96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4786


 
Introduced 1/12/2010, by Rep. Michael J. Zalewski
 
SYNOPSIS AS INTRODUCED:
 		





 


   



40 ILCS 5/8-167  from Ch. 108 1/2, par. 8-167



30 ILCS 805/8.34 new











     Amends the Chicago Municipal Article of the Illinois Pension Code.  In provisions concerning the restoration of rights after receipt of a refund, removes language restricting repayment of the refund within certain periods and provides that, if the employee withdraws from service or dies in service during a specified period, any payments made shall be refunded without interest thereon and in accordance with a refund provisions of the Article. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
  















LRB096 15813 AMC 31054 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 




  






HB4786

LRB096 15813 AMC 31054 b





  
1
    AN ACT concerning public employee benefits.
  
 
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    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 changing 
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Section 8-167 as follows:
 



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    (40 ILCS 5/8-167)
  (from Ch. 108 1/2, par. 8-167)



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    Sec. 8-167. Restoration of rights. An employee who has 
8
withdrawn as a refund the amounts credited for
annuity 
9
purposes, and who (i) re-enters service of the employer and

10
serves for periods
comprising at least 90 days after the date 
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of the last refund
paid to
him or her
or (ii) has completed at 
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least 2 years of service under a participating
system (as 
13
defined in the Retirement Systems Reciprocal Act) other than 
14
this
Fund after the date of the last refund,
shall have his or 
15
her annuity rights restored by compliance with the
following 
16
provisions:

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        (a) The employee After that 90 day or 2 year period, 
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    whichever applies,
he shall repay in full to the fund, 
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    while in
service, all refunds received, together with 
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    interest at the
effective rate from the dates of refund to 
21
    the date of repayment.

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        (b) If payment is not made in a single sum, the 
23
    repayment may be
made in installments by deductions from 
 


 






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1
    salary or otherwise in such
manner and amounts and manner 
2
    as the board, by rule, may prescribe, with
interest
at the 
3
    effective rate accruing on unpaid balances.

4
        (c) If the employee withdraws from service or dies in 
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    service before
full repayment is made,
service credit shall 
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    be restored in accordance with Section 8-230.3(b).

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        (d) If the employee withdraws from service or dies in 
8
    service during the required 90-day or 2-year period, any 
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    payments made shall be refunded without interest thereon 
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    and in accordance with a refund provisions of this Article. 
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        (e) If the employee repays the refund while 
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    participating in a
participating system (as defined in the 
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    Retirement Systems Reciprocal
Act) other than this Fund, 
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    the service credit restored must be used for a
proportional 
15
    annuity calculated in accordance with the Retirement 
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    Systems
Reciprocal Act.  If not so used, the restored 
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    service credit shall be
forfeited and the amount of the 
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    repayment shall be refunded, without
interest.

19
    This Section applies also to any person who received a 
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refund from
any annuity and benefit fund or pension fund which 
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was merged into and
superseded by the annuity and benefit fund 
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provided for in this Article
on or after December 31, 1959. 
23
Upon repayment such person shall receive
credit for all annuity 
24
purposes in the annuity and benefit fund provided
for in this 
25
Article for the period of service covered by the repayment.

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    The amount of refund repayment is considered as salary 
 


 






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deductions for
age and service annuity and widow's annuity 
2
purposes in the case of a
male person. In the latter case the 
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amount of refund repayment is
allocated in the applicable 
4
proportion for age and service and widow's
annuity purposes. 
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Such person shall also be credited with city
contributions for 
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age and service annuity, and widow's annuity if a male

7
employee, in the amount which would have been credited and 
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accrued if
such person had been a participant in and 
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contributor to the annuity and
benefit fund provided for in 
10
this Article during the period of such
service on the basis of 
11
his salary during such period.

12
(Source: P.A. 93-654, eff. 1-16-04.)

  
 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.34 as follows:
 
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    (30 ILCS 805/8.34 new)
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    Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 
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of this Act, no reimbursement by the State is required for the 
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implementation of any mandate created by this amendatory Act of 
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the 96th General Assembly.
 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.