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91_SB0568
LRB9100760EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 1-116.
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 1-116 as follows:
7 (40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
8 Sec. 1-116. Federal contribution and benefit limitations
9 limitation.
10 (a) This Section applies to all pension funds and
11 retirement systems established under this Code.
12 (a-5) All pension funds and retirement systems
13 established under this Code shall comply with the applicable
14 contribution and benefit limitations imposed by Section 415
15 of the U.S. Internal Revenue Code of 1986 for tax qualified
16 plans under Section 401(a) of that Code.
17 (b) If any benefit payable by a pension fund or
18 retirement system subject to this Section exceeds the
19 applicable benefit limits set by Section 415 of the U.S.
20 Internal Revenue Code of 1986 for tax qualified plans under
21 Section 401(a) of that Code, the excess shall be payable only
22 from an excess benefit fund established under this Section in
23 accordance with federal law.
24 (c) An excess benefit fund shall be established by any
25 pension fund or retirement system subject to this Section
26 that has any member eligible to receive a benefit that
27 exceeds the applicable benefit limits set by Section 415 of
28 the U.S. Internal Revenue Code of 1986 for tax qualified
29 plans under Section 401(a) of that Code. Amounts shall be
30 credited to the excess benefit fund, and payments for excess
31 benefits made from the excess benefit fund, in a manner
-2- LRB9100760EGfg
1 consistent with the applicable federal law.
2 (d) For purposes of matters relating to the benefit
3 limits set by Section 415 of the U.S. Internal Revenue Code
4 of 1986, the limitation year may be defined by each affected
5 pension fund or retirement system for that fund or system.
6 (Source: P.A. 90-19, eff. 6-20-97.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.