HB4793 96TH GENERAL ASSEMBLY

LRB096 16393 AMC 31658 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4793

Introduced 1/12/2010, by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:

40 ILCS 5/11-134.2	from Ch. 108 1/2, par. 11-134.2
30 ILCS 805/8.34 new

Amends the Chicago Laborers Article of the Illinois Pension Code. Allows an employee annuitant who has elected the reversionary annuity to cancel the election. Prohibits the option for a reversionary annuity if the reversionary annuity for a widow or any reversionary annuitant, when added to the widow's annuity payable under the Article, exceeds 100% of the reduced annuity payable to the employee. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 11-134.2 as follows:

(40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)

Sec. 11-134.2. Reversionary annuity.

(a) An employee, prior to retirement on annuity, may elect to take a lesser amount of annuity and provide, with the actuarial value of the amount by which his annuity is reduced, a reversionary annuity for a wife, husband, parent, child, brother or sister. The option shall be exercised by filing a written designation with the board prior to retirement, and may be revoked by the employee at any time before retirement. The death of the employee prior to his retirement shall automatically void the option.

(b) The death of the designated reversionary annuitant prior to the employee's retirement shall automatically void the option. If the reversionary annuitant dies after the employee's retirement, and before the death of the employee annuitant, the reduced annuity being paid to the retired employee annuitant shall be increased to the amount of annuity before reduction for the reversionary annuity and no reversionary annuity shall be payable.

The option is subject to the further condition that no reversionary annuity shall be paid to a parent, child, brother, or sister if the employee dies before the expiration of 365 days from the date his written designation was filed with the board, even though he has retired and is receiving a reduced annuity.

(c) The employee exercising this option shall not reduce his retirement annuity by more than $400 per month, or elect to provide a reversionary annuity of less than $50 per month. No option shall be permitted if the reversionary annuity for a widow or any reversionary annuitant, when added to the widow's annuity payable under this Article, exceeds 100% of the reduced annuity payable to the employee.

(d) A reversionary annuity shall begin on the day following the death of the annuitant and shall be paid as provided in Section 11-124.

(e) The increases in annuity provided in Section 11-134.1 of this Article shall, as to an employee so electing a reduced annuity, relate to the amount of the original annuity, and such amount shall constitute the annuity on which such increases shall be based.

(f) For annuities elected after June 30, 1983, the amount of the monthly reversionary annuity shall be determined by multiplying the amount of the monthly reduction in the employee's annuity by the factor in the following table based on the age of the employee and the difference in the age of the employee and the age of the reversionary annuitant at the starting date of the employee's annuity:

(g) Beginning January 1, 2010, an employee annuitant who has elected the reversionary annuity may cancel the election. The cancellation must be in writing with the employee's signature notarized. The cancellation shall be effective upon its being filed with the Board and may not be revoked after it is executed and filed. The reduction in annuity shall be restored with the first annuity payment made at least 30 days after the receipt of the cancellation by the Fund. There shall be no refund of money previously deducted from the employee's annuity to provide the reversionary annuity.

(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98; 91-887, 7-6-00.)

Section 90. The State Mandates Act is amended by adding Section 8.34 as follows:

(30 ILCS 805/8.34 new)

Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 96th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.