[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB4186
LRB9110327EGfgA
1 AN ACT in relation to 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
5 changing Section 1-116 and adding Section 1-120 as follows:
6 (40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
7 Sec. 1-116. Federal contribution and benefit limitations
8 limitation.
9 (a) This Section applies to all pension funds and
10 retirement systems established under this Code.
11 (a-5) All pension funds and retirement systems
12 established under this Code shall comply with the applicable
13 contribution and benefit limitations imposed by Section 415
14 of the U.S. Internal Revenue Code of 1986 for tax qualified
15 plans under Section 401(a) of that Code.
16 (b) If any benefit payable by a pension fund or
17 retirement system subject to this Section exceeds the
18 applicable benefit limits set by Section 415 of the U.S.
19 Internal Revenue Code of 1986 for tax qualified plans under
20 Section 401(a) of that Code, the excess shall be payable only
21 from an excess benefit fund established under this Section in
22 accordance with federal law.
23 (c) An excess benefit fund shall be established by any
24 pension fund or retirement system subject to this Section
25 that has any member eligible to receive a benefit that
26 exceeds the applicable benefit limits set by Section 415 of
27 the U.S. Internal Revenue Code of 1986 for tax qualified
28 plans under Section 401(a) of that Code. Amounts shall be
29 credited to the excess benefit fund, and payments for excess
30 benefits made from the excess benefit fund, in a manner
31 consistent with the applicable federal law.
-2- LRB9110327EGfgA
1 (d) For purposes of matters relating to the benefit
2 limits set by Section 415 of the U.S. Internal Revenue Code
3 of 1986, the limitation year may be defined by each affected
4 pension fund or retirement system for that fund or system.
5 (Source: P.A. 90-19, eff. 6-20-97.)
6 (40 ILCS 5/1-120 new)
7 Sec. 1-120. Payment to trust.
8 (a) If a person is a minor or has been determined by a
9 court to be under a legal disability, any benefits payable to
10 that person under this Code may be paid to the trustee of a
11 trust created for the sole benefit of that person while the
12 person is living, if the trustee of the trust has advised the
13 board of trustees of the pension fund or retirement system in
14 writing that the benefits will be held or used for the sole
15 benefit of that person. The pension fund or retirement
16 system shall not be required to determine the validity of the
17 trust or of any of the terms of the trust. The
18 representation of the trustee that the trust meets the
19 requirements of this Section shall be conclusive as to the
20 pension fund or retirement system. Payment of benefits to
21 the trust shall be an absolute discharge of the pension fund
22 or retirement system's liability with respect to the amounts
23 so paid.
24 (b) For purposes of this Section, "minor" means an
25 unmarried person under the age of 18.
26 (c) This Section is not a limitation on any other power
27 to pay benefits to or on behalf of a minor or person under
28 legal disability that is granted under this Code or other
29 applicable law.
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.