article,
and shall receipt in |
|
|
|
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| 1 |
| full for salary or compensation.
| 2 |
| (c) The increase in contributions by covered members for | 3 |
| widow or survivors annuity purposes provided by this amendatory | 4 |
| Act of the 95th General Assembly does not apply to persons who | 5 |
| first become members of the System on or after July 1, 2014, if | 6 |
| the new benefit increase created by this amendatory Act expires | 7 |
| in accordance with Section 14-152.1(d) and Section 14-152.2.
| 8 |
| (Source: P.A. 92-14, eff. 6-28-01.)
| 9 |
| (40 ILCS 5/14-152.2)
| 10 |
| Sec. 14-152.2. New benefit increases. | 11 |
| (a) The General Assembly finds and declares that the | 12 |
| amendment to Section 14-104 made by this amendatory Act of the | 13 |
| 95th General Assembly that allows members to establish | 14 |
| creditable service for certain participation in the University | 15 |
| of Illinois Government Public Service Internship Program | 16 |
| (GPSI) constitutes a new benefit increase within the meaning of | 17 |
| Section 14-152.1. Funding for this new benefit increase will be | 18 |
| provided by additional employee contributions under subsection | 19 |
| (r) of Section 14-104.
| 20 |
| (b) The General Assembly finds and declares that the | 21 |
| amendment to Sections 14-119 and 14-121 made by this amendatory | 22 |
| Act of the 95th General Assembly, which removes the social | 23 |
| security offset from certain widow's and survivors annuities | 24 |
| beginning July 1, 2009, constitutes a new benefit increase | 25 |
| within the meaning of Section 14-152.1. Funding for this new |
|
|
|
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| 1 |
| benefit increase will be provided by the additional employee | 2 |
| contributions made under Section 14-133 by this amendatory Act. | 3 |
| Unless this new benefit increase is extended by the General | 4 |
| Assembly, it will expire on July 1, 2014. If this new benefit | 5 |
| increase expires: | 6 |
| (i) for persons who first become members of the System | 7 |
| on or after the July 1, 2014 expiration date (and their | 8 |
| widows and survivors), the social security offsets under | 9 |
| Section 14-119(d) and Section 14-121(g), as they existed | 10 |
| immediately prior to the effective date of this amendatory | 11 |
| Act, are reinstated, and the increase in contributions by | 12 |
| covered members for widow or survivors annuity purposes | 13 |
| under Section 14-133 does not apply; and | 14 |
| (ii) for persons who first become members of the System | 15 |
| before July 1, 2014 and made the required elective | 16 |
| contributions under Section 14-133 (and their widows and | 17 |
| survivors), the social security offsets under Section | 18 |
| 14-119(d) and Section 14-121(g) remain inapplicable after | 19 |
| July 1, 2009 and the increase in contributions by covered | 20 |
| members for widow or survivors annuity purposes under | 21 |
| Section 14-133 remains in effect. | 22 |
| (Source: P.A. 95-652, eff. 10-11-07.)
| 23 |
| Section 99. Effective date. This Act takes effect upon | 24 |
| becoming law.
|
|