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91_HB0319
LRB9100224EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 8-139, 8-171, and 8-244.
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 8-139, 8-171, and 8-244 as follows:
7 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
8 Sec. 8-139. Reversionary annuity.
9 (a) An employee, prior to retirement on annuity, may
10 elect to take a lesser amount of annuity and provide, with
11 the actuarial value of the amount by which his annuity is
12 reduced, a reversionary annuity for a wife, husband, parent,
13 child, brother or sister. The option shall be exercised by
14 filing a written designation with the board prior to
15 retirement, and may be revoked by the employee at any time
16 before retirement. The death of the employee prior to his
17 retirement shall automatically void the option.
18 (b) The death of the designated reversionary annuitant
19 prior to the employee's retirement shall automatically void
20 the option. If the reversionary annuitant dies after the
21 employee's retirement, and before the death of the employee
22 annuitant, the reduced annuity being paid to the retired
23 employee annuitant shall be increased to the amount of
24 annuity before reduction for the reversionary annuity and no
25 reversionary annuity shall be payable.
26 The option is subject to the further condition that no
27 reversionary annuity shall be paid to a parent, child,
28 brother, or sister if the employee dies before the expiration
29 of 365 days from the date his written designation was filed
30 with the board, even though he has retired and is receiving a
31 reduced annuity.
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1 (c) The employee exercising this option shall not reduce
2 his retirement annuity by more than $400 a month, or elect to
3 provide a reversionary annuity of less than $50 per month.
4 No option shall be permitted if the reversionary annuity for
5 a widow, when added to the widow's annuity payable under this
6 Article, exceeds 100% of the reduced annuity payable to the
7 employee.
8 (d) A reversionary annuity shall begin on the day
9 following the death of the annuitant and shall be paid as
10 provided in Section 8-125.
11 (e) The increases in annuity provided in Section 8-137
12 of this Article shall, as to an employee so electing a
13 reduced annuity relate to the amount of the original annuity,
14 and such amount shall constitute the annuity on which such
15 automatic increases shall be based.
16 (f) For annuities elected after June 30, 1983, the
17 amount of the monthly reversionary annuity shall be
18 determined by multiplying the amount of the monthly reduction
19 in the employee's annuity by the factor in the following
20 table based on the age of the employee and the difference in
21 the age of the employee and the age of the reversionary
22 annuitant at the starting date of the employee's annuity:
23 Employee's Age
24 Reversionary
25 Annuitant's
26 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
27 Over
28 30 or
29 more
30 years
31 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
32 25-29
33 years
34 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
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1 20-24
2 years
3 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
4 15-19
5 years
6 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
7 10-14
8 years
9 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
10 5-9
11 years
12 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
13 0-4
14 years
15 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
16 1-5
17 years
18 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
19 6-10
20 years
21 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
22 11-15
23 years
24 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
25 16-20
26 years
27 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
28 21-25
29 years
30 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
31 26-30
32 years
33 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
34 31 or
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1 more
2 years
3 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
4 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
5 (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
6 Sec. 8-171. Refund in lieu of annuity. In lieu of an
7 annuity, an employee who withdraws and whose annuity would
8 amount to less than $800 $300 a month for life, may elect to
9 receive a refund of his accumulated contributions for annuity
10 purposes, based on the amounts contributed by him.
11 The widow of any employee, eligible for annuity upon the
12 death of her husband, whose widow's annuity would amount to
13 less than $800 $300 a month for life, may, in lieu of widow's
14 annuity, elect to receive a refund of the accumulated
15 contributions for annuity purposes, based on the amounts
16 contributed by her deceased employee husband, but reduced by
17 any amounts theretofore paid to him in the form of an annuity
18 or refund out of such accumulated contributions.
19 Accumulated contributions shall mean the amounts -
20 including the interest credited thereon - contributed by the
21 employee for age and service and widow's annuity to the date
22 of his withdrawal or death, whichever first occurs, including
23 any amounts contributed for him as salary deductions while
24 receiving duty disability benefits, and, if not otherwise
25 included, any accumulations from sums contributed by him and
26 applied to any pension fund superseded by this fund.
27 The acceptance of such refund in lieu of widow's annuity,
28 on the part of a widow, shall not deprive a child or children
29 of the right to receive a child's annuity as provided for in
30 Sections 8-158 and 8-159 of this Article, and neither shall
31 the payment of a child's annuity in the case of such refund
32 to a widow reduce the amount herein set forth as refundable
33 to such widow electing a refund in lieu of widow's annuity.
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1 (Source: P.A. 86-1488.)
2 (40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
3 Sec. 8-244. Annuities, etc., exempt.
4 (a) All annuities, refunds, pensions, and disability
5 benefits granted under this Article, shall be exempt from
6 attachment or garnishment process and shall not be seized,
7 taken, subjected to, detained, or levied upon by virtue of
8 any judgment, or any process or proceeding whatsoever issued
9 out of or by any court in this State, for the payment and
10 satisfaction in whole or in part of any debt, damage, claim,
11 demand, or judgment against any annuitant, pensioner,
12 participant, refund applicant, or other beneficiary
13 hereunder.
14 (b) No annuitant, pensioner, refund applicant, or other
15 beneficiary shall have any right to transfer or assign his
16 annuity, refund, or disability benefit or any part thereof by
17 way of mortgage or otherwise, except that:
18 (1) an annuitant or pensioner who elects or has
19 elected to participate in a non-profit group hospital
20 care plan or group medical surgical plan may with the
21 approval of the board and in conformity with its
22 regulations authorize the board to withhold from the
23 pension or annuity the current premium for such coverage
24 and pay such premium to the organization underwriting
25 such plan;
26 (2) in the case of refunds, a participant may
27 pledge by assignment, power of attorney, or otherwise, as
28 security for a loan from a legally operating credit union
29 making loans only to participants in certain public
30 employee pension funds described in the Illinois Pension
31 Code, all or part of any refund which may become payable
32 to him in the event of his separation from service; and
33 (3) the board, in its discretion, may pay to the
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1 wife of any annuitant, pensioner, refund applicant, or
2 disability beneficiary, such an amount out of her
3 husband's annuity pension, refund, or disability benefit
4 as any court of competent jurisdiction may order, or such
5 an amount as the board may consider necessary for the
6 support of his wife or children, or both in the event of
7 his disappearance or unexplained absence or of his
8 failure to support such wife or children.
9 (c) The board may retain out of any future annuity,
10 pension, refund or disability benefit payments, such amount,
11 or amounts, as it may require for the repayment of any moneys
12 paid to any annuitant, pensioner, refund applicant, or
13 disability beneficiary through misrepresentation, fraud or
14 error. Any such action of the board shall relieve and
15 release the board and the fund from any liability for any
16 moneys so withheld.
17 (d) Whenever an annuity or disability benefit is payable
18 to a minor or to a person certified by a medical doctor
19 adjudged to be under legal disability, the board, in its
20 discretion and when it is in to the best interest of the
21 person concerned, may waive guardianship proceedings and pay
22 the annuity or benefit to the person providing or caring for
23 the minor or and to the wife, parent or blood relative
24 providing or caring for the person under legal disability.
25 In the event that a person certified by a medical doctor
26 to be under legal disability (i) has no spouse, blood
27 relative, or other person providing or caring for him or
28 her, (ii) has no guardian of his or her estate, and (iii) is
29 confined to a Medicare approved, State certified nursing home
30 or to a publicly owned and operated nursing home, hospital,
31 or mental institution, the Board may pay any benefit due that
32 person to the nursing home, hospital, or mental institution,
33 to be used for the sole benefit of the person under legal
34 disability.
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1 Payment in accordance with this subsection to a person,
2 nursing home, hospital, or mental institution for the benefit
3 of a minor or person under legal disability shall be an
4 absolute discharge of the Fund's liability with respect to
5 the amount so paid. Any person, nursing home, hospital, or
6 mental institution accepting payment under this subsection
7 shall notify the Fund of the death or any other relevant
8 change in the status of the minor or person under legal
9 disability.
10 (Source: P.A. 86-1488.)
11 Section 99. Effective date. This Act takes effect upon
12 becoming law.