Full Text of HB4789 96th General Assembly
HB4789 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB4789
Introduced 1/12/2010, by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/8-139 |
from Ch. 108 1/2, par. 8-139 |
30 ILCS 805/8.34 new |
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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.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB4789 |
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LRB096 15810 AMC 31051 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 |
| Section 8-139 as follows:
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| (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
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| Sec. 8-139. Reversionary annuity.
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| (a) An employee, prior to retirement on annuity, may elect | 9 |
| to take a lesser
amount of annuity and provide, with the | 10 |
| actuarial value of the amount by which
his annuity is reduced, | 11 |
| a reversionary annuity for a wife, husband, parent,
child, | 12 |
| brother or sister. The option shall be exercised by filing a | 13 |
| written
designation with the board prior to retirement, and may | 14 |
| be revoked by the
employee at any time before retirement. The | 15 |
| death of the employee prior to
his retirement shall | 16 |
| automatically void the option.
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| (b) The death of the designated reversionary annuitant | 18 |
| prior to the
employee's retirement shall automatically void the | 19 |
| option. If the
reversionary annuitant dies after the employee's | 20 |
| retirement, and before
the death of the employee annuitant, the | 21 |
| reduced
annuity being paid to the retired employee annuitant | 22 |
| shall be increased
to the amount of annuity before reduction | 23 |
| for the reversionary annuity
and no reversionary annuity shall |
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HB4789 |
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LRB096 15810 AMC 31051 b |
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| be payable.
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| The option is subject to the further condition that no | 3 |
| reversionary annuity
shall be paid to a parent, child, brother, | 4 |
| or sister if the employee dies
before the expiration of 365 | 5 |
| days from the date his written
designation was filed with the | 6 |
| board, even though he has retired and is
receiving a reduced | 7 |
| annuity.
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| (c) The employee exercising this option shall not reduce | 9 |
| his retirement
annuity by more than $400 a month, or elect to | 10 |
| provide a
reversionary annuity of less than $50 per month. No | 11 |
| option shall be permitted
if the reversionary annuity for a | 12 |
| widow , when added to the widow's annuity
payable under this | 13 |
| Article, exceeds 100% of the reduced annuity
payable to the | 14 |
| employee.
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| (d) A reversionary annuity shall begin on the day following | 16 |
| the death of
the annuitant and shall be paid as provided in | 17 |
| Section 8-125.
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| (e) The increases in annuity provided in Section 8-137 of | 19 |
| this Article
shall, as to an employee so electing a reduced | 20 |
| annuity relate to the amount
of the original annuity, and such | 21 |
| amount shall
constitute the annuity on
which such automatic | 22 |
| increases shall be based.
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| (f) For annuities elected after June 30, 1983, the amount | 24 |
| of the monthly
reversionary annuity shall be determined by | 25 |
| multiplying the amount of the
monthly reduction in the | 26 |
| employee's annuity by the factor in the following
table based |
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HB4789 |
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LRB096 15810 AMC 31051 b |
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| on the age of the employee and the difference in the age of
the | 2 |
| employee and the age of the reversionary annuitant at the | 3 |
| starting date
of the employee's annuity:
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4 | | Employee's Age |
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5 | | Reversionary |
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6 | | Annuitant's |
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7 | | Age |
50-51 |
52-54 |
55-57 |
58-60 |
61-63 |
64-66 |
67-69 |
70 & |
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8 | | |
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Over |
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9 | | 30 or |
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10 | | more |
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11 | | years |
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12 | | younger |
3.03 |
2.56 |
2.18 |
1.84 |
1.55 |
1.29 |
1.08 |
0.91 |
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13 | | 25-29 |
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14 | | years |
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15 | | younger |
3.16 |
2.68 |
2.29 |
1.94 |
1.63 |
1.37 |
1.15 |
0.97 |
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16 | | 20-24 |
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17 | | years |
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18 | | younger |
3.35 |
2.85 |
2.44 |
2.07 |
1.75 |
1.48 |
1.25 |
1.06 |
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19 | | 15-19 |
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20 | | years |
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21 | | younger |
3.60 |
3.08 |
2.65 |
2.26 |
1.92 |
1.63 |
1.39 |
1.19 |
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22 | | 10-14 |
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23 | | years |
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24 | | younger |
3.96 |
3.40 |
2.94 |
2.53 |
2.16 |
1.85 |
1.59 |
1.37 |
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25 | | 5-9 |
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26 | | years |
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LRB096 15810 AMC 31051 b |
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| 1 | | younger |
4.46 |
3.84 |
3.35 |
2.90 |
2.51 |
2.16 |
1.88 |
1.64 |
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2 | | 0-4 |
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3 | | years |
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4 | | younger |
5.15 |
4.47 |
3.93 |
3.44 |
3.00 |
2.61 |
2.29 |
2.02 |
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5 | | 1-5 |
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6 | | years |
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7 | | older |
6.12 |
5.36 |
4.76 |
4.21 |
3.71 |
3.26 |
2.88 |
2.56 |
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8 | | 6-10 |
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9 | | years |
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10 | | older |
7.48 |
6.61 |
5.93 |
5.30 |
4.71 |
4.16 |
3.70 |
3.29 |
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11 | | 11-15 |
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12 | | years |
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13 | | older |
9.37 |
8.35 |
7.58 |
6.83 |
6.11 |
5.40 |
4.82 |
4.32 |
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14 | | 16-20 |
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15 | | years |
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16 | | older |
11.99 |
10.78 |
9.84 |
8.93 |
8.02 |
7.13 |
6.43 |
5.87 |
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17 | | 21-25 |
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18 | | years |
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19 | | older |
15.59 |
14.06 |
12.91 |
11.82 |
10.73 |
9.66 |
8.88 |
8.35 |
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20 | | 26-30 |
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21 | | years |
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22 | | older |
20.42 |
18.49 |
17.15 |
15.96 |
14.80 |
13.65 |
12.97 |
12.82 |
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23 | | 31 or |
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24 | | more |
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25 | | years |
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26 | | older |
27.07 |
24.72 |
23.34 |
22.32 |
21.45 |
20.62 |
20.85 |
23.28 |
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HB4789 |
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LRB096 15810 AMC 31051 b |
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| 1 |
| (g) Beginning January 1, 2010, an employee annuitant who | 2 |
| has elected the reversionary annuity may cancel the election. | 3 |
| The cancellation must be in writing with the employee's | 4 |
| signature notarized. The cancellation shall be effective upon | 5 |
| its being filed with the Board and may not be revoked after it | 6 |
| is executed and filed. The reduction in annuity shall be | 7 |
| restored with the first annuity payment made at least 30 days | 8 |
| after the receipt of the cancellation by the Fund. There shall | 9 |
| be no refund of money previously deducted from the employee's | 10 |
| annuity to provide the reversionary annuity. | 11 |
| (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98; | 12 |
| 91-887, eff.
7-6-00 .)
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| Section 90. The State Mandates Act is amended by adding | 14 |
| Section 8.34 as follows: | 15 |
| (30 ILCS 805/8.34 new) | 16 |
| Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 | 17 |
| of this Act, no reimbursement by the State is required for the | 18 |
| implementation of any mandate created by this amendatory Act of | 19 |
| the 96th General Assembly. | 20 |
| Section 99. Effective date. This Act takes effect upon | 21 |
| becoming law.
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