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92_SB0185
LRB9201361EGfg
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 1-113, 13-213, 13-302, 13-306, and 13-308
6 as follows:
7 (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
8 Sec. 1-113. Investment authority of certain pension
9 funds, not including those established under Article 3 or 4.
10 The investment authority of a board of trustees of a
11 retirement system or pension fund established under this Code
12 shall, if so provided in the Article establishing such
13 retirement system or pension fund, embrace the following
14 investments:
15 (1) Bonds, notes and other direct obligations of the
16 United States Government; bonds, notes and other obligations
17 of any United States Government agency or instrumentality,
18 whether or not guaranteed; and obligations the principal and
19 interest of which are guaranteed unconditionally by the
20 United States Government or by an agency or instrumentality
21 thereof.
22 (2) Obligations of the Inter-American Development Bank,
23 the International Bank for Reconstruction and Development,
24 the African Development Bank, the International Finance
25 Corporation, and the Asian Development Bank.
26 (3) Obligations of any state, or of any political
27 subdivision in Illinois, or of any county or city in any
28 other state having a population as shown by the last federal
29 census of not less than 30,000 inhabitants provided that such
30 political subdivision is not permitted by law to become
31 indebted in excess of 10% of the assessed valuation of
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1 property therein and has not defaulted for a period longer
2 than 30 days in the payment of interest and principal on any
3 of its general obligations or indebtedness during a period of
4 10 calendar years immediately preceding such investment.
5 (4) Nonconvertible bonds, debentures, notes and other
6 corporate obligations of any corporation created or existing
7 under the laws of the United States or any state, district or
8 territory thereof, provided there has been no default on the
9 obligations of the corporation or its predecessor(s) during
10 the 5 calendar years immediately preceding the purchase. Up
11 to 5% of the assets of a pension fund established under
12 Article 9 of this Code may be invested in nonconvertible
13 bonds, debentures, notes, and other corporate obligations of
14 corporations created or existing under the laws of a foreign
15 country, provided there has been no default on the
16 obligations of the corporation or its predecessors during the
17 5 calendar years immediately preceding the date of purchase.
18 (5) Obligations guaranteed by the Government of Canada,
19 or by any Province of Canada, or by any Canadian city with a
20 population of not less than 150,000 inhabitants, provided (a)
21 they are payable in United States currency and are exempt
22 from any Canadian withholding tax; (b) the investment in any
23 one issue of bonds shall not exceed 10% of the amount
24 outstanding; and (c) the total investments at book value in
25 Canadian securities shall be limited to 5% of the total
26 investment account of the board at book value.
27 (5.1) Direct obligations of the State of Israel for the
28 payment of money, or obligations for the payment of money
29 which are guaranteed as to the payment of principal and
30 interest by the State of Israel, or common or preferred stock
31 or notes issued by a bank owned or controlled in whole or in
32 part by the State of Israel, on the following conditions:
33 (a) The total investments in such obligations shall
34 not exceed 5% of the book value of the aggregate
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1 investments owned by the board;
2 (b) The State of Israel shall not be in default in
3 the payment of principal or interest on any of its direct
4 general obligations on the date of such investment;
5 (c) The bonds, stock or notes, and interest thereon
6 shall be payable in currency of the United States;
7 (d) The bonds shall (1) contain an option for the
8 redemption thereof after 90 days from date of purchase or
9 (2) either become due 5 years from the date of their
10 purchase or be subject to redemption 120 days after the
11 date of notice for redemption;
12 (e) The investment in these obligations has been
13 approved in writing by investment counsel employed by the
14 board, which counsel shall be a national or state bank or
15 trust company authorized to do a trust business in the
16 State of Illinois, or an investment advisor qualified
17 under the Federal Investment Advisors Act of 1940 and
18 registered under the Illinois Securities Act of 1953;
19 (f) The fund or system making the investment shall
20 have at least $5,000,000 of net present assets.
21 (6) Notes secured by mortgages under Sections 203, 207,
22 220 and 221 of the National Housing Act which are insured by
23 the Federal Housing Commissioner, or his successor assigns,
24 or debentures issued by such Commissioner, which are
25 guaranteed as to principal and interest by the Federal
26 Housing Administration, or agency of the United States
27 Government, provided the aggregate investment shall not
28 exceed 20% of the total investment account of the board at
29 book value, and provided further that the investment in such
30 notes under Sections 220 and 221 shall in no event exceed
31 one-half of the maximum investment in notes under this
32 paragraph.
33 (7) Loans to veterans guaranteed in whole or part by the
34 United States Government pursuant to Title III of the Act of
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1 Congress known as the "Servicemen's Readjustment Act of
2 1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
3 supplemented from time to time, provided such guaranteed
4 loans are liens upon real estate.
5 (8) Common and preferred stocks and convertible debt
6 securities authorized for investment of trust funds under the
7 laws of the State of Illinois, provided:
8 (a) the common stocks, except as provided in
9 subparagraph (g), are listed on a national securities
10 exchange or board of trade, as defined in the federal
11 Securities Exchange Act of 1934, or quoted in the
12 National Association of Securities Dealers Automated
13 Quotation System (NASDAQ);
14 (b) the securities are of a corporation created or
15 existing under the laws of the United States or any
16 state, district or territory thereof, except that up to
17 5% of the assets of a pension fund established under
18 Article 9 of this Code may be invested in securities
19 issued by corporations created or existing under the laws
20 of a foreign country, if those securities are otherwise
21 in conformance with this paragraph (8);
22 (c) the corporation is not in arrears on payment of
23 dividends on its preferred stock;
24 (d) the total book value of all stocks and
25 convertible debt owned by any pension fund or retirement
26 system shall not exceed 40% of the aggregate book value
27 of all investments of such pension fund or retirement
28 system, except for a pension fund or retirement system
29 governed by Article 9, 13, or 17, where the total of all
30 stocks and convertible debt shall not exceed 50% of the
31 aggregate book value of all fund investments, and except
32 for a pension fund or retirement system governed by
33 Article 13, where the total market value of all stocks
34 and convertible debt shall not exceed 65% of the
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1 aggregate market value of all fund investments;
2 (e) the book value of stock and convertible debt
3 investments in any one corporation shall not exceed 5% of
4 the total investment account at book value in which such
5 securities are held, determined as of the date of the
6 investment, and the investments in the stock of any one
7 corporation shall not exceed 5% of the total outstanding
8 stock of such corporation, and the investments in the
9 convertible debt of any one corporation shall not exceed
10 5% of the total amount of such debt that may be
11 outstanding;
12 (f) the straight preferred stocks or convertible
13 preferred stocks and convertible debt securities are
14 issued or guaranteed by a corporation whose common stock
15 qualifies for investment by the board; and
16 (g) that any common stocks not listed or quoted as
17 provided in subdivision 8(a) above be limited to the
18 following types of institutions: (a) any bank which is a
19 member of the Federal Deposit Insurance Corporation
20 having capital funds represented by capital stock,
21 surplus and undivided profits of at least $20,000,000;
22 (b) any life insurance company having capital funds
23 represented by capital stock, special surplus funds and
24 unassigned surplus totalling at least $50,000,000; and
25 (c) any fire or casualty insurance company, or a
26 combination thereof, having capital funds represented by
27 capital stock, net surplus and voluntary reserves of at
28 least $50,000,000.
29 (9) Withdrawable accounts of State chartered and federal
30 chartered savings and loan associations insured by the
31 Federal Savings and Loan Insurance Corporation; deposits or
32 certificates of deposit in State and national banks insured
33 by the Federal Deposit Insurance Corporation; and share
34 accounts or share certificate accounts in a State or federal
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1 credit union, the accounts of which are insured as required
2 by the Illinois Credit Union Act or the Federal Credit Union
3 Act, as applicable.
4 No bank or savings and loan association shall receive
5 investment funds as permitted by this subsection (9), unless
6 it has complied with the requirements established pursuant to
7 Section 6 of the Public Funds Investment Act.
8 (10) Trading, purchase or sale of listed options on
9 underlying securities owned by the board.
10 (11) Contracts and agreements supplemental thereto
11 providing for investments in the general account of a life
12 insurance company authorized to do business in Illinois.
13 (12) Conventional mortgage pass-through securities which
14 are evidenced by interests in Illinois owner-occupied
15 residential mortgages, having not less than an "A" rating
16 from at least one national securities rating service. Such
17 mortgages may have loan-to-value ratios up to 95%, provided
18 that any amount over 80% is insured by private mortgage
19 insurance. The pool of such mortgages shall be insured by
20 mortgage guaranty or equivalent insurance, in accordance with
21 industry standards.
22 (13) Pooled or commingled funds managed by a national or
23 State bank which is authorized to do a trust business in the
24 State of Illinois, shares of registered investment companies
25 as defined in the federal Investment Company Act of 1940
26 which are registered under that Act, and separate accounts of
27 a life insurance company authorized to do business in
28 Illinois, where such pooled or commingled funds, shares, or
29 separate accounts are comprised of common or preferred
30 stocks, bonds, or money market instruments.
31 (14) Pooled or commingled funds managed by a national or
32 state bank which is authorized to do a trust business in the
33 State of Illinois, separate accounts managed by a life
34 insurance company authorized to do business in Illinois, and
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1 commingled group trusts managed by an investment adviser
2 registered under the federal Investment Advisors Act of 1940
3 (15 U.S.C. 80b-1 et seq.) and under the Illinois Securities
4 Law of 1953, where such pooled or commingled funds, separate
5 accounts or commingled group trusts are comprised of real
6 estate or loans upon real estate secured by first or second
7 mortgages. The total investment in such pooled or commingled
8 funds, commingled group trusts and separate accounts shall
9 not exceed 10% of the aggregate book value of all investments
10 owned by the fund.
11 (15) Investment companies which (a) are registered as
12 such under the Investment Company Act of 1940, (b) are
13 diversified, open-end management investment companies and (c)
14 invest only in money market instruments.
15 (16) Up to 10% of the assets of the fund may be invested
16 in investments not included in paragraphs (1) through (15) of
17 this Section, provided that such investments comply with the
18 requirements and restrictions set forth in Sections 1-109,
19 1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
20 The board shall have the authority to enter into such
21 agreements and to execute such documents as it determines to
22 be necessary to complete any investment transaction.
23 Any limitations herein set forth shall be applicable only
24 at the time of purchase and shall not require the liquidation
25 of any investment at any time.
26 All investments shall be clearly held and accounted for
27 to indicate ownership by such board. Such board may direct
28 the registration of securities in its own name or in the name
29 of a nominee created for the express purpose of registration
30 of securities by a national or state bank or trust company
31 authorized to conduct a trust business in the State of
32 Illinois.
33 Investments shall be carried at cost or at a value
34 determined in accordance with generally accepted accounting
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1 principles and accounting procedures approved by such board.
2 (Source: P.A. 90-12, eff. 6-13-97; 90-507, eff. 8-22-97;
3 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
4 (40 ILCS 5/13-213) (from Ch. 108 1/2, par. 13-213)
5 Sec. 13-213. "Contributions": Any moneys paid or payable
6 to into the Fund by the District or by any employee, or any
7 salary deduction hereunder.
8 (Source: P.A. 87-794.)
9 (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
10 Sec. 13-302. Computation of retirement annuity.
11 (a) Computation of annuity. An employee who withdraws
12 from service on or after July 1, 1989 and who has met the age
13 and service requirements and other conditions for eligibility
14 set forth in Section 13-301 of this Article is entitled to
15 receive a retirement annuity for life equal to 2.2% of
16 average final salary for each of the first 20 years of
17 service, and 2.4% of average final salary for each year of
18 service in excess of 20. The retirement annuity shall not
19 exceed 80% of average final salary.
20 (b) Early retirement discount. If an employee retires
21 prior to attainment of age 60 with less than 30 years of
22 service, the annuity computed above shall be reduced by 1/2
23 of 1% for each full month between the date the annuity begins
24 and attainment of age 60, or each full month by which the
25 employee's service is less than 30 years, whichever is less.
26 However, where the employee first enters service after June
27 13, 1997 the effective date of this amendatory Act of 1997
28 and does not have at least 10 years of service exclusive of
29 credit under Article 20, the annuity computed above shall be
30 reduced by 1/2 of 1% for each full month between the date the
31 annuity begins and attainment of age 60.
32 (c) (Blank). Early retirement without discount. An
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1 employee who has attained age 50 and retires after December
2 31, 1987 and before June 30, 1997, and who retires within 6
3 months of the last day for which retirement contributions
4 were required, may elect at the time of application to make a
5 one-time employee contribution to the Fund and thereby avoid
6 the early retirement reduction specified in subsection (b).
7 The exercise of the election shall also obligate the employer
8 to make a one-time nonrefundable contribution to the Fund.
9 The one-time employee and employer contributions shall be
10 a percentage of the retiring employee's last full-time annual
11 salary, calculated as the total amount paid during the last
12 260 work days immediately prior to the date of withdrawal, or
13 if not full-time then the full time equivalent, and based on
14 the employee's age and service at retirement. The employee
15 contribution rate shall be 7% multiplied by the lesser of the
16 following 2 numbers: (1) the number of years, or portion
17 thereof, that the employee is less than age 60; or (2) the
18 number of years, or portion thereof, that the employee's
19 service is less than 30 years. The employer contribution
20 shall be at the rate of 20% for each year, or portion
21 thereof, that the participant is less than age 60.
22 Upon receipt of the application, the Board shall
23 determine the corresponding employee and employer
24 contributions. The annuity shall not be payable under this
25 subsection until both the required contributions have been
26 received by the Fund. However, the date the contributions
27 are received shall not be considered in determining the
28 effective date of retirement.
29 The number of employees who may retire under this Section
30 in any year may be limited at the option of the District to a
31 specified percentage of those eligible, not lower than 30%,
32 with the right to participate to be allocated among those
33 applying on the basis of seniority in the service of the
34 employer.
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1 An employee who has terminated employment and
2 subsequently re-enters service shall not be entitled to early
3 retirement without discount under this subsection unless the
4 employee continues in service for at least 4 years after
5 re-entry.
6 (c-1) Early retirement without discount; retirement
7 after June 29, 1997. An employee who (i) has attained age 55
8 (age 50 if the employee first entered service before June 13,
9 1997) the effective date of this amendatory Act of 1997),
10 (ii) has at least 10 years of service exclusive of credit
11 under Article 20, (iii) retires after June 29, 1997 and
12 before January 1, 2003, and (iv) retires within 6 months of
13 the last day for which retirement contributions were
14 required, may elect at the time of application to make a
15 one-time employee contribution to the Fund and thereby avoid
16 the early retirement reduction specified in subsection (b).
17 The exercise of the election shall also obligate the employer
18 to make a one-time nonrefundable contribution to the Fund.
19 The one-time employee and employer contributions shall be
20 a percentage of the retiring employee's highest full-time
21 annual salary, calculated as the total amount of salary
22 included in the highest 26 consecutive pay periods as used in
23 the average final salary calculation, and based on the
24 employee's age and service at retirement. The employee rate
25 shall be 7% multiplied by the lesser of the following 2
26 numbers: (1) the number of years, or portion thereof, that
27 the employee is less than age 60; or (2) the number of years,
28 or portion thereof, that the employee's service is less than
29 30 years. The employer contribution shall be at the rate of
30 20% for each year, or portion thereof, that the participant
31 is less than age 60.
32 Upon receipt of the application, the Board shall
33 determine the corresponding employee and employer
34 contributions. The annuity shall not be payable under this
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1 subsection until both the required contributions have been
2 received by the Fund. However, the date the contributions
3 are received shall not be considered in determining the
4 effective date of retirement.
5 The number of employees who may retire under this Section
6 in any year may be limited at the option of the District to a
7 specified percentage of those eligible, not lower than 30%,
8 with the right to participate to be allocated among those
9 applying on the basis of seniority in the service of the
10 employer.
11 An employee who has terminated employment and
12 subsequently re-enters service shall not be entitled to early
13 retirement without discount under this subsection unless the
14 employee continues in service for at least 4 years after
15 re-entry.
16 (d) Annual increase. Except for employees retiring and
17 receiving a term annuity, an employee who retires on or after
18 July 1, 1985 but before the effective date of this amendatory
19 Act of the 92nd General Assembly shall, upon the first
20 payment date following the first anniversary of the date of
21 retirement, have the monthly annuity increased by 3% of the
22 amount of the monthly annuity fixed at the date of
23 retirement. Except for employees retiring and receiving a
24 term annuity, an employee who retires on or after the
25 effective date of this amendatory Act of the 92nd General
26 Assembly shall, on the first day of the month in which the
27 first anniversary of the date of retirement occurs, have the
28 monthly annuity increased by 3% of the amount of the monthly
29 annuity fixed at the date of retirement. The monthly annuity
30 shall be increased by an additional 3% on the same date each
31 year thereafter. Beginning January 1, 1993, all annual
32 increases payable under this subsection (or any predecessor
33 provision, regardless of the date of retirement) shall be
34 calculated at the rate of 3% of the monthly annuity payable
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1 at the time of the increase, including any increases
2 previously granted under this Article.
3 Any employee who (i) retired before July 1, 1985 with at
4 least 10 years of creditable service, (ii) is receiving a
5 retirement annuity under this Article, other than a term
6 annuity, and (iii) has not received any annual increase under
7 this subsection, shall begin receiving the annual increases
8 provided under this subsection (d) beginning on the next
9 annuity payment date following the effective date of this
10 amendatory Act of 1997.
11 (e) Minimum retirement annuity. Beginning January 1,
12 1993, the minimum monthly retirement annuity shall be $500
13 for any annuitant having at least 10 years of service under
14 this Article, other than a term annuitant or an annuitant who
15 began receiving the annuity before attaining age 60. Any
16 such annuitant who is receiving a monthly annuity of less
17 than $500 shall have the annuity increased to $500 on that
18 date.
19 Beginning January 1, 1993, the minimum monthly retirement
20 annuity shall be $250 for any annuitant (other than a term or
21 reciprocal annuitant or an annuitant under subsection (d) of
22 Section 13-301) having less than 10 years of service under
23 this Article, and for any annuitant (other than a term
24 annuitant) having at least 10 years of service under this
25 Article who began receiving the annuity before attaining age
26 60. Any such annuitant who is receiving a monthly annuity of
27 less than $250 shall have the annuity increased to $250 on
28 that date.
29 Beginning on the first day of the month following the
30 month in which this amendatory Act of the 92nd General
31 Assembly takes effect (and without regard to whether the
32 annuitant was in service on or after that effective date),
33 the minimum monthly retirement annuity for any annuitant
34 having at least 10 years of service, other than an annuitant
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1 whose annuity is subject to an early retirement discount,
2 shall be $500 plus $25 for each year of service in excess of
3 10, not to exceed $750 for an annuitant with 20 or more years
4 of service. In the case of a reciprocal annuity, this
5 minimum shall apply only if the annuitant has at least 10
6 years of service under this Article, and the amount of the
7 minimum annuity shall be reduced by the sum of all the
8 reciprocal annuities payable to the annuitant by other
9 participating systems under Article 20 of this Code.
10 Notwithstanding any other provision of this subsection,
11 beginning on the first annuity payment date following the
12 effective date of this amendatory Act of the 92nd General
13 Assembly, an employee who retired before August 23, 1989 with
14 at least 10 years of service under this Article but before
15 attaining age 60 (regardless of whether the retirement
16 annuity was subject to an early retirement discount) shall be
17 entitled to the same minimum monthly retirement annuity under
18 this subsection as an employee who retired with at least 10
19 years of service under this Article and after attaining age
20 60.
21 (Source: P.A. 90-12, eff. 6-13-97.)
22 (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
23 Sec. 13-306. Computation of surviving spouse's annuity.
24 (a) Computation of the annuity. The surviving spouse's
25 annuity shall be equal to 60% of the retirement annuity
26 earned and accrued to the credit of the deceased employee,
27 whether death occurs while in service or after withdrawal,
28 plus 1% for each year of total service of the employee to a
29 maximum of 85%; provided, however, that if the employee's
30 death arises out of and in the course of the employee's
31 service to the employer and is compensable under either the
32 Illinois Workers' Compensation Act or Illinois Workers'
33 Occupational Diseases Act, the surviving spouse's annuity is
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1 payable regardless of the employee's length of service and
2 shall be not less than 50% of the employee's salary at the
3 date of death.
4 For any death in service the early retirement discount
5 required under Section 13-302(b) shall not be applied in
6 computing the retirement annuity upon which is based the
7 surviving spouse's annuity.
8 (b) Reciprocal service. For any employee or annuitant
9 who retires on or after July 1, 1985 and whose death occurs
10 after January 1, 1991, having at least 15 years of service
11 with the employer under this Article, and who was eligible at
12 the time of death or elected at the time of retirement to
13 have his or her retirement annuity calculated as provided in
14 Section 20-131 of this Code, the surviving spouse benefit
15 shall be calculated as of the date of the employee's death as
16 indicated in subsection (a) as a percentage of the employee's
17 total benefit as if all service had been with the employer.
18 That benefit shall then be reduced by the amounts payable by
19 each of the reciprocal funds as of the date of death so that
20 the total surviving spouse benefit at that date will be equal
21 to the benefit which would have been payable had all service
22 been with the employer under this Article.
23 (c) Discount for age differential. The annuity for a
24 surviving spouse shall be discounted by 0.25% for each full
25 month that the spouse is younger than the employee as of the
26 date of withdrawal from service or death in service to a
27 maximum discount of 60% of the surviving spouse annuity as
28 calculated under subsections (a), (b), and (e) of this
29 Section. The discount shall be reduced by 10% for each full
30 year the marriage has been in continuous effect as of the
31 date of withdrawal or death in service. There shall be no
32 discount if the marriage has been in continuous effect for 10
33 full years or more at the time of withdrawal or death in
34 service.
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1 (d) Annual increase. On the first day of each calendar
2 month in which there occurs an anniversary of the employee's
3 date of retirement or date of death, whichever occurred
4 first, the surviving spouse's annuity, other than a term
5 annuity under Section 13-307, shall be increased by an amount
6 equal to 3% of the amount of the annuity. Beginning January
7 1, 1993, all annual increases payable under this subsection
8 (or any predecessor provision of this Article) shall be
9 calculated at the rate of 3% of the monthly annuity payable
10 at the time of the increase, including any increases
11 previously granted under this Article.
12 Beginning January 1, 1993, surviving spouse annuitants
13 whose deceased spouse died, retired or withdrew from service
14 before August 23, 1989 with at least 10 years of service
15 under this Article shall be eligible for the annual increases
16 provided under this subsection.
17 (e) Minimum surviving spouse's annuity.
18 (1) Beginning January 1, 1993, the minimum monthly
19 surviving spouse's annuity shall be $500 for any annuitant
20 whose deceased spouse had at least 10 years of service under
21 this Article, other than a surviving spouse who is a term
22 annuitant or whose deceased spouse began receiving a
23 retirement annuity under this Article before attainment of
24 age 60. Any such surviving spouse annuitant who is receiving
25 a monthly annuity of less than $500 shall have the annuity
26 increased to $500 on that date.
27 Beginning January 1, 1993, the minimum monthly surviving
28 spouse's annuity shall be $250 for any annuitant (other than
29 a term or reciprocal annuitant or an annuitant survivor under
30 subsection (d) of Section 13-301) whose deceased spouse had
31 less than 10 years of service under this Article, and for any
32 annuitant (other than a term annuitant) whose deceased spouse
33 had at least 10 years of service under this Article and began
34 receiving a retirement annuity under this Article before
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1 attainment of age 60. Any such surviving spouse annuitant
2 who is receiving a monthly annuity of less than $250 shall
3 have the annuity increased to $250 on that date.
4 (2) Beginning on the first day of the month following
5 the month in which this amendatory Act of the 92nd General
6 Assembly takes effect (and without regard to whether the
7 deceased spouse was in service on or after that effective
8 date), the minimum monthly surviving spouse's annuity for any
9 annuitant whose deceased spouse had at least 10 years of
10 service shall be the greater of the following:
11 (A) An amount equal to $500, plus $25 for each year
12 of the deceased spouse's service in excess of 10, not to
13 exceed $750 for an annuitant whose deceased spouse had 20
14 or more years of service. This subdivision (A) is not
15 applicable if the deceased spouse received a retirement
16 annuity that was subject to an early retirement discount.
17 (B) An amount equal to (i) 50% of the retirement
18 annuity earned and accrued to the credit of the deceased
19 spouse at the time of death, plus (ii) the amount of any
20 annual increases applicable to the surviving spouse's
21 annuity (including the amount of any reversionary
22 annuity) under subsection (d) before the effective date
23 of this amendatory Act of the 92nd General Assembly. In
24 any case in which a refund of excess contributions for
25 the surviving spouse annuity has been paid by the Fund
26 and the surviving spouse annuity is increased due to the
27 application of this subdivision (B), the amount of that
28 refund shall be recovered by the Fund as an offset
29 against the amount of the increase in annuity arising
30 from the application of this subdivision (B).
31 In the case of a reciprocal annuity, the minimum annuity
32 calculated under this subdivision (e)(2) shall apply only if
33 the deceased spouse of the annuitant had at least 10 years of
34 service under this Article, and the amount of the minimum
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1 annuity shall be reduced by the sum of all the reciprocal
2 annuities payable to the annuitant by other participating
3 systems under Article 20 of this Code.
4 The minimum annuity calculated under this subdivision
5 (e)(2) is in addition to the amount of any reversionary
6 annuity that may be payable.
7 (3) Beginning on the first day of the month following
8 the month in which this amendatory Act of the 92nd General
9 Assembly takes effect (and without regard to whether the
10 deceased spouse was in service on or after that effective
11 date), any surviving spouse who is receiving a term annuity
12 under Section 13-307 or any predecessor provision of this
13 Article may have that term annuity recalculated and converted
14 to a minimum surviving spouse annuity under this subsection
15 (e).
16 (4) Notwithstanding any other provision of this
17 subsection, beginning on the first annuity payment date
18 following the effective date of this amendatory Act of the
19 92nd General Assembly, an annuitant whose deceased spouse
20 retired before August 23, 1989 with at least 10 years of
21 service under this Article but before attaining age 60
22 (regardless of whether the retirement annuity was subject to
23 an early retirement discount) shall be entitled to the same
24 minimum monthly surviving spouse's annuity under this
25 subsection as an annuitant whose deceased spouse retired with
26 at least 10 years of service under this Article and after
27 attaining age 60.
28 (5) The minimum annuity provided under this subsection
29 (e) shall be subject to the age discount provided under
30 subsection (c) of this Section.
31 (Source: P.A. 90-12, eff. 6-13-97.)
32 (40 ILCS 5/13-308) (from Ch. 108 1/2, par. 13-308)
33 Sec. 13-308. Child's annuity.
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1 (a) Eligibility. A child's annuity shall be provided
2 for each unmarried child under the age of 18 years whose
3 employee parent dies while in service, or whose deceased
4 parent is an annuitant or former employee with at least 10
5 years of creditable service who did not take a refund of
6 employee contributions.
7 For purposes of this Section, "employee" includes a
8 former employee, and "child" means the issue of an employee,
9 or a child adopted by an employee if the proceedings for
10 adoption were instituted at least one year prior to the
11 employee's death.
12 Payments shall cease when a child attains the age of 18
13 years or marries, whichever first occurs. The annuity shall
14 not be payable unless the employee has been employed as an
15 employee for at least 36 months from the date of the
16 employee's original entry into service (at least 24 months in
17 the case of an employee who first entered service before the
18 effective date of this amendatory Act of 1997) and at least
19 12 months from the date of the employee's latest re-entry
20 into service; provided, however, that if death arises out of
21 and in the course of service to the employer and is
22 compensable under either the Illinois Workers' Compensation
23 Act or Illinois Workers' Occupational Diseases Act, the
24 annuity is payable regardless of the employee's length of
25 service.
26 (b) Amount. A child's annuity shall be $500 $250 per
27 month for one child and $350 per month for each additional
28 child, up to a maximum of $2,500 per month for all children
29 of the employee, as provided in this Section, if a parent of
30 the child is living. The child's annuity shall be $1,000 per
31 month for one child, and $500 $350 per month for each
32 additional child, up to a maximum of $2,500 for all children
33 of the employee, when neither parent is alive. The total
34 amount payable to all children of the employee shall be
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1 divided equally among those children. Any child's annuity
2 which commenced prior to the effective date of this
3 amendatory Act of the 92nd General Assembly 1991 shall be
4 increased upon the first day of the month following the month
5 in which that the effective date occurs, to the amount set
6 forth herein.
7 (c) Payment. A child's annuity shall be paid to the
8 child's parent or other person who shall be providing for the
9 child without requiring formal letters of guardianship,
10 unless another person shall be appointed by a court of law as
11 guardian.
12 (Source: P.A. 90-12, eff. 6-13-97.)
13 Section 90. The State Mandates Act is amended by adding
14 Section 8.25 as follows:
15 (30 ILCS 805/8.25 new)
16 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
17 and 8 of this Act, no reimbursement by the State is required
18 for the implementation of any mandate created by this
19 amendatory Act of the 92nd General Assembly.
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.