40 ILCS 5/1-119
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 1 - General Provisions: Short Title, Effect Of Code And Other Provisions

Sec. 1-119. Qualified Illinois Domestic Relations Orders.(a) For the purposes of this Section:(1) "Alternate payee" means the spouse, former     spouse, child, or other dependent of a member, as designated in a QILDRO.(2) "Death benefit" means any nonperiodic benefit     payable upon the death of a member to a survivor of the member or to the member's estate or designated beneficiary, including any refund of contributions following the member's death, whether or not the benefit is so called under the applicable Article of this Code.(3) "Disability benefit" means any periodic or     nonperiodic benefit payable to a disabled member based on occupational or nonoccupational disability or disease, including any periodic or nonperiodic increases in the benefit, whether or not the benefit is so called under the applicable Article of this Code.(4) "Member" means any person who participates in or     has service credits in a retirement system, including a person who is receiving or is eligible to receive a retirement or disability benefit, without regard to whether the person has withdrawn from service.(5) "Member's refund" means a return of all or a     portion of a member's contributions that is elected by the member (or provided by operation of law) and is payable before the member's death.(5.5) "Permissive service" means service credit     purchased by the member, unused vacation, and unused sick leave that the retirement system includes by statute in a member's benefit calculations.(6) "Qualified Illinois Domestic Relations Order" or     "QILDRO" means an Illinois court order that creates or recognizes the existence of an alternate payee's right to receive all or a portion of a member's accrued benefits in a retirement system, is issued pursuant to this Section and Section 503(b)(2) of the Illinois Marriage and Dissolution of Marriage Act, and meets the requirements of this Section.  A QILDRO is not the same as a qualified domestic relations order or QDRO issued pursuant to Section 414(p) of the Internal Revenue Code of 1986.  The requirements of paragraphs (2) and (3) of that Section do not apply to orders issued under this Section and shall not be deemed a guide to the interpretation of this Section; a QILDRO is intended to be a domestic relations order within the meaning of paragraph (11) of that Section.(7) "Regular payee" means the person to whom a     benefit would be payable in the absence of an effective QILDRO.(7.5) "Regular service" means service credit earned     by the member, including a repayment of a refund for regular service that the retirement system includes by statute in  a member's benefit calculations. "Regular service" does not include service credit purchased by the member, unused vacation, or unused sick leave.(8) "Retirement benefit" means any periodic or     nonperiodic benefit payable to a retired member based on age or service, or on the amounts accumulated to the credit of the member for retirement purposes, including any periodic or nonperiodic increases in the benefit, whether or not the benefit is so called under the applicable Article of this Code.(9) "Retirement system" or "system" means any     retirement system, pension fund, or other public employee retirement benefit plan that is maintained or established under any of Articles 2 through 18 of this Code.(10) "Surviving spouse" means the spouse of a member     at the time of the member's death.(11) "Survivor's benefit" means any periodic benefit     payable to a surviving spouse, child, parent, or other survivor of a deceased member, including any periodic or nonperiodic increases in the benefit or nonperiodic payment included with the benefit, whether or not the benefit is so called under the applicable Article of this Code.(b) (1) An Illinois court of competent jurisdiction in a proceeding for  declaration of invalidity of marriage, legal separation, or dissolution of  marriage that provides for support or the distribution of property, or any proceeding to  amend or enforce such support or property distribution, may order that all or any part  of any (i) member's retirement benefit, (ii) member's refund payable to or on behalf  of the member, or (iii) death benefit, or portion thereof, that would otherwise be payable to the member's death benefit beneficiaries or estate be instead paid by the retirement system to the          alternate payee.(2) An order issued under this Section provides only for the diversion to  an alternate payee of certain benefits otherwise payable by the retirement  system under the provisions of this Code.  The existence of a QILDRO shall  not cause the retirement system to pay any benefit, or any amount of benefit,  to an alternate payee that would not have been payable by the system to a  regular payee in the absence of the QILDRO.(3) A QILDRO shall not affect the vesting, accrual, or amount of any  benefit, nor the date or conditions upon which any benefit becomes payable,  nor the right of the member or the member's survivors to make any election  otherwise authorized under this Code, except as provided in subsections (i)  and (j).(4) A QILDRO shall not apply to or affect the payment of any survivor's  benefit, disability benefit, life insurance benefit, or health  insurance benefit.(c) (1) A QILDRO must contain the name, mailing                address, and social  security number of the member and of the alternate payee and must identify  the retirement system to which it is directed and the court issuing the order.(2) A QILDRO must specify each benefit to which it applies, and it must  specify the amount of the benefit to be paid to the alternate payee. In the case of a non-periodic benefit, this amount must be specified as a dollar amount or as a percentage as specifically provided in subsection (n).  In the case of a periodic benefit, this amount must be specified as a dollar amount per month or as a percentage per month as specifically provided in subsection (n).(3) With respect to each benefit to which it applies, a QILDRO must specify  when the order will take effect.  In the case of a lump sum benefit payable to an alternate payee of a participant in the self-managed plan authorized under Article 15 of this Code, the benefit shall be paid upon the proper request of the alternate payee. In the case of a periodic benefit that is  being paid at the time the order is received, a QILDRO shall take effect  immediately or on a specified later date; if it takes effect  immediately, it shall become effective on the first benefit payment date  occurring at least 30 days after the order is received by the retirement  system.  In the case of any other benefit, a QILDRO shall take effect when  the benefit becomes payable, unless some later date is specified pursuant to subsection (n).          However, in no event shall a QILDRO apply to any benefit paid by the retirement  system before or within 30 days after the order is received.  A retirement  system may adopt rules to prorate the amount of the first and final periodic  payments to an alternate payee.(4) A QILDRO must also contain any provisions required under subsection (n)  or (p).(5) If a QILDRO indicates that the alternate payee is to receive a percentage of any retirement system benefit, the calculations required shall be performed by the member, the alternate payee, their designated representatives or their designated experts.  The results of said calculations shall be provided to the retirement system via a QILDRO Calculation Court Order issued by an Illinois court of competent jurisdiction in a proceeding for declaration of invalidity of marriage, legal separation, or dissolution of marriage.  The QILDRO Calculation Court Order shall follow the form provided in subsection (n-5). The retirement system shall have no duty or obligation to assist in such calculations or in completion of the QILDRO Calculation Court Order, other than to provide the information required to be provided pursuant to subsection (h).(6) Within 45 days after the receipt of a QILDRO Calculation Court Order, the retirement system shall notify the member and the alternate payee (or one designated representative of each) of the receipt of the Order.  If a valid QILDRO underlying the QILDRO Calculation Court Order has not been filed with the retirement system, or if the QILDRO Calculation Court Order does not clearly indicate the amount the retirement system is to pay to the alternate payee, then the retirement system shall at the same time notify the member and the alternate payee (or one designated representative of each) of the situation.  Unless a valid QILDRO has not been filed with the retirement system,  or the QILDRO Calculation Court Order does not clearly indicate the amount the retirement system is to pay the alternate payee, the retirement system shall implement the QILDRO based on  the QILDRO Calculation Court Order as soon as administratively possible once benefits are payable.  The retirement system shall have no obligation to make any determination as to whether the calculations in the QILDRO Calculation Court Order are accurate or whether the calculations are in accordance with the parties' QILDRO, agreement, or judgment.  The retirement system shall not reject a QILDRO Calculation Court Order because the calculations are not accurate or not in accordance with the parties' QILDRO, agreement, or judgment. The retirement system shall have no responsibility for the consequences of its implementation of a QILDRO Calculation Court Order that is inaccurate or not in accordance with the parties' QILDRO, agreement, or judgment.(d) (1) An order issued under this Section shall not be implemented  unless a certified copy of the order has been filed with the retirement  system.  The system shall promptly notify the member and the alternate  payee by first class mail of its receipt of the order.(2) Neither the retirement system, nor its board, nor any of its employees  shall be liable to the member, the regular payee, or any other person for  any amount of a benefit that is paid in good faith to an alternate payee in  accordance with a QILDRO.(3) Each new or modified QILDRO or QILDRO Calculation Court Order that is submitted to the retirement system  shall be accompanied by a nonrefundable $50 processing fee payable to the  retirement system, to be used by the system to defer any administrative costs  arising out of the implementation of the order.(e) (1) Each alternate payee is responsible for maintaining a current  mailing address on file with the retirement system.  The retirement  system shall have no duty to attempt to locate any alternate payee by any  means other than sending written notice to the last known address of the  alternate payee on file with the system.(2) In the event that the system cannot locate an alternate payee when a  benefit becomes payable, the system shall hold the amount of the benefit  payable to the alternate payee and make payment to the alternate payee  if he or she is located within the following 180 days.  If the alternate  payee has not been located within 180 days from the date the benefit  becomes payable, the system shall pay the benefit and the amounts held  to the regular payee.  If the alternate payee is subsequently  located, the system shall thereupon implement the QILDRO, but the interest  of the alternate payee in any amounts already paid to the regular payee  shall be extinguished.  Amounts held under this subsection shall  not bear interest.(f) (1) If the amount of a benefit that is specified in a QILDRO  or QILDRO Calculation Court Order for  payment to an alternate payee exceeds the actual amount of that benefit  payable by the retirement system, the excess shall be disregarded.  The  retirement system shall have no liability to any alternate payee or any  other person for the disregarded amounts.(2) In the event of multiple QILDROs against a member, the retirement  system shall honor all of the QILDROs to the extent possible.  However, if the  total amount of a benefit to be paid to alternate payees under all  QILDROs in effect against the member exceeds the actual amount of that  benefit payable by the system, the QILDROs shall be satisfied in the order  of their receipt by the system until the amount of the benefit is  exhausted, and shall not be adjusted pro rata.  Any amounts that cannot be  paid due to exhaustion of the benefit shall remain unpaid, and the  retirement system shall have no liability to any alternate payee or any  other person for such amounts.(3) A modification of a QILDRO shall be filed with the retirement system in  the same manner as a new QILDRO.  A modification that does not increase the  amount of any benefit payable to the alternate payee, as that amount was designated in the QILDRO, and does not expand the  QILDRO to affect any benefit not affected by the unmodified QILDRO, does not  affect the priority of payment under subdivision (f)(2); the priority of  payment of a QILDRO that has been modified to increase the amount of any  benefit payable to the alternate payee, or to expand the QILDRO to affect a  benefit not affected by the unmodified QILDRO, shall be based on the date on  which the system receives the modification of the QILDRO.(4) A modification of a QILDRO Calculation Court Order shall be filed with the retirement system in the same manner as a new QILDRO Calculation Court Order.(g) (1) Upon the death of the alternate payee under a QILDRO, the QILDRO  shall expire and cease to be effective, and in the absence of another  QILDRO, the right to receive any affected benefit shall revert to the  regular payee.(2) All QILDROs relating to a member's participation in a particular  retirement system shall expire and cease to be effective upon the issuance  of a member's refund that terminates the member's participation in that  retirement system, without regard to whether the refund was paid to the  member or to an alternate payee under a QILDRO.  An expired QILDRO shall  not be automatically revived by any subsequent return by the member to service  under that retirement system.(h) (1) Within 45 days after receiving a subpoena from any party to a  proceeding for declaration of invalidity of marriage, legal separation, or  dissolution of marriage in which a QILDRO may be issued, or after receiving a  request from the member, a retirement system shall provide in response a statement  of a member's accumulated contributions, accrued benefits, and other  interests in the plan administered by the retirement system based on the data  on file with the system on the date the subpoena is received.  If so requested in the subpoena, the retirement system shall also provide in response general retirement plan information available to a member and   any  relevant procedures, rules, or modifications to the model QILDRO form  that have been adopted by the retirement system.(1.5) If a QILDRO provides for the alternate payee to receive a percentage of a retirement benefit (as opposed to providing for the alternate payee to receive specified dollar amounts of a retirement benefit), then the retirement system shall provide the applicable information to the member and to the alternate payee, or to one designated representative of each (e.g., the member's attorney and the alternate payee's attorney) as indicated below:(A) If the member is a participant in the     self-managed plan authorized under Article 15 of this Code and the QILDRO provides that the only benefit the alternate payee is to receive is a percentage of a lump sum benefit as of a specific date that has already past, then, within 45 days after the retirement system receives the QILDRO, the retirement system shall provide the lump sum amount to which the QILDRO percentage is to be applied.(B) For all situations except that situation     described in item (A), if the retirement system receives the QILDRO before the member's effective date of retirement, then, within 45 days after the retirement system receives the QILDRO, the retirement system shall provide all of the following information:(i) The date of the member's initial membership         in the retirement system,  expressed as month, day, and year, if available, or the most exact date that is available to the retirement system.(ii) The amount of permissive and regular service         the member accumulated in the retirement system from the time of initial membership through the most recent date available prior to the retirement system receiving the QILDRO (the dates used by the retirement system shall also be provided).  Service amounts shall be expressed using the most exact time increments available to the retirement system (e.g., months or fractions of years).(iii) The gross amount of the member's         non-reduced monthly annuity benefit earned, calculated as of the most recent date available prior to the retirement system receiving the QILDRO, the date used by the retirement system, and the earliest date the member may be eligible to commence the benefit.  This amount shall include any permissive service and upgrades purchased by the member, and those amounts shall be noted separately.(iv) The gross amount of the member's refund or         partial refund, including any interest payable on those amounts, calculated as of the most recent date available prior to the retirement system receiving the QILDRO (the date used by the retirement system shall also be provided).(v) The gross amount of the death benefits that         would be payable to the member's death benefit beneficiaries or estate, assuming the member died on the date or a date as close as possible to the date the QILDRO was received by the retirement system, including any interest payable on the amounts, calculated as of the most recent date available prior to the retirement system receiving the QILDRO (the date used by the retirement system shall also be provided).(vi) Whether the member has notified the         retirement system of the date the member intends to retire, and if so, that date.(vii) If the member has provided a date that he         or she intends to retire, the date, if available, that the retirement system reasonably believes will be the member's effective date of retirement.(C) For all situations except that situation     described in item (A), if the retirement system receives the QILDRO after the effective date of retirement, then, within 45 days after the retirement system receives the QILDRO, or, if the retirement system receives the QILDRO before the member's effective date of retirement, then as soon as administratively possible before or after the member's effective date of retirement (but not later than 45 days after the member's effective date of retirement), the retirement system shall provide all of the following information:(i) The member's effective date of retirement.(ii) The date the member commenced benefits or,         if not yet commenced, the date the retirement system has scheduled the member's benefits to commence.(iii) The amount of permissive and regular         service the member accumulated in the retirement system from the time of initial membership through the member's effective date of retirement. Service amounts shall be expressed using the most exact time increments available to the retirement system (e.g., months or fractions of years).(iv) The gross amount of the member's monthly         retirement benefit, calculated as of the member's effective date of retirement. This amount shall include any permissive service and upgrades purchased by the member, and those amounts shall be noted separately.(v) The gross amount of the member's refund or         partial refund, including any interest payable on those amounts, calculated as of the member's effective date of retirement.(vi) The gross amount of death benefits that         would be payable to the member's death benefit beneficiaries or estate, assuming the member died on the member's effective date of retirement, including any interest payable on those amounts.(D) If, and only if, the alternate payee is entitled     to benefits under Section VII of the QILDRO, then, within 45 days after the retirement system receives notice of the member's death, the retirement system shall provide the gross amount of  death benefits payable, including any interest payable on those amounts, calculated as of the member's date of death.(2) In no event shall the retirement system be required to furnish to any  person an actuarial opinion as to the present value of the member's benefits or  other interests.(3) The papers, entries, and records, or parts thereof, of any retirement  system may be proved by a copy thereof, certified under the signature of the  secretary of the system or other duly appointed keeper of the records of the  system and the corporate seal, if any.(i) In a retirement system in which a member or beneficiary is  required to apply to the system for payment of a benefit, the required  application may be made by an alternate payee who is entitled to all  of a termination refund or retirement benefit or part of a death benefit that is payable                under a QILDRO, provided that all other  qualifications and requirements have been met.  However, the alternate payee  may not make the required application for death benefits while the member is alive or for a member's refund or a retirement  benefit if the member is in active service or below the minimum age for  receiving an undiscounted retirement annuity in the retirement system that has  received the QILDRO or in any other retirement system in which the member has  regular or permissive service and in which the member's rights under the Retirement  Systems Reciprocal Act would be affected as a result of the alternate payee's  application for a member's refund or retirement benefit.(j) (1) So long as there is in effect a QILDRO relating to a member's  retirement benefit, the affected member may not elect a form of payment that  has the effect of diminishing the amount of the payment to which any alternate  payee is entitled, unless the alternate payee has consented to the election in  a        writing that includes the alternate payee's notarized signature, and this written and notarized consent has been filed with the retirement system.(2) If a member attempts to make an election prohibited under subdivision  (j)(1), the retirement system shall reject the election and advise the member  of the need to obtain the alternate payee's consent.(3) If a retirement system discovers that it has mistakenly allowed an  election prohibited under subdivision (j)(1), it shall thereupon disallow that  election and recalculate any benefits affected thereby.  If the system  determines that an amount paid to a regular payee should have been paid to an  alternate payee, the system shall, if possible, recoup the amounts as provided  in subsection (k) of this Section.(k) In the event that a regular payee or an alternate payee is overpaid, the  retirement system shall have the authority to and shall recoup the amounts by deducting the overpayment from  future payments and making payment to the other payee.  The system may make  deductions for recoupment over a period of time in the same manner as is  provided by law or rule for the recoupment of other amounts incorrectly  disbursed by the system in instances not involving a QILDRO.  The retirement  system shall incur no liability to either the alternate payee or the regular  payee as a result of any payment made in good faith, regardless of whether the  system is able to accomplish recoupment.(l) (1) A retirement system that has, before the effective date of this  Section, received and implemented a domestic relations order that directs  payment of a benefit to a person other than the regular payee may continue  to implement that order, and shall not be liable to the regular payee for  any amounts paid in good faith to that other person in accordance with  the order.(2) A domestic relations order directing payment of a benefit to a  person other than the regular payee that was issued by a court but not  implemented by a retirement system prior to the effective date of this  Section shall be void.  However, a person who is the beneficiary or alternate  payee of a domestic relations order that is rendered void under this subsection  may petition the court that issued the order for an amended order that complies  with this Section.(3) A retirement system that received a valid QILDRO before the effective date of this amendatory Act of the 94th General Assembly shall continue to implement the QILDRO and shall not be liable to any party for amounts paid in good faith pursuant to the QILDRO.(m) (1) In accordance with Article XIII, Section 5 of the Illinois  Constitution, which prohibits the impairment or diminishment of benefits  granted under this Code, a QILDRO issued against a member of a retirement  system established under an Article of this Code that exempts the payment of  benefits or refunds from attachment, garnishment, judgment or other legal  process shall not be effective without the written consent of the member if the  member began participating in the retirement system on or before the effective  date of this Section.  That consent must specify the retirement system, the  court case number, and the names and social security numbers of the member and  the alternate payee.  The consent must accompany the QILDRO when it is filed  with the retirement system, and must be in substantially the following form:    CONSENT TO ISSUANCE OF QILDRO Case Caption: ...................................    Court Case Number: ....................    Member's Name: ..................................    Member's Social Security Number: ........................    Alternate payee's Name: .........................    Alternate payee's Social Security Number: ...............I, (name), a member of the (retirement system), hereby irrevocably consent to the  issuance of a Qualified Illinois Domestic Relations Order.  I understand  that under the Order, certain benefits that would otherwise be payable to me,  or to my death benefit beneficiaries         or estate, will instead be payable to (name of  alternate payee).  I also understand that my right to elect certain forms of  payment of my retirement benefit or member's refund may be limited as a result  of the Order.DATED:.......................SIGNED:......................(2) A member's consent to the issuance of a QILDRO shall be irrevocable,  and shall apply to any QILDRO that pertains to the alternate payee and  retirement system named in the consent.(n) A QILDRO         issued under this Section shall be in substantially the  following form (omitting any provisions that are not applicable to benefits that are or may be ultimately payable to the member):    QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER       ...................................       (Enter Case Caption Here)       ...................................(Enter Retirement System Name Here)THIS CAUSE coming before the Court for the purpose of the entry of a Qualified Illinois Domestic Relations Order under the provisions of Section 1-119 of the Illinois Pension Code