Full Text of HB0555 94th General Assembly
HB0555 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0555
Introduced 1/27/2005, by Rep. Robert S. Molaro - Raymond Poe SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/14-119 |
from Ch. 108 1/2, par. 14-119 |
40 ILCS 5/14-121 |
from Ch. 108 1/2, par. 14-121 |
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Amends the State Employee Article of the Pension Code to remove the Social
Security offset against widow and survivor annuities for all annuitants,
beginning January 1, 2006. 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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HB0555 |
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LRB094 05636 AMC 35685 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 14-119
and 14-121 as follows:
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| (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
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| Sec. 14-119. Amount of widow's annuity.
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| (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.
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| (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.
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| The amount of retirement annuity from which the widow's
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| annuity is derived shall be that earned by the member without | 24 |
| regard to
whether he attained age 60 prior to his withdrawal | 25 |
| under the conditions
stated or prior to his death.
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| (c) Adopted children shall be considered as children of the | 27 |
| member
only if the proceedings for adoption were commenced at | 28 |
| least 1 year
prior to the member's death.
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| Marriage of a child shall render the child ineligible for | 30 |
| further
consideration in the increase in the amount of the | 31 |
| widow's annuity.
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| Attainment of age 18 (age 22 if a full-time student)
shall |
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LRB094 05636 AMC 35685 b |
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| render a child ineligible for
further consideration in the | 2 |
| increase of the widow's annuity, but the
annuity to the widow | 3 |
| shall be continued thereafter, without regard to
her age at | 4 |
| that time.
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| (d) Until January 1, 2006, a widow's annuity payable on
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| account of any covered employee who has
shall have
been a | 7 |
| covered employee for at least 18 months shall be reduced
by 1/2 | 8 |
| of the amount of survivors benefits to which his beneficiaries | 9 |
| are
eligible under the provisions of the Federal Social | 10 |
| Security Act, except
that (1) the amount of any widow's annuity | 11 |
| payable under this Article shall
not be reduced by reason of | 12 |
| any increase under that Act which occurs after
the offset | 13 |
| required by this subsection is first applied to that annuity,
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| and (2) for benefits granted on or after January 1, 1992, the | 15 |
| offset under
this subsection (d) shall not exceed 50% of the | 16 |
| amount of widow's annuity
otherwise payable.
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| Beginning January 1, 2006, the offset under this subsection | 18 |
| (d) shall
no longer be applied to any widow's annuity, | 19 |
| regardless of whether the
deceased employee was in service on | 20 |
| or after the effective date of this
amendatory Act of the 94th | 21 |
| General Assembly.
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| (e) Upon the death of a recipient of a widow's annuity the | 23 |
| excess, if
any, of the member's accumulated contributions plus | 24 |
| credited interest over
all annuity payments to the member and | 25 |
| widow, exclusive of the $500 lump
sum payment, shall be paid to | 26 |
| the named beneficiary of the widow, or if
none has been named, | 27 |
| to the estate of the widow, provided no reversionary
annuity is | 28 |
| payable.
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| (f) On January 1, 1981, any recipient of a widow's annuity | 30 |
| who was receiving
a widow's annuity on or before January 1, | 31 |
| 1971, shall have her widow's annuity
then being paid increased | 32 |
| by 1% for each full year which has elapsed from
the date the | 33 |
| widow's annuity began. On January 1, 1982, any recipient
of a | 34 |
| widow's annuity who began receiving a widow's annuity after | 35 |
| January
1, 1971, but before January 1, 1981, shall have her | 36 |
| widow's annuity then
being paid increased by 1% for each full |
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| year which has elapsed from the
date the widow's annuity began. | 2 |
| On January 1, 1987, any recipient of a
widow's annuity who | 3 |
| began receiving the widow's annuity on or before January
1, | 4 |
| 1977, shall have the monthly widow's annuity increased by $1
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| for each full year which has elapsed since the date the
annuity | 6 |
| began.
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| (g) Beginning January 1, 1990, every widow's annuity shall | 8 |
| be
increased (1) on each January 1 occurring on or after the | 9 |
| commencement
of the annuity if the deceased member died while | 10 |
| receiving a retirement
annuity, or (2) in other cases, on each | 11 |
| January 1 occurring on or after
the first anniversary of the | 12 |
| commencement of the annuity, by an amount
equal to 3% of the | 13 |
| current amount of the annuity, including any previous
increases | 14 |
| under this Article. Such increases shall apply without regard | 15 |
| to
whether the deceased member was in service on or after the | 16 |
| effective date
of Public Act 86-1488, but shall not accrue for | 17 |
| any period prior to January
1, 1990.
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| (Source: P.A. 90-448, eff. 8-16-97.)
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| (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
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| Sec. 14-121. Amount of survivors annuity. A survivors | 21 |
| annuity
beneficiary shall be entitled upon death of the member | 22 |
| to a single sum
payment of $1,000, payable pro rata among all | 23 |
| persons entitled thereto,
together with a survivors annuity | 24 |
| payable at the rates and under the
conditions specified in this | 25 |
| Article.
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| (a) If the survivors annuity beneficiary is a spouse, the | 27 |
| survivors
annuity shall be 30% of final average compensation | 28 |
| subject to a maximum
payment of $400 per month.
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| (b) If an eligible child or children under the care of a | 30 |
| spouse also
survives the member, such spouse as natural | 31 |
| guardian of the child or
children shall receive, in addition to | 32 |
| the foregoing annuity, 20% of final
average compensation on | 33 |
| account of each such child and 10% of final average
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| compensation divided pro rata among such children, subject to a | 35 |
| maximum
payment on account of all survivor annuity |
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| beneficiaries of $600 per month,
or 80% of the member's final | 2 |
| average compensation, whichever is the lesser.
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| (c) If the survivors annuity beneficiary or beneficiaries | 4 |
| consists of
an unmarried child or children, the amount of | 5 |
| survivors annuity shall be
20% of final average compensation to | 6 |
| each child, and 10% of final average
compensation divided pro | 7 |
| rata among all such children entitled to such annuity,
subject | 8 |
| to a maximum payment to all children combined of $600 per month
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| or 80% of the member's final average compensation, whichever is | 10 |
| the lesser.
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| (d) If the survivors annuity beneficiary is one or more | 12 |
| dependent parents,
the annuity shall be 20% of final average | 13 |
| compensation to each parent and
10% of final average | 14 |
| compensation divided pro rata among the parents who
qualify for | 15 |
| this annuity, subject to a maximum payment to both dependent
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| parents of $400 per month.
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| (e) The survivors annuity to the spouse, children or | 18 |
| dependent parents of
a member whose death occurs after the date | 19 |
| of last withdrawal, or after
retirement, or while in service | 20 |
| following reentry into service after
retirement but before | 21 |
| completing 1 1/2 years of additional creditable
service, shall | 22 |
| not exceed the lesser of 80% of the member's earned
retirement | 23 |
| annuity at the date of death or the maximum previously
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| established in this Section.
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| (f) In applying the limitation prescribed on the combined | 26 |
| payments to
2 or more survivors annuity beneficiaries, the | 27 |
| annuity on account of each
beneficiary shall be reduced pro | 28 |
| rata until such time as the number of
beneficiaries makes the | 29 |
| reduction no longer applicable.
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| (g) Until January 1, 2006, a survivors annuity payable on | 31 |
| account of
any covered employee who has
shall have been a | 32 |
| covered employee for at
least 18 months at date of death or | 33 |
| last withdrawal, whichever is the later,
shall be reduced by | 34 |
| 1/2 of the survivors benefits to which his beneficiaries
are | 35 |
| eligible under the federal Social Security Act, except that (1) | 36 |
| the
survivors annuity payable under this Article shall not be |
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| reduced by any
increase under that Act which occurs after the | 2 |
| offset required by this
subsection is first applied to that | 3 |
| annuity, (2) for benefits granted on or
after January 1, 1992, | 4 |
| the offset under this subsection (g) shall not exceed
50% of | 5 |
| the amount of survivors annuity otherwise payable.
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| Beginning January 1, 2006, the offset under this subsection | 7 |
| (g) shall no
longer be applied to any survivors annuity, | 8 |
| regardless of whether the deceased
employee was in service on | 9 |
| or after the effective date of this amendatory Act
of the 94th | 10 |
| General Assembly.
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| (h) The minimum payment to a beneficiary hereunder shall be | 12 |
| $60 per month,
which shall be reduced in accordance with the | 13 |
| limitation prescribed on the
combined payments to all | 14 |
| beneficiaries of a member.
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| (i) Subject to the conditions set forth in Section 14-120, | 16 |
| the minimum
total survivors annuity benefit payable to the | 17 |
| survivors annuity beneficiaries
of a deceased member or | 18 |
| annuitant whose death occurs on or after January
1, 1984, shall | 19 |
| be 50% of the amount of retirement annuity that was or would
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| have been payable to the deceased on the date of death, | 21 |
| regardless of the
age of the deceased on such date. If the | 22 |
| minimum total benefit provided
by this subsection exceeds the | 23 |
| maximum otherwise imposed by this Section,
the minimum total | 24 |
| benefit shall nevertheless be payable. Any increase in
the | 25 |
| total survivors annuity benefit resulting from the operation of | 26 |
| this
subsection shall be divided among the survivors annuity | 27 |
| beneficiaries of
the deceased in proportion to their shares of | 28 |
| the total survivors annuity
benefit otherwise payable under | 29 |
| this Section.
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| (j) Any survivors annuity beneficiary whose annuity | 31 |
| terminates due to any
condition specified in this Article other | 32 |
| than death shall be entitled to
a refund of the excess, if any, | 33 |
| of the accumulated contributions of the
member plus credited | 34 |
| interest over all payments to the member and beneficiary
or | 35 |
| beneficiaries, exclusive of the single sum payment of $1,000, | 36 |
| provided
no future survivors or reversionary annuity benefits |
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| are payable.
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| (k) Upon the death of the last eligible recipient of a | 3 |
| survivors
annuity the excess, if any, of the member's | 4 |
| accumulated contributions plus
credited interest over all | 5 |
| annuity payments to the member and survivors
exclusive of the | 6 |
| single sum payment of $1000, shall be paid to the named
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| beneficiary of the last eligible survivor, or if none has been | 8 |
| named, to
the estate of the last eligible survivor, provided no | 9 |
| reversionary annuity
is payable.
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| (l) On January 1, 1981, any survivor who was receiving a | 11 |
| survivors
annuity on or before January 1, 1971, shall have his | 12 |
| survivors annuity then
being paid increased by 1% for each full | 13 |
| year which has elapsed from the
date the annuity began. On | 14 |
| January 1, 1982, any survivor who began receiving
a survivor's | 15 |
| annuity after January 1, 1971, but before January 1, 1981,
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| shall have his survivor's annuity then being paid increased by | 17 |
| 1% for each
full year that has elapsed from the date the | 18 |
| annuity began.
On January 1, 1987, any survivor who began | 19 |
| receiving a survivor's annuity
on or before January 1, 1977, | 20 |
| shall have the monthly survivor's annuity
increased by $1 for | 21 |
| each full year which has elapsed since the date the
survivor's | 22 |
| annuity began.
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| (m) Beginning January 1, 1990, every survivor's annuity | 24 |
| shall be increased
(1) on each January 1 occurring on or after | 25 |
| the commencement of the annuity if
the deceased member died | 26 |
| while receiving a retirement annuity, or (2) in
other cases, on | 27 |
| each January 1 occurring on or after the first anniversary
of | 28 |
| the commencement of the annuity, by an amount equal to 3% of | 29 |
| the current
amount of the annuity, including any previous | 30 |
| increases under this Article.
Such increases shall apply | 31 |
| without regard to whether the deceased member
was in service on | 32 |
| or after the effective date of Public Act 86-1488,
but shall | 33 |
| not accrue for any period prior to January 1, 1990.
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| (Source: P.A. 86-273; 86-1488; 87-794.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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