Full Text of SB1488 094th General Assembly
SB1488 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB1488
Introduced 2/23/2005, by Sen. James F. Clayborne, Jr. SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/15-142 |
from Ch. 108 1/2, par. 15-142 |
40 ILCS 5/15-145 |
from Ch. 108 1/2, par. 15-145 |
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Amends the State Universities Article of the Illinois Pension Code.
Increases certain death benefits from $1,000 to $5,000. Provides that
these benefits are in the nature of life insurance and are intended to be
not subject to the federal income tax. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB1488 |
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LRB094 10719 AMC 41126 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections
15-142 and 15-145 as follows:
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| (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
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| Sec. 15-142. Death benefits - Death of annuitant. Upon the | 8 |
| death of
an annuitant receiving a retirement annuity or | 9 |
| disability retirement annuity,
the annuitant's beneficiary | 10 |
| shall, if a survivor's insurance benefit is
not payable under | 11 |
| Section 15-145 and an
annuity is not payable under Section | 12 |
| 15-136.4, be entitled to a death benefit
equal to the greater | 13 |
| of the following: (1) the excess, if any, of the sum of
the | 14 |
| accumulated normal, survivors insurance, and additional | 15 |
| contributions
as of the date of retirement or the date the | 16 |
| disability retirement annuity
began, whichever is earlier, | 17 |
| over the sum of all annuity payments made prior
to the date of | 18 |
| death, or (2) $5,000
$1,000 .
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| (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; | 20 |
| 91-887, eff.
7-6-00.)
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| (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
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| Sec. 15-145. Survivors insurance benefits; conditions and | 23 |
| amounts.
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| (a) The survivors insurance benefits provided under this | 25 |
| Section shall
be payable to the eligible survivors of a | 26 |
| participant covered under the
traditional benefit package upon | 27 |
| the death of (1) a participating employee
with at least 1 1/2 | 28 |
| years of service, (2) a participant who terminated
employment | 29 |
| with at least 10 years of service, and (3) an annuitant in | 30 |
| receipt
of a retirement annuity or disability retirement | 31 |
| annuity under this Article.
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SB1488 |
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LRB094 10719 AMC 41126 b |
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| Service under the State Employees' Retirement System of | 2 |
| Illinois, the
Teachers' Retirement System of the State of | 3 |
| Illinois and the Public School
Teachers' Pension and Retirement | 4 |
| Fund of Chicago shall be considered in
determining eligibility | 5 |
| for survivors benefits under this Section.
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| If by law, a function of a governmental unit, as defined by | 7 |
| Section 20-107,
is transferred in whole or in part to an | 8 |
| employer, and an employee transfers
employment from this | 9 |
| governmental unit to such employer within 6 months after
the | 10 |
| transfer of this function, the service credits in the | 11 |
| governmental unit's
retirement system which have been | 12 |
| validated under Section 20-109 shall be
considered in | 13 |
| determining eligibility for survivors benefits under this
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| Section.
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| (b) A surviving spouse of a deceased participant, or of a | 16 |
| deceased
annuitant who did not take a refund or additional | 17 |
| annuity consisting of
accumulated survivors insurance | 18 |
| contributions, shall receive a survivors
annuity of 30% of the | 19 |
| final rate of earnings. Payments shall begin on the
day | 20 |
| following the participant's or annuitant's death or the date | 21 |
| the surviving
spouse attains age 50, whichever is later, and | 22 |
| continue until the death of the
surviving spouse. The annuity | 23 |
| shall be payable to the surviving spouse prior
to attainment of | 24 |
| age 50 if the surviving spouse has in his or her care a
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| deceased participant's or annuitant's dependent unmarried | 26 |
| child under age 18
(under age 22 if a full-time student) who is | 27 |
| eligible for a survivors annuity.
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| Remarriage of a surviving spouse prior to attainment of age | 29 |
| 55 that occurs
before the effective date of this amendatory Act | 30 |
| of the 91st General Assembly
shall disqualify him or her for | 31 |
| the receipt of a survivors annuity until July
6, 2000.
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| A surviving spouse whose survivors annuity has been | 33 |
| terminated due to
remarriage may apply for reinstatement of | 34 |
| that
annuity. The reinstated annuity shall begin to accrue on | 35 |
| July 6, 2000, except
that if, on July 6, 2000, the annuity is | 36 |
| payable to an eligible surviving
child or parent, payment of |
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LRB094 10719 AMC 41126 b |
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| the annuity to the surviving spouse shall not be
reinstated | 2 |
| until the annuity is no longer payable to any eligible | 3 |
| surviving
child or parent. The reinstated annuity shall include | 4 |
| any one-time or annual
increases received prior to the date of | 5 |
| termination, as well as any increases
that would otherwise have | 6 |
| accrued from the date of termination to the date of
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| reinstatement.
An eligible surviving spouse whose expectation | 8 |
| of receiving a survivors
annuity was lost due to remarriage | 9 |
| before attainment of age 50 shall also be
entitled to | 10 |
| reinstatement under this subsection, but the resulting | 11 |
| survivors
annuity shall not begin to accrue sooner than upon | 12 |
| the surviving spouse's
attainment of age 50.
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| The changes made to this subsection by this amendatory Act | 14 |
| of the 92nd
General Assembly (pertaining to remarriage prior to | 15 |
| age 55 or 50) apply without
regard to whether the deceased | 16 |
| participant or annuitant was in service on or
after the | 17 |
| effective date of this amendatory Act.
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| (c) Each dependent unmarried child under age 18 (under age | 19 |
| 22 if a
full-time student) of a deceased participant, or of a | 20 |
| deceased annuitant who
did not take a refund or additional | 21 |
| annuity consisting of accumulated survivors
insurance | 22 |
| contributions,
shall receive a survivors annuity equal to the | 23 |
| sum of (1) 20% of the final rate
of earnings, and (2) 10% of the | 24 |
| final rate of earnings divided by the number of
children | 25 |
| entitled to this benefit. Payments shall begin on the day | 26 |
| following
the participant's or annuitant's death and continue | 27 |
| until the child marries,
dies, or attains age 18 (age 22 if a | 28 |
| full-time student). If the child
is in the care of a surviving | 29 |
| spouse who is eligible for survivors insurance
benefits, the | 30 |
| child's benefit shall be paid to the surviving spouse.
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| Each unmarried child over age 18 of a deceased participant | 32 |
| or of a deceased
annuitant who had a survivor's insurance | 33 |
| beneficiary at the time of his or her
retirement, and who was | 34 |
| dependent upon the participant or annuitant by reason
of a | 35 |
| physical or mental disability which began prior to the date the | 36 |
| child
attained age 18 (age 22 if a full-time student), shall |
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LRB094 10719 AMC 41126 b |
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| receive a survivor's
annuity equal to the
sum of (1) 20% of the | 2 |
| final rate of earnings, and (2) 10% of the final rate
of | 3 |
| earnings divided by the number of children entitled to | 4 |
| survivors
benefits. Payments shall begin on the day following | 5 |
| the participant's or
annuitant's death and continue until the | 6 |
| child marries, dies, or is no
longer disabled. If the child is | 7 |
| in the care of a surviving spouse who is
eligible for survivors | 8 |
| insurance benefits, the child's benefit may be paid
to the | 9 |
| surviving spouse. For the purposes of this Section, disability
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| means inability to engage in any substantial gainful activity | 11 |
| by reason of
any medically determinable physical or mental | 12 |
| impairment that can be
expected to result in death or that has | 13 |
| lasted or can be expected to last
for a continuous period of at | 14 |
| least one year.
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| (d) Each dependent parent of a deceased participant, or of | 16 |
| a deceased
annuitant who did not take a refund or additional | 17 |
| annuity consisting of
accumulated survivors insurance | 18 |
| contributions, shall receive a survivors
annuity equal to the | 19 |
| sum of (1) 20% of
final rate of earnings, and (2) 10% of final | 20 |
| rate of earnings divided by the
number of parents who qualify | 21 |
| for the benefit. Payments shall begin when the
parent reaches | 22 |
| age 55 or the day following the participant's or annuitant's
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| death, whichever is later, and continue until the parent dies. | 24 |
| Remarriage of
a parent prior to attainment of age 55 shall | 25 |
| disqualify the parent for the
receipt of a survivors annuity.
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| (e) In addition to the survivors annuity provided above, | 27 |
| each survivors
insurance beneficiary shall, upon death of the | 28 |
| participant or annuitant,
receive a lump sum payment of $5,000
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| $1,000 divided by the number of
such beneficiaries.
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| (f) The changes made in this Section by Public Act 81-712 | 31 |
| pertaining
to survivors annuities in cases of remarriage prior | 32 |
| to age 55
shall apply to each survivors insurance beneficiary | 33 |
| who
remarries after June 30, 1979, regardless of the date that | 34 |
| the
participant or annuitant terminated his employment or died.
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| The change made to this Section by this amendatory Act of | 36 |
| the 91st General
Assembly, pertaining to remarriage prior to |
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LRB094 10719 AMC 41126 b |
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| age 55, applies without regard to
whether the deceased | 2 |
| participant or annuitant was in service on or after the
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| effective date of this amendatory Act of the 91st General | 4 |
| Assembly.
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| (g) On January 1, 1981, any person who was receiving
a | 6 |
| survivors annuity on or before January 1, 1971 shall have the
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| survivors annuity then being paid increased by 1% for each full | 8 |
| year which
has elapsed from the date the annuity began. On | 9 |
| January 1, 1982, any
survivor whose annuity began after January | 10 |
| 1, 1971, but before January 1,
1981, shall have the survivor's | 11 |
| annuity then being paid increased by 1% for
each year which has | 12 |
| elapsed from the date the survivor's annuity began.
On January | 13 |
| 1, 1987, any survivor who began receiving a survivor's annuity
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| on or before January 1, 1977, shall have the monthly survivor's | 15 |
| annuity
increased by $1 for each full year which has elapsed | 16 |
| since the date the
survivor's annuity began.
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| (h) If the sum of the lump sum and total monthly survivor | 18 |
| benefits
payable under this Section upon the death of a | 19 |
| participant amounts to less
than the sum of the death benefits | 20 |
| payable under items (2) and (3) of
Section 15-141, the | 21 |
| difference shall be paid in a lump sum to the
beneficiary of | 22 |
| the participant who is living on the date that this
additional | 23 |
| amount becomes payable.
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| (i) If the sum of the lump sum and total monthly survivor | 25 |
| benefits payable
under this Section upon the death of an | 26 |
| annuitant receiving a retirement
annuity or disability | 27 |
| retirement annuity amounts to less than the death
benefit | 28 |
| payable under Section 15-142, the difference shall be paid to | 29 |
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beneficiary of the annuitant who is living on the date that | 30 |
| this
additional amount becomes payable.
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| (j) Effective on the later of (1) January 1, 1990, or (2) | 32 |
| the
January 1 on or next after the date on which the survivor | 33 |
| annuity begins,
if the deceased member died while receiving a | 34 |
| retirement annuity, or in all
other cases the January 1 nearest | 35 |
| the first
anniversary of the date the survivor annuity payments | 36 |
| begin, every survivors
insurance beneficiary shall receive an |
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LRB094 10719 AMC 41126 b |
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| increase in
his or her monthly survivors annuity of 3%. On each | 2 |
| January 1 after the
initial increase, the monthly survivors | 3 |
| annuity shall be increased by 3% of
the total survivors annuity | 4 |
| provided under this Article, including previous
increases | 5 |
| provided by this subsection. Such increases shall apply to the
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| survivors insurance beneficiaries of each participant and | 7 |
| annuitant,
whether or not the employment status of the | 8 |
| participant or annuitant
terminates before the effective date | 9 |
| of this amendatory Act of 1990. This
subsection (j) also | 10 |
| applies to persons receiving a survivor annuity
under the | 11 |
| portable benefit package.
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| (k) If the Internal Revenue Code of 1986, as amended, | 13 |
| requires that the
survivors benefits be payable at an age | 14 |
| earlier than that specified in this
Section the benefits shall | 15 |
| begin at the earlier age, in which event, the
survivor's | 16 |
| beneficiary shall be entitled only to that amount which is | 17 |
| equal
to the actuarial equivalent of the benefits provided by | 18 |
| this Section.
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| (l) The changes made to this Section and Section 15-131 by | 20 |
| this amendatory
Act of 1997, relating to benefits for certain | 21 |
| unmarried children who are
full-time students under age 22, | 22 |
| apply without regard to whether the deceased
member was in | 23 |
| service on or after the effective date of this amendatory Act
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| of 1997. These changes do not authorize the repayment of a | 25 |
| refund or a
re-election of benefits, and any benefit or | 26 |
| increase in benefits resulting
from these changes is not | 27 |
| payable retroactively for any period before the
effective date | 28 |
| of this amendatory Act of 1997.
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| (m) The changes made to subsection (e) and Section 15-142 | 30 |
| by this
amendatory Act of the 94th General Assembly, increasing | 31 |
| certain death benefits
from $1,000 to $5,000, apply to deceased | 32 |
| members who die on or after the
effective date of this | 33 |
| amendatory Act of the 94th General Assembly, regardless
of | 34 |
| whether the deceased member was in service on or after that | 35 |
| date. The
General Assembly declares its intent that up to | 36 |
| $5,000 of the death benefits
provided in subsection (e) and |
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SB1488 |
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LRB094 10719 AMC 41126 b |
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| Section 15-142 are in the nature
of life insurance. Subject to | 2 |
| obtaining a favorable ruling from the U.S.
Internal Revenue | 3 |
| Service, those death benefits shall not be subject to the
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| federal income tax.
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| (Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law. |
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