State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]



92_HB2363

 
                                               LRB9205292EGfg

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 15-136, 15-136.3, and 15-145 as follows:

 6        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
 7        Sec.  15-136.   Retirement  annuities  -   Amount.    The
 8    provisions  of  this  Section  15-136  apply  only  to  those
 9    participants who are participating in the traditional benefit
10    package  or  the portable benefit package and do not apply to
11    participants who are participating in the self-managed plan.
12        (a)  The amount of a  participant's  retirement  annuity,
13    expressed  in  the  form  of  a single-life annuity, shall be
14    determined by whichever of the following rules is  applicable
15    and provides the largest annuity:
16        Rule  1:  The  retirement annuity shall be 1.67% of final
17    rate of earnings for each of the first 10 years  of  service,
18    1.90%  for  each  of  the next 10 years of service, 2.10% for
19    each year of service in excess of 20 but  not  exceeding  30,
20    and  2.30%  for each year in excess of 30; or for persons who
21    retire on or after January 1, 1998, 2.2% of the final rate of
22    earnings for each year of service.
23        Rule 2:  The retirement annuity shall be the sum  of  the
24    following,   determined   from   amounts   credited   to  the
25    participant in accordance with the actuarial tables  and  the
26    prescribed  rate  of  interest  in  effect  at  the  time the
27    retirement annuity begins:
28             (i)  the normal annuity which can be provided on  an
29        actuarially  equivalent  basis, by the accumulated normal
30        contributions as of the date the annuity begins; and
31             (ii)  an annuity from employer contributions  of  an
 
                            -2-                LRB9205292EGfg
 1        amount  equal  to  that  which  can  be  provided  on  an
 2        actuarially  equivalent basis from the accumulated normal
 3        contributions  made  by  the  participant  under  Section
 4        15-113.6 and Section 15-113.7 plus 1.4  times  all  other
 5        accumulated normal contributions made by the participant.
 6        With  respect  to  a  police  officer  or firefighter who
 7    retires on or after August 14, 1998, the  accumulated  normal
 8    contributions  taken  into account under clauses (i) and (ii)
 9    of  this  Rule  2  shall  include   the   additional   normal
10    contributions made by the police officer or firefighter under
11    Section 15-157(a).
12        The  amount of a retirement annuity calculated under this
13    Rule  2  shall  be  computed  solely  on  the  basis  of  the
14    participant's accumulated normal contributions, as  specified
15    in  this  Rule  and  defined  in  Section 15-116.  Neither an
16    employee or employer contribution for early retirement  under
17    Section 15-136.2 nor any other employer contribution shall be
18    used in the calculation of the amount of a retirement annuity
19    under this Rule 2.
20        This  amendatory  Act  of  the 91st General Assembly is a
21    clarification  of  existing  law   and   applies   to   every
22    participant and annuitant without regard to whether status as
23    an  employee  terminates  before  the  effective date of this
24    amendatory Act.
25        Rule 3:  The retirement annuity of a participant  who  is
26    employed  at  least  one-half time during the period on which
27    his or her final rate of earnings is based, shall be equal to
28    the  participant's  years  of  service  not  to  exceed   30,
29    multiplied  by  (1)  $96  if  the participant's final rate of
30    earnings is less than $3,500, (2) $108 if the final  rate  of
31    earnings is at least $3,500 but less than $4,500, (3) $120 if
32    the  final  rate of earnings is at least $4,500 but less than
33    $5,500, (4) $132 if the final rate of earnings  is  at  least
34    $5,500  but  less  than $6,500, (5) $144 if the final rate of
 
                            -3-                LRB9205292EGfg
 1    earnings is at least $6,500 but less than $7,500, (6) $156 if
 2    the final rate of earnings is at least $7,500 but  less  than
 3    $8,500,  (7)  $168  if the final rate of earnings is at least
 4    $8,500 but less than $9,500, and (8) $180 if the  final  rate
 5    of  earnings  is  $9,500 or more, except that the annuity for
 6    those  persons  having  made  an   election   under   Section
 7    15-154(a-1)   shall  be  calculated  and  payable  under  the
 8    portable  retirement  benefit   program   pursuant   to   the
 9    provisions of Section 15-136.4.
10        Rule  4:  A participant who is at least age 50 and has 25
11    or more years of service as a police officer or  firefighter,
12    and  a  participant who is age 55 or over and has at least 20
13    but less than 25 years of service  as  a  police  officer  or
14    firefighter,  shall  be  entitled  to a retirement annuity of
15    2 1/4% of the final rate of earnings for each of the first 10
16    years of service as a police officer or  firefighter,  2 1/2%
17    for  each of the next 10 years of service as a police officer
18    or firefighter, and 2 3/4% for each  year  of  service  as  a
19    police   officer   or  firefighter  in  excess  of  20.   The
20    retirement annuity for all other service  shall  be  computed
21    under Rule 1.
22        For purposes of this Rule 4, a participant's service as a
23    firefighter shall also include the following:
24             (i)  service  that  is performed while the person is
25        an employee under subsection (h) of Section 15-107; and
26             (ii)  in  the  case  of  an  individual  who  was  a
27        participating employee employed in the fire department of
28        the  University  of  Illinois's  Champaign-Urbana  campus
29        immediately  prior  to  the  elimination  of  that   fire
30        department  and  who immediately after the elimination of
31        that fire department transferred to another job with  the
32        University  of Illinois, service performed as an employee
33        of the University of Illinois in a  position  other  than
34        police  officer  or  firefighter,  from  the date of that
 
                            -4-                LRB9205292EGfg
 1        transfer until the employee's next termination of service
 2        with the University of Illinois.
 3        Rule 5:  The retirement  annuity  of  a  participant  who
 4    elected  early  retirement  under  the  provisions of Section
 5    15-136.2 and who, on or before  February  16,  1995,  brought
 6    administrative  proceedings  pursuant  to  the administrative
 7    rules adopted by the System to challenge the  calculation  of
 8    his  or  her  retirement  annuity  shall  be  the  sum of the
 9    following,  determined   from   amounts   credited   to   the
10    participant  in  accordance with the actuarial tables and the
11    prescribed rate  of  interest  in  effect  at  the  time  the
12    retirement annuity begins:
13             (i)  the  normal annuity which can be provided on an
14        actuarially equivalent basis, by the  accumulated  normal
15        contributions as of the date the annuity begins; and
16             (ii)  an  annuity  from employer contributions of an
17        amount  equal  to  that  which  can  be  provided  on  an
18        actuarially equivalent basis from the accumulated  normal
19        contributions  made  by  the  participant  under  Section
20        15-113.6  and  Section  15-113.7 plus 1.4 times all other
21        accumulated normal contributions made by the participant;
22        and
23             (iii)  an  annuity  which  can  be  provided  on  an
24        actuarially   equivalent   basis   from   the    employee
25        contribution for early retirement under Section 15-136.2,
26        and  an  annuity from employer contributions of an amount
27        equal to that which can be  provided  on  an  actuarially
28        equivalent basis from the employee contribution for early
29        retirement under Section 15-136.2.
30        In  no event shall a retirement annuity under this Rule 5
31    be lower than the amount obtained by adding (1)  the  monthly
32    amount   obtained  by  dividing  the  combined  employee  and
33    employer contributions made under  Section  15-136.2  by  the
34    System's annuity factor for the age of the participant at the
 
                            -5-                LRB9205292EGfg
 1    beginning  of  the  annuity payment period and (2) the amount
 2    equal to the participant's annuity if calculated  under  Rule
 3    1, reduced under Section 15-136(b) as if no contributions had
 4    been made under Section 15-136.2.
 5        With  respect  to  a  participant  who is qualified for a
 6    retirement annuity under this Rule 5 whose retirement annuity
 7    began before the effective date of this amendatory Act of the
 8    91st General Assembly, and for whom an employee  contribution
 9    was made under Section 15-136.2, the System shall recalculate
10    the  retirement  annuity  under this Rule 5 and shall pay any
11    additional amounts due in  the  manner  provided  in  Section
12    15-186.1 for benefits mistakenly set too low.
13        The  amount of a retirement annuity calculated under this
14    Rule 5 shall  be  computed  solely  on  the  basis  of  those
15    contributions  specifically set forth in this Rule 5.  Except
16    as provided in clause  (iii)  of  this  Rule  5,  neither  an
17    employee nor employer contribution for early retirement under
18    Section  15-136.2, nor any other employer contribution, shall
19    be used in the calculation of  the  amount  of  a  retirement
20    annuity under this Rule 5.
21        The General Assembly has adopted the changes set forth in
22    Section  25  of  this  amendatory  Act  of  the  91st General
23    Assembly in recognition that the decision  of  the  Appellate
24    Court for the Fourth District in Mattis v. State Universities
25    Retirement  System  et al. might be deemed to give some right
26    to the plaintiff in that case.  The changes made  by  Section
27    25  of this amendatory Act of the 91st General Assembly are a
28    legislative implementation of the decision of  the  Appellate
29    Court for the Fourth District in Mattis v. State Universities
30    Retirement System et al. with respect to that plaintiff.
31        The  changes made by Section 25 of this amendatory Act of
32    the 91st General Assembly apply without regard to whether the
33    person is in service as an employee on or after its effective
34    date.
 
                            -6-                LRB9205292EGfg
 1        (b)  The retirement annuity provided under Rules 1 and  3
 2    above  shall  be  reduced  by  1/2  of  1% for each month the
 3    participant is under  age  60  at  the  time  of  retirement.
 4    However,  this  reduction  shall  not  apply in the following
 5    cases:
 6             (1)  For a  disabled  participant  whose  disability
 7        benefits  have  been  discontinued  because he or she has
 8        exhausted  eligibility  for  disability  benefits   under
 9        clause (6) of Section 15-152;
10             (2)  For  a  participant who has at least the number
11        of years of service required to retire at any  age  under
12        subsection (a) of Section 15-135; or
13             (3)  For  that portion of a retirement annuity which
14        has  been  provided  on  account  of   service   of   the
15        participant  during  periods when he or she performed the
16        duties of a  police  officer  or  firefighter,  if  these
17        duties  were  performed  for at least 5 years immediately
18        preceding the date the retirement annuity is to begin.
19        (c)  The maximum retirement annuity provided under  Rules
20    1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
21    benefits  as specified in Section 415 of the Internal Revenue
22    Code of 1986, as such Section may be  amended  from  time  to
23    time  and  as  such  benefit  limits shall be adjusted by the
24    Commissioner of Internal Revenue, and (2) 80% of  final  rate
25    of earnings.
26        (d)  An  annuitant whose status as an employee terminates
27    after August 14, 1969 shall receive  automatic  increases  in
28    his or her retirement annuity as follows:
29        Effective  January  1  immediately following the date the
30    retirement annuity begins, the  annuitant  shall  receive  an
31    increase  in  his or her monthly retirement annuity of 0.125%
32    of the monthly retirement annuity provided under Rule 1, Rule
33    2, Rule 3, Rule 4, or Rule  5,  contained  in  this  Section,
34    multiplied  by  the  number of full months which elapsed from
 
                            -7-                LRB9205292EGfg
 1    the date the retirement annuity payments began to January  1,
 2    1972,  plus 0.1667% of such annuity, multiplied by the number
 3    of full months which elapsed from January  1,  1972,  or  the
 4    date  the  retirement  annuity  payments  began, whichever is
 5    later, to  January  1,  1978,  plus  0.25%  of  such  annuity
 6    multiplied  by  the  number of full months which elapsed from
 7    January 1, 1978, or the date the retirement annuity  payments
 8    began,  whichever  is  later,  to  the  effective date of the
 9    increase.
10        The annuitant shall receive an increase  in  his  or  her
11    monthly  retirement  annuity  on  each  January  1 thereafter
12    during the annuitant's life of  3%  of  the  monthly  annuity
13    provided  under  Rule  1,  Rule  2, Rule 3, Rule 4, or Rule 5
14    contained in  this  Section.   The  change  made  under  this
15    subsection  by  P.A.  81-970 is effective January 1, 1980 and
16    applies  to  each  annuitant  whose  status  as  an  employee
17    terminates before or after that date.
18        Beginning January 1, 1990, all automatic annual increases
19    payable  under  this  Section  shall  be  calculated   as   a
20    percentage  of  the  total annuity payable at the time of the
21    increase, including all increases  previously  granted  under
22    this Article.
23        The  change  made  in  this subsection by P.A. 85-1008 is
24    effective January 26, 1988, and is applicable without  regard
25    to whether status as an employee terminated before that date.
26        (e)  If,  on  January 1, 1987, or the date the retirement
27    annuity payment period begins, whichever is later, the sum of
28    the retirement annuity provided under Rule 1  or  Rule  2  of
29    this  Section  and  the  automatic  annual increases provided
30    under the preceding subsection or Section  15-136.1,  amounts
31    to  less  than the retirement annuity which would be provided
32    by Rule 3, the retirement annuity shall be  increased  as  of
33    January  1,  1987, or the date the retirement annuity payment
34    period begins, whichever is later, to the amount which  would
 
                            -8-                LRB9205292EGfg
 1    be  provided by Rule 3 of this Section. Such increased amount
 2    shall be considered as the retirement annuity in  determining
 3    benefits  provided under other Sections of this Article. This
 4    paragraph applies without regard  to  whether  status  as  an
 5    employee   terminated  before  the  effective  date  of  this
 6    amendatory Act of  1987,  provided  that  the  annuitant  was
 7    employed  at  least  one-half time during the period on which
 8    the final rate of earnings was based.
 9        (f)  A participant is entitled to such additional annuity
10    as may be provided on an actuarially equivalent basis, by any
11    accumulated additional contributions to his  or  her  credit.
12    However, the additional contributions made by the participant
13    toward the automatic increases in annuity provided under this
14    Section  shall  not  be taken into account in determining the
15    amount of such additional annuity.
16        (g)  If, (1) by law, a function of a  governmental  unit,
17    as  defined by Section 20-107 of this Code, is transferred in
18    whole or in part  to  an  employer,  and  (2)  a  participant
19    transfers  employment  from  such  governmental  unit to such
20    employer within 6 months after the transfer of the  function,
21    and (3) the sum of (A) the annuity payable to the participant
22    under  Rule  1,  2, or 3 of this Section (B) all proportional
23    annuities payable to the participant by all other  retirement
24    systems  covered  by  Article 20, and (C) the initial primary
25    insurance amount to which the participant is  entitled  under
26    the  Social Security Act, is less than the retirement annuity
27    which would have been payable if  all  of  the  participant's
28    pension  credits  validated  under  Section  20-109  had been
29    validated under this system, a supplemental annuity equal  to
30    the  difference  in  such  amounts  shall  be  payable to the
31    participant.
32        (h)  On January 1, 1981, an annuitant who was receiving a
33    retirement annuity on or before January 1,  1971  shall  have
34    his  or  her  retirement annuity then being paid increased $1
 
                            -9-                LRB9205292EGfg
 1    per month for each year of creditable service. On January  1,
 2    1982,  an  annuitant  whose  retirement  annuity  began on or
 3    before January 1, 1977, shall  have  his  or  her  retirement
 4    annuity  then being paid increased $1 per month for each year
 5    of creditable service.
 6        (i)  On January 1, 1987, any annuitant  whose  retirement
 7    annuity  began  on  or before January 1, 1977, shall have the
 8    monthly retirement annuity increased by an amount equal to 8¢
 9    per year of creditable service times the number of years that
10    have elapsed since the annuity began.
11        (j)  On  January  1,  2002,  every  annuitant  who  began
12    receiving a retirement annuity before January 1,  1998  shall
13    have  the  monthly  retirement annuity increased by an amount
14    equal to  the  number  of  years  of  the  deceased  person's
15    creditable  service,  times  the  number  of  years that have
16    elapsed since the  annuity  began,  times  whichever  of  the
17    following  amounts is applicable:  $0.25 if the annuity began
18    before 1986; $0.20 if the annuity began in 1986, 1987,  1988,
19    or  1989;  $0.15 if the annuity began in 1990, 1991, 1992, or
20    1993; and $0.10 if the annuity began in 1994, 1995, 1996,  or
21    1997.
22        The  increase under this subsection shall be added to the
23    amount of the retirement annuity otherwise payable on January
24    1, 2002 and shall be included in the calculation of increases
25    granted after that date under subsection (d).
26    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
27    eff. 8-16-97; 90-576, eff.  3-31-98;  90-655,  eff.  7-30-98;
28    90-766,  eff.  8-14-98;  91-887  (Sections  20  and 25), eff.
29    7-6-00; revised 8-31-00.)

30        (40 ILCS 5/15-136.3)
31        Sec. 15-136.3. Minimum retirement annuity.
32        (a)  Beginning  January  1,  1997,  any  person  who   is
33    receiving  a  monthly  retirement  annuity under this Article
 
                            -10-               LRB9205292EGfg
 1    which, after inclusion of  (1)  all  one-time  and  automatic
 2    annual  increases  to  which  the person is entitled, (2) any
 3    supplemental annuity payable under Section 15-136.1, and  (3)
 4    any amount deducted under Section 15-138 or 15-140 to provide
 5    a  reversionary  annuity,  is  less  than the minimum monthly
 6    retirement benefit amount specified in subsection (b) of this
 7    Section, shall be entitled to a monthly supplemental  payment
 8    equal to the difference.
 9        (b)  For  purposes  of the calculation in subsection (a),
10    the minimum monthly retirement benefit amount is the  sum  of
11    $25  for  each  year of service credit, up to a maximum of 30
12    years of service, plus the amount of the increase received by
13    the annuitant under subsection (j) of Section 15-136, if any.
14        (c)  This Section applies  to  all  persons  receiving  a
15    retirement  annuity  under  this  Article,  without regard to
16    whether or not employment terminated prior to  the  effective
17    date of this Section.
18    (Source: P.A. 89-616, eff. 8-9-96.)

19        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
20        Sec.  15-145.   Survivors  insurance benefits; conditions
21    and amounts.
22        (a)  The survivors insurance benefits provided under this
23    Section shall be payable  to  the  eligible  survivors  of  a
24    participant  covered  under  the  traditional benefit package
25    upon the death of (1) a participating employee with at  least
26    1 1/2  years  of  service,  (2)  a participant who terminated
27    employment with at least 10 years  of  service,  and  (3)  an
28    annuitant  in  receipt  of a retirement annuity or disability
29    retirement annuity under this Article.
30        Service under the State Employees' Retirement  System  of
31    Illinois,  the  Teachers'  Retirement  System of the State of
32    Illinois  and  the  Public  School  Teachers'   Pension   and
33    Retirement Fund of Chicago shall be considered in determining
 
                            -11-               LRB9205292EGfg
 1    eligibility for survivors benefits under this Section.
 2        If  by law, a function of a governmental unit, as defined
 3    by Section 20-107, is transferred in whole or in part  to  an
 4    employer,  and  an  employee  transfers  employment from this
 5    governmental unit to such employer within 6 months after  the
 6    transfer  of  this  function,  the  service  credits  in  the
 7    governmental   unit's   retirement  system  which  have  been
 8    validated  under  Section  20-109  shall  be  considered   in
 9    determining  eligibility  for  survivors  benefits under this
10    Section.
11        (b)  A surviving spouse of a deceased participant, or  of
12    a  deceased annuitant who did not take a refund or additional
13    annuity  consisting  of   accumulated   survivors   insurance
14    contributions,  shall  receive  a survivors annuity of 30% of
15    the final rate of earnings.  Payments shall begin on the  day
16    following  the participant's or annuitant's death or the date
17    the surviving spouse attains age 50, whichever is later,  and
18    continue  until  the  death  of  the  surviving  spouse.  The
19    annuity shall be payable to the  surviving  spouse  prior  to
20    attainment  of  age  50 if the surviving spouse has in his or
21    her care a deceased participant's  or  annuitant's  dependent
22    unmarried  child  under  age  18 (under age 22 if a full-time
23    student) who is eligible for a survivors annuity.  Remarriage
24    of a surviving spouse prior to  attainment  of  age  55  that
25    occurs  before  the  effective date of this amendatory Act of
26    the 91st General Assembly shall disqualify him or her for the
27    receipt of a survivors annuity.
28        (c)  Each dependent unmarried child under age  18  (under
29    age  22 if a full-time student) of a deceased participant, or
30    of a  deceased  annuitant  who  did  not  take  a  refund  or
31    additional   annuity   consisting  of  accumulated  survivors
32    insurance contributions, shall receive  a  survivors  annuity
33    equal  to  the  sum of (1) 20% of the final rate of earnings,
34    and (2) 10% of the final rate  of  earnings  divided  by  the
 
                            -12-               LRB9205292EGfg
 1    number  of children entitled to this benefit.  Payments shall
 2    begin on the day following the participant's  or  annuitant's
 3    death  and continue until the child marries, dies, or attains
 4    age 18 (age 22 if a full-time student).  If the child  is  in
 5    the  care of a surviving spouse who is eligible for survivors
 6    insurance benefits, the child's benefit shall be paid to  the
 7    surviving spouse.
 8        Each   unmarried   child   over  age  18  of  a  deceased
 9    participant or of a deceased annuitant who had  a  survivor's
10    insurance  beneficiary  at the time of his or her retirement,
11    and who was dependent upon the participant  or  annuitant  by
12    reason  of  a physical or mental disability which began prior
13    to the date the child attained age 18 (age 22 if a  full-time
14    student), shall receive a survivor's annuity equal to the sum
15    of  (1) 20% of the final rate of earnings, and (2) 10% of the
16    final rate of earnings divided  by  the  number  of  children
17    entitled  to survivors benefits.  Payments shall begin on the
18    day following the  participant's  or  annuitant's  death  and
19    continue  until  the  child  marries,  dies,  or is no longer
20    disabled.  If the child is in the care of a surviving  spouse
21    who is eligible for survivors insurance benefits, the child's
22    benefit  may  be  paid  to  the  surviving  spouse.   For the
23    purposes of  this  Section,  disability  means  inability  to
24    engage  in  any substantial gainful activity by reason of any
25    medically determinable physical or mental impairment that can
26    be expected to result in death or that has lasted or  can  be
27    expected  to  last  for  a  continuous period of at least one
28    year.
29        (d)  Each dependent parent of a deceased participant,  or
30    of  a  deceased  annuitant  who  did  not  take  a  refund or
31    additional  annuity  consisting  of   accumulated   survivors
32    insurance  contributions,  shall  receive a survivors annuity
33    equal to the sum of (1) 20% of final rate  of  earnings,  and
34    (2)  10%  of  final rate of earnings divided by the number of
 
                            -13-               LRB9205292EGfg
 1    parents who qualify for the benefit.   Payments  shall  begin
 2    when  the  parent  reaches  age  55  or the day following the
 3    participant's or annuitant's death, whichever is  later,  and
 4    continue until the parent dies.  Remarriage of a parent prior
 5    to  attainment  of age 55 shall disqualify the parent for the
 6    receipt of a survivors annuity.
 7        (e)  In addition to the survivors annuity provided above,
 8    each survivors insurance beneficiary shall, upon death of the
 9    participant or annuitant,  receive  a  lump  sum  payment  of
10    $1,000 divided by the number of such beneficiaries.
11        (f)  The  changes  made  in  this  Section  by Public Act
12    81-712  pertaining  to  survivors  annuities  in   cases   of
13    remarriage  prior  to  age  55  shall apply to each survivors
14    insurance beneficiary who  remarries  after  June  30,  1979,
15    regardless  of  the  date  that  the participant or annuitant
16    terminated his employment or died.
17        The change made to this Section by this amendatory Act of
18    the 91st General Assembly, pertaining to remarriage prior  to
19    age  55,  applies  without  regard  to  whether  the deceased
20    participant or annuitant was  in  service  on  or  after  the
21    effective  date  of  this  amendatory Act of the 91st General
22    Assembly.
23        (g)  On January 1, 1981, any person who was  receiving  a
24    survivors annuity on or before January 1, 1971 shall have the
25    survivors  annuity  then  being paid increased by 1% for each
26    full year which has elapsed from the date the annuity  began.
27    On  January  1,  1982, any survivor whose annuity began after
28    January 1, 1971, but before January 1, 1981, shall  have  the
29    survivor's  annuity  then being paid increased by 1% for each
30    year which has elapsed from the date the  survivor's  annuity
31    began. On January 1, 1987, any survivor who began receiving a
32    survivor's  annuity  on or before January 1, 1977, shall have
33    the monthly survivor's annuity increased by $1 for each  full
34    year  which has elapsed since the date the survivor's annuity
 
                            -14-               LRB9205292EGfg
 1    began.
 2        (g-1)  On  January  1,  2002,  every   recipient   of   a
 3    survivor's   annuity  whose  original  annuity  began  before
 4    January 1, 1998 shall have  the  monthly  survivor's  annuity
 5    increased  by  an  amount equal to the number of years of the
 6    deceased person's creditable service,  times  the  number  of
 7    years  that  have  elapsed  since the original annuity began,
 8    times whichever  of  the  following  amounts  is  applicable:
 9    $0.25 if the original annuity began before 1986; $0.20 if the
10    original annuity began in 1986, 1987, 1988, or 1989; $0.15 if
11    the  original annuity began in 1990, 1991, 1992, or 1993; and
12    $0.10 if the original annuity began in 1994, 1995,  1996,  or
13    1997.
14        In  the  case of the survivor of a deceased annuitant who
15    died while receiving a retirement annuity, "original annuity"
16    means the deceased annuitant's  retirement  annuity;  in  all
17    other cases, "original annuity" means the survivor's annuity.
18        The  increase under this subsection shall be added to the
19    amount of the survivor's annuity otherwise payable on January
20    1, 2002 and shall be included in the calculation of increases
21    granted after that date under subsection (j).
22        (h)  If the  sum  of  the  lump  sum  and  total  monthly
23    survivor  benefits  payable under this Section upon the death
24    of a participant amounts to less than the sum  of  the  death
25    benefits  payable  under items (2) and (3) of Section 15-141,
26    the difference shall be paid in a lump sum to the beneficiary
27    of the participant who  is  living  on  the  date  that  this
28    additional amount becomes payable.
29        (i)  If  the  sum  of  the  lump  sum  and  total monthly
30    survivor benefits payable under this Section upon  the  death
31    of  an annuitant receiving a retirement annuity or disability
32    retirement annuity amounts to less  than  the  death  benefit
33    payable under Section 15-142, the difference shall be paid to
34    the  beneficiary  of  the annuitant who is living on the date
 
                            -15-               LRB9205292EGfg
 1    that this additional amount becomes payable.
 2        (j)  Effective on the later of (1) January  1,  1990,  or
 3    (2)  the  January  1  on  or next after the date on which the
 4    survivor annuity begins, if the deceased  member  died  while
 5    receiving  a  retirement  annuity,  or in all other cases the
 6    January 1 nearest the  first  anniversary  of  the  date  the
 7    survivor  annuity  payments  begin, every survivors insurance
 8    beneficiary shall receive an increase in his or  her  monthly
 9    survivors annuity of 3%.  On each January 1 after the initial
10    increase, the monthly survivors annuity shall be increased by
11    3%  of  the  total  survivors  annuity  provided  under  this
12    Article,   including  previous  increases  provided  by  this
13    subsection.  Such increases  shall  apply  to  the  survivors
14    insurance  beneficiaries  of  each participant and annuitant,
15    whether or not the employment status of  the  participant  or
16    annuitant  terminates  before  the  effective  date  of  this
17    amendatory  Act of 1990.  This subsection (j) also applies to
18    persons receiving  a  survivor  annuity  under  the  portable
19    benefit package.
20        (k)  If  the  Internal  Revenue Code of 1986, as amended,
21    requires that the survivors benefits be  payable  at  an  age
22    earlier  than  that  specified  in  this Section the benefits
23    shall  begin  at  the  earlier  age,  in  which  event,   the
24    survivor's  beneficiary shall be entitled only to that amount
25    which is equal to the actuarial equivalent  of  the  benefits
26    provided by this Section.
27        (l)  The  changes made to this Section and Section 15-131
28    by this amendatory Act of  1997,  relating  to  benefits  for
29    certain  unmarried  children who are full-time students under
30    age 22, apply without regard to whether the  deceased  member
31    was  in  service  on  or  after  the  effective  date of this
32    amendatory Act of 1997.  These changes do not  authorize  the
33    repayment  of  a refund or a re-election of benefits, and any
34    benefit or increase in benefits resulting from these  changes
 
                            -16-               LRB9205292EGfg
 1    is  not  payable  retroactively  for  any  period  before the
 2    effective date of this amendatory Act of 1997.
 3    (Source: P.A. 90-448, eff.  8-16-97;  90-766,  eff.  8-14-98;
 4    91-887, eff. 7-6-00.)

 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.

[ Top ]