State of Illinois
92nd General Assembly
Legislation

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92_HB3758

 
                                               LRB9211303EGfg

 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 14-119 and 14-121 as follows:

 6        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
 7        Sec. 14-119.  Amount of widow's annuity.
 8        (a)  The  widow's  annuity  shall be 50% of the amount of
 9    retirement annuity payable to the member on the date of death
10    while on retirement if an annuitant, or on the  date  of  his
11    death  while in service if an employee, regardless of his age
12    on such date, or on the date of withdrawal if death  occurred
13    after  termination of service under the conditions prescribed
14    in the preceding Section.
15        (b)  If an eligible widow, regardless of age, has in  her
16    care  any unmarried child or children of the member under age
17    18 (under age 22 if a full-time student), the widow's annuity
18    shall be increased in the amount  of  5%  of  the  retirement
19    annuity  for each such child, but the combined payments for a
20    widow and children shall not exceed 66 2/3% of  the  member's
21    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.
 
                            -2-                LRB9211303EGfg
 1        Attainment of age 18 (age  22  if  a  full-time  student)
 2    shall  render a child ineligible for further consideration in
 3    the increase of the widow's annuity, but the annuity  to  the
 4    widow  shall  be  continued thereafter, without regard to her
 5    age at that time.
 6        (d)  Until January 1, 2003, a widow's annuity payable  on
 7    account  of  any  covered  employee who has shall have been a
 8    covered employee for at least 18 months shall be  reduced  by
 9    1/2  of  the  amount  of  survivors  benefits  to  which  his
10    beneficiaries  are  eligible  under  the  provisions  of  the
11    Federal  Social  Security  Act, except that (1) the amount of
12    any widow's annuity payable under this Article shall  not  be
13    reduced by reason of any increase under that Act which occurs
14    after the offset required by this subsection is first applied
15    to  that  annuity,  and  (2) for benefits granted on or after
16    January 1, 1992, the offset under this subsection  (d)  shall
17    not  exceed  50%  of  the amount of widow's annuity otherwise
18    payable.
19        Beginning  January  1,  2003,  the  offset   under   this
20    subsection  (d)  shall  no  longer  be applied to any widow's
21    annuity, regardless of whether the deceased employee  was  in
22    service on or after the effective date of this amendatory Act
23    of the 92nd General Assembly.
24        (e)  Upon  the  death of a recipient of a widow's annuity
25    the  excess,  if     any,   of   the   member's   accumulated
26    contributions   plus   credited  interest  over  all  annuity
27    payments to the member and widow, exclusive of the $500  lump
28    sum  payment,  shall  be paid to the named beneficiary of the
29    widow, or if none has been named, to the estate of the widow,
30    provided no reversionary annuity is payable.
31        (f)  On January 1,  1981,  any  recipient  of  a  widow's
32    annuity  who  was  receiving  a  widow's annuity on or before
33    January 1, 1971, shall have her widow's  annuity  then  being
34    paid  increased  by  1%  for each full year which has elapsed
 
                            -3-                LRB9211303EGfg
 1    from the date the widow's annuity began.  On January 1, 1982,
 2    any recipient of a widow's  annuity  who  began  receiving  a
 3    widow's  annuity after January 1, 1971, but before January 1,
 4    1981,  shall  have  her  widow's  annuity  then  being   paid
 5    increased by 1% for each full year which has elapsed from the
 6    date  the  widow's  annuity  began.   On January 1, 1987, any
 7    recipient of  a  widow's  annuity  who  began  receiving  the
 8    widow's  annuity on or before January 1, 1977, shall have the
 9    monthly widow's annuity increased by $1 for  each  full  year
10    which has elapsed since the date the annuity began.
11        (g)  Beginning  January  1,  1990,  every widow's annuity
12    shall be increased (1) on each  January  1  occurring  on  or
13    after  the commencement of the annuity if the deceased member
14    died while receiving a retirement annuity, or  (2)  in  other
15    cases,  on  each  January  1  occurring on or after the first
16    anniversary of the commencement of the annuity, by an  amount
17    equal  to  3% of the current amount of the annuity, including
18    any previous increases under  this  Article.  Such  increases
19    shall apply without regard to whether the deceased member was
20    in  service  on  or  after  the  effective date of Public Act
21    86-1488, but shall not accrue for any period prior to January
22    1, 1990.
23    (Source: P.A. 90-448, eff. 8-16-97.)

24        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
25        Sec. 14-121.  Amount of survivors annuity.   A  survivors
26    annuity  beneficiary  shall  be  entitled  upon  death of the
27    member to a single sum payment of $1,000,  payable  pro  rata
28    among all persons entitled thereto, together with a survivors
29    annuity  payable  at  the  rates  and  under  the  conditions
30    specified in this Article.
31        (a)  If  the  survivors  annuity beneficiary is a spouse,
32    the  survivors  annuity  shall  be  30%  of   final   average
33    compensation subject to a maximum payment of $400 per month.
 
                            -4-                LRB9211303EGfg
 1        (b)  If an eligible child or children under the care of a
 2    spouse  also  survives  the  member,  such  spouse as natural
 3    guardian of the child or children shall receive, in  addition
 4    to  the  foregoing annuity, 20% of final average compensation
 5    on account of each  such  child  and  10%  of  final  average
 6    compensation divided pro rata among such children, subject to
 7    a   maximum  payment  on  account  of  all  survivor  annuity
 8    beneficiaries of $600 per month, or 80% of the member's final
 9    average compensation, whichever is the lesser.
10        (c)  If   the   survivors    annuity    beneficiary    or
11    beneficiaries consists of an unmarried child or children, the
12    amount  of  survivors  annuity  shall be 20% of final average
13    compensation  to  each  child,  and  10%  of  final   average
14    compensation   divided  pro  rata  among  all  such  children
15    entitled to such annuity, subject to a maximum payment to all
16    children combined of $600 per month or 80%  of  the  member's
17    final average compensation, whichever is the lesser.
18        (d)  If  the survivors annuity beneficiary is one or more
19    dependent parents, the annuity shall be 20% of final  average
20    compensation   to  each  parent  and  10%  of  final  average
21    compensation divided pro rata among the parents  who  qualify
22    for  this  annuity,  subject  to  a  maximum  payment to both
23    dependent parents of $400 per month.
24        (e)  The survivors annuity to  the  spouse,  children  or
25    dependent  parents  of  a member whose death occurs after the
26    date of last withdrawal, or after  retirement,  or  while  in
27    service  following  reentry into service after retirement but
28    before  completing  1  1/2  years  of  additional  creditable
29    service, shall not exceed the lesser of 80% of  the  member's
30    earned retirement annuity at the date of death or the maximum
31    previously established in this Section.
32        (f)  In   applying   the  limitation  prescribed  on  the
33    combined  payments   to   2   or   more   survivors   annuity
34    beneficiaries,  the  annuity  on  account of each beneficiary
 
                            -5-                LRB9211303EGfg
 1    shall be reduced pro rata until such time as  the  number  of
 2    beneficiaries makes the reduction no longer applicable.
 3        (g)  Until  January  1, 2003, a survivors annuity payable
 4    on account of any covered employee who has shall have been  a
 5    covered  employee  for at least 18 months at date of death or
 6    last withdrawal, whichever is the later, shall be reduced  by
 7    1/2  of the survivors benefits to which his beneficiaries are
 8    eligible under the federal Social Security Act,  except  that
 9    (1)  the  survivors  annuity payable under this Article shall
10    not be reduced by any increase under that  Act  which  occurs
11    after the offset required by this subsection is first applied
12    to that annuity, (2) for benefits granted on or after January
13    1,  1992,  the  offset  under  this  subsection (g) shall not
14    exceed 50% of  the  amount  of  survivors  annuity  otherwise
15    payable.
16        Beginning   January   1,  2003,  the  offset  under  this
17    subsection (g) shall no longer be applied  to  any  survivors
18    annuity,  regardless  of whether the deceased employee was in
19    service on or after the effective date of this amendatory Act
20    of the 92nd General Assembly.
21        (h)  The minimum payment to a beneficiary hereunder shall
22    be $60 per month, which shall be reduced in  accordance  with
23    the  limitation  prescribed  on  the combined payments to all
24    beneficiaries of a member.
25        (i)  Subject to  the  conditions  set  forth  in  Section
26    14-120,  the  minimum total survivors annuity benefit payable
27    to the survivors annuity beneficiaries of a  deceased  member
28    or  annuitant whose death occurs on or after January 1, 1984,
29    shall be 50% of the amount of retirement annuity that was  or
30    would have been payable to the deceased on the date of death,
31    regardless  of  the age of the deceased on such date.  If the
32    minimum total benefit provided by this subsection exceeds the
33    maximum otherwise imposed by this Section, the minimum  total
34    benefit  shall  nevertheless be payable.  Any increase in the
 
                            -6-                LRB9211303EGfg
 1    total survivors annuity benefit resulting from the  operation
 2    of  this  subsection  shall  be  divided  among the survivors
 3    annuity beneficiaries of the deceased in proportion to  their
 4    shares  of  the  total  survivors  annuity  benefit otherwise
 5    payable under this Section.
 6        (j)  Any  survivors  annuity  beneficiary  whose  annuity
 7    terminates due to any condition  specified  in  this  Article
 8    other than death shall be entitled to a refund of the excess,
 9    if  any,  of the accumulated contributions of the member plus
10    credited  interest  over  all  payments  to  the  member  and
11    beneficiary or beneficiaries, exclusive  of  the  single  sum
12    payment   of   $1,000,   provided   no  future  survivors  or
13    reversionary annuity benefits are payable.
14        (k)  Upon the death of the last eligible recipient  of  a
15    survivors  annuity  the  excess,  if  any,  of  the  member's
16    accumulated  contributions  plus  credited  interest over all
17    annuity payments to the member and survivors exclusive of the
18    single sum payment of $1000,  shall  be  paid  to  the  named
19    beneficiary  of  the  last  eligible survivor, or if none has
20    been named, to the estate  of  the  last  eligible  survivor,
21    provided no reversionary annuity is payable.
22        (l)  On January 1, 1981, any survivor who was receiving a
23    survivors  annuity  on  or before January 1, 1971, shall have
24    his survivors annuity then being paid  increased  by  1%  for
25    each  full  year  which has elapsed from the date the annuity
26    began.  On January 1, 1982, any survivor who began  receiving
27    a  survivor's  annuity  after  January  1,  1971,  but before
28    January 1, 1981, shall have his survivor's annuity then being
29    paid increased by 1% for each full year that has elapsed from
30    the date the annuity began. On January 1, 1987, any  survivor
31    who began receiving a survivor's annuity on or before January
32    1,  1977, shall have the monthly survivor's annuity increased
33    by $1 for each full year which has elapsed since the date the
34    survivor's annuity began.
 
                            -7-                LRB9211303EGfg
 1        (m)  Beginning January 1, 1990, every survivor's  annuity
 2    shall  be  increased  (1)  on  each January 1 occurring on or
 3    after the commencement of the annuity if the deceased  member
 4    died  while  receiving  a retirement annuity, or (2) in other
 5    cases, on each January 1 occurring  on  or  after  the  first
 6    anniversary  of the commencement of the annuity, by an amount
 7    equal to 3% of the current amount of the  annuity,  including
 8    any  previous  increases  under this Article.  Such increases
 9    shall apply without regard to whether the deceased member was
10    in service on or after  the  effective  date  of  Public  Act
11    86-1488, but shall not accrue for any period prior to January
12    1, 1990.
13    (Source: P.A. 86-273; 86-1488; 87-794.)

14        Section  99.  Effective date.  This Act takes effect upon
15    becoming law.

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