093_HB2300LRB093 09712 EFG 09952 b 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Section 7-156 as follows: 6 (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156) 7 Sec. 7-156. Surviving spouse annuities - amount. 8 (a) The amount of surviving spouse annuity shall be: 9 1. Upon the death of an employee annuitant or such 10 person entitled, upon application, to a retirement annuity at 11 date of death, (i) an amount equal to 1/2 of the retirement 12 annuity which was or would have been payable exclusive of the 13 amount so payable which was provided from additional credits, 14 and disregarding any election made under paragraph (b) of 15 Section 7-142, plus (ii) an annuity which could be provided 16 at the then attained age of the surviving spouse and under 17 actuarial tables then in effect, from the excess of the 18 additional credits, (excluding any such credits used to 19 create a reversionary annuity) used to provide the annuity 20 granted pursuant to paragraph (a) (2) of Section 7-142 of 21 this article over the total annuity payments made pursuant 22 thereto. 23 2. Upon the death of a participating employee on or 24 after attainment of age 55, an amount equal to 1/2 of the 25 retirement annuity which he could have had as of the date of 26 death had he then retired and applied for annuity, exclusive 27 of the portion thereof which could have been provided from 28 additional credits, and disregarding paragraph (b) of Section 29 7-142, plus an amount equal to the annuity which could be 30 provided from the total of his accumulated additional credits 31 at date of death, on the basis of the attained age of the -2- LRB093 09712 EFG 09952 b 1 surviving spouse on such date. 2 3. Upon the death of a participating employee before age 3 55, an amount equal to 1/2 of the retirement annuity which he 4 could have had as of his attained age on the date of death, 5 had he then retired and applied for annuity, and the 6 provisions of this Article that no such annuity shall begin 7 until the employee has attained at least age 55 were not 8 applicable, exclusive of the portion thereof which could have 9 been provided from additional credits and disregarding 10 paragraph (b) of Section 7-142, plus an amount equal to the 11 annuity which could be provided from the total of his 12 accumulated additional credits at date of death, on the basis 13 of the attained age of the surviving spouse on such date. 14 Ifthe death occurs before the effective date of this15amendatory Act of the 93rd General Assembly and the~~a~~16 surviving spouse is more than 5 years younger than the 17 deceased, that portion of the annuity which is not based on 18 additional credits shall be reduced in the ratio of the value 19 of a life annuity of $1 per year at an age of 5 years less 20 than the attained age of the deceased, at the earlier of the 21 date of the death or the date his retirement annuity begins, 22 to the value of a life annuity of $1 per year at the attained 23 age of the surviving spouse on such date, according to 24 actuarial tables approved by the Board.If the death occurs25on or after the effective date of this amendatory Act of the2693rd General Assembly, this reduction due to age of the27surviving spouse does not apply.28 In computing the amount of a surviving spouse annuity, 29 incremental increases of retirement annuities to the date of 30 death of the employee annuitant shall be considered. 31 (b) Each surviving spouse annuity payable on January 1, 32 1988 shall be increased on that date by 3% of the original 33 amount of the annuity. Each surviving spouse annuity that 34 begins after January 1, 1988 shall be increased on the -3- LRB093 09712 EFG 09952 b 1 January 1 next occurring after the annuity begins, by an 2 amount equal to (i) 3% of the original amount thereof if the 3 deceased employee was receiving a retirement annuity at the 4 time of his death; otherwise (ii) 0.167% of the original 5 amount thereof for each complete month which has elapsed 6 since the date the annuity began. 7 On each January 1 after the date of the initial increase 8 under this subsection, each surviving spouse annuity shall be 9 increased by 3% of the originally granted amount of the 10 annuity. 11 (Source: P.A. 85-941.) 12 Section 90. The State Mandates Act is amended by adding 13 Section 8.27 as follows: 14 (30 ILCS 805/8.27 new) 15Sec. 8.27. Exempt mandate. Notwithstanding Sections 616and 8 of this Act, no reimbursement by the State is required17for the implementation of any mandate created by this18amendatory Act of the 93rd General Assembly.19 Section 99. Effective date. This Act takes effect upon 20 becoming law.