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91_HB4080
LRB9110546EGfg
1 AN ACT to amend the Illinois Pension Code and the State
2 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 Sections 7-156, 7-157, and 7-164 and adding Section
7 7-156.1 as follows:
8 (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
9 Sec. 7-156. Surviving spouse annuities - amount.
10 (a) The amount of surviving spouse annuity shall be:
11 1. Upon the death of an employee annuitant or such
12 person entitled, upon application, to a retirement
13 annuity at date of death, (i) an amount equal to 1/2 of
14 the retirement annuity which was or would have been
15 payable exclusive of the amount so payable which was
16 provided from additional credits, and disregarding any
17 election made under paragraph (b) of Section 7-142, plus
18 (ii) an annuity which could be provided at the then
19 attained age of the surviving spouse and under actuarial
20 tables then in effect, from the excess of the additional
21 credits, (excluding any such credits used to create a
22 reversionary annuity) used to provide the annuity granted
23 pursuant to paragraph (a) (2) of Section 7-142 of this
24 article over the total annuity payments made pursuant
25 thereto.
26 2. Upon the death of a participating employee on or
27 after attainment of age 55, an amount equal to 1/2 of the
28 retirement annuity which he could have had as of the date
29 of death had he then retired and applied for annuity,
30 exclusive of the portion thereof which could have been
31 provided from additional credits, and disregarding
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1 paragraph (b) of Section 7-142, plus an amount equal to
2 the annuity which could be provided from the total of his
3 accumulated additional credits at date of death, on the
4 basis of the attained age of the surviving spouse on such
5 date.
6 3. Upon the death of a participating employee
7 before age 55, an amount equal to 1/2 of the retirement
8 annuity which he could have had as of his attained age on
9 the date of death, had he then retired and applied for
10 annuity, and the provisions of this Article that no such
11 annuity shall begin until the employee has attained at
12 least age 55 were not applicable, exclusive of the
13 portion thereof which could have been provided from
14 additional credits and disregarding paragraph (b) of
15 Section 7-142, plus an amount equal to the annuity which
16 could be provided from the total of his accumulated
17 additional credits at date of death, on the basis of the
18 attained age of the surviving spouse on such date.
19 If a surviving spouse is more than 5 years younger than
20 the deceased, that portion of the annuity which is not based
21 on additional credits shall be reduced in the ratio of the
22 value of a life annuity of $1 per year at an age of 5 years
23 less than the attained age of the deceased, at the earlier of
24 the date of the death or the date his retirement annuity
25 begins, to the value of a life annuity of $1 per year at the
26 attained age of the surviving spouse on such date, according
27 to actuarial tables approved by the Board. However, this
28 reduction due to age does not apply to the surviving spouse
29 of a sheriff's law enforcement employee who dies on or after
30 January 1, 2001.
31 In computing the amount of a surviving spouse annuity,
32 incremental increases of retirement annuities to the date of
33 death of the employee annuitant shall be considered.
34 (b) Each surviving spouse annuity payable on January 1,
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1 1988 shall be increased on that date by 3% of the original
2 amount of the annuity. Each surviving spouse annuity that
3 begins after January 1, 1988 shall be increased on the
4 January 1 next occurring after the annuity begins, by an
5 amount equal to (i) 3% of the original amount thereof if the
6 deceased employee was receiving a retirement annuity at the
7 time of his death; otherwise (ii) 0.167% of the original
8 amount thereof for each complete month which has elapsed
9 since the date the annuity began.
10 On each January 1 after the date of the initial increase
11 under this subsection, each surviving spouse annuity shall be
12 increased by 3% of the originally granted amount of the
13 annuity.
14 (Source: P.A. 85-941.)
15 (40 ILCS 5/7-156.1 new)
16 Sec. 7-156.1. Minimum annuity for surviving spouse of
17 sheriff's law enforcement employee.
18 (a) In the case of the surviving spouse of a person who
19 dies on or after January 1, 2001 with at least 20 years of
20 service as a sheriff's law enforcement employee, the
21 surviving spouse annuity payable under subsection (a) of
22 Section 7-156 shall be no less than the amount of the
23 retirement annuity that the deceased person was receiving, or
24 was entitled to receive, on the date of death.
25 (b) In the case of the surviving spouse of a person who
26 dies on or after January 1, 2001 with at least 10 but less
27 than 20 years of service as a sheriff's law enforcement
28 employee, the surviving spouse annuity payable under
29 subsection (a) of Section 7-156 shall be no less than an
30 amount equal to 50% of the salary attached to the rank last
31 held for at least one year by the person as a sheriff's law
32 enforcement employee.
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1 (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
2 Sec. 7-157. Surviving spouse annuities - marriage to
3 terminate.
4 (a) If any surviving spouse annuitant marries, before
5 reaching age 55, the annuity shall be terminated as of the
6 end of the calendar month following the month in which the
7 marriage occurs.
8 (b) Subsection (a) does not apply to the surviving
9 spouse of a sheriff's law enforcement employee who remarries
10 after December 31, 2000.
11 (Source: P.A. 81-618.)
12 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
13 Sec. 7-164. Death benefits - Amount. The amount of the
14 death benefit shall be:
15 1. Upon the death of an employee with at least one year
16 of service occurring while in an employment relationship
17 (including employees drawing disability benefits) with a
18 participating municipality or participating instrumentality,
19 an amount equal to the sum of:
20 (a) The employee's normal, additional and survivor
21 credits, including interest credited thereto through the end
22 of the preceding calendar year, but excluding credits and
23 interest thereon allowed for periods of disability.
24 (b) An amount equal to the employee's annual final rate
25 of earnings. An employee who dies as a result of injuries
26 connected with his duties shall be considered to have a year
27 of service for purposes of this benefit.
28 2. Upon the death of an employee with less than 1 year
29 of service occurring while in the service of any
30 participating municipality or instrumentality, an amount
31 equal to the sum of his accumulated normal, additional and
32 survivor credits on the date of death, excluding those
33 credits and interest thereon allowed during periods of
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1 disability.
2 3. Upon the death of an employee who has separated from
3 service and was not entitled to a retirement annuity on the
4 date of death, an amount equal to the sum of his accumulated
5 normal, survivor and additional credits on the date of death
6 excluding those credits and interest thereon allowed during
7 periods of disability.
8 4. Upon the death of an employee in an employment
9 relationship, or an employee who has service and was entitled
10 to a retirement annuity on the date of death, when a
11 surviving spouse or child annuity is awarded, $3,000.
12 5. Upon the death of an employee, who has separated from
13 service and was entitled to a retirement annuity on the date
14 of death, and no surviving spouse or child annuity is
15 awarded, $3,000 plus an amount equal to his accumulated
16 normal, survivor and additional credits on the date of death,
17 excluding those credits and interest earned thereon allowed
18 during periods of disability.
19 6. Upon the death of an employee annuitant, $3,000 and,
20 unless a surviving spouse, child or reversionary annuity is
21 payable, the sum of (i) the excess of the normal and survivor
22 credits, excluding those allowed during periods of
23 disability, which the annuitant had as of the effective date
24 of his annuity over the total annuities paid pursuant to
25 paragraph (a) 1 of Section 7-142 to the date of death, plus
26 (ii) the excess of the additional credits, excluding any such
27 credits used to create a reversionary annuity, used to
28 provide the annuity granted pursuant to paragraph (a) 2 of
29 Section 7-142 over the total annuity payments made pursuant
30 thereto to the time of death.
31 7. Upon the death of an annuitant receiving a
32 reversionary annuity or of a person designated to receive a
33 reversionary annuity prior to the receipt of such annuity the
34 sum of the additional credits of the person creating the
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1 reversionary annuity as of the effective date of his own
2 retirement annuity over the reversionary annuity payments, if
3 any, made prior to the date of death of such annuitant or
4 person designated to receive the reversionary annuity.
5 8. Upon the death of an annuitant receiving a
6 beneficiary annuity which was effective before January 1,
7 1986, the excess of the death benefit which was used to
8 provide the annuity, over the sum of all annuity payments
9 made to the beneficiary. Upon the death of an annuitant
10 receiving a beneficiary annuity effective January 1, 1986 or
11 thereafter, the sum of (i) the excess of the normal and
12 survivor credits, excluding those allowed during periods of
13 disability, which the annuitant had as of the effective date
14 of his annuity over the total annuities paid pursuant to
15 paragraph (c) of Section 7-165, to date of death, plus (ii)
16 the excess of the additional credits, excluding any such
17 credits used to create a reversionary annuity, used to
18 provide the annuity granted pursuant to paragraph (d) of
19 Section 7-165 over the total annuity payments made pursuant
20 thereto to the time of death.
21 9. Upon the marriage prior to reaching age 55 (except
22 for the surviving spouse of a sheriff's law enforcement
23 employee who remarries after December 31, 2000) or death of a
24 person receiving a surviving spouse annuity, unless a child
25 annuity is payable, the sum of (i) the excess of the normal
26 and survivor credits, excluding those credits and interest
27 thereon allowed during periods of disability, attributable to
28 the employee at the effective date of the annuity or date of
29 death, whichever first occurred, over the total of all
30 annuity payments attributable to paragraph (a) 1 of Section
31 7-142 made to the employee or surviving spouse plus (ii) the
32 excess of the additional credits, excluding any such credits
33 used to create a reversionary annuity or used to provide the
34 annuity attributable to paragraph (a) 2 of Section 7-142 over
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1 the total of such payments.
2 10. Upon the marriage, death or attainment of age 18 of
3 a child receiving a child annuity, if no other child
4 annuities are payable, the sum of (i) the excess of the
5 normal and survivor credits excluding those credits and
6 interest thereon allowed during periods of disability, of the
7 employee at the effective date of the annuity or date of
8 death, whichever first occurred, over the total annuity
9 payments attributable to paragraph (a) 1 of Section 7-142
10 made to the employee, surviving spouse and children plus (ii)
11 the excess of the additional credits, excluding any such
12 credits used to create a reversionary annuity, used to
13 provide the annuity attributable to paragraph (a) 2 of
14 Section 7-142 over the total annuity payments made to the
15 employee, surviving spouse and children, pursuant thereto.
16 11. Upon the death of the participating employee whose
17 annuity was suspended upon his return to employment:
18 a. If a surviving spouse or child annuity is awarded,
19 $3,000;
20 b. If no surviving spouse or child annuity is awarded
21 and he had less than one year's service upon return, $3,000
22 plus the excess of the normal, survivor and additional
23 credits, including interest thereon, but excluding those
24 allowed during a period of disability, at the effective date
25 of the suspended annuity, plus those allowed after his
26 return, over all annuity payments made to the employee;
27 c. If no surviving spouse or child annuity is awarded
28 and he has one year or more of service upon return, the
29 higher of (a) the payment under subparagraph b of this
30 paragraph or (b) the payment under paragraph 1 of this
31 Section, taking into consideration only the service and
32 credits allowed after his return, plus the excess of the
33 normal, survivor and additional credits, including interest
34 thereon, excluding those allowed during periods of
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1 disability, at the effective date of his suspended annuity
2 over all annuity payments made to the employee.
3 12. The $3,000 death benefit provided in paragraphs 4
4 and 6 shall not be payable to beneficiaries of persons who
5 terminated service prior to September 8, 1971, unless the
6 payment or agreement for payment provided by Section 7-144.2
7 of this Article is made prior to the date of death.
8 13. The increase in certain death benefits from $1,000
9 to $3,000 provided by this amendatory Act of 1987 shall apply
10 only to deaths occurring on or after January 1, 1988.
11 (Source: P.A. 85-941.)
12 Section 90. The State Mandates Act is amended by adding
13 Section 8.24 as follows:
14 (30 ILCS 805/8.24 new)
15 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
16 and 8 of this Act, no reimbursement by the State is required
17 for the implementation of any mandate created by this
18 amendatory Act of the 91st General Assembly.
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.