093_HB1555 LRB093 02118 EFG 02125 b 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 14-121 as follows: 6 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121) 7 Sec. 14-121. Amount of survivors annuity. A survivors 8 annuity beneficiary shall be entitled upon death of the 9 member to a single sum payment of $1,000, payable pro rata 10 among all persons entitled thereto, together with a survivors 11 annuity payable at the rates and under the conditions 12 specified in this Article. 13 (a) If the survivors annuity beneficiary is a spouse, 14 the survivors annuity shall be 30% of final average 15 compensation subject to a maximum payment of $400 per month. 16 (b) If an eligible child or children under the care of a 17 spouse also survives the member, such spouse as natural 18 guardian of the child or children shall receive, in addition 19 to the foregoing annuity, 20% of final average compensation 20 on account of each such child and 10% of final average 21 compensation divided pro rata among such children, subject to 22 a maximum payment on account of all survivor annuity 23 beneficiaries of $600 per month, or 80% of the member's final 24 average compensation, whichever is the lesser. 25 (c) If the survivors annuity beneficiary or 26 beneficiaries consists of an unmarried child or children, the 27 amount of survivors annuity shall be 20% of final average 28 compensation to each child, and 10% of final average 29 compensation divided pro rata among all such children 30 entitled to such annuity, subject to a maximum payment to all 31 children combined of $600 per month or 80% of the member's -2- LRB093 02118 EFG 02125 b 1 final average compensation, whichever is the lesser. 2 (d) If the survivors annuity beneficiary is one or more 3 dependent parents, the annuity shall be 20% of final average 4 compensation to each parent and 10% of final average 5 compensation divided pro rata among the parents who qualify 6 for this annuity, subject to a maximum payment to both 7 dependent parents of $400 per month. 8 (e) The survivors annuity to the spouse, children or 9 dependent parents of a member whose death occurs after the 10 date of last withdrawal, or after retirement, or while in 11 service following reentry into service after retirement but 12 before completing 1 1/2 years of additional creditable 13 service, shall not exceed the lesser of 80% of the member's 14 earned retirement annuity at the date of death or the maximum 15 previously established in this Section. 16 (f) In applying the limitation prescribed on the 17 combined payments to 2 or more survivors annuity 18 beneficiaries, the annuity on account of each beneficiary 19 shall be reduced pro rata until such time as the number of 20 beneficiaries makes the reduction no longer applicable. 21 (g) A survivors annuity payable on account of any 22 covered employee who shall have been a covered employee for 23 at least 18 months at date of death or last withdrawal, 24 whichever is the later, shall be reduced by 1/2 of the 25 survivors benefits to which his beneficiaries are eligible 26 under the federal Social Security Act, except that (1) the 27 survivors annuity payable under this Article shall not be 28 reduced by any increase under that Act which occurs after the 29 offset required by this subsection is first applied to that 30 annuity, and (2) for benefits granted on or after January 1, 31 1992, the offset under this subsection (g) shall not exceed 32 50% of the amount of survivors annuity otherwise payable. 33 (h) The minimum payment to a beneficiary hereunder shall 34 be $60 per month, which shall be reduced in accordance with -3- LRB093 02118 EFG 02125 b 1 the limitation prescribed on the combined payments to all 2 beneficiaries of a member. 3 (i) Subject to the conditions set forth in Section 4 14-120, the minimum total survivors annuity benefit payable 5 to the survivors annuity beneficiaries of a deceased member 6 or annuitant whose death occurs on or after January 1, 1984, 7 shall be 50% of the amount of retirement annuity that was or 8 would have been payable to the deceased on the date of death, 9 regardless of the age of the deceased on such date, except as 10 otherwise provided in this subsection. 11 Subject to the conditions set forth in Section 14-120, 12 beginning January 1, 2004, the minimum total survivors 13 annuity benefit payable to the survivors annuity 14 beneficiaries of a deceased member who was earning eligible 15 creditable service at the time of termination of service or 16 of a deceased annuitant whose retirement annuity was 17 calculated under Section 14-110 shall be 65% of the amount of 18 retirement annuity that was or would have been payable to the 19 deceased on the date of death, regardless of the age of the 20 deceased on that date. The change to this Section made by 21 this amendatory Act of the 93rd General Assembly is not 22 limited to survivors of persons in service on or after its 23 effective date. 24 If the minimum total benefit provided by this subsection 25 exceeds the maximum otherwise imposed by this Section, the 26 minimum total benefit shall nevertheless be payable. Any 27 increase in the total survivors annuity benefit resulting 28 from the operation of this subsection shall be divided among 29 the survivors annuity beneficiaries of the deceased in 30 proportion to their shares of the total survivors annuity 31 benefit otherwise payable under this Section. 32 (j) Any survivors annuity beneficiary whose annuity 33 terminates due to any condition specified in this Article 34 other than death shall be entitled to a refund of the excess, -4- LRB093 02118 EFG 02125 b 1 if any, of the accumulated contributions of the member plus 2 credited interest over all payments to the member and 3 beneficiary or beneficiaries, exclusive of the single sum 4 payment of $1,000, provided no future survivors or 5 reversionary annuity benefits are payable. 6 (k) Upon the death of the last eligible recipient of a 7 survivors annuity the excess, if any, of the member's 8 accumulated contributions plus credited interest over all 9 annuity payments to the member and survivors exclusive of the 10 single sum payment of $1000, shall be paid to the named 11 beneficiary of the last eligible survivor, or if none has 12 been named, to the estate of the last eligible survivor, 13 provided no reversionary annuity is payable. 14 (l) On January 1, 1981, any survivor who was receiving a 15 survivors annuity on or before January 1, 1971, shall have 16 his survivors annuity then being paid increased by 1% for 17 each full year which has elapsed from the date the annuity 18 began. On January 1, 1982, any survivor who began receiving 19 a survivor's annuity after January 1, 1971, but before 20 January 1, 1981, shall have his survivor's annuity then being 21 paid increased by 1% for each full year that has elapsed from 22 the date the annuity began. On January 1, 1987, any survivor 23 who began receiving a survivor's annuity on or before January 24 1, 1977, shall have the monthly survivor's annuity increased 25 by $1 for each full year which has elapsed since the date the 26 survivor's annuity began. 27 (m) Beginning January 1, 1990, every survivor's annuity 28 shall be increased (1) on each January 1 occurring on or 29 after the commencement of the annuity if the deceased member 30 died while receiving a retirement annuity, or (2) in other 31 cases, on each January 1 occurring on or after the first 32 anniversary of the commencement of the annuity, by an amount 33 equal to 3% of the current amount of the annuity, including 34 any previous increases under this Article. Such increases -5- LRB093 02118 EFG 02125 b 1 shall apply without regard to whether the deceased member was 2 in service on or after the effective date of Public Act 3 86-1488, but shall not accrue for any period prior to January 4 1, 1990. 5 (Source: P.A. 86-273; 86-1488; 87-794.) 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.