State of Illinois
92nd General Assembly
Legislation

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92_HB3701

 
                                               LRB9210977LDpc

 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 Section 17-122 as follows:

 6        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
 7        Sec. 17-122. Survivor's and children's pensions - Amount.
 8    Upon the death of a teacher who has completed at least 1  1/2
 9    years  of  contributing  service with either this Fund or the
10    State  Universities  Retirement  System  or   the   Teachers'
11    Retirement  System  of  the  State  of Illinois, provided his
12    death occurred while (a) in active  service  covered  by  the
13    Fund  or  during his first 18 months of continuous employment
14    without a break in  service  under  any  other  participating
15    system   as   defined  in  the  Illinois  Retirement  Systems
16    Reciprocal  Act  except  the  State  Universities  Retirement
17    System and the Teachers' Retirement System of  the  State  of
18    Illinois,  (b)  on  a  creditable  leave of absence, (c) on a
19    noncreditable leave of absence of no more than one  year,  or
20    (d)  a  pension  was deferred or pending provided the teacher
21    had at least 10 years of validated service  credit,  or  upon
22    the  death  of  a  pensioner  otherwise  qualified  for  such
23    benefit, the surviving spouse and unmarried minor children of
24    the  deceased  teacher  under  age  18  shall  be entitled to
25    pensions, under  the  conditions  stated  hereinafter.   Such
26    survivor's  and  children's  pensions  shall  be based on the
27    average of the 4 highest consecutive years of salary  in  the
28    last  10  years of service or on the average salary for total
29    service, if  total  service  has  been  less  than  4  years,
30    according to the following percentages:
31        30%  of  average  salary or 50% of the retirement pension
 
                            -2-                LRB9210977LDpc
 1    earned by the teacher, whichever is larger,  subject  to  the
 2    prescribed  maximum  monthly  payment, for a surviving spouse
 3    alone on attainment of age  50,  but,  beginning  January  1,
 4    2003, not less than $400 per month;
 5        60%   of  average  salary  for  a  surviving  spouse  and
 6    eligible  minor  children  of  the  deceased  teacher,   but,
 7    beginning  January  1, 2003, not less than $400 per month per
 8    eligible survivor.
 9        If no eligible spouse survives, or the  surviving  spouse
10    remarries,  or  the  parent  of  the children of the deceased
11    member is otherwise ineligible for a  survivor's  pension,  a
12    children's  pension  for eligible minor children under age 18
13    shall be paid to their parent or  legal  guardian  for  their
14    benefit according to the following percentages:
15        30%  of  average  salary  for  one  child, but, beginning
16    January 1, 2003, not less than $400 per month;
17        60% of average  salary  for  2  or  more  children,  but,
18    beginning  January  1, 2003, not less than $400 per month per
19    eligible survivor.
20        On January  1,  1981,  any  survivor  or  child  who  was
21    receiving  a  survivor's  or  children's pension on or before
22    January 1, 1971, shall  have  his  survivor's  or  children's
23    pension  then  being  paid increased by 1% for each full year
24    which has elapsed from the date the pension began. On January
25    1, 1982, any survivor or  child  whose  pension  began  after
26    January  1,  1971, but before January 1, 1981, shall have his
27    survivor's or children's pension then being paid increased 1%
28    for each full year  which  has  elapsed  from  the  date  the
29    pension  began.  On  January  1,  1987, any survivor or child
30    whose pension began on or before January 1, 1977, shall  have
31    the  monthly survivor's or children's pension increased by $1
32    for each full year which has elapsed since the pension began.
33        Beginning  January  1,   1990,   every   survivor's   and
34    children's  pension  shall be increased (1) on each January 1
 
                            -3-                LRB9210977LDpc
 1    occurring on or after the commencement of the pension if  the
 2    deceased  teacher  died while receiving a retirement pension,
 3    or (2) in other cases, on each  January  1  occurring  on  or
 4    after  the  first  anniversary  of  the  commencement  of the
 5    pension, by an amount equal to 3% of the  current  amount  of
 6    the pension, including all increases previously granted under
 7    this Article, notwithstanding Section 17-157.  Such increases
 8    shall  apply  without  regard to whether the deceased teacher
 9    was in service  on  or  after  the  effective  date  of  this
10    amendatory  Act  of 1991, but shall not accrue for any period
11    prior to January 1, 1990.
12        Subject to the minimum  established  below,  the  maximum
13    amount  of  pension for a surviving spouse alone or one minor
14    child shall be $400  per  month,  and  the  maximum  combined
15    pensions  for a surviving spouse and children of the deceased
16    teacher shall be $600 per  month,  with  individual  pensions
17    adjusted  for all beneficiaries pro rata to conform with this
18    limitation.   If  proration  is   unnecessary   the   minimum
19    survivor's  and  children's  pensions shall be $40 per month.
20    The minimum total survivor's and children's  pension  payable
21    upon  the  death  of  a contributor or annuitant which occurs
22    after  December  31,  1986,  shall  be  50%  of  the   earned
23    retirement   pension   of   such  contributor  or  annuitant,
24    calculated without early retirement discount in the  case  of
25    death  in  service.   Beginning  January 1, 2003, the minimum
26    total survivor's and  children's  pension  payable  upon  the
27    death  of  a  contributor  or  annuitant that occurred before
28    January 1, 1987 shall be 50% of the earned retirement pension
29    of the contributor or annuitant, calculated without any early
30    retirement discount in the case of a death in service.
31        On death  after  retirement,  the  total  survivor's  and
32    children's  pensions  shall not exceed the monthly retirement
33    or  disability  pension  paid  to  the   deceased   retirant.
34    Survivor's  and children's benefits described in this Section
 
                            -4-                LRB9210977LDpc
 1    shall apply to all service and disability pensioners eligible
 2    for a pension as of July 1, 1981.
 3    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

 4        Section 90.  The State Mandates Act is amended by  adding
 5    Section 8.26 as follows:

 6        (30 ILCS 805/8.26 new)
 7        Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
 8    and 8 of this Act, no reimbursement by the State is  required
 9    for  the  implementation  of  any  mandate  created  by  this
10    amendatory Act of the 92nd General Assembly.

11        Section  99.  Effective date.  This Act takes effect upon
12    becoming law.

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