State of Illinois
92nd General Assembly
Legislation

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92_HB5001

 
                                               LRB9215492EGfg

 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-                LRB9215492EGfg
 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-                LRB9215492EGfg
 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-                LRB9215492EGfg
 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-                LRB9215492EGfg
 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-                LRB9215492EGfg
 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-                LRB9215492EGfg
 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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