State of Illinois
90th General Assembly
Legislation

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90_SB1345

      40 ILCS 5/17-121          from Ch. 108 1/2, par. 17-121
      40 ILCS 5/17-125          from Ch. 108 1/2, par. 17-125
      40 ILCS 5/17-126          from Ch. 108 1/2, par. 17-126
      30 ILCS 805/8.22 new
          Amends the Chicago Teacher Article of the  Pension  Code.
      Provides survivor benefits for a surviving spouse who marries
      a  retired  teacher  at  least  18  months before the retired
      teacher's death, provided that any  refund  of  contributions
      for  survivor's  pension  has  been repaid.  Amends the State
      Mandates Act to require implementation without reimbursement.
      Effective immediately.
                                                     LRB9008796EGfg
                                               LRB9008796EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections  17-121,  17-125,  and 17-126 and to amend the State
 3    Mandates Act.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.   The  Illinois  Pension  Code  is amended by
 7    changing Sections 17-121, 17-125, and 17-126 as follows:
 8        (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
 9        Sec.  17-121.  Survivor's  and  Children's   pensions   -
10    Eligibility.
11        (a)  The  surviving  spouse  of  a teacher who dies on or
12    after the effective date of this amendatory Act of 1998 shall
13    be entitled to a survivor's pension only if  he  or  she  was
14    married  to  the teacher for at least 1 1/2 years immediately
15    prior to the teacher's death and any refund of the  teacher's
16    contributions for survivor's pension has been repaid.
17        A  surviving  spouse  of  a  teacher  who dies before the
18    effective date of  this  amendatory  Act  of  1998  shall  be
19    entitled  to  a  survivor's  pension  only  if  he or she was
20    married to the teacher contributor for at least  1 1/2  years
21    immediately  prior  to the teacher's his death or retirement,
22    whichever first occurs, and also on the date of the teacher's
23    last termination of his service.
24        (b)  If the surviving spouse is under age  50  and  there
25    are  no eligible minor children born to or legally adopted by
26    the contributor and his  surviving  spouse,  payment  of  the
27    survivor's  pension  shall  begin  when  the surviving spouse
28    attains age 50.
29        (c)  Remarriage  of  the  surviving   spouse   prior   to
30    September  1,  1983  while in receipt of a survivor's pension
31    shall permanently terminate payment  thereof,  regardless  of
                            -2-                LRB9008796EGfg
 1    any  subsequent  change in marital status; however, beginning
 2    September 1, 1983, remarriage of  a  surviving  spouse  after
 3    attainment  of  age  55  shall  not  terminate the survivor's
 4    pension.
 5        A surviving spouse whose pension  was  terminated  on  or
 6    after September 1, 1983 due to remarriage after attainment of
 7    age  55,  and  who  applies for reinstatement of that pension
 8    before January 1, 1990, shall be entitled to have the pension
 9    reinstated effective January 1, 1990.
10    (Source: P.A. 86-273.)
11        (40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
12        Sec. 17-125.  Refund of contributions.
13        (a)  Upon  certification   by   the   Employer   of   his
14    resignation or cancellation of his teaching certificate prior
15    to  completion  of  the  minimum  term of service required to
16    establish  eligibility  for  a   pension   and   on   written
17    application therefor, a teacher shall be paid a refund of all
18    the  amounts  he has contributed to the Fund, less any former
19    refund that has not been repaid.
20        Upon certification by the Employer of his resignation  or
21    cancellation  of his teaching certificate after completion of
22    the minimum term of service required to establish eligibility
23    for a pension and on written application therefor, a  teacher
24    shall be paid a refund of all the amounts he has contributed,
25    less  (1) any former refund that has not been repaid, and (2)
26    pension payments  received,  provided  he  has  executed  and
27    delivered  to  the  Board  his written receipt and release in
28    that behalf. Thereupon, he shall have no further interest  in
29    or claim against the Fund.
30        A  request  for  refund  under  either  of  the preceding
31    paragraphs shall  be  considered  valid  if  withdrawal  from
32    service  occurred  at  least  2 months prior to the filing of
33    such request.
                            -3-                LRB9008796EGfg
 1        (b)  Upon retirement of a teacher either on immediate  or
 2    deferred  pension,  if the teacher is not then married, or if
 3    his spouse or children do not meet the qualifying  conditions
 4    for  survivor's  or  children's  pensions,  the  total amount
 5    contributed by him  or  otherwise  paid  by  deductions  from
 6    salary  for  survivor's  pension,  shall  be refunded to him,
 7    without interest.  No survivor's or children's pension rights
 8    shall be effective thereafter  in  such  a  case  unless  the
 9    refund is repaid as provided in Section 17-126.
10        (c)  During  a  teacher's  term  of service, no refund is
11    payable except contributions made in error.
12    (Source: P.A. 90-566, eff. 1-2-98.)
13        (40 ILCS 5/17-126) (from Ch. 108 1/2, par. 17-126)
14        Sec. 17-126. Repayment of refund.
15        (a)  If  any  person  who  has  received  a   refund   is
16    reemployed by an Employer and again becomes a contributor for
17    a period of at least 2 years, or has established credit of at
18    least  2  years  of  service  subsequent  to the date of such
19    refund, in a retirement system which has  subscribed  to  the
20    "Retirement  Systems  Reciprocal  Act"  and  is a contributor
21    thereto, he or she may repay to the Fund the amount of the he
22    received as a refund, together with interest  thereon  at  5%
23    per  annum  compounded  annually from the time the refund was
24    paid to the date of repayment.
25        (b)  If  a  person  who  has   received   a   refund   of
26    contributions for survivor's pension marries after withdrawal
27    from  service,  he or she may repay to the Fund the amount of
28    the refund, together with interest thereon at the rate of  5%
29    per  annum,  compounded  annually, from the date of refund to
30    the date of repayment.
31        Notwithstanding Section 17-157, the changes made to  this
32    Section and Sections 17-121 and 17-125 by this amendatory Act
33    of 1998 apply without regard to whether or not the teacher is
                            -4-                LRB9008796EGfg
 1    in  service on or after the effective date of this amendatory
 2    Act.
 3    (Source: P.A. 90-566, eff. 1-2-98.)
 4        Section 90.  The State Mandates Act is amended by  adding
 5    Section 8.22 as follows:
 6        (30 ILCS 805/8.22 new)
 7        Sec.  8.22.  Exempt  mandate.  Notwithstanding Sections 6
 8    and 8 of this Act, no reimbursement by the State is  required
 9    for  the  implementation  of  any  mandate  created  by  this
10    amendatory Act of 1998.
11        Section  99.  Effective date.  This Act takes effect upon
12    becoming law.

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