reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 50 - INSURANCE › Part 4439 - DISSOLUTION AND REESTABLISHMENT OF INACTIVE POLICE PENSION FUNDS AND FIREFIGHTERS' PENSION FUNDS › Section 4439.80 - Re-establishment of Dissolved Pension Fund - Reinstate Service in an Article 3 Police Pension Fund

Current through Register Vol. 48, No. 28, July 12, 2024
a) The corporate
			 authorities of a municipality in which an Article 3 police pension fund has
			 been dissolved in accordance with Section 3-144.6 shall temporarily
re-establish the pension fund if a former police officer's
				reinstatement of creditable service is required under Section 3-110.7(b) of the
				Code and 50 Ill. Adm. Code 4404.
b) Upon receipt of notification by the
			 municipality of the former police officer's intent to transfer creditable
			 service under Section 3-110(d) of the Code, as required in 50 Ill. Adm. Code
			 4404.60,
			 the municipality shall provide the former officer and the former officer's
			 current pension fund with the information required of the prior fund in 50 Ill.
			 Adm. Code
			 4404.70,
			 as if the municipality was the prior pension fund.
c) When the municipality receives a final
			 authorization to transfer creditable service from the former officer's current
			 pension fund, as required by 50 Ill. Adm. Code
			 4404.100,
			 and the repayment of the refund with interest from the former officer as
			 required in 50 Ill. Adm. Code
			 4404.90(a)(1),
			 the municipality must transfer the designated creditable service time to the
			 former police officer's current pension fund, along with all monies required to
			 be transferred pursuant to 50 Ill. Adm. Code
			 4404.100(b).
d) Upon the municipality's payment of all
			 monies prescribed to the former police officer's current pension fund, the
			 temporarily re-established police pension fund shall be considered
			 dissolved.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4439 - DISSOLUTION AND REESTABLISHMENT OF INACTIVE POLICE PENSION FUNDS AND FIREFIGHTERS' PENSION FUNDS › Section 4439.90 - Re-establishment of Dissolved Pension Fund - Reinstate Service in an Article 4 Firefighters Pension Fund

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 corporate authorities of a municipality in which an Article 4 firefighters'
			 pension fund has been dissolved in accordance with Section 4-106.1 of the Code
			 shall re-establish the pension fund if a former firefighter's reinstatement of
			 creditable service is required under Section 4-109.3(g) of the Code.
b) Benefits under Section 4-109.3 of the Code
1) A former firefighter who wants to receive
			 benefits under Section 4-109.3 of the Code shall submit to the municipality:
A) notification of the intent to receive
			 benefits, as required by Section 4-109.3(h) of the Code;
B) payment of the amount of refund received
			 from the firefighter, with interest, as required by Section 4-109.3(g) of the
			 Code; and
C) the additional
			 contribution, with interest, required under Section 4-109.3(i) of the
			 Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart A - GENERAL PROVISIONS › Section 4440.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
This Part sets forth the procedural requirements for the
				  submission of the annual compliance fee by pension funds to the Department of
				  Insurance as required by Section 1A-112 of the Illinois Pension Code
				  [40 ILCS 5/1A-112
				  ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart A - GENERAL PROVISIONS › Section 4440.20 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
This Part applies to every Article 3 police pension fund that
				  is required to file an annual statement with the Department of Insurance
				  pursuant to Section 1A-109 of the Illinois Pension Code [40 ILCS
				  5/1A-109 ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4440.40 - General Rule

Current through Register Vol. 48, No. 28, July 12, 2024
Beginning January 1, 1993, pursuant to
				  40 ILCS
				  5/1-106(b), a pension fund may, and
				  to the extent required by federal law shall, at the request of any person
				  entitled to receive an eligible rollover distribution from the pension fund,
				  pay any portion of that eligible rollover distribution directly to an eligible
				  retirement plan designated in writing by the person.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4440.50 - Eligible Rollover Distribution

Current through Register Vol. 48, No. 28, July 12, 2024
a) An eligible rollover distribution is any
				distribution of all or any portion of the balance to the credit of the
				distributee, except that an eligible rollover distribution does not include:
1) any distribution that is one of a series
				of substantially equal periodic payments (not less frequently than annually)
				made for the life (or the life expectancy) of the distributee or the joint
				lives (or joint life expectancies) of the distributee and the distributee's
				designated beneficiary, or for a specified period of 10 years or
				more;
2) any distribution to the
				extent that distribution is required under IRC section 401(a)(9);
3) the portion of any distribution that is
				not includible in gross income; and
4) any other distribution that is reasonably
				expected to total less than $200 during the year.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4440.60 - Eligible Retirement Plan

Current through Register Vol. 48, No. 28, July 12, 2024
An eligible retirement plan is any of the following that
				  accepts the distributee's eligible rollover distribution:
a) an individual retirement account described
				in IRC section 408(a);
b) an
				individual retirement annuity described in IRC section 408(b);
c) an annuity plan described in IRC section
				403(a);
d) a qualified trust
				described in IRC section 401(a);
e)
				effective January 1, 2002, an annuity contract described in IRC section
				403(b);
f) effective January 1,
				2002, a plan eligible under IRC section 457(b) that is maintained by a state,
				political subdivision of a state, or any agency or instrumentality of a state
				or a political subdivision of a state that agrees to separately account for
				amounts transferred into that plan from a plan under this Part; or
g) effective January 1, 2009, to the extent
				required by federal law and permitted under a retirement or pension system
				subject to this Part, a Roth IRA described in IRC section 408A.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4440.70 - Distributee

Current through Register Vol. 48, No. 28, July 12, 2024
A distributee includes an employee or former employee. It
				  also includes the employee's or former employee's surviving spouse. Effective
				  January 1, 2008, to the extent permitted under a pension plan subject to this
				  Part, a distributee further includes a nonspouse beneficiary who is a
				  designated beneficiary as defined by IRC section 401(a)(9)(E). However, a
				  nonspouse beneficiary may roll over the distribution only to an individual
				  retirement account or individual retirement annuity established for the purpose
				  of receiving the distribution, and the account or annuity will be treated as an
				  "inherited" individual retirement account or annuity.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4440.80 - Direct Rollover

Current through Register Vol. 48, No. 28, July 12, 2024
A direct rollover is a payment by the pension plan to the
				  eligible retirement plan specified by the distributee.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4440.85 - Involuntary Lump Sum Distributions

Current through Register Vol. 48, No. 28, July 12, 2024
Involuntary lump sum distributions shall not be made except
				  in the following situations:
a) The
				distribution is made to a member who is at least normal retirement age under
				the plan.
b) The distribution to be
				made to a member does not exceed $1000 (excluding rollover
				contributions).
c) The distribution
				is made to a survivor or beneficiary of a member.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart C - RULE ON REQUIRED DISTRIBUTIONS › Section 4440.90 - General Rule

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding any other provision to the contrary, and
				  pursuant to
				  40 ILCS
				  5/1-116.1, distributions from a pension fund shall
				  conform with a good faith interpretation of IRC section 401(a)(9) and the
				  regulations under that section ( 26 CFR 1.401(a)(9) ) as applicable to a
				  governmental plan within the meaning of IRC section 414(d).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart C - RULE ON REQUIRED DISTRIBUTIONS › Section 4440.100 - Minimum Required Distributions

Current through Register Vol. 48, No. 28, July 12, 2024
Effective on and after January 1, 2003, each pension fund
				  shall be subject to the following provisions:
a) Benefit payments must begin by the
				required beginning date, which is the later of April 1 of the calendar year
				following the calendar year in which the plan member reaches 701/2 years of age
				or April 1 of the calendar year following the calendar year in which the plan
				member terminates employment. If a plan member fails to apply for retirement
				benefits by April 1 of the calendar year following the calendar year in which
				he or she reaches 701/2 years of age or April 1 of the calendar year following
				the calendar year in which he or she terminates employment, whichever is later,
				the plan will begin distributing the benefit as required by this
				Section.
b) The plan member's
				entire interest must be distributed over the plan member's life or the lives of
				the plan member and a designated beneficiary or beneficiaries, or over a period
				not extending beyond the life expectancy of the plan member or of the plan
				member and a designated beneficiary. Death benefits must be distributed in
				accordance with IRC section 401(a)(9), including the incidental death benefit
				requirement in IRC section 401(a)(9)(G), and the regulations implementing that
				Section.
c) The life expectancy of
				a plan member, the plan member's spouse or the plan member's beneficiary may
				not be recalculated after the initial determination for purposes of determining
				benefits.
d) If a plan member dies
				after the required distribution of benefits has begun, the remaining portion of
				the plan member's interest must be distributed at least as rapidly as under the
				method of distribution before the plan member's death and no longer than the
				remaining period over which distributions commenced.
e) If a plan member dies before required
				distribution of the plan member's benefits has begun, the plan member's entire
				interest must be either:
1) distributed (in
				accordance with federal regulations ( 26 CFR 1.401(a)(9) )) over the life or
				life expectancy of the designated beneficiary, with the distributions beginning
				no later than December 31 of the calendar year immediately following the
				calendar year of the plan member's death; or
2) distributed by December 31 of the calendar
				year containing the fifth anniversary of the plan member's death.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart C - RULE ON REQUIRED DISTRIBUTIONS › Section 4440.110 - Incidental Benefit Rule

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				amount of survivor benefits paid to a plan member's beneficiary may not exceed
				the maximum determined under the incidental death benefit requirement of the
				Internal Revenue Code.
b) The death
				and disability benefits provided by a plan are limited by the incidental
				benefit rule set forth in IRC section 401(a)(9)(G) and 26 CFR 1.401 -
				1(b)(1)(i).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.120 - Basic 415 Limitations

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding any other provisions to the contrary, and
				  pursuant to
				  40 ILCS
				  5/1-116, the member contributions made to, and
				  retirement benefits paid from, a pension fund shall be limited to such extent
				  as may be necessary to conform to the requirements of section 415 of the
				  Internal Revenue Code, for a qualified pension plan.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.130 - Limitation Year

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of this Part, pursuant to IRC section 415, the
				  limitation year for a Police Pension Fund is the calendar
				  year.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.140 - Participation in Other Qualified Plans: Aggregation of Limits

Current through Register Vol. 48, No. 28, July 12, 2024
a) The limit
				established by IRC section 415(b), with respect to any member who at any time
				has been a member of any other defined benefit plan as defined in IRC section
				414(j), that was maintained by the member's same employer in the pension fund
				shall apply as if the total benefits payable under all such defined benefit
				plans in which the member has been a member were payable from one
				plan.
b) The limit established by
				IRC section 415(c), with respect to any member who at any time has been a
				member of any other defined contribution plan, as defined in IRC section
				414(i), that was maintained by the member's same employer in the pension fund
				shall apply as if the total annual additions under all such defined
				contribution plans in which the member has been a member were payable to one
				plan.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.150 - Basic 415(b) Limitation

Current through Register Vol. 48, No. 28, July 12, 2024
Before January 1, 1995, a member may not receive an annual
				  benefit that exceeds the limits specified in IRC section 415(b), subject to the
				  applicable adjustments in that section. On and after January 1, 1995, a member
				  may not receive an annual benefit that exceeds the dollar amount specified in
				  IRC section 415(b)(1)(A), subject to the applicable adjustments in IRC section
				  415(b), and subject to any additional limits that may be specified in this
				  Section. In no event shall a member's annual benefit payable in any limitation
				  year from a pension fund be greater than the limit applicable at the pension
				  benefit starting date, as increased in subsequent years pursuant to IRC section
				  415(d) and related Treasury Regulations ( 26 CFR 1.415(d) ).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.160 - Definition of Annual Benefit

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of IRC section 415(b), the "annual benefit"
				  means a benefit payable annually in the form of a straight life annuity (with
				  no ancillary benefits) without regard to the benefit attributable to after-tax
				  employee contributions (except pursuant to IRC section 415(n)) and to rollover
				  contributions (as defined in IRC section 415(b)(2)(A)). The "benefit
				  attributable" shall be determined in accordance with Treasury Regulations ( 26
				  CFR 1.415(b)(2)(A) ).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.170 - Adjustments to Basic 415(b) Limitation for Form of Benefit

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the benefit under the pension fund is
				other than the form specified in Section
				4440.160,
				then the benefit shall be adjusted so that it is the equivalent of the annual
				benefit, using factors prescribed in Treasury Regulations ( 26 CFR 1.415(b)
				).
b) If the form of benefit
				without regard to the automatic benefit increase feature is not a straight life
				annuity or a qualified joint and survivor annuity, then subsection (a) is
				applied by either reducing the IRC section 415(b) limit applicable at the
				pension benefit starting date or adjusting the form of benefit to an
				actuarially equivalent amount (determined using the assumptions specified in 26
				CFR 1.415(b) - 1(c)(2)(ii) ) that takes into account the additional benefits
				under the form of benefit as follows:
1) For
				a benefit paid in a form to which IRC section 417(e)(3) does not apply (a
				monthly benefit), the actuarially equivalent straight life annuity benefit that
				is the greater of (or the reduced 415(b) limit applicable at the annuity
				starting date that is the "lesser of", when adjusted in accordance with the
				following assumptions):
A) The annual amount
				of the straight life annuity (if any) payable to the member under the plan
				commencing at the same annuity starting date as the form of benefit to the
				member; or
B) The annual amount of
				the straight life annuity commencing at the same annuity starting date that has
				the same actuarial present value as the form of benefit payable to the member,
				computed using a 5% interest assumption (or the applicable statutory interest
				assumption) and the applicable mortality tables described in IRC section
				417(e)(3)(B) (see Notice 2008-85, published by the Internal Revenue Service on
				September 29, 2008); or
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.180 - Benefits Not Taken into Account for 415(b) Limit

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of this Section, the following benefits shall
				  not be taken into account in applying these limits:
a) Any ancillary benefit that is not directly
				related to retirement income benefits;
b) That portion of any joint and survivor
				annuity that constitutes a qualified joint and survivor annuity;
c) Any other benefit not required under IRC
				section 415(b)(2) and related Treasury Regulations ( 26 CFR 1.415(b) ) to be
				taken into account for purposes of the limitation of IRC section
				415(b)(1).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.190 - Other Adjustments in 415(b) Limitation

Current through Register Vol. 48, No. 28, July 12, 2024
a) In the event the member's retirement
				benefits become payable before age 62, the limit prescribed by this Subpart
				shall be reduced in accordance with regulations issued by the Secretary of the
				Treasury pursuant to the provisions of IRC section 415(b), so that the limit
				(as so reduced) equals an annual straight life benefit (when the retirement
				income benefit begins) equivalent to a $160,000 (as adjusted) annual benefit
				beginning at age 62.
b) In the
				event the member's benefit is based on at least 15 years of service as a
				full-time employee of any police department or on 15 years of military service,
				the adjustments provided for in subsection (a) shall not apply.
c) The reductions provided for in subsection
				(a) shall not be applicable to pre-retirement disability benefits or
				pre-retirement death benefits.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.200 - Less than 10 Years of Service Adjustment for 415(b) Limitations

Current through Register Vol. 48, No. 28, July 12, 2024
The maximum retirement benefits payable to any member who has
				  completed less than 10 years of service shall be the amount determined under
				  Section
				  4440.150
				  multiplied by a fraction, the numerator of which is the number of the member's
				  years of service and the denominator of which is 10. The reduction provided by
				  this Section cannot reduce the maximum benefit below 10%. The reduction
				  provided by this Section shall not be applicable to pre-retirement disability
				  benefits or pre-retirement death benefits.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.210 - $10,000 Limit

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding the foregoing, the retirement benefit payable
				  with respect to a member shall be deemed not to exceed the IRC section 415
				  limit if the benefits payable, with respect to the member under the plan and
				  under all other qualified defined benefit pension plans to which the member's
				  employer contributes, do not exceed $10,000 for the applicable limitation year
				  and for any prior limitation year, and the employer has not at any time
				  maintained a qualified defined contribution plan in which the member
				  participated.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.220 - Effect of COLA without a Lump Sum Component on 415(b) Testing

Current through Register Vol. 48, No. 28, July 12, 2024
Effective on and after January 1, 2003, for purposes of
				  applying the IRC section 415(b) limit to a member with no lump sum benefit, the
				  following will apply:
a) a member's
				applicable 415(b) limit will be applied to the member's annual benefit in the
				member's first limitation year without regard to any automatic cost of living
				adjustments;
b) to the extent that
				the member's annual benefit equals or exceeds the limit, the member will no
				longer be eligible for cost of living increases until the benefit plus the
				accumulated increases are less than the 415(b) limit;
c) in any subsequent limitation year, a
				member's annual benefit, including any automatic cost of living increases,
				shall be tested under the then applicable 415(b) limit including any adjustment
				to the IRC section 415(b)(1)(A) dollar limit under IRC section 415(d), and the
				related Treasury Regulations ( 26 CFR 1.415(b) ).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.230 - Effect of COLA with a Lump Sum Component on 415(b) Testing

Current through Register Vol. 48, No. 28, July 12, 2024
On and after January 1, 2009, with respect to a member who
				  receives a portion of the member's annual benefit in a lump sum, a member's
				  applicable limit will be applied taking into consideration cost of living
				  increases as required by IRC section 415(b) and applicable Treasury Regulations
				  ( 26 CFR 1.415(b) ).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.250 - Service Purchases under IRC Section 415(n)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective for permissive service credit
				contributions made in limitation years beginning after December 31, 1997, if a
				member makes one or more contributions to purchase permissive service credit
				under the plan, then the requirements of IRC section 415(n) will be treated as
				met only if:
1) the requirements of IRC
				section 415(b) are met, determined by treating the accrued benefit derived from
				all such contributions as an annual benefit for purposes of IRC section 415(b);
				or
2) the requirements of IRC
				section 415(b) are met, determined by treating all such contributions as annual
				additions for purposes of IRC section 415(c).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.260 - Modification of Contributions for 415(c) and 415(n) Purposes

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding any other provision of law to the contrary, a
				  pension fund may modify a request by a member to make a contribution under this
				  Part if the amount of the contribution would exceed the limits provided in IRC
				  section 415 by using the following methods:
a) If the law requires a lump sum payment for
				the purchase of service credit, a pension fund may establish a periodic payment
				plan for the member to avoid a contribution in excess of the limits under IRC
				section 415(c) or 415(n).
b) If
				payment pursuant to this Section will not avoid a contribution in excess of the
				limits imposed by IRC section 415(c) or 415(n), a pension fund may either
				reduce the member's contribution to an amount within the limits of those IRC
				sections or refuse the member's contribution.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.270 - Repayments of Cashouts

Current through Register Vol. 48, No. 28, July 12, 2024
Any repayment of contributions (including interest) to a
				  pension fund with respect to an amount previously refunded upon a forfeiture of
				  service credit under a pension fund shall not be taken into account for
				  purposes of IRC section 415, in accordance with applicable Treasury Regulations
				  ( 26 CFR 1.415 ).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4440.280 - Reduction of Benefits Priority

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Reduction of benefits and/or contributions to all plans, when required, shall
				be accomplished by first reducing the member's defined benefit component under
				any defined benefit plans in which the member participated.
b) Except as otherwise provided in subsection
				(c), the reduction shall be made:
1) first,
				with respect to the plan in which the member most recently accrued benefits and
				thereafter in the priority determined by the plan and the plan administrator of
				the other plans; then
2) by
				reducing the member's defined contribution component benefit under any defined
				benefit plans; then
3) by reducing
				or allocating excess forfeitures for defined contribution plans in which the
				member participated, with the reduction to be made first with respect to the
				plan in which the member most recently accrued benefits and thereafter in the
				priority established by the plan and the plan administrator for the other
				plans.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart E - RULE ON GENERAL COMPLIANCE › Section 4440.290 - Compliance with Internal Revenue Code

Current through Register Vol. 48, No. 28, July 12, 2024
Each of the plans established under Article 3 of the Pension
				  Code is intended to be a qualified defined benefit plan under IRC sections
				  401(a) and 414(d).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart E - RULE ON GENERAL COMPLIANCE › Section 4440.300 - Plan Termination

Current through Register Vol. 48, No. 28, July 12, 2024
Upon plan termination, a member's interest in a pension fund
				  will be nonforfeitable.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart E - RULE ON GENERAL COMPLIANCE › Section 4440.310 - Vesting and Forfeitures

Current through Register Vol. 48, No. 28, July 12, 2024
a) A plan
				member shall be 100% vested in his or her accumulated contributions at all
				times.
b) In conformity with IRC
				section 401(a)(8), any forfeitures of benefits by members or former members of
				the plan will not be used to pay benefit increases. However, forfeitures shall
				be used to reduce employer contributions.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4440 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 3 POLICE PENSION FUNDS › Subpart E - RULE ON GENERAL COMPLIANCE › Section 4440.320 - HEART Act

Current through Register Vol. 48, No. 28, July 12, 2024
The downstate police pension funds will operate in compliance
				  with USERRA, as required by Section 1-118 of the Pension Code, and as amended
				  and expanded by the HEART Act.
a)
				Effective with respect to deaths occurring on or after January 1, 2007, while a
				member is performing qualified military service (as defined in USERRA), to the
				extent required by IRC section 401(a)(37), survivors of a member in a State or
				local retirement or pension system are entitled to any additional benefits that
				the system would provide if the member had resumed employment and then died,
				such as accelerated vesting or survivor benefits that are contingent on the
				member's death while employed. In any event, a deceased member's period of
				qualified military service must be counted for vesting purposes.
b) Beginning January 1, 2009, to the extent
				required by IRC sections 3401(h) and 414(u)(12), an individual receiving
				differential wage payments (while the individual is performing qualified
				military service (as defined in USERRA)) from an employer shall be treated as
				employed by that employer, and the differential wage payment shall be treated
				as compensation for purposes of applying the limits on annual additions under
				IRC section 415(c). This provision shall be applied to all similarly situated
				individuals in a reasonably equivalent manner.
c) Effective with respect to deaths and
				disabilities occurring on or after January 1, 2007, while a member is
				performing qualified military service (as defined in USERRA), to the extent
				permitted by IRC section 414(u)(8), for benefit accrual purposes and, in the
				case of death, for vesting purposes, the member will be treated as having
				earned years of service for the period of qualified military service, having
				returned to employment on the day before the death and/or disability, and then
				having terminated on the date of death or disability. This provision applies
				only if the employer and the employee have made contributions equal to those
				that would have been made had the employee been active during the period of
				coverage. This provision shall be applied to all similarly situated individuals
				with respect to an employer in a reasonably equivalent manner.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart A - GENERAL PROVISIONS › Section 4445.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
This Part sets forth the procedural requirements for the
				  submission of the annual compliance fee by pension funds to the Department of
				  Insurance as required by Section 1A-112 of the Illinois Pension Code
				  [40 ILCS 5/1A-112
				  ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart A - GENERAL PROVISIONS › Section 4445.20 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
This Part applies to every Article 4 firefighter pension fund
				  that is required to file an annual statement with the Department of Insurance
				  pursuant to Section 1A-109 of the Illinois Pension Code [40 ILCS
				  5/1A-109 ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4445.40 - General Rule

Current through Register Vol. 48, No. 28, July 12, 2024
Beginning January 1, 1993, pursuant to
				  40 ILCS
				  5/1-106(b), a pension fund may, and
				  to the extent required by federal law shall, at the request of any person
				  entitled to receive an eligible rollover distribution from the pension fund,
				  pay any portion of that eligible rollover distribution directly to an eligible
				  retirement plan designated in writing by the person.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4445.50 - Eligible Rollover Distribution

Current through Register Vol. 48, No. 28, July 12, 2024
a) An eligible rollover distribution is any
				distribution of all or any portion of the balance to the credit of the
				distributee, except that an eligible rollover distribution does not include:
1) any distribution that is one of a series
				of substantially equal periodic payments (not less frequently than annually)
				made for the life (or the life expectancy) of the distributee or the joint
				lives (or joint life expectancies) of the distributee and the distributee's
				designated beneficiary, or for a specified period of 10 years or
				more;
2) any distribution to the
				extent that distribution is required under IRC section 401(a)(9);
3) the portion of any distribution that is
				not includible in gross income; and
4) any other distribution that is reasonably
				expected to total less than $200 during the year.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4445.60 - Eligible Retirement Plan

Current through Register Vol. 48, No. 28, July 12, 2024
An eligible retirement plan is any of the following that
				  accepts the distributee's eligible rollover distribution:
a) an individual retirement account described
				in IRC section 408(a);
b) an
				individual retirement annuity described in IRC section 408(b);
c) an annuity plan described in IRC section
				403(a);
d) a qualified trust
				described in IRC section 401(a);
e)
				effective January 1, 2002, an annuity contract described in IRC section
				403(b);
f) effective January 1,
				2002, a plan eligible under IRC section 457(b) that is maintained by a state,
				political subdivision of a state, or any agency or instrumentality of a state
				or a political subdivision of a state that agrees to separately account for
				amounts transferred into that plan from a plan under this Part; or
g) effective January 1, 2009, to the extent
				required by federal law and permitted under a retirement or pension system
				subject to this Part, a Roth IRA described in IRC section 408A.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4445.70 - Distributee

Current through Register Vol. 48, No. 28, July 12, 2024
A distributee includes an employee or former employee. It
				  also includes the employee's or former employee's surviving spouse. Effective
				  January 1, 2008, to the extent permitted under a pension plan subject to this
				  Part, a distributee further includes a nonspouse beneficiary who is a
				  designated beneficiary as defined by IRC section 401(a)(9)(E). However, a
				  nonspouse beneficiary may roll over the distribution only to an individual
				  retirement account or individual retirement annuity established for the purpose
				  of receiving the distribution, and the account or annuity will be treated as an
				  "inherited" individual retirement account or annuity.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart B - RULE ON ROLLOVERS › Section 4445.80 - Direct Rollover

Current through Register Vol. 48, No. 28, July 12, 2024
A direct rollover is a payment by the pension plan to the
				  eligible retirement plan specified by the distributee.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart C - RULE ON REQUIRED DISTRIBUTIONS › Section 4445.90 - General Rule

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding any other provision to the contrary, and
				  pursuant to
				  40 ILCS
				  5/1-116.1, distributions from a pension fund shall
				  conform with a good faith interpretation of IRC section 401(a)(9) and the
				  regulations under that section ( 26 CFR 1.401(a)(9) ) as applicable to a
				  governmental plan within the meaning of IRC section 414(d).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart C - RULE ON REQUIRED DISTRIBUTIONS › Section 4445.100 - Minimum Required Distributions

Current through Register Vol. 48, No. 28, July 12, 2024
Effective on and after January 1, 2003, each pension fund
				  shall be subject to the following provisions:
a) Benefit payments must begin by the
				required beginning date, which is the later of April 1 of the calendar year
				following the calendar year in which the plan member reaches 701/2 years of age
				or April 1 of the calendar year following the calendar year in which the plan
				member terminates employment. If a plan member fails to apply for retirement
				benefits by April 1 of the calendar year following the calendar year in which
				he or she reaches 701/2 years of age or April 1 of the calendar year following
				the calendar year in which he or she terminates employment, whichever is later,
				the plan will begin distributing the benefit as required by this
				Section.
b) The plan member's
				entire interest must be distributed over the plan member's life or the lives of
				the plan member and a designated beneficiary or beneficiaries, or over a period
				not extending beyond the life expectancy of the plan member or of the plan
				member and a designated beneficiary. Death benefits must be distributed in
				accordance with IRC section 401(a)(9), including the incidental death benefit
				requirement in IRC section 401(a)(9)(G), and the regulations implementing that
				Section.
c) The life expectancy of
				a plan member, the plan member's spouse or the plan member's beneficiary may
				not be recalculated after the initial determination for purposes of determining
				benefits.
d) If a plan member dies
				after the required distribution of benefits has begun, the remaining portion of
				the plan member's interest must be distributed at least as rapidly as under the
				method of distribution before the plan member's death and no longer than the
				remaining period over which distributions commenced.
e) If a plan member dies before required
				distribution of the plan member's benefits has begun, the plan member's entire
				interest must be either:
1) distributed (in
				accordance with federal regulations ( 26 CFR 1.401(a)(9) )) over the life or
				life expectancy of the designated beneficiary, with the distributions beginning
				no later than December 31 of the calendar year immediately following the
				calendar year of the plan member's death; or
2) distributed by December 31 of the calendar
				year containing the fifth anniversary of the plan member's death.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart C - RULE ON REQUIRED DISTRIBUTIONS › Section 4445.110 - Incidental Benefit Rule

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				amount of survivor benefits paid to a plan member's beneficiary may not exceed
				the maximum determined under the incidental death benefit requirement of the
				Internal Revenue Code.
b) The death
				and disability benefits provided by a plan are limited by the incidental
				benefit rule set forth in IRC section 401(a)(9)(G) and 26 CFR 1.401 -
				1(b)(1)(i).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4445.120 - Basic 415 Limitations

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding any other provisions to the contrary, and
				  pursuant to
				  40 ILCS
				  5/1-116, the member contributions made to, and
				  retirement benefits paid from, a pension fund shall be limited to such extent
				  as may be necessary to conform to the requirements of IRC section 415, for a
				  qualified pension plan.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4445.130 - Limitation Year

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of this Part, pursuant to IRC section 415, the
				  limitation year for a Firefighters' Pension Fund is the calendar
				  year.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4445.140 - Participation in Other Qualified Plans: Aggregation of Limits

Current through Register Vol. 48, No. 28, July 12, 2024
a) The limit
				established by IRC section 415(b), with respect to any member who at any time
				has been a member of any other defined benefit plan as defined in IRC section
				414(j), that was maintained by the member's same employer in the pension fund
				shall apply as if the total benefits payable under all such defined benefit
				plans in which the member has been a member were payable from one
				plan.
b) The limit established by
				IRC section 415(c), with respect to any member who at any time has been a
				member of any other defined contribution plan, as defined in IRC section
				414(i), that was maintained by the member's same employer in the pension fund
				shall apply as if the total annual additions under all such defined
				contribution plans in which the member has been a member were payable to one
				plan.
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4445.150 - Basic 415(b) Limitation

Current through Register Vol. 48, No. 28, July 12, 2024
Before January 1, 1995, a member may not receive an annual
				  benefit that exceeds the limits specified in IRC section 415(b), subject to the
				  applicable adjustments in that section. On and after January 1, 1995, a member
				  may not receive an annual benefit that exceeds the dollar amount specified in
				  IRC section 415(b)(1)(A), subject to the applicable adjustments in IRC section
				  415(b), and subject to any additional limits that may be specified in this
				  Section. In no event shall a member's annual benefit payable in any limitation
				  year from a pension fund be greater than the limit applicable at the pension
				  benefit starting date, as increased in subsequent years pursuant to IRC section
				  415(d) and related Treasury Regulations ( 26 CFR 1.415(d) ).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4445.160 - Definition of Annual Benefit

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of IRC section 415(b), the "annual benefit"
				  means a benefit payable annually in the form of a straight life annuity (with
				  no ancillary benefits) without regard to the benefit attributable to after-tax
				  employee contributions (except pursuant to IRC section 415(n)) and to rollover
				  contributions (as defined in IRC section 415(b)(2)(A)). The "benefit
				  attributable" shall be determined in accordance with Treasury Regulations ( 26
				  CFR 1.415(b)(2)(A) ).
Illinois Administrative Code › Title 50 - INSURANCE › Part 4445 - IRS QUALIFICATION STATUS REQUIREMENTS FOR ARTICLE 4 FIREFIGHTER PENSION FUNDS › Subpart D - RULE ON 415 LIMITATIONS › Section 4445.170 - Adjustments to Basic 415(b) Limitation for Form of Benefit

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the benefit under the pension fund is
				other than the form specified in Section
				4445.160,
				then the benefit shall be adjusted so that it is the equivalent of the annual
				benefit, using factors prescribed in Treasury Regulations ( 26 CFR 1.415(b)
				).
b) If the form of benefit
				without regard to the automatic benefit increase feature is not a straight life
				annuity or a qualified joint and survivor annuity, then subsection (a) is
				applied by either reducing the IRC section 415(b) limit applicable at the
				pension benefit starting date or adjusting the form of benefit to an
				actuarially equivalent amount (determined using the assumptions specified in 26
				CFR 1.415(b) - 1(c)(2)(ii) ) that takes into account the additional benefits
				under the form of benefit as follows:
1) For
				a benefit paid in a form to which IRC section 417(e)(3) does not apply (a
				monthly benefit), the actuarially equivalent straight life annuity benefit that
				is the greater of (or the reduced 415(b) limit applicable at the annuity
				starting date that is the "lesser of", when adjusted in accordance with the
				following assumptions):
A) The annual amount
				of the straight life annuity (if any) payable to the member under the plan
				commencing at the same annuity starting date as the form of benefit to the
				member; or
B) The annual amount of
				the straight life annuity commencing at the same annuity starting date that has
				the same actuarial present value as the form of benefit payable to the member,
				computed using a 5% interest assumption (or the applicable statutory interest
				assumption) and the applicable mortality tables described in IRC section
				417(e)(3)(B) (see Notice 2008-85, published by the Internal Revenue Service on
				September 29, 2008); or