Bill Text: IL SB2957 | 2021-2022 | 102nd General Assembly | Introduced

---

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-12-15 - Referred to Assignments [SB2957 Detail]

Download: Illinois-2021-SB2957-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2957 Introduced 12/15/2021, 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.
LRB102 19595 RPS 28363 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB2957 LRB102 19595 RPS 28363 b
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 11-159 and by adding Section 11-159.1 as
follows:
(40 ILCS 5/11-159) (from Ch. 108 1/2, par. 11-159)
Sec. 11-159. Annuity after withdrawal while disabled for
employees who first became participants prior to January 1,
2011.
(a) This Section applies to employees who first became
participants prior to January 1, 2011.
(b) An employee whose disability continues after the
employee he has received ordinary disability benefits benefit
for the maximum period of time prescribed by this Article, and
who withdraws before age 60 while still so disabled, is
entitled to receive an annuity in of such amount as can be
provided from the total sum accumulated to the employee's his
credit from employee contributions and employer city
contributions, to be computed as of the employee's his age on
the date of withdrawal. If the minimum annuity under Section
11-134 applies and is greater than the annuity under this
subsection (b), then the Section 11-134 annuity shall apply.

SB2957 - 2 - LRB102 19595 RPS 28363 b
Any annuity under this subsection (b) shall be subject to
automatic annual increases under Section 11-134.1.
(c) The annuity to which the employee's spouse his wife
shall be entitled upon the employee's his death, shall be
fixed on the date of the employee's his withdrawal. It shall be
provided on a reversionary annuity basis from the total sum
accumulated to the employee's his credit for widow's annuity
on the date of such withdrawal. If the minimum annuity under
Section 11-145.1 applies and is greater than the annuity under
this subsection (c), then the Section 11-145.1 annuity shall
apply. Any widow's annuity shall not be subject to any
automatic annual increases.
(d) Upon the death of any such employee while on annuity,
if the employee's his service was at least 4 years after the
date of the employee's his original entry, and at least 2 years
after the date of the employee's his latest re-entry, the
employee's his unmarried child or children under age 18 shall
be entitled to an annuity as specified in this Article for
children of an employee who retires after age 55, subject to
prescribed limitations on total payments to a family of an
employee.
(Source: P.A. 81-1536.)
(40 ILCS 5/11-159.1 new)
Sec. 11-159.1. Annuity after withdrawal while disabled for
employees who first became participants on or after January 1,

SB2957 - 3 - LRB102 19595 RPS 28363 b
2011.
(a) This Section applies to employees who first became
participants on or after January 1, 2011.
(b) An employee whose disability continues after the
employee has received ordinary disability benefits for the
maximum period of time prescribed by this Article and who
withdraws before becoming eligible for a retirement annuity
under subsection (c), (c-5), (d), or (d-5) of Section 1-160
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 contributions and
employer contributions, to be computed as of the employee's
age on the date of withdrawal. The minimum annuity under
Section 11-134 shall not apply, and any annuity under this
subsection (b) shall not be subject to any automatic annual
increases.
(c) 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. It shall be provided on a
reversionary annuity basis from the total sum accumulated to
the employee's credit for widow's annuity on the date of such
withdrawal. The minimum annuity under Section 11-145.1 shall
not apply and any widow's annuity under this subsection (c)
shall not be subject to any automatic annual increases.
(d) Upon the death of any such employee while on annuity,
if the employee's service was at least 4 years after the date

SB2957 - 4 - LRB102 19595 RPS 28363 b
of the employee's original entry, and at least 2 years after
the date of the employee's latest re-entry, the employee's
unmarried children under age 18 shall be entitled to an
annuity as specified in this Article for children of an
employee who retires after age 55, subject to prescribed
limitations on total payments to a family of an employee.
Section 90. The State Mandates Act is amended by adding
Section 8.45 as follows:
(30 ILCS 805/8.45 new)
Sec. 8.45. 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 102nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
SB2957 - 5 - LRB102 19595 RPS 28363 b
INDEX
Statutes amended in order of appearance