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91_SB1702
LRB9112641EGfg
1 AN ACT to amend the Illinois Pension Code.
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 adding Section 14-115.1 as follows:
6 (40 ILCS 5/14-115.1 new)
7 Sec. 14-115.1. Additional benefit payment.
8 (a) If, in its fiscal year ending in 2000, 2001, 2002,
9 2003, or 2004, the System realizes an annual return on
10 investment that exceeds the actuarial assumed rate of return
11 for that year, the System shall set aside for the payment of
12 an additional benefit under this Section an amount equal to
13 50% of the amount by which the actual investment return for
14 that year exceeds the investment return predicted using the
15 actuarial assumed rate of return.
16 (b) The amount set aside under subsection (a) shall be
17 used by the System to pay an additional benefit to each
18 eligible person on the January 1 next following the end of
19 that fiscal year. To be eligible for this benefit, a person
20 must have received from the System throughout the fiscal year
21 in which the excess investment return was realized, and
22 continue to receive on the January 1 additional benefit
23 payment date, one of the following types of annuities: (1) a
24 retirement annuity that began before January 1, 1998, (2) a
25 widow's annuity, (3) a survivor's annuity, or (4) an
26 occupational death benefit in the form of an annuity.
27 (c) The additional benefit shall consist of a one-time
28 payment to each eligible person of an amount to be determined
29 by the Board, consisting of the same portion of the total
30 amount set aside for additional benefits that the person's
31 annuity in the last month of the relevant fiscal year
-2- LRB9112641EGfg
1 comprises of the total amount of annuities paid by the System
2 to eligible persons in that month.
3 (d) The additional benefit payment under this Section is
4 a separate benefit that shall be paid on a separate check; it
5 is neither a part of nor an increase in the person's annuity
6 and is not subject to payment under a QILDRO. It shall not
7 be included in the calculation of any automatic annual
8 increase or other increase in the person's annuity and shall
9 not affect the calculation of any refund of contributions
10 that may become payable. The amount of the additional
11 benefit payment, and a person's eligibility to receive the
12 additional benefit payment, shall be redetermined for each
13 year for which an additional benefit is payable.
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.