State of Illinois
90th General Assembly
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90_HB0967

      40 ILCS 5/7-152           from Ch. 108 1/2, par. 7-152
      30 ILCS 805/8.21 new
          Amends the  Illinois  Municipal  Retirement  Fund  (IMRF)
      Article  of the Pension Code to increase the basic disability
      benefit for sheriff's law enforcement employees from  50%  to
      65% of final rate of earnings.  Amends the State Mandates Act
      to  require  implementation without reimbursement.  Effective
      immediately.
                                                     LRB9003035EGfg
                                               LRB9003035EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 7-152 and to amend the State Mandates Act.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 7-152 as follows:
 7        (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
 8        Sec. 7-152.  Disability benefits - Amount.  The amount of
 9    the  monthly  temporary  and  total  and permanent disability
10    benefits shall be 50% of the participating  employee's  final
11    rate of earnings on the date disability was incurred, subject
12    to the following adjustments:
13        (a)  If  the participating employee has a reduced rate of
14    earnings  at  the  time  his  employment  ceases  because  of
15    disability, the rate of earnings shall  be  computed  on  the
16    basis of his last 12 month period of full-time employment.
17        (b)  If  the  participating  employee  is  eligible for a
18    disability benefit under the Federal Social Security Act, the
19    amount of monthly disability benefits shall be  reduced,  but
20    not  to  less  than  $10  a  month, by the amount he would be
21    eligible to receive as a disability benefit under the Federal
22    Social Security Act, whether or not because of service  as  a
23    covered  employee under this Article.  The reduction shall be
24    effective as of the month the employee is eligible for Social
25    Security  disability  benefits.   The  Board  may  make  such
26    reduction if it appears that the employee may be so  eligible
27    pending  determination of eligibility and make an appropriate
28    adjustment if necessary after  such  determination.   If  the
29    employee,  because  of  his  refusal to accept rehabilitation
30    services under the Federal Rehabilitation Act of 1973 or  the
31    Federal  Social  Security  Act,  or  because  he is receiving
                            -2-                LRB9003035EGfg
 1    workers'  compensation  benefits,  has  his  Social  Security
 2    benefits reduced or terminated, the disability benefit  shall
 3    be  reduced as if the employee were receiving his full Social
 4    Security disability benefit.
 5        (c)  If the employee is over age 65, was not eligible for
 6    a Social Security benefit immediately before reaching age  65
 7    and  is  eligible  for  a  Social  Security old-age insurance
 8    benefit, the amount of the monthly disability  benefit  shall
 9    be  reduced,  but not to less than $10 a month, by the amount
10    of the old-age insurance benefit to  which  the  employee  is
11    entitled  whether  or not the employee applies for the Social
12    Security old-age insurance benefit.  This reduction shall  be
13    made  in  the  month  after  the  month in which the employee
14    attains age 65.  However, if the  employee  was  receiving  a
15    Social  Security  disability  benefit before reaching age 65,
16    the disability benefits after  age  65  shall  be  determined
17    under subsection (b) of this Section.
18        (d)  The  amount  of  disability  benefits  shall  not be
19    reduced by reason of any increase, other than  one  resulting
20    from  a  correction  in  the  employee's wage records, in the
21    amount of disability or old-age insurance benefits under  the
22    Federal  Social  Security  Act  which  takes effect after the
23    month of the initial reduction under paragraph (b) or (c)  of
24    this Section.
25        (e)  If  the  employee in any month receives compensation
26    from gainful employment which is more than 25% of  the  final
27    rate  of earnings on which his disability benefits are based,
28    the temporary disability benefit payable for that month shall
29    be reduced by an amount equal to such excess.
30        (f)  An employee who has been disabled for  at  least  30
31    days may return to work for the employer on a part-time basis
32    for  a  trial work period of up to one year, during which the
33    disability shall be deemed to continue.  Service credit shall
34    continue to accrue and the disability benefit shall  continue
                            -3-                LRB9003035EGfg
 1    to  be  paid  during  the  trial work period, but the benefit
 2    shall be reduced by the amount of earnings  received  by  the
 3    disabled  employee.   Return  to service on a full-time basis
 4    shall terminate the trial work period.  The  reduction  under
 5    this  subsection  (f)  shall  be in lieu of the reduction, if
 6    any, required under subsection (e).
 7        (g)  Beginning January 1, 1988, every total and permanent
 8    disability benefit shall be increased by 3% of  the  original
 9    amount  of  the  benefit,  not  compounded, on each January 1
10    following the later of (1) the date the total  and  permanent
11    disability  benefit  begins,  or  (2)  the date the total and
12    permanent disability benefit would have begun if the employee
13    had been paid a temporary disability benefit for 30 months.
14        (h)  Beginning January  1,  1998,  the  basic  disability
15    benefit  for sheriff's law enforcement employees shall be 65%
16    of the employee's final rate of  earnings  on  the  date  the
17    disability  was  incurred,  rather  than  the  50%  otherwise
18    provided  under  this  Section.   Sheriff's  law  enforcement
19    employees who are receiving a disability benefit on that date
20    shall have the benefit increased accordingly.
21    (Source: P.A. 87-740.)
22        Section  90.  The State Mandates Act is amended by adding
23    Section 8.21 as follows:
24        (30 ILCS 805/8.21 new)
25        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
26    and  8 of this Act, no reimbursement by the State is required
27    for  the  implementation  of  any  mandate  created  by  this
28    amendatory Act of 1997.
29        Section 99. This Act takes effect upon becoming law.

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