(40 ILCS 5/12-139) (from Ch. 108 1/2, par. 12-139)
Sec. 12-139.
Death benefit.
Effective July 1, 1955, a death
benefit is provided for employees and annuitants, in addition to other
annuities and benefits, payable upon death of the employee while (a) in
actual salary status or within 60 days thereof; (b) on an approved leave
of absence, without salary, if death occurs within 60 days from the date
he was in salary status; (c) receiving ordinary or duty disability
benefit; or within 60 days from the date of termination of such benefit
payments. Upon death of an annuitant the death benefit is payable if
the annuity was granted and became effective on or after the employee's
attainment of age 50. The death benefit is also payable upon death of an
employee whose annuity was determined at age 65 or over and the employee and
employer's contributions were transferred to the annuity reserve. No death
benefit is payable unless application for the annuity was made within 60 days
from the date of withdrawal from service.
This death benefit shall be payable to the surviving spouse as defined
in Section 12-123.1 of the employee or annuitant; but if no spouse
survives, payment shall be made according to the last written designation
filed with the board prior to death by the employee or annuitant. If
no such designation was filed, payment shall be made to the executor or
administrator of the estate of the employee or annuitant, or if the estate
is under the amount required under law for opening an estate, payment shall
be made to the person filing a small estate affidavit as prescribed by law.
Upon death on or after January 1, 1980 and before January 1, 1990,
prior to retirement on annuity, the amount of benefit shall be $2,000 payable
upon death of the employee during the first year of membership in the Fund,
$3,000 upon death during the second year of membership, $4,000 upon death
during the third year of membership, $5,000 upon death during the fourth year
of membership and $6,000 upon death during the fifth year of membership or
over. Upon the death of an employee on or after January 1, 1990, prior to
retirement on annuity, the amount of benefit shall be $3,000 upon death during
the first year of membership in the Fund, $4,000 upon death during the second
year of membership, $5,000 upon death during the third year of membership, and
$6,000 upon death during the fourth through tenth years of membership. Upon the
death, on or after January 1, 1983, of an employee prior to retirement with 10
or more years of service, the amount of benefit shall be $10,000.
Upon death of an employee while on retirement, occurring on or after
January 1, 1980, the benefit computed according to the foregoing
formula, subject to the aforesaid maximum, shall be reduced $1,500 for
each year or fraction of a year that the employee was on retirement,
provided that the minimum benefit payable on account of death of a
retirant shall be $1,500. Upon the death of an employee who retired on
or after January 1, 1983, with at least 10 years of service, the $10,000
benefit shall be reduced to $6,000 if death occurs during the first year
of retirement, and shall be reduced $1,500 for each year or fraction of
a year thereafter that the employee was retired, provided that the minimum
benefit payable shall be $1,500. Upon the death, on or after January 1, 1990,
of an employee while on retirement, the minimum benefit payable shall be
$3,000.
The board shall establish rules to govern the administration of this benefit.
(Source: P.A. 86-272; 87-1265.)
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