Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1267 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1267 Introduced 1/28/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-14140 ILCS 5/7-144 from Ch. 108 1/2, par. 7-14430 ILCS 805/8.49 new Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant 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 Board may review the totality of circumstances regarding the annuitant not having a separation of service and assign proportionate responsibility for reimbursement 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, between the participating municipality or participating instrumentality and the annuitant, less any amount actually repaid by the annuitant. Provides that in no case shall the total amount repaid by the annuitant plus any amount reimbursed by the employer to the Fund be more than the total of all annuity payments made to the annuitant after the date the annuity should have been suspended. 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. Amends the State Mandates Act to require implementation without reimbursement. LRB104 08545 RPS 18597 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1267 Introduced 1/28/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-14140 ILCS 5/7-144 from Ch. 108 1/2, par. 7-14430 ILCS 805/8.49 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 805/8.49 new Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant 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 Board may review the totality of circumstances regarding the annuitant not having a separation of service and assign proportionate responsibility for reimbursement 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, between the participating municipality or participating instrumentality and the annuitant, less any amount actually repaid by the annuitant. Provides that in no case shall the total amount repaid by the annuitant plus any amount reimbursed by the employer to the Fund be more than the total of all annuity payments made to the annuitant after the date the annuity should have been suspended. 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. Amends the State Mandates Act to require implementation without reimbursement. LRB104 08545 RPS 18597 b LRB104 08545 RPS 18597 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1267 Introduced 1/28/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-14140 ILCS 5/7-144 from Ch. 108 1/2, par. 7-14430 ILCS 805/8.49 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 805/8.49 new
4	4	40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141
5	5	40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144
6	6	30 ILCS 805/8.49 new
7	7	Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant 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 Board may review the totality of circumstances regarding the annuitant not having a separation of service and assign proportionate responsibility for reimbursement 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, between the participating municipality or participating instrumentality and the annuitant, less any amount actually repaid by the annuitant. Provides that in no case shall the total amount repaid by the annuitant plus any amount reimbursed by the employer to the Fund be more than the total of all annuity payments made to the annuitant after the date the annuity should have been suspended. 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. Amends the State Mandates Act to require implementation without reimbursement.
8	8	LRB104 08545 RPS 18597 b LRB104 08545 RPS 18597 b
9	9	LRB104 08545 RPS 18597 b
10	10	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
11	11	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
12	12	A BILL FOR
13	13	SB1267LRB104 08545 RPS 18597 b SB1267 LRB104 08545 RPS 18597 b
14	14	SB1267 LRB104 08545 RPS 18597 b
15	15	1 AN ACT concerning public employee benefits.
16	16	2 Be it enacted by the People of the State of Illinois,
17	17	3 represented in the General Assembly:
18	18	4 Section 5. The Illinois Pension Code is amended by
19	19	5 changing Sections 7-141 and 7-144 as follows:
20	20	6 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
21	21	7 Sec. 7-141. Retirement annuities; conditions. Retirement
22	22	8 annuities shall be payable as hereinafter set forth:
23	23	9 (a) A participating employee who, regardless of cause, is
24	24	10 separated from the service of all participating municipalities
25	25	11 and instrumentalities thereof and participating
26	26	12 instrumentalities shall be entitled to a retirement annuity
27	27	13 provided:
28	28	14 1. He is at least age 55 if he is a Tier 1 regular
29	29	15 employee, he is age 62 if he is a Tier 2 regular employee,
30	30	16 or, in the case of a person who is eligible to have his
31	31	17 annuity calculated under Section 7-142.1, he is at least
32	32	18 age 50;
33	33	19 2. He is not entitled to receive earnings for
34	34	20 employment in a position requiring him, or entitling him
35	35	21 to elect, to be a participating employee;
36	36	22 3. The amount of his annuity, before the application
37	37	23 of paragraph (b) of Section 7-142 is at least $10 per
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41	41	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1267 Introduced 1/28/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
42	42	40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-14140 ILCS 5/7-144 from Ch. 108 1/2, par. 7-14430 ILCS 805/8.49 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 805/8.49 new
43	43	40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141
44	44	40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144
45	45	30 ILCS 805/8.49 new
46	46	Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant 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 Board may review the totality of circumstances regarding the annuitant not having a separation of service and assign proportionate responsibility for reimbursement 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, between the participating municipality or participating instrumentality and the annuitant, less any amount actually repaid by the annuitant. Provides that in no case shall the total amount repaid by the annuitant plus any amount reimbursed by the employer to the Fund be more than the total of all annuity payments made to the annuitant after the date the annuity should have been suspended. 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. Amends the State Mandates Act to require implementation without reimbursement.
47	47	LRB104 08545 RPS 18597 b LRB104 08545 RPS 18597 b
48	48	LRB104 08545 RPS 18597 b
49	49	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
50	50	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
51	51	A BILL FOR
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57	57	40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141
58	58	40 ILCS 5/7-144 from Ch. 108 1/2, par. 7-144
59	59	30 ILCS 805/8.49 new
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63	63	LRB104 08545 RPS 18597 b
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65	65	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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82	82	1 month;
83	83	2 4. If he first became a participating employee after
84	84	3 December 31, 1961 and is a Tier 1 regular employee, he has
85	85	4 at least 8 years of service, or, if he is a Tier 2 regular
86	86	5 member, he has at least 10 years of service. This service
87	87	6 requirement shall not apply to any participating employee,
88	88	7 regardless of participation date, if the General Assembly
89	89	8 terminates the Fund.
90	90	9 (a-5) If any annuitant under this Article must be
91	91	10 considered a participating employee because there was not a
92	92	11 separation from service as required by subsection (a) of this
93	93	12 Section and the participating municipality or participating
94	94	13 instrumentality that employs or re-employs that annuitant
95	95	14 knowingly fails to notify the Board to suspend the annuity,
96	96	15 the Board may review the totality of circumstances regarding
97	97	16 the annuitant not having a separation of service and assign
98	98	17 proportionate responsibility for reimbursement of the total of
99	99	18 any annuity payments made to the annuitant after the date the
100	100	19 annuity should have been suspended, as determined by the
101	101	20 Board, between the participating municipality or participating
102	102	21 instrumentality and the annuitant, less any amount actually
103	103	22 repaid by the annuitant. In no case shall the total amount
104	104	23 repaid by the annuitant plus any amount reimbursed by the
105	105	24 employer to the Fund be more than the total of all annuity
106	106	25 payments made to the annuitant after the date the annuity
107	107	26 should have been suspended.
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118	118	1 (b) Retirement annuities shall be payable:
119	119	2 1. As provided in Section 7-119;
120	120	3 2. Except as provided in item 3, upon receipt by the
121	121	4 fund of a written application. The effective date may be
122	122	5 not more than one year prior to the date of the receipt by
123	123	6 the fund of the application;
124	124	7 3. Upon attainment of the required age of distribution
125	125	8 under Section 401(a)(9) of the Internal Revenue Code of
126	126	9 1986, as amended, if the member (i) is no longer in
127	127	10 service, and (ii) is otherwise entitled to an annuity
128	128	11 under this Article;
129	129	12 4. To the beneficiary of the deceased annuitant for
130	130	13 the unpaid amount accrued to date of death, if any.
131	131	14 (Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21;
132	132	15 102-210, Article 10, Section 10-5, eff. 1-1-22; 102-813, eff.
133	133	16 5-13-22.)
134	134	17 (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
135	135	18 Sec. 7-144. Retirement annuities; suspended during
136	136	19 employment.
137	137	20 (a) If any person receiving any annuity again becomes an
138	138	21 employee and receives earnings from employment in a position
139	139	22 requiring him, or entitling him to elect, to become a
140	140	23 participating employee, then the annuity payable to such
141	141	24 employee shall be suspended as of the first day of the month
142	142	25 coincidental with or next following the date upon which such
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153	153	1 person becomes such an employee, unless the person is
154	154	2 authorized under subsection (b) of Section 7-137.1 of this
155	155	3 Code to continue receiving a retirement annuity during that
156	156	4 period. Upon proper qualification of the participating
157	157	5 employee payment of such annuity may be resumed on the first
158	158	6 day of the month following such qualification and upon proper
159	159	7 application therefor. The participating employee in such case
160	160	8 shall be entitled to a supplemental annuity arising from
161	161	9 service and credits earned subsequent to such re-entry as a
162	162	10 participating employee.
163	163	11 Notwithstanding any other provision of this Article, an
164	164	12 annuitant shall be considered a participating employee if he
165	165	13 or she returns to work as an employee with a participating
166	166	14 employer and works more than 599 hours annually (or 999 hours
167	167	15 annually with a participating employer that has adopted a
168	168	16 resolution pursuant to subsection (e) of Section 7-137 of this
169	169	17 Code). Each of these annual periods shall commence on the
170	170	18 month and day upon which the annuitant is first employed with
171	171	19 the participating employer following the effective date of the
172	172	20 annuity.
173	173	21 (a-5) If any annuitant under this Article must be
174	174	22 considered a participating employee per the provisions of
175	175	23 subsection (a) of this Section, and the participating
176	176	24 municipality or participating instrumentality that employs or
177	177	25 re-employs that annuitant knowingly fails to notify the Board
178	178	26 that the annuitant has returned to a qualifying position, the
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184	184	SB1267 - 4 - LRB104 08545 RPS 18597 b
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189	189	1 Board may review the totality of circumstances of the return
190	190	2 to work and assign proportionate responsibility for
191	191	3 reimbursement of the total of any annuity payments made to the
192	192	4 annuitant after the date the annuity should have been
193	193	5 suspended, as determined by the Board, between to suspend the
194	194	6 annuity, the participating municipality or participating
195	195	7 instrumentality and the annuitant, less any amount actually
196	196	8 repaid by the annuitant may be required to reimburse the Fund
197	197	9 for an amount up to one-half of the total of any annuity
198	198	10 payments made to the annuitant after the date the annuity
199	199	11 should have been suspended, as determined by the Board. In no
200	200	12 case shall the total amount repaid by the annuitant plus any
201	201	13 amount reimbursed by the employer to the Fund be more than the
202	202	14 total of all annuity payments made to the annuitant after the
203	203	15 date the annuity should have been suspended. This subsection
204	204	16 shall not apply if the annuitant returned to work for the
205	205	17 employer for less than 12 months.
206	206	18 The Fund shall notify all annuitants that they must notify
207	207	19 the Fund immediately if they return to work for any
208	208	20 participating employer. The notification by the Fund shall
209	209	21 occur upon retirement and no less than annually thereafter in
210	210	22 a format determined by the Fund. The Fund shall also develop
211	211	23 and maintain a system to track annuitants who have returned to
212	212	24 work and notify the participating employer and annuitant at
213	213	25 least annually of the limitations on returning to work under
214	214	26 this Section.
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225	225	1 (b) Supplemental annuities to persons who return to
226	226	2 service for less than 48 months shall be computed under the
227	227	3 provisions of Sections 7-141, 7-142, and 7-143. In determining
228	228	4 whether an employee is eligible for an annuity which requires
229	229	5 a minimum period of service, his entire period of service
230	230	6 shall be taken into consideration but the supplemental annuity
231	231	7 shall be based on earnings and service in the supplemental
232	232	8 period only. The effective date of the suspended and
233	233	9 supplemental annuity for the purpose of increases after
234	234	10 retirement shall be considered to be the effective date of the
235	235	11 suspended annuity.
236	236	12 (c) Supplemental annuities to persons who return to
237	237	13 service for 48 months or more shall be a monthly amount
238	238	14 determined as follows:
239	239	15 (1) An amount shall be computed under subparagraph b
240	240	16 of paragraph (1) of subsection (a) of Section 7-142,
241	241	17 considering all of the service credits of the employee.
242	242	18 (2) The actuarial value in monthly payments for life
243	243	19 of the annuity payments made before suspension shall be
244	244	20 determined and subtracted from the amount determined in
245	245	21 paragraph (1) above.
246	246	22 (3) The monthly amount of the suspended annuity, with
247	247	23 any applicable increases after retirement computed from
248	248	24 the effective date to the date of reinstatement, shall be
249	249	25 subtracted from the amount determined in paragraph (2)
250	250	26 above and the remainder shall be the amount of the
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261	261	1 supplemental annuity provided that this amount shall not
262	262	2 be less than the amount computed under subsection (b) of
263	263	3 this Section.
264	264	4 (4) The suspended annuity shall be reinstated at an
265	265	5 amount including any increases after retirement from the
266	266	6 effective date to date of reinstatement.
267	267	7 (5) The effective date of the combined suspended and
268	268	8 supplemental annuities for the purposes of increases after
269	269	9 retirement shall be considered to be the effective date of
270	270	10 the supplemental annuity.
271	271	11 (d) If a Tier 2 regular employee becomes a member or
272	272	12 participant under any other system or fund created by this
273	273	13 Code and is employed on a full-time basis, except for those
274	274	14 members or participants exempted from the provisions of
275	275	15 subsection (a) of Section 1-160 of this Code (other than a
276	276	16 participating employee under this Article), then the person's
277	277	17 retirement annuity shall be suspended during that employment.
278	278	18 Upon termination of that employment, the person's retirement
279	279	19 annuity shall resume and be recalculated as required by this
280	280	20 Section.
281	281	21 (e) If a Tier 2 regular employee first began participation
282	282	22 on or after January 1, 2012 and is receiving a retirement
283	283	23 annuity and accepts on a contractual basis a position to
284	284	24 provide services to a governmental entity from which he or she
285	285	25 has retired, then that person's annuity or retirement pension
286	286	26 shall be suspended during that contractual service,
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297	297	1 notwithstanding the provisions of any other Section in this
298	298	2 Article. Such annuitant shall notify the Fund, as well as his
299	299	3 or her contractual employer, of his or her retirement status
300	300	4 before accepting contractual employment. A person who fails to
301	301	5 submit such notification shall be guilty of a Class A
302	302	6 misdemeanor and required to pay a fine of $1,000. Upon
303	303	7 termination of that contractual employment, the person's
304	304	8 retirement annuity shall resume and be recalculated as
305	305	9 required by this Section.
306	306	10 (Source: P.A. 102-210, eff. 1-1-22; 103-154, eff. 6-30-23.)
307	307	11 Section 90. The State Mandates Act is amended by adding
308	308	12 Section 8.49 as follows:
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