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Illinois Senate Bill SB1825

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1825 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1825 Introduced 2/9/2023, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144 30 ILCS 805/8.47 new Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant under the Article must be considered a participating employee because there was not a separation from service and the participating municipality or participating instrumentality that employs or re-employs that annuitant knowingly fails to notify the Board to suspend the annuity, the participating municipality or participating instrumentality may be required to reimburse the Fund for an amount up to the total (instead of one-half of the total) of any annuity payments made to the annuitant after the date the annuity should have been suspended, as determined by the Board, less any amount actually repaid by the annuitant. Removes language providing that the provisions shall not apply if the annuitant returned to work for the employer for less than 12 months. Adds similar provisions to a provision concerning separation from service and entitlement to a retirement annuity. Effective January 1, 2024. LRB103 24928 RPS 51262 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1825 Introduced 2/9/2023, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144 30 ILCS 805/8.47 new 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144 30 ILCS 805/8.47 new Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant under the Article must be considered a participating employee because there was not a separation from service and the participating municipality or participating instrumentality that employs or re-employs that annuitant knowingly fails to notify the Board to suspend the annuity, the participating municipality or participating instrumentality may be required to reimburse the Fund for an amount up to the total (instead of one-half of the total) of any annuity payments made to the annuitant after the date the annuity should have been suspended, as determined by the Board, less any amount actually repaid by the annuitant. Removes language providing that the provisions shall not apply if the annuitant returned to work for the employer for less than 12 months. Adds similar provisions to a provision concerning separation from service and entitlement to a retirement annuity. Effective January 1, 2024. LRB103 24928 RPS 51262 b LRB103 24928 RPS 51262 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1825 Introduced 2/9/2023, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144 30 ILCS 805/8.47 new 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144 30 ILCS 805/8.47 new
44 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141
55 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144
66 30 ILCS 805/8.47 new
77 Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant under the Article must be considered a participating employee because there was not a separation from service and the participating municipality or participating instrumentality that employs or re-employs that annuitant knowingly fails to notify the Board to suspend the annuity, the participating municipality or participating instrumentality may be required to reimburse the Fund for an amount up to the total (instead of one-half of the total) of any annuity payments made to the annuitant after the date the annuity should have been suspended, as determined by the Board, less any amount actually repaid by the annuitant. Removes language providing that the provisions shall not apply if the annuitant returned to work for the employer for less than 12 months. Adds similar provisions to a provision concerning separation from service and entitlement to a retirement annuity. Effective January 1, 2024.
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1515 1 AN ACT concerning public employee benefits.
1616 2 Be it enacted by the People of the State of Illinois,
1717 3 represented in the General Assembly:
1818 4 Section 5. The Illinois Pension Code is amended by
1919 5 changing Sections 7-141 and 7-144 as follows:
2020 6 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
2121 7 Sec. 7-141. Retirement annuities; conditions. Retirement
2222 8 annuities shall be payable as hereinafter set forth:
2323 9 (a) A participating employee who, regardless of cause, is
2424 10 separated from the service of all participating municipalities
2525 11 and instrumentalities thereof and participating
2626 12 instrumentalities shall be entitled to a retirement annuity
2727 13 provided:
2828 14 1. He is at least age 55 if he is a Tier 1 regular
2929 15 employee, he is age 62 if he is a Tier 2 regular employee,
3030 16 or, in the case of a person who is eligible to have his
3131 17 annuity calculated under Section 7-142.1, he is at least
3232 18 age 50;
3333 19 2. He is not entitled to receive earnings for
3434 20 employment in a position requiring him, or entitling him
3535 21 to elect, to be a participating employee;
3636 22 3. The amount of his annuity, before the application
3737 23 of paragraph (b) of Section 7-142 is at least $10 per
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4141 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1825 Introduced 2/9/2023, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
4242 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144 30 ILCS 805/8.47 new 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144 30 ILCS 805/8.47 new
4343 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141
4444 40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144
4545 30 ILCS 805/8.47 new
4646 Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant under the Article must be considered a participating employee because there was not a separation from service and the participating municipality or participating instrumentality that employs or re-employs that annuitant knowingly fails to notify the Board to suspend the annuity, the participating municipality or participating instrumentality may be required to reimburse the Fund for an amount up to the total (instead of one-half of the total) of any annuity payments made to the annuitant after the date the annuity should have been suspended, as determined by the Board, less any amount actually repaid by the annuitant. Removes language providing that the provisions shall not apply if the annuitant returned to work for the employer for less than 12 months. Adds similar provisions to a provision concerning separation from service and entitlement to a retirement annuity. Effective January 1, 2024.
4747 LRB103 24928 RPS 51262 b LRB103 24928 RPS 51262 b
4848 LRB103 24928 RPS 51262 b
4949 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
5050 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
5151 A BILL FOR
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8282 1 month;
8383 2 4. If he first became a participating employee after
8484 3 December 31, 1961 and is a Tier 1 regular employee, he has
8585 4 at least 8 years of service, or, if he is a Tier 2 regular
8686 5 member, he has at least 10 years of service. This service
8787 6 requirement shall not apply to any participating employee,
8888 7 regardless of participation date, if the General Assembly
8989 8 terminates the Fund.
9090 9 (a-5) If any annuitant under this Article must be
9191 10 considered a participating employee because there was not a
9292 11 separation from service as required by subsection (a) of this
9393 12 Section and the participating municipality or participating
9494 13 instrumentality that employs or re-employs that annuitant
9595 14 knowingly fails to notify the Board to suspend the annuity,
9696 15 the participating municipality or participating
9797 16 instrumentality may be required to reimburse the Fund for an
9898 17 amount up to the total of any annuity payments made to the
9999 18 annuitant after the date the annuity should have been
100100 19 suspended, as determined by the Board, less any amount
101101 20 actually repaid by the annuitant. In no case shall the total
102102 21 amount repaid by the annuitant plus any amount reimbursed by
103103 22 the employer to the Fund be more than the total of all annuity
104104 23 payments made to the annuitant after the date the annuity
105105 24 should have been suspended.
106106 25 (b) Retirement annuities shall be payable:
107107 26 1. As provided in Section 7-119;
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118118 1 2. Except as provided in item 3, upon receipt by the
119119 2 fund of a written application. The effective date may be
120120 3 not more than one year prior to the date of the receipt by
121121 4 the fund of the application;
122122 5 3. Upon attainment of the required age of distribution
123123 6 under Section 401(a)(9) of the Internal Revenue Code of
124124 7 1986, as amended, if the member (i) is no longer in
125125 8 service, and (ii) is otherwise entitled to an annuity
126126 9 under this Article;
127127 10 4. To the beneficiary of the deceased annuitant for
128128 11 the unpaid amount accrued to date of death, if any.
129129 12 (Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21;
130130 13 102-210, Article 10, Section 10-5, eff. 1-1-22; 102-813, eff.
131131 14 5-13-22.)
132132 15 (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
133133 16 Sec. 7-144. Retirement annuities; suspended annuities -
134134 17 suspended during employment.
135135 18 (a) If any person receiving any annuity again becomes an
136136 19 employee and receives earnings from employment in a position
137137 20 requiring him, or entitling him to elect, to become a
138138 21 participating employee, then the annuity payable to such
139139 22 employee shall be suspended as of the first 1st day of the
140140 23 month coincidental with or next following the date upon which
141141 24 such person becomes such an employee, unless the person is
142142 25 authorized under subsection (b) of Section 7-137.1 of this
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153153 1 Code to continue receiving a retirement annuity during that
154154 2 period. Upon proper qualification of the participating
155155 3 employee payment of such annuity may be resumed on the first
156156 4 1st day of the month following such qualification and upon
157157 5 proper application therefor. The participating employee in
158158 6 such case shall be entitled to a supplemental annuity arising
159159 7 from service and credits earned subsequent to such re-entry as
160160 8 a participating employee.
161161 9 Notwithstanding any other provision of this Article, an
162162 10 annuitant shall be considered a participating employee if he
163163 11 or she returns to work as an employee with a participating
164164 12 employer and works more than 599 hours annually (or 999 hours
165165 13 annually with a participating employer that has adopted a
166166 14 resolution pursuant to subsection (e) of Section 7-137 of this
167167 15 Code). Each of these annual periods shall commence on the
168168 16 month and day upon which the annuitant is first employed with
169169 17 the participating employer following the effective date of the
170170 18 annuity.
171171 19 (a-5) If any annuitant under this Article must be
172172 20 considered a participating employee per the provisions of
173173 21 subsection (a) of this Section, and the participating
174174 22 municipality or participating instrumentality that employs or
175175 23 re-employs that annuitant knowingly fails to notify the Board
176176 24 to suspend the annuity, the participating municipality or
177177 25 participating instrumentality may be required to reimburse the
178178 26 Fund for an amount up to one-half of the total of any annuity
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189189 1 payments made to the annuitant after the date the annuity
190190 2 should have been suspended, as determined by the Board, less
191191 3 any amount actually repaid by the annuitant. In no case shall
192192 4 the total amount repaid by the annuitant plus any amount
193193 5 reimbursed by the employer to the Fund be more than the total
194194 6 of all annuity payments made to the annuitant after the date
195195 7 the annuity should have been suspended. This subsection shall
196196 8 not apply if the annuitant returned to work for the employer
197197 9 for less than 12 months.
198198 10 The Fund shall notify all annuitants that they must notify
199199 11 the Fund immediately if they return to work for any
200200 12 participating employer. The notification by the Fund shall
201201 13 occur upon retirement and no less than annually thereafter in
202202 14 a format determined by the Fund. The Fund shall also develop
203203 15 and maintain a system to track annuitants who have returned to
204204 16 work and notify the participating employer and annuitant at
205205 17 least annually of the limitations on returning to work under
206206 18 this Section.
207207 19 (b) Supplemental annuities to persons who return to
208208 20 service for less than 48 months shall be computed under the
209209 21 provisions of Sections 7-141, 7-142, and 7-143. In determining
210210 22 whether an employee is eligible for an annuity which requires
211211 23 a minimum period of service, his entire period of service
212212 24 shall be taken into consideration but the supplemental annuity
213213 25 shall be based on earnings and service in the supplemental
214214 26 period only. The effective date of the suspended and
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225225 1 supplemental annuity for the purpose of increases after
226226 2 retirement shall be considered to be the effective date of the
227227 3 suspended annuity.
228228 4 (c) Supplemental annuities to persons who return to
229229 5 service for 48 months or more shall be a monthly amount
230230 6 determined as follows:
231231 7 (1) An amount shall be computed under subparagraph b
232232 8 of paragraph (1) of subsection (a) of Section 7-142,
233233 9 considering all of the service credits of the employee. ;
234234 10 (2) The actuarial value in monthly payments for life
235235 11 of the annuity payments made before suspension shall be
236236 12 determined and subtracted from the amount determined in
237237 13 paragraph (1) above. ;
238238 14 (3) The monthly amount of the suspended annuity, with
239239 15 any applicable increases after retirement computed from
240240 16 the effective date to the date of reinstatement, shall be
241241 17 subtracted from the amount determined in paragraph (2)
242242 18 above and the remainder shall be the amount of the
243243 19 supplemental annuity provided that this amount shall not
244244 20 be less than the amount computed under subsection (b) of
245245 21 this Section.
246246 22 (4) The suspended annuity shall be reinstated at an
247247 23 amount including any increases after retirement from the
248248 24 effective date to date of reinstatement.
249249 25 (5) The effective date of the combined suspended and
250250 26 supplemental annuities for the purposes of increases after
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261261 1 retirement shall be considered to be the effective date of
262262 2 the supplemental annuity.
263263 3 (d) If a Tier 2 regular employee becomes a member or
264264 4 participant under any other system or fund created by this
265265 5 Code and is employed on a full-time basis, except for those
266266 6 members or participants exempted from the provisions of
267267 7 subsection (a) of Section 1-160 of this Code (other than a
268268 8 participating employee under this Article), then the person's
269269 9 retirement annuity shall be suspended during that employment.
270270 10 Upon termination of that employment, the person's retirement
271271 11 annuity shall resume and be recalculated as required by this
272272 12 Section.
273273 13 (e) If a Tier 2 regular employee first began participation
274274 14 on or after January 1, 2012 and is receiving a retirement
275275 15 annuity and accepts on a contractual basis a position to
276276 16 provide services to a governmental entity from which he or she
277277 17 has retired, then that person's annuity or retirement pension
278278 18 shall be suspended during that contractual service,
279279 19 notwithstanding the provisions of any other Section in this
280280 20 Article. Such annuitant shall notify the Fund, as well as his
281281 21 or her contractual employer, of his or her retirement status
282282 22 before accepting contractual employment. A person who fails to
283283 23 submit such notification shall be guilty of a Class A
284284 24 misdemeanor and required to pay a fine of $1,000. Upon
285285 25 termination of that contractual employment, the person's
286286 26 retirement annuity shall resume and be recalculated as
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297297 1 required by this Section.
298298 2 (Source: P.A. 102-210, eff. 1-1-22; revised 8-19-22.)
299299 3 Section 90. The State Mandates Act is amended by adding
300300 4 Section 8.47 as follows:
301301 5 (30 ILCS 805/8.47 new)
302302 6 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
303303 7 8 of this Act, no reimbursement by the State is required for
304304 8 the implementation of any mandate created by this amendatory
305305 9 Act of the 103rd General Assembly.
306306 10 Section 99. Effective date. This Act takes effect January
307307 11 1, 2024.
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