Full Text of HB3394 97th General Assembly
HB3394 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3394 Introduced 2/24/2011, by Rep. Robert Rita SYNOPSIS AS INTRODUCED: | | 40 ILCS 5/17-122 | from Ch. 108 1/2, par. 17-122 | 30 ILCS 805/8.35 new | |
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Amends the Chicago Teacher Article of the Illinois Pension Code to increase the
minimum total survivor's pension to 50% of the earned retirement pension for
survivors of members who died before January 1, 1987. Amends the State
Mandates Act to require implementation without reimbursement. Effective
immediately.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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| 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 changing | 5 | | Section
17-122 as follows:
| 6 | | (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
| 7 | | Sec. 17-122. Survivor's and children's pensions - Amount. | 8 | | Upon the
death of a teacher who has completed at least 1 1/2 | 9 | | years of
contributing service with either this Fund or the | 10 | | State Universities
Retirement System or the Teachers' | 11 | | Retirement System of the State of
Illinois, provided his death | 12 | | occurred while (a) in active service
covered by the Fund or | 13 | | during his first 18 months of continuous
employment without a | 14 | | break in service under any other participating
system as | 15 | | defined in the Illinois Retirement Systems Reciprocal Act
| 16 | | except the State Universities Retirement System and the | 17 | | Teachers'
Retirement System of the State of Illinois, (b) on a | 18 | | creditable leave of
absence, (c) on a noncreditable leave of | 19 | | absence of no more than one
year, or (d) a pension was deferred | 20 | | or pending provided the teacher had
at least 10 years of | 21 | | validated service credit, or upon the death of a
pensioner | 22 | | otherwise qualified for such benefit, the surviving spouse and
| 23 | | unmarried minor children of the deceased teacher under age 18 |
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| 1 | | shall be
entitled to pensions, under the conditions stated | 2 | | hereinafter. Such
survivor's and children's pensions shall be | 3 | | based on the average of the
4 highest consecutive years of | 4 | | salary in the last 10 years of service or
on the average salary | 5 | | for total service, if total service has been less
than 4 years, | 6 | | according to the following percentages:
| 7 | | 30% of average salary or 50% of the retirement pension | 8 | | earned by the
teacher, whichever is larger, subject to the | 9 | | prescribed maximum monthly
payment, for a surviving spouse | 10 | | alone on attainment of age 50;
| 11 | | 60% of average salary for a surviving spouse and eligible | 12 | | minor
children of the deceased teacher.
| 13 | | If no eligible spouse survives, or the surviving spouse | 14 | | remarries, or
the parent of the children of the deceased member | 15 | | is otherwise
ineligible for a survivor's pension, a children's | 16 | | pension for eligible
minor children under age 18 shall be paid | 17 | | to their parent or legal
guardian for their benefit according | 18 | | to the following percentages:
| 19 | | 30% of average salary for one child;
| 20 | | 60% of average salary for 2 or more children.
| 21 | | On January 1, 1981, any survivor or child who was receiving | 22 | | a survivor's
or children's pension on or before January 1, | 23 | | 1971, shall have his survivor's
or children's pension then | 24 | | being paid increased by 1% for each full year
which has elapsed | 25 | | from the date the pension began. On January 1, 1982,
any | 26 | | survivor or child whose pension began after January 1, 1971, |
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| 1 | | but before
January 1, 1981, shall have his survivor's or | 2 | | children's pension then being
paid increased 1% for each full | 3 | | year which has elapsed from the date the
pension began. On | 4 | | January 1, 1987, any survivor or child whose pension began
on | 5 | | or before January 1, 1977, shall have the monthly survivor's or
| 6 | | children's pension increased by $1 for each full year which has | 7 | | elapsed
since the pension began.
| 8 | | Beginning January 1, 1990, every survivor's and children's | 9 | | pension shall be
increased (1) on each January 1 occurring on | 10 | | or after the commencement of the
pension if the deceased | 11 | | teacher died while receiving a retirement pension, or
(2) in | 12 | | other cases, on each January 1 occurring on or after the first
| 13 | | anniversary of the commencement of the pension, by an amount | 14 | | equal to 3% of the
current amount of the pension, including all | 15 | | increases previously granted under
this Article, | 16 | | notwithstanding Section 17-157. Such increases shall apply
| 17 | | without regard to whether the deceased teacher was in service | 18 | | on or after the
effective date of this amendatory Act of 1991, | 19 | | but shall not accrue for any
period prior to January 1, 1990.
| 20 | | Subject to the minimum established below, the maximum | 21 | | amount of
pension for a surviving spouse alone or one
minor | 22 | | child shall be $400 per month, and the maximum combined | 23 | | pensions for
a surviving spouse and children of the deceased | 24 | | teacher shall be $600
per month, with individual pensions | 25 | | adjusted for all beneficiaries
pro rata to conform with this | 26 | | limitation. If proration is unnecessary
the minimum survivor's |
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| 1 | | and children's pensions shall be $40 per month. The
minimum | 2 | | total survivor's and children's pension payable upon the death | 3 | | of a
contributor or annuitant which occurs after December 31, | 4 | | 1986, shall be 50% of
the earned retirement pension of such | 5 | | contributor or annuitant, calculated
without early retirement | 6 | | discount in the case of death in service.
Beginning January 1, | 7 | | 2012, the minimum total survivor's pension payable upon
the | 8 | | death of a contributor or annuitant that occurred before | 9 | | January 1, 1987
shall be 50% of the earned retirement pension | 10 | | of the contributor or annuitant,
calculated without early | 11 | | retirement discount in the case of death in service,
and | 12 | | notwithstanding Section 17-157.
| 13 | | On death after retirement, the total survivor's and | 14 | | children's
pensions shall not exceed the monthly retirement or | 15 | | disability pension
paid to the deceased retirant. Survivor's | 16 | | and children's benefits described
in this Section shall apply | 17 | | to all service and disability pensioners eligible
for a pension | 18 | | as of July 1, 1981.
| 19 | | (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
| 20 | | Section 90. The State Mandates Act is amended by adding | 21 | | Section 8.35 as follows: | 22 | | (30 ILCS 805/8.35 new) | 23 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 24 | | of this Act, no reimbursement by the State is required for the |
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| 1 | | implementation of any mandate created by this amendatory Act of | 2 | | the 97th General Assembly. | 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law. |
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