093_HB3125

 
                                     LRB093 06784 LRD 11903 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 Sections  17-121,  17-122,  17-124,  and  17-125  as
 6    follows:

 7        (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
 8        Sec. 17-121. Survivor's pensions - Eligibility.
 9        (a)  A surviving spouse of a teacher shall be entitled to
10    a survivor's pension only if the surviving spouse was married
11    to the teacher for at least one year immediately prior to the
12    teacher's death.
13        The   changes   made  to  this  subsection  (a)  by  this
14    amendatory Act of the 92nd General Assembly apply (i) only to
15    the surviving spouse of a person who dies  on  or  after  the
16    effective date of this amendatory Act, and only if the amount
17    of  any  refund  of  contributions  for survivor's pension is
18    repaid with interest in accordance with subsection  (f),  and
19    (ii)  notwithstanding  Section  17-157  and without regard to
20    whether the deceased person was in service on  or  after  the
21    effective date of this amendatory Act.
22        (b)  If  the  surviving  spouse is under age 50 and there
23    are no eligible minor children born to or legally adopted  by
24    the  contributor  and his or her surviving spouse, payment of
25    the survivor's pension shall begin when the surviving  spouse
26    attains age 50.
27        (c)  Beginning  January  1,  2003,  the  remarriage  of a
28    surviving spouse at any age does not  terminate  his  or  her
29    survivor's pension.
30        A   surviving   spouse   whose   survivor's  pension  (or
31    expectation of a survivor's pension upon  attainment  of  age
 
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 1    50)  was  terminated before January 1, 2003 due to remarriage
 2    and who applies for reinstatement of that pension and  repays
 3    the  amount  of  any  refund  of contributions for survivor's
 4    pension with interest in accordance with subsection (f) shall
 5    be entitled to have the survivor's pension (or expectation of
 6    a survivor's pension upon attainment of age  50)  reinstated.
 7    The reinstated pension shall begin to accrue on the first day
 8    of the month following the month in which the application and
 9    repayment,  if any, are received by the Fund, but in no event
10    sooner than January 1, 2003 and, if subsection  (b)  applies,
11    no  sooner  than  upon  attainment of age 50.  The reinstated
12    pension shall include any one-time or annual increases in the
13    survivor's pension received prior to the date of termination,
14    but not any increases that would otherwise have accrued  from
15    the date of termination to the date of reinstatement.
16        This   subsection  (c)  applies  notwithstanding  Section
17    17-157 and without regard to whether the deceased teacher was
18    in service on or after the effective date of this  amendatory
19    Act of the 92nd General Assembly.
20        (d)  Except  as provided in subsection (c), remarriage of
21    the surviving spouse prior to  September  1,  1983  while  in
22    receipt  of  a survivor's pension shall permanently terminate
23    payment thereof,  regardless  of  any  subsequent  change  in
24    marital   status;   however,  beginning  September  1,  1983,
25    remarriage of a surviving spouse after attainment of  age  55
26    shall not terminate the survivor's pension.
27        A  surviving  spouse  whose  pension was terminated on or
28    after September 1, 1983 due to remarriage after attainment of
29    age 55, and who applies for  reinstatement  of  that  pension
30    before January 1, 1990, shall be entitled to have the pension
31    reinstated effective January 1, 1990.
32        (e)  A  surviving  spouse  of a member or annuitant under
33    this Fund who is  also  a  dependent  beneficiary  under  the
34    provisions  of  Section  16-140  is eligible for a reciprocal
 
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 1    survivor's pension, provided that any  refund  of  survivor's
 2    pension  contributions  is repaid to the Fund and application
 3    is made within 30 days  after  the  effective  date  of  this
 4    amendatory Act of the 92nd General Assembly.
 5        (f)  If  a refund of contributions for survivor's pension
 6    has been paid, a person choosing to establish or  reestablish
 7    the  right  to  receive  a survivor's pension pursuant to the
 8    changes made to this Section by this amendatory  Act  of  the
 9    92nd General Assembly must first repay to the Fund the amount
10    of  the  refund  of  contributions  for  survivor's  pension,
11    together  with  interest  thereon at the rate of 5% per year,
12    compounded annually, from the date of the refund to the  date
13    of repayment.
14    (Source: P.A. 92-416, eff. 8-17-01; 92-599, eff. 6-28-02.)

15        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
16        Sec. 17-122. Survivor's and children's pensions - Amount.
17    Upon  the death of a teacher who has completed at least 1 1/2
18    years of contributing service with either this  Fund  or  the
19    State   Universities   Retirement  System  or  the  Teachers'
20    Retirement System of the  State  of  Illinois,  provided  his
21    death  occurred  while  (a)  in active service covered by the
22    Fund or during his first 18 months of  continuous  employment
23    without  a  break  in  service  under any other participating
24    system  as  defined  in  the  Illinois   Retirement   Systems
25    Reciprocal  Act  except  the  State  Universities  Retirement
26    System  and  the  Teachers' Retirement System of the State of
27    Illinois, (b) on a creditable leave  of  absence,  (c)  on  a
28    noncreditable  leave  of absence of no more than one year, or
29    (d) a pension was deferred or pending  provided  the  teacher
30    had  at  least  10 years of validated service credit, or upon
31    the  death  of  a  pensioner  otherwise  qualified  for  such
32    benefit, the surviving spouse, eligible and  unmarried  minor
33    children  of the deceased teacher under age 18, and dependent
 
                            -4-      LRB093 06784 LRD 11903 b
 1    parents  of  the  deceased  teacher  shall  be  entitled   to
 2    pensions,  under  the  conditions  stated  hereinafter.  Such
 3    survivor's and children's pensions  shall  be  based  on  the
 4    average  of  the 4 highest consecutive years of salary in the
 5    last 10 years of service or on the average salary  for  total
 6    service,  if  total  service  has  been  less  than  4 years,
 7    according to the following percentages:
 8        30% of average salary or 50% of  the  retirement  pension
 9    earned  by  the  teacher, whichever is larger, subject to the
10    prescribed maximum monthly payment, for  a  surviving  spouse
11    alone on attainment of age 50;
12        60%   of  average  salary  for  a  surviving  spouse  and
13    eligible minor children of the deceased teacher.
14        If no eligible spouse survives, or the  surviving  spouse
15    remarries,  or  the  parent  of  the children of the deceased
16    member is otherwise ineligible for a  survivor's  pension,  a
17    children's  pension  for eligible minor children under age 18
18    shall be paid to their parent or  legal  guardian  for  their
19    benefit according to the following percentages:
20        30% of average salary for one child;
21        60% of average salary for 2 or more children.
22        A  disabled  child  who  was  dependent  upon  a deceased
23    teacher at the time of his  or  her  death  whose  children's
24    pension  was terminated due to attainment of age 18 may apply
25    to  the  Fund  for  reinstatement  of   that   pension.    An
26    application  for  reinstatement  shall  be accompanied by the
27    payment of an amount equal to (1) the amount  of  any  refund
28    received by the deceased teacher under Section 17-125 and (2)
29    interest  thereon  from the date of the payment of the refund
30    to the date of application for reinstatement at the  rate  of
31    5% per year.  The reinstated pension shall begin to accrue on
32    the   first   day  of  the  month  following  the  month  the
33    application is received by the Fund, but in no  event  sooner
34    than  January 1, 2004.  However, if the pension is payable to
 
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 1    anyone else, the pension shall not be  reinstated  until  the
 2    pension is no longer payable to any eligible surviving spouse
 3    or  other  eligible  children.   A  reinstated  annuity shall
 4    include any one-time or annual increases  received  prior  to
 5    the  date of termination, as well as any increases that would
 6    otherwise have accrued from the date of  termination  to  the
 7    date of reinstatement.
 8        The  changes  made to this Section by this amendatory Act
 9    of the 93rd General Assembly pertaining to reinstatement of a
10    children's pension apply notwithstanding Section  17-157  and
11    without regard to whether the deceased teacher was in service
12    on or after the effective date of this amendatory Act.
13        If  there  is  no  eligible spouse and no eligible child,
14    then a pension shall be paid to the eligible parents  of  the
15    deceased   teacher,   if  any,  according  to  the  following
16    percentages:
17        30% of average salary for one eligible parent;
18        60% of average salary for 2 eligible parents.
19        On January  1,  1981,  any  survivor  or  child  who  was
20    receiving  a  survivor's  or  children's pension on or before
21    January 1, 1971, shall  have  his  survivor's  or  children's
22    pension  then  being  paid increased by 1% for each full year
23    which has elapsed from the date the pension began. On January
24    1, 1982, any survivor or  child  whose  pension  began  after
25    January  1,  1971, but before January 1, 1981, shall have his
26    survivor's or children's pension then being paid increased 1%
27    for each full year  which  has  elapsed  from  the  date  the
28    pension  began.  On  January  1,  1987, any survivor or child
29    whose pension began on or before January 1, 1977, shall  have
30    the  monthly survivor's or children's pension increased by $1
31    for each full year which has elapsed since the pension began.
32        Beginning  January  1,   1990,   every   survivor's   and
33    children's  pension  shall be increased (1) on each January 1
34    occurring on or after the commencement of the pension if  the
 
                            -6-      LRB093 06784 LRD 11903 b
 1    deceased  teacher  died while receiving a retirement pension,
 2    or (2) in other cases, on each  January  1  occurring  on  or
 3    after  the  first  anniversary  of  the  commencement  of the
 4    pension, by an amount equal to 3% of the  current  amount  of
 5    the pension, including all increases previously granted under
 6    this Article, notwithstanding Section 17-157.  Such increases
 7    shall  apply  without  regard to whether the deceased teacher
 8    was in service  on  or  after  the  effective  date  of  this
 9    amendatory  Act  of 1991, but shall not accrue for any period
10    prior to January 1, 1990.
11        Subject to the minimum  established  below,  the  maximum
12    amount  of  pension for a surviving spouse alone or one minor
13    child shall be $400  per  month,  and  the  maximum  combined
14    pensions  for a surviving spouse and children of the deceased
15    teacher shall be $600 per  month,  with  individual  pensions
16    adjusted  for all beneficiaries pro rata to conform with this
17    limitation.   If  proration  is   unnecessary   the   minimum
18    survivor's  and  children's  pensions shall be $40 per month.
19    The minimum total survivor's and children's  pension  payable
20    upon  the  death  of  a contributor or annuitant which occurs
21    after  December  31,  1986,  shall  be  50%  of  the   earned
22    retirement   pension   of   such  contributor  or  annuitant,
23    calculated without early retirement discount in the  case  of
24    death in service.
25        On  death  after  retirement,  the  total  survivor's and
26    children's pensions shall not exceed the  monthly  retirement
27    or   disability   pension  paid  to  the  deceased  retirant.
28    Survivor's and children's benefits described in this  Section
29    shall apply to all service and disability pensioners eligible
30    for a pension as of July 1, 1981.
31        For  the  purposes  of  this  Section, the term "eligible
32    child" means an unmarried minor child of a  deceased  teacher
33    who is under 18 years of age or a child of a deceased teacher
34    who  is  disabled and was dependent upon the deceased teacher
 
                            -7-      LRB093 06784 LRD 11903 b
 1    at the time of his or her death.
 2        For the purposes of  this  Section,  the  term  "eligible
 3    parent"  means  a  parent  of  a  deceased  teacher  who  was
 4    dependent upon the teacher at the time of his or her death.
 5        In  this  Article,  the  term  "survivor's and children's
 6    benefits" includes benefits paid to an  eligible  parent  and
 7    the  term  "survivor's  and  children's  pension"  includes a
 8    pension paid  to  an  eligible  parent,  unless  the  context
 9    requires otherwise.
10    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

11        (40 ILCS 5/17-124) (from Ch. 108 1/2, par. 17-124)
12        Sec.  17-124.   Death  Benefits  -  Death  on pension. On
13    written application to the Board, there shall be paid to  the
14    estate  of  a  deceased  teacher-pensioner  pension payments,
15    accrued,  temporarily  withheld  or  represented  by   checks
16    uncashed  at the date of his death and the excess, if any, of
17    an amount equal to his refundable contributions  for  service
18    or  disability retirement pension over pension to the date of
19    death; provided, that if there be filed with the Board  prior
20    to  the  death of the pensioner his written direction, signed
21    and  acknowledged  before  an  officer  authorized  to   take
22    acknowledgments,  that  such  payments  be paid to designated
23    beneficiaries, they shall be so paid on  written  application
24    therefor to the Board. If none of several named beneficiaries
25    survives  the pensioner and no directive was furnished by the
26    member to cover this contingency, the deceased  beneficiary's
27    share shall be paid to the estate of the pensioner.
28        If  a  reversionary  pension  is  payable upon death of a
29    pensioner, the determination and payment  of  any  refund  of
30    contributions  payable  under this Section shall be made upon
31    death of the reversionary pensioner. At such time a refund of
32    contributions less (1)  the  amount  contributed  for  annual
33    increases  in  pension  and (2) total pension payments to the
 
                            -8-      LRB093 06784 LRD 11903 b
 1    teacher-pensioner and survivor shall be paid  in  the  manner
 2    provided  in this Section to the designated beneficiaries, or
 3    estate of the deceased survivor.
 4        If a pension is payable to a surviving  spouse,  eligible
 5    child, or an eligible parent and/or minor children upon death
 6    of   a   pensioner,   the  determination  of  any  refund  of
 7    contributions payable under this Section shall be  made  when
 8    the last of those pensions is no longer payable upon death of
 9    the  survivor  and  marriage or attainment of age 18 of minor
10    children.  At  that  time  a  refund  of  contributions   for
11    retirement  and survivors' and children's pensions less total
12    pension payments to the teacher-pensioner, surviving  spouse,
13    eligible  survivor  and  minor children, and eligible parents
14    shall be paid in the manner provided in this Section  to  the
15    designated beneficiaries, or estate of the deceased survivor.
16        If  eligible  beneficiaries  for survivors' or children's
17    benefits existed at the time of a pensioner's retirement  but
18    not  on the date of his death thereafter, the excess of total
19    contributions for retirement and  survivors'  and  children's
20    pensions over pensions paid shall be determined upon death of
21    the pensioner and paid in the manner provided in this Section
22    to  the  designated  beneficiaries, or estate of the deceased
23    teacher-pensioner.
24        Reversionary  or  survivor's  pension  payments  accrued,
25    temporarily withheld, or represented by  uncashed  checks  to
26    the   date  of  death  shall  be  paid  to  the  reversionary
27    pensioner's or survivor's designated beneficiaries, or estate
28    in the manner provided in this Section.
29        On death of a retired teacher whose death  occurs  on  or
30    after  the  effective  date  of  this amendatory Act of 1991,
31    there shall be payable a lump sum death benefit  equal  to  6
32    times the teacher's salary rate for his last month of service
33    or  $10,000,  whichever  is less, upon death during the first
34    year on pension minus 1/5 of the death  benefit,  as  defined
 
                            -9-      LRB093 06784 LRD 11903 b
 1    herein,  for  each  year or fraction thereof on pension after
 2    the first full year, to a minimum of $5,000.
 3        Notwithstanding Section 17-157, the changes made in  this
 4    Section  and  Section  17-123  by this amendatory Act of 1991
 5    shall apply to teachers dying on or after the effective  date
 6    of  this  amendatory  Act  of  1991 without regard to whether
 7    service terminated prior to that date.
 8    (Source: P.A. 90-566, eff. 1-2-98.)

 9        (40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
10        Sec. 17-125.  Refund of contributions. Upon certification
11    by the Employer of his resignation  or  cancellation  of  his
12    teaching  certificate prior to completion of the minimum term
13    of service required to establish eligibility  for  a  pension
14    and  on written application therefor, a teacher shall be paid
15    a refund of all the amounts he has contributed to  the  Fund,
16    less any former refund that has not been repaid.
17        Upon  certification by the Employer of his resignation or
18    cancellation of his teaching certificate after completion  of
19    the minimum term of service required to establish eligibility
20    for  a pension and on written application therefor, a teacher
21    shall be paid a refund of all the amounts he has contributed,
22    less (1) any former refund that has not been repaid, and  (2)
23    pension  payments  received,  provided  he  has  executed and
24    delivered to the Board his written  receipt  and  release  in
25    that  behalf. Thereupon, he shall have no further interest in
26    or claim against the Fund.
27        A request  for  refund  under  either  of  the  preceding
28    paragraphs  shall  be  considered  valid  if  withdrawal from
29    service occurred at least 2 months prior  to  the  filing  of
30    such request.
31        Upon  retirement  of  a  teacher  either  on immediate or
32    deferred pension, if the teacher is not then married,  or  if
33    his   spouse,  or  children,  or  parents  do  not  meet  the
 
                            -10-     LRB093 06784 LRD 11903 b
 1    qualifying conditions for survivor's or children's  pensions,
 2    the  total  amount  contributed  by  him or otherwise paid by
 3    deductions from  salary  for  survivor's  pension,  shall  be
 4    refunded   to   him,   without  interest.  No  survivor's  or
 5    children's pension rights shall be  effective  thereafter  in
 6    such a case.
 7        During  a teacher's term of service, no refund is payable
 8    except contributions made in error.
 9    (Source: P.A. 90-566, eff. 1-2-98.)

10        Section 90.  The State Mandates Act is amended by  adding
11    Section 8.27 as follows:

12        (30 ILCS 805/8.27 new)
13        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
14    and 8 of this Act, no reimbursement by the State is  required
15    for  the  implementation  of  any  mandate  created  by  this
16    amendatory Act of the 93rd General Assembly.

17        Section  99.  Effective date.  This Act takes effect upon
18    becoming law.