SB 1648

Abstract

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. House Floor Amendment No. 1 Adds reference to: 40 ILCS 5/14-126.5 new Replaces everything after the enacting clause. Reinserts the provisions of the engrossed bill with the following changes. Further amends the Illinois Pension Code. In the State Employees Articles of the Code, provides that a Tier 2 employee whose disability continues but whose disability benefit is terminated due to attaining age 65 or terminated after 5 years because the ordinary disability benefit commenced after age 60 shall immediately qualify to begin receiving a Tier 2 retirement annuity without reduction due to age if the employee has earned at least 10 years of service credit.