Full Text of SB1985 95th General Assembly
SB1985enr 95TH GENERAL ASSEMBLY
|
|
|
SB1985 Enrolled |
|
LRB095 14944 AMC 40889 b |
|
| 1 |
| AN ACT concerning 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 |
| Sections 14-119 and 14-121 as follows:
| 6 |
| (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
| 7 |
| Sec. 14-119. Amount of widow's annuity.
| 8 |
| (a) The widow's annuity shall be 50% of the amount of | 9 |
| retirement annuity
payable to the member on the date of death | 10 |
| while on retirement if an
annuitant, or on the date of his | 11 |
| death while in service if an employee,
regardless of his age on | 12 |
| such date, or on the date of withdrawal if death
occurred after | 13 |
| termination of service under the conditions prescribed in
the | 14 |
| preceding Section.
| 15 |
| (b) If an eligible widow, regardless of age, has in her | 16 |
| care any
unmarried child or children of the member under age 18 | 17 |
| (under age 22 if a
full-time student), the widow's
annuity | 18 |
| shall be increased in the amount of 5% of the retirement | 19 |
| annuity
for each such child, but the combined payments for a | 20 |
| widow and
children shall not exceed 66 2/3% of the member's | 21 |
| earned
retirement annuity.
| 22 |
| The amount of retirement annuity from which the widow's
| 23 |
| annuity is derived shall be that earned by the member without |
|
|
|
SB1985 Enrolled |
- 2 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| regard to
whether he attained age 60 prior to his withdrawal | 2 |
| under the conditions
stated or prior to his death.
| 3 |
| (c) Marriage of a child shall render the child ineligible | 4 |
| for further
consideration in the increase in the amount of the | 5 |
| widow's annuity.
| 6 |
| Attainment of age 18 (age 22 if a full-time student)
shall | 7 |
| render a child ineligible for
further consideration in the | 8 |
| increase of the widow's annuity, but the
annuity to the widow | 9 |
| shall be continued thereafter, without regard to
her age at | 10 |
| that time.
| 11 |
| (d) Except as otherwise provided in this subsection (d), a | 12 |
| A widow's annuity payable on account of any covered employee | 13 |
| who
has shall have been a covered employee for at least 18 | 14 |
| months shall be reduced
by 1/2 of the amount of survivors | 15 |
| benefits to which his beneficiaries are
eligible under the | 16 |
| provisions of the Federal Social Security Act, except
that (1) | 17 |
| the amount of any widow's annuity payable under this Article | 18 |
| shall
not be reduced by reason of any increase under that Act | 19 |
| which occurs after
the offset required by this subsection is | 20 |
| first applied to that annuity,
and (2) for benefits granted on | 21 |
| or after January 1, 1992, the offset under
this subsection (d) | 22 |
| shall not exceed 50% of the amount of widow's annuity
otherwise | 23 |
| payable.
| 24 |
| Beginning July 1, 2009, the offset under this subsection | 25 |
| (d) shall no
longer be applied to any widow's annuity of any | 26 |
| person who began receiving retirement benefits or a widow's |
|
|
|
SB1985 Enrolled |
- 3 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| annuity prior to January 1, 1998.
| 2 |
| Beginning July 1, 2009, the offset under this subsection | 3 |
| (d) shall no longer be applied to the widow's annuity of any | 4 |
| person who began receiving a widow's annuity on or after | 5 |
| January 1, 1998 and before the effective date of this | 6 |
| amendatory Act of the 95th General Assembly. | 7 |
| Any person who began receiving retirement benefits after | 8 |
| January 1, 1998 and before the effective date of this | 9 |
| amendatory Act of the 95th General Assembly may, during a | 10 |
| one-time election period established by the System, elect to | 11 |
| reduce his or her retirement annuity by 3.825% in exchange for | 12 |
| not having the offset under this subsection (d) applied to his | 13 |
| or her widow's annuity. | 14 |
| Any employee in service on the effective date of this | 15 |
| amendatory Act of the 95th General Assembly may, at the time of | 16 |
| retirement, elect to reduce his or her retirement annuity by | 17 |
| 3.825% in exchange for not having the offset under this | 18 |
| subsection (d) applied to his or her widow's annuity. | 19 |
| If a widow's annuity is payable to the widow of an employee | 20 |
| based on the employee's death in service, then the offset under | 21 |
| this subsection (d) shall no longer be applied to the widow's | 22 |
| annuity. | 23 |
| A retiree who elects to reduce his or her retirement | 24 |
| annuity under this subsection (d) in exchange for not having | 25 |
| the offset applied may make an irrevocable election to | 26 |
| eliminate the reduction of his or her retirement annuity if |
|
|
|
SB1985 Enrolled |
- 4 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| there is a change in marital status due to death or divorce, | 2 |
| but the retiree is not entitled to reimbursement of any benefit | 3 |
| reduction prior to the election. | 4 |
| (e) Upon the death of a recipient of a widow's annuity the | 5 |
| excess, if
any, of the member's accumulated contributions plus | 6 |
| credited interest over
all annuity payments to the member and | 7 |
| widow, exclusive of the $500 lump
sum payment, shall be paid to | 8 |
| the named beneficiary of the widow, or if
none has been named, | 9 |
| to the estate of the widow, provided no reversionary
annuity is | 10 |
| payable.
| 11 |
| (f) On January 1, 1981, any recipient of a widow's annuity | 12 |
| who was receiving
a widow's annuity on or before January 1, | 13 |
| 1971, shall have her widow's annuity
then being paid increased | 14 |
| by 1% for each full year which has elapsed from
the date the | 15 |
| widow's annuity began. On January 1, 1982, any recipient
of a | 16 |
| widow's annuity who began receiving a widow's annuity after | 17 |
| January
1, 1971, but before January 1, 1981, shall have her | 18 |
| widow's annuity then
being paid increased by 1% for each full | 19 |
| year which has elapsed from the
date the widow's annuity began. | 20 |
| On January 1, 1987, any recipient of a
widow's annuity who | 21 |
| began receiving the widow's annuity on or before January
1, | 22 |
| 1977, shall have the monthly widow's annuity increased by $1
| 23 |
| for each full year which has elapsed since the date the
annuity | 24 |
| began.
| 25 |
| (g) Beginning January 1, 1990, every widow's annuity shall | 26 |
| be
increased (1) on each January 1 occurring on or after the |
|
|
|
SB1985 Enrolled |
- 5 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| commencement
of the annuity if the deceased member died while | 2 |
| receiving a retirement
annuity, or (2) in other cases, on each | 3 |
| January 1 occurring on or after
the first anniversary of the | 4 |
| commencement of the annuity, by an amount
equal to 3% of the | 5 |
| current amount of the annuity, including any previous
increases | 6 |
| under this Article. Such increases shall apply without regard | 7 |
| to
whether the deceased member was in service on or after the | 8 |
| effective date
of Public Act 86-1488, but shall not accrue for | 9 |
| any period prior to January
1, 1990.
| 10 |
| (Source: P.A. 95-279, eff. 1-1-08.)
| 11 |
| (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
| 12 |
| Sec. 14-121. Amount of survivors annuity. A survivors | 13 |
| annuity
beneficiary shall be entitled upon death of the member | 14 |
| to a single sum
payment of $1,000, payable pro rata among all | 15 |
| persons entitled thereto,
together with a survivors annuity | 16 |
| payable at the rates and under the
conditions specified in this | 17 |
| Article.
| 18 |
| (a) If the survivors annuity beneficiary is a spouse, the | 19 |
| survivors
annuity shall be 30% of final average compensation | 20 |
| subject to a maximum
payment of $400 per month.
| 21 |
| (b) If an eligible child or children under the care of a | 22 |
| spouse also
survives the member, such spouse as natural | 23 |
| guardian of the child or
children shall receive, in addition to | 24 |
| the foregoing annuity, 20% of final
average compensation on | 25 |
| account of each such child and 10% of final average
|
|
|
|
SB1985 Enrolled |
- 6 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| compensation divided pro rata among such children, subject to a | 2 |
| maximum
payment on account of all survivor annuity | 3 |
| beneficiaries of $600 per month,
or 80% of the member's final | 4 |
| average compensation, whichever is the lesser.
| 5 |
| (c) If the survivors annuity beneficiary or beneficiaries | 6 |
| consists of
an unmarried child or children, the amount of | 7 |
| survivors annuity shall be
20% of final average compensation to | 8 |
| each child, and 10% of final average
compensation divided pro | 9 |
| rata among all such children entitled to such annuity,
subject | 10 |
| to a maximum payment to all children combined of $600 per month
| 11 |
| or 80% of the member's final average compensation, whichever is | 12 |
| the lesser.
| 13 |
| (d) If the survivors annuity beneficiary is one or more | 14 |
| dependent parents,
the annuity shall be 20% of final average | 15 |
| compensation to each parent and
10% of final average | 16 |
| compensation divided pro rata among the parents who
qualify for | 17 |
| this annuity, subject to a maximum payment to both dependent
| 18 |
| parents of $400 per month.
| 19 |
| (e) The survivors annuity to the spouse, children or | 20 |
| dependent parents of
a member whose death occurs after the date | 21 |
| of last withdrawal, or after
retirement, or while in service | 22 |
| following reentry into service after
retirement but before | 23 |
| completing 1 1/2 years of additional creditable
service, shall | 24 |
| not exceed the lesser of 80% of the member's earned
retirement | 25 |
| annuity at the date of death or the maximum previously
| 26 |
| established in this Section.
|
|
|
|
SB1985 Enrolled |
- 7 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| (f) In applying the limitation prescribed on the combined | 2 |
| payments to
2 or more survivors annuity beneficiaries, the | 3 |
| annuity on account of each
beneficiary shall be reduced pro | 4 |
| rata until such time as the number of
beneficiaries makes the | 5 |
| reduction no longer applicable.
| 6 |
| (g) Except as otherwise provided in this subsection (g), a | 7 |
| survivors annuity payable on account of
any covered employee | 8 |
| who has
shall have been a covered employee for at
least 18 | 9 |
| months at date of death or last withdrawal, whichever is the | 10 |
| later,
shall be reduced by 1/2 of the survivors benefits to | 11 |
| which his beneficiaries
are eligible under the federal Social | 12 |
| Security Act, except that (1) the
survivors annuity payable | 13 |
| under this Article shall not be reduced by any
increase under | 14 |
| that Act which occurs after the offset required by this
| 15 |
| subsection is first applied to that annuity, (2) for benefits | 16 |
| granted on or
after January 1, 1992, the offset under this | 17 |
| subsection (g) shall not exceed
50% of the amount of survivors | 18 |
| annuity otherwise payable.
| 19 |
| Beginning July 1, 2009, the offset under this subsection | 20 |
| (g) shall no
longer be applied to any survivors annuity of any | 21 |
| person who began receiving retirement benefits or a survivors | 22 |
| annuity prior to January 1, 1998.
| 23 |
| Beginning July 1, 2009, the offset under this subsection | 24 |
| (g) shall no longer be applied to the survivors annuity of any | 25 |
| person who began receiving a survivors annuity on or after | 26 |
| January 1, 1998 and before the effective date of this |
|
|
|
SB1985 Enrolled |
- 8 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| amendatory Act of the 95th General Assembly.
| 2 |
| Any person who began receiving retirement benefits after | 3 |
| January 1, 1998 and before the effective date of this | 4 |
| amendatory Act of the 95th General Assembly may, during a | 5 |
| one-time election period established by the System, elect to | 6 |
| reduce his or her retirement annuity by 3.825% in exchange for | 7 |
| not having the offset under this subsection (g) applied to his | 8 |
| or her survivors annuity. | 9 |
| Any employee in service on the effective date of this | 10 |
| amendatory Act of the 95th General Assembly may, at the time of | 11 |
| retirement, elect to reduce his or her retirement annuity by | 12 |
| 3.825% in exchange for not having the offset under this | 13 |
| subsection (g) applied to his or her survivors annuity. | 14 |
| If a survivors annuity is payable to the widow of an | 15 |
| employee based on the employee's death in service, then the | 16 |
| offset under this subsection (g) shall no longer be applied to | 17 |
| the survivors annuity. | 18 |
| A retiree who elects to reduce his or her retirement | 19 |
| annuity under this subsection (g) in exchange for not having | 20 |
| the offset applied may make an irrevocable election to | 21 |
| eliminate the reduction of his or her retirement annuity if | 22 |
| there is a change in marital status due to death or divorce, | 23 |
| but the retiree is not entitled to reimbursement of any benefit | 24 |
| reduction prior to the election. | 25 |
| (h) The minimum payment to a beneficiary hereunder shall be | 26 |
| $60 per month,
which shall be reduced in accordance with the |
|
|
|
SB1985 Enrolled |
- 9 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| limitation prescribed on the
combined payments to all | 2 |
| beneficiaries of a member.
| 3 |
| (i) Subject to the conditions set forth in Section 14-120, | 4 |
| the minimum
total survivors annuity benefit payable to the | 5 |
| survivors annuity beneficiaries
of a deceased member or | 6 |
| annuitant whose death occurs on or after January
1, 1984, shall | 7 |
| be 50% of the amount of retirement annuity that was or would
| 8 |
| have been payable to the deceased on the date of death, | 9 |
| regardless of the
age of the deceased on such date. If the | 10 |
| minimum total benefit provided
by this subsection exceeds the | 11 |
| maximum otherwise imposed by this Section,
the minimum total | 12 |
| benefit shall nevertheless be payable. Any increase in
the | 13 |
| total survivors annuity benefit resulting from the operation of | 14 |
| this
subsection shall be divided among the survivors annuity | 15 |
| beneficiaries of
the deceased in proportion to their shares of | 16 |
| the total survivors annuity
benefit otherwise payable under | 17 |
| this Section.
| 18 |
| (j) Any survivors annuity beneficiary whose annuity | 19 |
| terminates due to any
condition specified in this Article other | 20 |
| than death shall be entitled to
a refund of the excess, if any, | 21 |
| of the accumulated contributions of the
member plus credited | 22 |
| interest over all payments to the member and beneficiary
or | 23 |
| beneficiaries, exclusive of the single sum payment of $1,000, | 24 |
| provided
no future survivors or reversionary annuity benefits | 25 |
| are payable.
| 26 |
| (k) Upon the death of the last eligible recipient of a |
|
|
|
SB1985 Enrolled |
- 10 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| survivors
annuity the excess, if any, of the member's | 2 |
| accumulated contributions plus
credited interest over all | 3 |
| annuity payments to the member and survivors
exclusive of the | 4 |
| single sum payment of $1000, shall be paid to the named
| 5 |
| beneficiary of the last eligible survivor, or if none has been | 6 |
| named, to
the estate of the last eligible survivor, provided no | 7 |
| reversionary annuity
is payable.
| 8 |
| (l) On January 1, 1981, any survivor who was receiving a | 9 |
| survivors
annuity on or before January 1, 1971, shall have his | 10 |
| survivors annuity then
being paid increased by 1% for each full | 11 |
| year which has elapsed from the
date the annuity began. On | 12 |
| January 1, 1982, any survivor who began receiving
a survivor's | 13 |
| annuity after January 1, 1971, but before January 1, 1981,
| 14 |
| shall have his survivor's annuity then being paid increased by | 15 |
| 1% for each
full year that has elapsed from the date the | 16 |
| annuity began.
On January 1, 1987, any survivor who began | 17 |
| receiving a survivor's annuity
on or before January 1, 1977, | 18 |
| shall have the monthly survivor's annuity
increased by $1 for | 19 |
| each full year which has elapsed since the date the
survivor's | 20 |
| annuity began.
| 21 |
| (m) Beginning January 1, 1990, every survivor's annuity | 22 |
| shall be increased
(1) on each January 1 occurring on or after | 23 |
| the commencement of the annuity if
the deceased member died | 24 |
| while receiving a retirement annuity, or (2) in
other cases, on | 25 |
| each January 1 occurring on or after the first anniversary
of | 26 |
| the commencement of the annuity, by an amount equal to 3% of |
|
|
|
SB1985 Enrolled |
- 11 - |
LRB095 14944 AMC 40889 b |
|
| 1 |
| the current
amount of the annuity, including any previous | 2 |
| increases under this Article.
Such increases shall apply | 3 |
| without regard to whether the deceased member
was in service on | 4 |
| or after the effective date of Public Act 86-1488,
but shall | 5 |
| not accrue for any period prior to January 1, 1990.
| 6 |
| (Source: P.A. 86-273; 86-1488; 87-794.)
| 7 |
| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
|
|