State of Illinois
90th General Assembly
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90_HB0385

      40 ILCS 5/17-122          from Ch. 108 1/2, par. 17-122
      30 ILCS 805/8.21 new
          Amends the Chicago Teacher Article of the 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.
                                                     LRB9000573EGfg
                                               LRB9000573EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 17-122 and to amend the State Mandates Act.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 17-122 as follows:
 7        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
 8        Sec. 17-122. Survivor's and children's pensions - Amount.
 9    Upon  the death of a teacher who has completed at least 1 1/2
10    years of contributing service with either this  Fund  or  the
11    State   Universities   Retirement  System  or  the  Teachers'
12    Retirement System of the  State  of  Illinois,  provided  his
13    death  occurred  while  (a)  in active service covered by the
14    fund or during his first 18 months of  continuous  employment
15    without  a  break  in  service  under any other participating
16    system  as  defined  in  the  Illinois   Retirement   Systems
17    Reciprocal  Act  except  the  State  Universities  Retirement
18    System  and  the  Teachers' Retirement System of the State of
19    Illinois, (b) on a creditable leave  of  absence,  (c)  on  a
20    noncreditable  leave  of absence of no more than one year, or
21    (d) a pension was deferred or pending  provided  the  teacher
22    had  at  least  10 years of validated service credit, or upon
23    the  death  of  a  pensioner  otherwise  qualified  for  such
24    benefit, the surviving spouse and unmarried minor children of
25    the deceased teacher  under  age  18  shall  be  entitled  to
26    pensions,  under  the  conditions  stated  hereinafter.  Such
27    Survivor's and children's pensions  shall  be  based  on  the
28    average  of  the 4 highest consecutive years of salary in the
29    last 10 years of service or on the average salary  for  total
30    service,  if  total  service  has  been  less  than  4 years,
31    according to the following percentages:
                            -2-                LRB9000573EGfg
 1        30% of average salary or 50% of  the  retirement  pension
 2    earned  by  the  teacher, whichever is larger, subject to the
 3    prescribed maximum monthly payment, for  a  surviving  spouse
 4    alone on attainment of age 50;
 5        60%   of  average  salary  for  a  surviving  spouse  and
 6    eligible minor children of the deceased teacher.
 7        If no eligible spouse survives, or the  surviving  spouse
 8    remarries,  or  the  parent  of  the children of the deceased
 9    member is otherwise ineligible for a  survivor's  pension,  a
10    children's  pension  for eligible minor children under age 18
11    shall be paid to their parent or  legal  guardian  for  their
12    benefit according to the following percentages:
13             30% of average salary for one child;
14             60% of average salary for 2 or more children.
15        On  January  1,  1981,  any  survivor  or  child  who was
16    receiving a survivor's or children's  pension  on  or  before
17    January  1,  1971,  shall  have  his survivor's or children's
18    pension then being paid increased by 1% for  each  full  year
19    which  has  elapsed  from  the  date  the  pension began.  On
20    January 1, 1982, any survivor or child  whose  pension  began
21    after January 1, 1971, but before January 1, 1981, shall have
22    his   survivor's   or  children's  pension  then  being  paid
23    increased 1% for each full year which has  elapsed  from  the
24    date  the pension began.  On January 1, 1987, any survivor or
25    child whose pension began on or before January 1, 1977, shall
26    have the monthly survivor's or children's  pension  increased
27    by  $1 for each full year which has elapsed since the pension
28    began.
29        Beginning  January  1,   1990,   every   survivor's   and
30    children's  pension  shall be increased (1) on each January 1
31    occurring on or after the commencement of the pension if  the
32    deceased  teacher  died while receiving a retirement pension,
33    or (2) in other cases, on each  January  1  occurring  on  or
34    after  the  first  anniversary  of  the  commencement  of the
                            -3-                LRB9000573EGfg
 1    pension, by an amount equal to 3% of the  current  amount  of
 2    the pension, including all increases previously granted under
 3    this Article, notwithstanding Section 17-157.  Such increases
 4    shall  apply  without  regard to whether the deceased teacher
 5    was in service  on  or  after  the  effective  date  of  this
 6    amendatory  Act  of 1991, but shall not accrue for any period
 7    prior to January 1, 1990.
 8        Subject to the minimum  established  below,  the  maximum
 9    amount  of  pension for a surviving spouse alone or one minor
10    child shall be $400  per  month,  and  the  maximum  combined
11    pensions  for a surviving spouse and children of the deceased
12    teacher shall be $600 per  month,  with  individual  pensions
13    adjusted  for all beneficiaries pro rata to conform with this
14    limitation.   If  proration  is   unnecessary   the   minimum
15    survivor's  and  children's  pensions shall be $40 per month.
16    The minimum total survivor's pension payable upon  the  death
17    of a contributor or annuitant which occurs after December 31,
18    1986,  shall  be 50% of the earned retirement pension of such
19    contributor or annuitant, calculated without early retirement
20    discount in the case of death in service.  Beginning  January
21    1,  1998,  the  minimum total survivor's pension payable upon
22    the death of a contributor or annuitant that occurred  before
23    January 1, 1987 shall be 50% of the earned retirement pension
24    of  the  contributor  or  annuitant, calculated without early
25    retirement discount in the case  of  death  in  service,  and
26    notwithstanding Section 17-157.
27        On  death  after  retirement,  the  total  survivor's and
28    children's pensions shall not exceed the  monthly  retirement
29    or   disability   pension  paid  to  the  deceased  retirant.
30    Survivor's and children's benefits described in this  Section
31    shall apply to all service and disability pensioners eligible
32    for a pension as of July 1, 1981.
33    (Source: P.A. 86-273; 86-1488.)
                            -4-                LRB9000573EGfg
 1        Section  90.  The State Mandates Act is amended by adding
 2    Section 8.21 as follows:
 3        (30 ILCS 805/8.21 new)
 4        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
 5    and  8 of this Act, no reimbursement by the State is required
 6    for  the  implementation  of  any  mandate  created  by  this
 7    amendatory Act of 1997.
 8        Section 99. Effective date.  This Act takes  effect  upon
 9    becoming law.

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