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90_SB0907
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
Amends the State Employee Article of the Pension Code.
Provides a one-time increase in widow and survivor annuities
for certain persons whose annuities began on or before
January 1, 1989. Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 14-119 and 14-121.
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 Sections 14-119 and 14-121 as follows:
7 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
8 Sec. 14-119. Amount of widow's annuity.
9 (a) The widow's annuity shall be 50% of the amount of
10 retirement annuity payable to the member on the date of death
11 while on retirement if an annuitant, or on the date of his
12 death while in service if an employee, regardless of his age
13 on such date, or on the date of withdrawal if death occurred
14 after termination of service under the conditions prescribed
15 in the preceding Section.
16 (b) If an eligible widow, regardless of age, has in her
17 care any unmarried child or children of the member under age
18 18, the widow's annuity shall be increased in the amount of
19 5% of the retirement annuity for each such child, but the
20 combined payments for a widow and children shall not exceed
21 66 2/3% of the member's 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
24 regard to whether he attained age 60 prior to his withdrawal
25 under the conditions stated or prior to his death.
26 (c) Adopted children shall be considered as children of
27 the member only if the proceedings for adoption were
28 commenced at least 1 year prior to the member's death.
29 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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1 Attainment of age 18 of a child shall render him
2 ineligible for further consideration in the increase of the
3 widow's annuity, but the annuity to the widow shall be
4 continued thereafter, without regard to her age at that time.
5 (d) A widow's annuity payable on account of any covered
6 employee who shall have been a covered employee for at least
7 18 months shall be reduced by 1/2 of the amount of survivors
8 benefits to which his beneficiaries are eligible under the
9 provisions of the Federal Social Security Act, except that
10 (1) the amount of any widow's annuity payable under this
11 Article shall not be reduced by reason of any increase under
12 that Act which occurs after the offset required by this
13 subsection is first applied to that annuity, and (2) for
14 benefits granted on or after January 1, 1992, the offset
15 under this subsection (d) shall not exceed 50% of the amount
16 of widow's annuity otherwise payable.
17 (e) Upon the death of a recipient of a widow's annuity
18 the excess, if any, of the member's accumulated
19 contributions plus credited interest over all annuity
20 payments to the member and widow, exclusive of the $500 lump
21 sum payment, shall be paid to the named beneficiary of the
22 widow, or if none has been named, to the estate of the widow,
23 provided no reversionary annuity is payable.
24 (f) On January 1, 1981, any recipient of a widow's
25 annuity who was receiving a widow's annuity on or before
26 January 1, 1971, shall have her widow's annuity then being
27 paid increased by 1% for each full year which has elapsed
28 from the date the widow's annuity began. On January 1, 1982,
29 any recipient of a widow's annuity who began receiving a
30 widow's annuity after January 1, 1971, but before January 1,
31 1981, shall have her widow's annuity then being paid
32 increased by 1% for each full year which has elapsed from the
33 date the widow's annuity began. On January 1, 1987, any
34 recipient of a widow's annuity who began receiving the
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1 widow's annuity on or before January 1, 1977, shall have the
2 monthly widow's annuity increased by $1 for each full year
3 which has elapsed since the date the annuity began.
4 On January 1, 1998, each recipient of a widow's annuity
5 who began receiving that annuity on or before January 1, 1989
6 shall have the monthly widow's annuity increased by $2 for
7 each full year that has elapsed since the annuity began.
8 (g) Beginning January 1, 1990, every widow's annuity
9 shall be increased (1) on each January 1 occurring on or
10 after the commencement of the annuity if the deceased member
11 died while receiving a retirement annuity, or (2) in other
12 cases, on each January 1 occurring on or after the first
13 anniversary of the commencement of the annuity, by an amount
14 equal to 3% of the current amount of the annuity, including
15 any previous increases under this Article. Such increases
16 shall apply without regard to whether the deceased member was
17 in service on or after the effective date of Public Act
18 86-1488, but shall not accrue for any period prior to January
19 1, 1990.
20 (Source: P.A. 86-273; 86-1488; 87-794.)
21 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
22 Sec. 14-121. Amount of survivors annuity. A survivors
23 annuity beneficiary shall be entitled upon death of the
24 member to a single sum payment of $1,000, payable pro rata
25 among all persons entitled thereto, together with a survivors
26 annuity payable at the rates and under the conditions
27 specified in this Article.
28 (a) If the survivors annuity beneficiary is a spouse,
29 the survivors annuity shall be 30% of final average
30 compensation subject to a maximum payment of $400 per month.
31 (b) If an eligible child or children under the care of a
32 spouse also survives the member, such spouse as natural
33 guardian of the child or children shall receive, in addition
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1 to the foregoing annuity, 20% of final average compensation
2 on account of each such child and 10% of final average
3 compensation divided pro rata among such children, subject to
4 a maximum payment on account of all survivor annuity
5 beneficiaries of $600 per month, or 80% of the member's final
6 average compensation, whichever is the lesser.
7 (c) If the survivors annuity beneficiary or
8 beneficiaries consists of an unmarried child or children, the
9 amount of survivors annuity shall be 20% of final average
10 compensation to each child, and 10% of final average
11 compensation divided pro rata among all such children
12 entitled to such annuity, subject to a maximum payment to all
13 children combined of $600 per month or 80% of the member's
14 final average compensation, whichever is the lesser.
15 (d) If the survivors annuity beneficiary is one or more
16 dependent parents, the annuity shall be 20% of final average
17 compensation to each parent and 10% of final average
18 compensation divided pro rata among the parents who qualify
19 for this annuity, subject to a maximum payment to both
20 dependent parents of $400 per month.
21 (e) The survivors annuity to the spouse, children or
22 dependent parents of a member whose death occurs after the
23 date of last withdrawal, or after retirement, or while in
24 service following reentry into service after retirement but
25 before completing 1 1/2 years of additional creditable
26 service, shall not exceed the lesser of 80% of the member's
27 earned retirement annuity at the date of death or the maximum
28 previously established in this Section.
29 (f) In applying the limitation prescribed on the
30 combined payments to 2 or more survivors annuity
31 beneficiaries, the annuity on account of each beneficiary
32 shall be reduced pro rata until such time as the number of
33 beneficiaries makes the reduction no longer applicable.
34 (g) A survivors annuity payable on account of any
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1 covered employee who shall have been a covered employee for
2 at least 18 months at date of death or last withdrawal,
3 whichever is the later, shall be reduced by 1/2 of the
4 survivors benefits to which his beneficiaries are eligible
5 under the federal Social Security Act, except that (1) the
6 survivors annuity payable under this Article shall not be
7 reduced by any increase under that Act which occurs after the
8 offset required by this subsection is first applied to that
9 annuity, and (2) for benefits granted on or after January 1,
10 1992, the offset under this subsection (g) shall not exceed
11 50% of the amount of survivors annuity otherwise payable.
12 (h) The minimum payment to a beneficiary hereunder shall
13 be $60 per month, which shall be reduced in accordance with
14 the limitation prescribed on the combined payments to all
15 beneficiaries of a member.
16 (i) Subject to the conditions set forth in Section
17 14-120, the minimum total survivors annuity benefit payable
18 to the survivors annuity beneficiaries of a deceased member
19 or annuitant whose death occurs on or after January 1, 1984,
20 shall be 50% of the amount of retirement annuity that was or
21 would have been payable to the deceased on the date of death,
22 regardless of the age of the deceased on such date. If the
23 minimum total benefit provided by this subsection exceeds the
24 maximum otherwise imposed by this Section, the minimum total
25 benefit shall nevertheless be payable. Any increase in the
26 total survivors annuity benefit resulting from the operation
27 of this subsection shall be divided among the survivors
28 annuity beneficiaries of the deceased in proportion to their
29 shares of the total survivors annuity benefit otherwise
30 payable under this Section.
31 (j) Any survivors annuity beneficiary whose annuity
32 terminates due to any condition specified in this Article
33 other than death shall be entitled to a refund of the excess,
34 if any, of the accumulated contributions of the member plus
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1 credited interest over all payments to the member and
2 beneficiary or beneficiaries, exclusive of the single sum
3 payment of $1,000, provided no future survivors or
4 reversionary annuity benefits are payable.
5 (k) Upon the death of the last eligible recipient of a
6 survivors annuity the excess, if any, of the member's
7 accumulated contributions plus credited interest over all
8 annuity payments to the member and survivors exclusive of the
9 single sum payment of $1000, shall be paid to the named
10 beneficiary of the last eligible survivor, or if none has
11 been named, to the estate of the last eligible survivor,
12 provided no reversionary annuity is payable.
13 (l) On January 1, 1981, any survivor who was receiving a
14 survivors annuity on or before January 1, 1971, shall have
15 his survivors annuity then being paid increased by 1% for
16 each full year which has elapsed from the date the annuity
17 began. On January 1, 1982, any survivor who began receiving
18 a survivor's annuity after January 1, 1971, but before
19 January 1, 1981, shall have his survivor's annuity then being
20 paid increased by 1% for each full year that has elapsed from
21 the date the annuity began. On January 1, 1987, any survivor
22 who began receiving a survivor's annuity on or before January
23 1, 1977, shall have the monthly survivor's annuity increased
24 by $1 for each full year which has elapsed since the date the
25 survivor's annuity began.
26 On January 1, 1998, each recipient of a survivor's
27 annuity who began receiving that annuity on or before January
28 1, 1989 shall have the monthly survivor's annuity increased
29 by $2 for each full year that has elapsed since the annuity
30 began.
31 (m) Beginning January 1, 1990, every survivor's annuity
32 shall be increased (1) on each January 1 occurring on or
33 after the commencement of the annuity if the deceased member
34 died while receiving a retirement annuity, or (2) in other
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1 cases, on each January 1 occurring on or after the first
2 anniversary of the commencement of the annuity, by an amount
3 equal to 3% of the current amount of the annuity, including
4 any previous increases under this Article. Such increases
5 shall apply without regard to whether the deceased member was
6 in service on or after the effective date of Public Act
7 86-1488, but shall not accrue for any period prior to January
8 1, 1990.
9 (Source: P.A. 86-273; 86-1488; 87-794.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.