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92_SB0410 LRB9205299EGfg 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 15-145 as follows: 6 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145) 7 Sec. 15-145. Survivors insurance benefits; conditions 8 and amounts. 9 (a) The survivors insurance benefits provided under this 10 Section shall be payable to the eligible survivors of a 11 participant covered under the traditional benefit package 12 upon the death of (1) a participating employee with at least 13 1 1/2 years of service, (2) a participant who terminated 14 employment with at least 10 years of service, and (3) an 15 annuitant in receipt of a retirement annuity or disability 16 retirement annuity under this Article. 17 Service under the State Employees' Retirement System of 18 Illinois, the Teachers' Retirement System of the State of 19 Illinois and the Public School Teachers' Pension and 20 Retirement Fund of Chicago shall be considered in determining 21 eligibility for survivors benefits under this Section. 22 If, by law, a function of a governmental unit, as defined 23 by Section 20-107, is transferred in whole or in part to an 24 employer, and an employee transfers employment from this 25 governmental unit to such employer within 6 months after the 26 transfer of this function, the service credits in the 27 governmental unit's retirement system which have been 28 validated under Section 20-109 shall be considered in 29 determining eligibility for survivors benefits under this 30 Section. 31 (b) A surviving spouse of a deceased participant, or of -2- LRB9205299EGfg 1 a deceased annuitant who did not take a refund or additional 2 annuity consisting of accumulated survivors insurance 3 contributions, shall receive a survivors annuity of 30% of 4 the final rate of earnings. Payments shall begin on the day 5 following the participant's or annuitant's deathor the date6the surviving spouse attains age 50, whichever is later,and 7 continue until the death of the surviving spouse. 8 The removal of the age 50 limitation by this amendatory 9 Act of the 92nd General Assembly applies to all persons 10 otherwise eligible to receive a survivors annuity under this 11 subsection (b), without regard to whether the deceased 12 participant or annuitant was in service on or after the 13 effective date of this amendatory Act. A person otherwise 14 eligible whose annuity under this subsection is being 15 deferred due to the age 50 limitation shall, upon 16 application, be entitled to have the annuity begin, payable 17 from the effective date of this amendatory Act.The annuity18shall be payable to the surviving spouse prior to attainment19of age 50 if the surviving spouse has in his or her care a20deceased participant's or annuitant's dependent unmarried21child under age 18 (under age 22 if a full-time student) who22is eligible for a survivors annuity.23 Remarriage of a surviving spouse prior to attainment of 24 age 55 that occurs before July 6, 2000the effective date of25this amendatory Act of the 91st General Assemblyshall 26 disqualify him or her for the receipt of a survivors annuity. 27 (c) Each dependent unmarried child under age 18 (under 28 age 22 if a full-time student) of a deceased participant, or 29 of a deceased annuitant who did not take a refund or 30 additional annuity consisting of accumulated survivors 31 insurance contributions, shall receive a survivors annuity 32 equal to the sum of (1) 20% of the final rate of earnings, 33 and (2) 10% of the final rate of earnings divided by the 34 number of children entitled to this benefit. Payments shall -3- LRB9205299EGfg 1 begin on the day following the participant's or annuitant's 2 death and continue until the child marries, dies, or attains 3 age 18 (age 22 if a full-time student). If the child is in 4 the care of a surviving spouse who is eligible for survivors 5 insurance benefits, the child's benefit shall be paid to the 6 surviving spouse. 7 Each unmarried child over age 18 of a deceased 8 participant or of a deceased annuitant who had a survivor's 9 insurance beneficiary at the time of his or her retirement, 10 and who was dependent upon the participant or annuitant by 11 reason of a physical or mental disability which began prior 12 to the date the child attained age 18 (age 22 if a full-time 13 student), shall receive a survivor's annuity equal to the sum 14 of (1) 20% of the final rate of earnings, and (2) 10% of the 15 final rate of earnings divided by the number of children 16 entitled to survivors benefits. Payments shall begin on the 17 day following the participant's or annuitant's death and 18 continue until the child marries, dies, or is no longer 19 disabled. If the child is in the care of a surviving spouse 20 who is eligible for survivors insurance benefits, the child's 21 benefit may be paid to the surviving spouse. For the 22 purposes of this Section, disability means inability to 23 engage in any substantial gainful activity by reason of any 24 medically determinable physical or mental impairment that can 25 be expected to result in death or that has lasted or can be 26 expected to last for a continuous period of at least one 27 year. 28 (d) Each dependent parent of a deceased participant, or 29 of a deceased annuitant who did not take a refund or 30 additional annuity consisting of accumulated survivors 31 insurance contributions, shall receive a survivors annuity 32 equal to the sum of (1) 20% of final rate of earnings, and 33 (2) 10% of final rate of earnings divided by the number of 34 parents who qualify for the benefit. Payments shall begin -4- LRB9205299EGfg 1 when the parent reaches age 55 or the day following the 2 participant's or annuitant's death, whichever is later, and 3 continue until the parent dies. Remarriage of a parent prior 4 to attainment of age 55 shall disqualify the parent for the 5 receipt of a survivors annuity. 6 (e) In addition to the survivors annuity provided above, 7 each survivors insurance beneficiary shall, upon death of the 8 participant or annuitant, receive a lump sum payment of 9 $1,000 divided by the number of such beneficiaries. 10 (f) The changes made in this Section by Public Act 11 81-712 pertaining to survivors annuities in cases of 12 remarriage prior to age 55 shall apply to each survivors 13 insurance beneficiary who remarries after June 30, 1979, 14 regardless of the date that the participant or annuitant 15 terminated his employment or died. 16 The change made to this Section by this amendatory Act of 17 the 91st General Assembly, pertaining to remarriage prior to 18 age 55, applies without regard to whether the deceased 19 participant or annuitant was in service on or after the 20 effective date of this amendatory Act of the 91st General 21 Assembly. 22 (g) On January 1, 1981, any person who was receiving a 23 survivors annuity on or before January 1, 1971 shall have the 24 survivors annuity then being paid increased by 1% for each 25 full year which has elapsed from the date the annuity began. 26 On January 1, 1982, any survivor whose annuity began after 27 January 1, 1971, but before January 1, 1981, shall have the 28 survivor's annuity then being paid increased by 1% for each 29 year which has elapsed from the date the survivor's annuity 30 began. On January 1, 1987, any survivor who began receiving a 31 survivor's annuity on or before January 1, 1977, shall have 32 the monthly survivor's annuity increased by $1 for each full 33 year which has elapsed since the date the survivor's annuity 34 began. -5- LRB9205299EGfg 1 (h) If the sum of the lump sum and total monthly 2 survivor benefits payable under this Section upon the death 3 of a participant amounts to less than the sum of the death 4 benefits payable under items (2) and (3) of Section 15-141, 5 the difference shall be paid in a lump sum to the beneficiary 6 of the participant who is living on the date that this 7 additional amount becomes payable. 8 (i) If the sum of the lump sum and total monthly 9 survivor benefits payable under this Section upon the death 10 of an annuitant receiving a retirement annuity or disability 11 retirement annuity amounts to less than the death benefit 12 payable under Section 15-142, the difference shall be paid to 13 the beneficiary of the annuitant who is living on the date 14 that this additional amount becomes payable. 15 (j) Effective on the later of (1) January 1, 1990, or 16 (2) the January 1 on or next after the date on which the 17 survivor annuity begins, if the deceased member died while 18 receiving a retirement annuity, or in all other cases the 19 January 1 nearest the first anniversary of the date the 20 survivor annuity payments begin, every survivors insurance 21 beneficiary shall receive an increase in his or her monthly 22 survivors annuity of 3%. On each January 1 after the initial 23 increase, the monthly survivors annuity shall be increased by 24 3% of the total survivors annuity provided under this 25 Article, including previous increases provided by this 26 subsection. Such increases shall apply to the survivors 27 insurance beneficiaries of each participant and annuitant, 28 whether or not the employment status of the participant or 29 annuitant terminates before the effective date of this 30 amendatory Act of 1990. This subsection (j) also applies to 31 persons receiving a survivor annuity under the portable 32 benefit package. 33 (k) If the Internal Revenue Code of 1986, as amended, 34 requires that the survivors benefits be payable at an age -6- LRB9205299EGfg 1 earlier than that specified in this Section the benefits 2 shall begin at the earlier age, in which event, the 3 survivor's beneficiary shall be entitled only to that amount 4 which is equal to the actuarial equivalent of the benefits 5 provided by this Section. 6 (l) The changes made to this Section and Section 15-131 7 by this amendatory Act of 1997, relating to benefits for 8 certain unmarried children who are full-time students under 9 age 22, apply without regard to whether the deceased member 10 was in service on or after the effective date of this 11 amendatory Act of 1997. These changes do not authorize the 12 repayment of a refund or a re-election of benefits, and any 13 benefit or increase in benefits resulting from these changes 14 is not payable retroactively for any period before the 15 effective date of this amendatory Act of 1997. 16 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; 17 91-887, eff. 7-6-00.) 18 Section 99. Effective date. This Act takes effect upon 19 becoming law.