103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1648 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: See Index Amends the Chicago Laborer Article of the Illinois Pension Code. For Tier 1 participants: provides that if the minimum annuity applies and is greater than the annuity provided under the annuity after withdrawal while disabled provisions, then the minimum annuity shall apply; provides that the annuity for withdrawal while disabled shall be subject to automatic annual increases; provides that if the minimum widow's annuity applies and is greater than the spouse's annuity under the annuity after withdrawal while disabled provisions, then the minimum widow's annuity shall apply; and provides that any widow's annuity shall not be subject to any automatic annual increases. For Tier 2 participants: provides that an employee whose disability continues after the employee has received ordinary disability benefits for the maximum period of time and who withdraws before becoming eligible for a retirement annuity while still so disabled is entitled to receive an annuity in such amount as can be provided from the total sum accumulated to the employee's credit from employee and employer contributions, to be computed as of the employee's age on the date of withdrawal; provides that the annuity shall not be subject to any automatic annual increases and that the minimum annuity shall not apply; provides that the annuity to which the employee's spouse shall be entitled upon the employee's death shall be fixed on the date of the employee's withdrawal and shall be provided on a reversionary annuity basis; and provides that the annuity shall not be subject to any automatic annual increases and that the minimum widow's annuity shall not apply. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 27807 RPS 54185 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1648 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: See Index See Index Amends the Chicago Laborer Article of the Illinois Pension Code. For Tier 1 participants: provides that if the minimum annuity applies and is greater than the annuity provided under the annuity after withdrawal while disabled provisions, then the minimum annuity shall apply; provides that the annuity for withdrawal while disabled shall be subject to automatic annual increases; provides that if the minimum widow's annuity applies and is greater than the spouse's annuity under the annuity after withdrawal while disabled provisions, then the minimum widow's annuity shall apply; and provides that any widow's annuity shall not be subject to any automatic annual increases. For Tier 2 participants: provides that an employee whose disability continues after the employee has received ordinary disability benefits for the maximum period of time and who withdraws before becoming eligible for a retirement annuity while still so disabled is entitled to receive an annuity in such amount as can be provided from the total sum accumulated to the employee's credit from employee and employer contributions, to be computed as of the employee's age on the date of withdrawal; provides that the annuity shall not be subject to any automatic annual increases and that the minimum annuity shall not apply; provides that the annuity to which the employee's spouse shall be entitled upon the employee's death shall be fixed on the date of the employee's withdrawal and shall be provided on a reversionary annuity basis; and provides that the annuity shall not be subject to any automatic annual increases and that the minimum widow's annuity shall not apply. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 27807 RPS 54185 b LRB103 27807 RPS 54185 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1648 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: See Index See Index See Index Amends the Chicago Laborer Article of the Illinois Pension Code. For Tier 1 participants: provides that if the minimum annuity applies and is greater than the annuity provided under the annuity after withdrawal while disabled provisions, then the minimum annuity shall apply; provides that the annuity for withdrawal while disabled shall be subject to automatic annual increases; provides that if the minimum widow's annuity applies and is greater than the spouse's annuity under the annuity after withdrawal while disabled provisions, then the minimum widow's annuity shall apply; and provides that any widow's annuity shall not be subject to any automatic annual increases. For Tier 2 participants: provides that an employee whose disability continues after the employee has received ordinary disability benefits for the maximum period of time and who withdraws before becoming eligible for a retirement annuity while still so disabled is entitled to receive an annuity in such amount as can be provided from the total sum accumulated to the employee's credit from employee and employer contributions, to be computed as of the employee's age on the date of withdrawal; provides that the annuity shall not be subject to any automatic annual increases and that the minimum annuity shall not apply; provides that the annuity to which the employee's spouse shall be entitled upon the employee's death shall be fixed on the date of the employee's withdrawal and shall be provided on a reversionary annuity basis; and provides that the annuity shall not be subject to any automatic annual increases and that the minimum widow's annuity shall not apply. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 27807 RPS 54185 b LRB103 27807 RPS 54185 b LRB103 27807 RPS 54185 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR SB1648LRB103 27807 RPS 54185 b SB1648 LRB103 27807 RPS 54185 b SB1648 LRB103 27807 RPS 54185 b 1 AN ACT concerning 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 11-159 and by adding Section 11-159.1 as 6 follows: 7 (40 ILCS 5/11-159) (from Ch. 108 1/2, par. 11-159) 8 Sec. 11-159. Annuity after withdrawal while disabled for 9 employees who first became participants prior to January 1, 10 2011. 11 (a) This Section applies to employees who first became 12 participants prior to January 1, 2011. 13 (b) An employee whose disability continues after the 14 employee he has received ordinary disability benefits benefit 15 for the maximum period of time prescribed by this Article, and 16 who withdraws before age 60 while still so disabled, is 17 entitled to receive an annuity in of such amount as can be 18 provided from the total sum accumulated to the employee's his 19 credit from employee contributions and employer city 20 contributions, to be computed as of the employee's his age on 21 the date of withdrawal. If the minimum annuity under Section 22 11-134 applies and is greater than the annuity under this 23 subsection (b), then the Section 11-134 annuity shall apply. 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1648 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: See Index See Index See Index Amends the Chicago Laborer Article of the Illinois Pension Code. For Tier 1 participants: provides that if the minimum annuity applies and is greater than the annuity provided under the annuity after withdrawal while disabled provisions, then the minimum annuity shall apply; provides that the annuity for withdrawal while disabled shall be subject to automatic annual increases; provides that if the minimum widow's annuity applies and is greater than the spouse's annuity under the annuity after withdrawal while disabled provisions, then the minimum widow's annuity shall apply; and provides that any widow's annuity shall not be subject to any automatic annual increases. For Tier 2 participants: provides that an employee whose disability continues after the employee has received ordinary disability benefits for the maximum period of time and who withdraws before becoming eligible for a retirement annuity while still so disabled is entitled to receive an annuity in such amount as can be provided from the total sum accumulated to the employee's credit from employee and employer contributions, to be computed as of the employee's age on the date of withdrawal; provides that the annuity shall not be subject to any automatic annual increases and that the minimum annuity shall not apply; provides that the annuity to which the employee's spouse shall be entitled upon the employee's death shall be fixed on the date of the employee's withdrawal and shall be provided on a reversionary annuity basis; and provides that the annuity shall not be subject to any automatic annual increases and that the minimum widow's annuity shall not apply. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 27807 RPS 54185 b LRB103 27807 RPS 54185 b LRB103 27807 RPS 54185 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR See Index LRB103 27807 RPS 54185 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY SB1648 LRB103 27807 RPS 54185 b SB1648- 2 -LRB103 27807 RPS 54185 b SB1648 - 2 - LRB103 27807 RPS 54185 b SB1648 - 2 - LRB103 27807 RPS 54185 b 1 Any annuity under this subsection (b) shall be subject to 2 automatic annual increases under Section 11-134.1. 3 (c) The annuity to which the employee's spouse his wife 4 shall be entitled upon the employee's his death, shall be 5 fixed on the date of the employee's his withdrawal. It shall be 6 provided on a reversionary annuity basis from the total sum 7 accumulated to the employee's his credit for widow's annuity 8 on the date of such withdrawal. If the minimum annuity under 9 Section 11-145.1 applies and is greater than the annuity under 10 this subsection (c), then the Section 11-145.1 annuity shall 11 apply. Any widow's annuity shall not be subject to any 12 automatic annual increases. 13 (d) Upon the death of any such employee while on annuity, 14 if the employee's his service was at least 4 years after the 15 date of the employee's his original entry, and at least 2 years 16 after the date of the employee's his latest re-entry, the 17 employee's his unmarried child or children under age 18 shall 18 be entitled to an annuity as specified in this Article for 19 children of an employee who retires after age 55, subject to 20 prescribed limitations on total payments to a family of an 21 employee. 22 (Source: P.A. 81-1536.) 23 (40 ILCS 5/11-159.1 new) 24 Sec. 11-159.1. Annuity after withdrawal while disabled for 25 employees who first became participants on or after January 1, SB1648 - 2 - LRB103 27807 RPS 54185 b SB1648- 3 -LRB103 27807 RPS 54185 b SB1648 - 3 - LRB103 27807 RPS 54185 b SB1648 - 3 - LRB103 27807 RPS 54185 b 1 2011. 2 (a) This Section applies to employees who first became 3 participants on or after January 1, 2011. 4 (b) An employee whose disability continues after the 5 employee has received ordinary disability benefits for the 6 maximum period of time prescribed by this Article and who 7 withdraws before becoming eligible for a retirement annuity 8 under subsection (c), (c-5), (d), or (d-5) of Section 1-160 9 while still so disabled is entitled to receive an annuity in 10 such amount as can be provided from the total sum accumulated 11 to the employee's credit from employee contributions and 12 employer contributions, to be computed as of the employee's 13 age on the date of withdrawal. The minimum annuity under 14 Section 11-134 shall not apply, and any annuity under this 15 subsection (b) shall not be subject to any automatic annual 16 increases. 17 (c) The annuity to which the employee's spouse shall be 18 entitled upon the employee's death shall be fixed on the date 19 of the employee's withdrawal. It shall be provided on a 20 reversionary annuity basis from the total sum accumulated to 21 the employee's credit for widow's annuity on the date of such 22 withdrawal. The minimum annuity under Section 11-145.1 shall 23 not apply and any widow's annuity under this subsection (c) 24 shall not be subject to any automatic annual increases. 25 (d) Upon the death of any such employee while on annuity, 26 if the employee's service was at least 4 years after the date SB1648 - 3 - LRB103 27807 RPS 54185 b SB1648- 4 -LRB103 27807 RPS 54185 b SB1648 - 4 - LRB103 27807 RPS 54185 b SB1648 - 4 - LRB103 27807 RPS 54185 b 1 of the employee's original entry, and at least 2 years after 2 the date of the employee's latest re-entry, the employee's 3 unmarried children under age 18 shall be entitled to an 4 annuity as specified in this Article for children of an 5 employee who retires after age 55, subject to prescribed 6 limitations on total payments to a family of an employee. 7 Section 90. The State Mandates Act is amended by adding 8 Section 8.47 as follows: 9 (30 ILCS 805/8.47 new) 10 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and 11 8 of this Act, no reimbursement by the State is required for 12 the implementation of any mandate created by this amendatory 13 Act of the 103rd General Assembly. 14 Section 99. Effective date. This Act takes effect upon 15 becoming law. SB1648- 5 -LRB103 27807 RPS 54185 b 1 INDEX 2 Statutes amended in order of appearance SB1648- 5 -LRB103 27807 RPS 54185 b SB1648 - 5 - LRB103 27807 RPS 54185 b 1 INDEX 2 Statutes amended in order of appearance SB1648- 5 -LRB103 27807 RPS 54185 b SB1648 - 5 - LRB103 27807 RPS 54185 b SB1648 - 5 - LRB103 27807 RPS 54185 b 1 INDEX 2 Statutes amended in order of appearance SB1648 - 4 - LRB103 27807 RPS 54185 b SB1648- 5 -LRB103 27807 RPS 54185 b SB1648 - 5 - LRB103 27807 RPS 54185 b SB1648 - 5 - LRB103 27807 RPS 54185 b 1 INDEX 2 Statutes amended in order of appearance SB1648 - 5 - LRB103 27807 RPS 54185 b