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1 | AN ACT in relation to public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||||||||
5 | Sections 17-121,
17-122, 17-124, and 17-125 as follows:
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6 | (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
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7 | Sec. 17-121. Survivor's pensions - Eligibility.
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8 | (a) A surviving spouse of a teacher shall be entitled to a | ||||||||||||||||||||||||||||||||
9 | survivor's
pension only if the surviving spouse was married to | ||||||||||||||||||||||||||||||||
10 | the teacher for at least
one year immediately prior to
the | ||||||||||||||||||||||||||||||||
11 | teacher's death.
| ||||||||||||||||||||||||||||||||
12 | The changes made to this subsection (a) by this amendatory | ||||||||||||||||||||||||||||||||
13 | Act of the 92nd
General Assembly apply (i) only to the | ||||||||||||||||||||||||||||||||
14 | surviving spouse of a person who dies on
or after the effective | ||||||||||||||||||||||||||||||||
15 | date of this amendatory Act, and only if the amount of
any | ||||||||||||||||||||||||||||||||
16 | refund of contributions for survivor's pension is repaid with | ||||||||||||||||||||||||||||||||
17 | interest in
accordance with subsection (f), and (ii) | ||||||||||||||||||||||||||||||||
18 | notwithstanding Section 17-157 and
without regard to whether | ||||||||||||||||||||||||||||||||
19 | the deceased person was in service on or after the
effective | ||||||||||||||||||||||||||||||||
20 | date of this amendatory Act.
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21 | (b) If the surviving spouse is under age 50 and there are | ||||||||||||||||||||||||||||||||
22 | no eligible
minor children born to or legally adopted by the | ||||||||||||||||||||||||||||||||
23 | contributor and his or her
surviving spouse, payment of the | ||||||||||||||||||||||||||||||||
24 | survivor's pension shall begin when the
surviving spouse | ||||||||||||||||||||||||||||||||
25 | attains age 50.
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26 | (c) Beginning January 1, 2003, the remarriage of a | ||||||||||||||||||||||||||||||||
27 | surviving spouse at
any age does not terminate his or her | ||||||||||||||||||||||||||||||||
28 | survivor's pension.
| ||||||||||||||||||||||||||||||||
29 | A surviving spouse whose survivor's pension (or | ||||||||||||||||||||||||||||||||
30 | expectation of a survivor's
pension upon attainment of age 50) | ||||||||||||||||||||||||||||||||
31 | was terminated before January 1, 2003 due
to remarriage and who | ||||||||||||||||||||||||||||||||
32 | applies for reinstatement of that pension and repays the
amount |
| |||||||
| |||||||
1 | of any refund of contributions for survivor's pension with | ||||||
2 | interest in
accordance with subsection (f) shall be entitled to | ||||||
3 | have the survivor's pension
(or
expectation of a survivor's | ||||||
4 | pension upon attainment of age 50) reinstated.
The reinstated | ||||||
5 | pension shall begin to accrue on the first day of the month
| ||||||
6 | following the month in which the application and repayment, if | ||||||
7 | any, are
received by the Fund, but in no event sooner than | ||||||
8 | January 1, 2003 and, if
subsection (b) applies, no sooner than | ||||||
9 | upon attainment of age 50. The
reinstated pension shall include | ||||||
10 | any one-time or annual increases in the
survivor's pension | ||||||
11 | received prior to the date of termination, but not any
| ||||||
12 | increases that would otherwise have accrued from the date of | ||||||
13 | termination to
the date of reinstatement.
| ||||||
14 | This subsection (c) applies notwithstanding Section 17-157 | ||||||
15 | and without
regard to whether the deceased teacher was in | ||||||
16 | service on or after the
effective date of this amendatory Act | ||||||
17 | of the 92nd General Assembly.
| ||||||
18 | (d) Except as provided in subsection (c), remarriage of the | ||||||
19 | surviving
spouse prior to September 1, 1983 while in receipt of | ||||||
20 | a survivor's pension
shall permanently terminate payment | ||||||
21 | thereof, regardless of any subsequent
change in marital status; | ||||||
22 | however, beginning September 1, 1983, remarriage
of a surviving | ||||||
23 | spouse after attainment of age 55 shall not terminate the
| ||||||
24 | survivor's pension.
| ||||||
25 | A surviving spouse whose pension was terminated on or after | ||||||
26 | September
1, 1983 due to remarriage after attainment of age 55, | ||||||
27 | and who applies for
reinstatement of that pension before | ||||||
28 | January 1, 1990, shall be entitled to
have the pension | ||||||
29 | reinstated effective January 1, 1990.
| ||||||
30 | (e) A surviving spouse of a member or annuitant under this | ||||||
31 | Fund who is
also a dependent beneficiary under the provisions | ||||||
32 | of Section 16-140 is eligible
for a reciprocal survivor's | ||||||
33 | pension, provided that any refund of survivor's
pension | ||||||
34 | contributions is repaid to the Fund and application is made | ||||||
35 | within 30
days after the effective date of this amendatory Act | ||||||
36 | of the 92nd General
Assembly.
|
| |||||||
| |||||||
1 | (f) If a refund of contributions for survivor's pension has | ||||||
2 | been paid, a
person choosing to establish or reestablish the | ||||||
3 | right to receive a survivor's
pension pursuant to the changes | ||||||
4 | made to this Section by this amendatory Act of
the 92nd General | ||||||
5 | Assembly must first repay to the Fund the amount of the refund
| ||||||
6 | of contributions for survivor's pension, together with | ||||||
7 | interest thereon at the
rate of 5% per year, compounded | ||||||
8 | annually, from the date of the refund to the
date of repayment.
| ||||||
9 | (Source: P.A. 92-416, eff. 8-17-01; 92-599, eff. 6-28-02.)
| ||||||
10 | (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
| ||||||
11 | Sec. 17-122. Survivor's and children's pensions - Amount. | ||||||
12 | Upon the
death of a teacher who has completed at least 1 1/2 | ||||||
13 | years of
contributing service with either this Fund or the | ||||||
14 | State Universities
Retirement System or the Teachers' | ||||||
15 | Retirement System of the State of
Illinois, provided his death | ||||||
16 | occurred while (a) in active service
covered by the Fund or | ||||||
17 | during his first 18 months of continuous
employment without a | ||||||
18 | break in service under any other participating
system as | ||||||
19 | defined in the Illinois Retirement Systems Reciprocal Act
| ||||||
20 | except the State Universities Retirement System and the | ||||||
21 | Teachers'
Retirement System of the State of Illinois, (b) on a | ||||||
22 | creditable leave of
absence, (c) on a noncreditable leave of | ||||||
23 | absence of no more than one
year, or (d) a pension was deferred | ||||||
24 | or pending provided the teacher had
at least 10 years of | ||||||
25 | validated service credit, or upon the death of a
pensioner | ||||||
26 | otherwise qualified for such benefit, the surviving spouse ,
| ||||||
27 | eligible
and
unmarried minor children of the deceased teacher | ||||||
28 | under age 18 , and
dependent parents of the deceased teacher | ||||||
29 | shall be
entitled to pensions, under the conditions stated | ||||||
30 | hereinafter. Such
survivor's and children's pensions shall be | ||||||
31 | based on the average of the
4 highest consecutive years of | ||||||
32 | salary in the last 10 years of service or
on the average salary | ||||||
33 | for total service, if total service has been less
than 4 years, | ||||||
34 | according to the following percentages:
| ||||||
35 | 30% of average salary or 50% of the retirement pension |
| |||||||
| |||||||
1 | earned by the
teacher, whichever is larger, subject to the | ||||||
2 | prescribed maximum monthly
payment, for a surviving spouse | ||||||
3 | alone on attainment of age 50;
| ||||||
4 | 60% of average salary for a surviving spouse and eligible | ||||||
5 | minor
children of the deceased teacher.
| ||||||
6 | If no eligible spouse survives, or the surviving spouse | ||||||
7 | remarries, or
the parent of the children of the deceased member | ||||||
8 | is otherwise
ineligible for a survivor's pension, a children's | ||||||
9 | pension for eligible
minor children under age 18 shall be paid | ||||||
10 | to their parent or legal
guardian for their benefit according | ||||||
11 | to the following percentages:
| ||||||
12 | 30% of average salary for one child;
| ||||||
13 | 60% of average salary for 2 or more children.
| ||||||
14 | A disabled child who was dependent upon a deceased teacher | ||||||
15 | at the time of
his or her death whose children's pension was | ||||||
16 | terminated due to attainment of
age 18 may apply to the Fund | ||||||
17 | for reinstatement of that pension. An application
for | ||||||
18 | reinstatement shall be accompanied by the payment of an amount | ||||||
19 | equal to (1)
the amount of any refund received by the deceased | ||||||
20 | teacher under Section
17-125 and (2) interest thereon from the | ||||||
21 | date of the payment of the refund to
the date of application | ||||||
22 | for reinstatement at the rate of 5% per year. The
reinstated | ||||||
23 | pension
shall begin to accrue on the first day of the month | ||||||
24 | following the month the
application is received by the Fund, | ||||||
25 | but in no event sooner than January 1,
2005. However, if the | ||||||
26 | pension is payable to anyone else, the pension shall not
be | ||||||
27 | reinstated until the pension is no longer payable to any | ||||||
28 | eligible surviving
spouse or other eligible children. A | ||||||
29 | reinstated annuity shall include any
one-time or annual | ||||||
30 | increases received prior to the date of termination, as well
as
| ||||||
31 | any increases that would otherwise have accrued from the date | ||||||
32 | of termination to
the date of reinstatement.
| ||||||
33 | The changes made to this Section by this amendatory Act of | ||||||
34 | the 93rd
General Assembly pertaining to reinstatement of a | ||||||
35 | children's pension apply
notwithstanding Section 17-157 and | ||||||
36 | without regard to whether the deceased
teacher was in service |
| |||||||
| |||||||
1 | on or after the effective date of this amendatory Act.
| ||||||
2 | If there is no eligible spouse and no eligible child, then | ||||||
3 | a
pension shall be paid to the eligible parents of the deceased | ||||||
4 | teacher,
if
any, according to the following percentages:
| ||||||
5 | 30% of average salary for one eligible parent;
| ||||||
6 | 60% of average salary for 2 eligible parents.
| ||||||
7 | On January 1, 1981, any survivor or child who was receiving | ||||||
8 | a survivor's
or children's pension on or before January 1, | ||||||
9 | 1971, shall have his survivor's
or children's pension then | ||||||
10 | being paid increased by 1% for each full year
which has elapsed | ||||||
11 | from the date the pension began. On January 1, 1982,
any | ||||||
12 | survivor or child whose pension began after January 1, 1971, | ||||||
13 | but before
January 1, 1981, shall have his survivor's or | ||||||
14 | children's pension then being
paid increased 1% for each full | ||||||
15 | year which has elapsed from the date the
pension began. On | ||||||
16 | January 1, 1987, any survivor or child whose pension began
on | ||||||
17 | or before January 1, 1977, shall have the monthly survivor's or
| ||||||
18 | children's pension increased by $1 for each full year which has | ||||||
19 | elapsed
since the pension began.
| ||||||
20 | Beginning January 1, 1990, every survivor's and children's | ||||||
21 | pension shall be
increased (1) on each January 1 occurring on | ||||||
22 | or after the commencement of the
pension if the deceased | ||||||
23 | teacher died while receiving a retirement pension, or
(2) in | ||||||
24 | other cases, on each January 1 occurring on or after the first
| ||||||
25 | anniversary of the commencement of the pension, by an amount | ||||||
26 | equal to 3% of the
current amount of the pension, including all | ||||||
27 | increases previously granted under
this Article, | ||||||
28 | notwithstanding Section 17-157. Such increases shall apply
| ||||||
29 | without regard to whether the deceased teacher was in service | ||||||
30 | on or after the
effective date of this amendatory Act of 1991, | ||||||
31 | but shall not accrue for any
period prior to January 1, 1990.
| ||||||
32 | Subject to the minimum established below, the maximum | ||||||
33 | amount of
pension for a surviving spouse alone or one
minor | ||||||
34 | child shall be $400 per month, and the maximum combined | ||||||
35 | pensions for
a surviving spouse and children of the deceased | ||||||
36 | teacher shall be $600
per month, with individual pensions |
| |||||||
| |||||||
1 | adjusted for all beneficiaries
pro rata to conform with this | ||||||
2 | limitation. If proration is unnecessary
the minimum survivor's | ||||||
3 | and children's pensions shall be $40 per month. The
minimum | ||||||
4 | total survivor's and children's pension payable upon the death | ||||||
5 | of a
contributor or annuitant which occurs after December 31, | ||||||
6 | 1986, shall be 50% of
the earned retirement pension of such | ||||||
7 | contributor or annuitant, calculated
without early retirement | ||||||
8 | discount in the case of death in service.
| ||||||
9 | On death after retirement, the total survivor's and | ||||||
10 | children's
pensions shall not exceed the monthly retirement or | ||||||
11 | disability pension
paid to the deceased retirant. Survivor's | ||||||
12 | and children's benefits described
in this Section shall apply | ||||||
13 | to all service and disability pensioners eligible
for a pension | ||||||
14 | as of July 1, 1981.
| ||||||
15 | For the purposes of this Section, the term "eligible child" | ||||||
16 | means an
unmarried minor child of a deceased teacher who is | ||||||
17 | under 18 years of age or a
child of a deceased teacher who is | ||||||
18 | disabled and was dependent upon the deceased
teacher at the | ||||||
19 | time of his or her death.
| ||||||
20 | For the purposes of this Section, the term "eligible | ||||||
21 | parent" means a
parent of a deceased teacher who was dependent | ||||||
22 | upon the teacher at the time of
his or her death.
| ||||||
23 | In this Article, the term "survivor's and children's | ||||||
24 | benefits" includes
benefits paid to an eligible parent and the | ||||||
25 | term "survivor's and children's
pension" includes a pension | ||||||
26 | paid to an eligible parent, unless the context
requires | ||||||
27 | otherwise.
| ||||||
28 | (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
| ||||||
29 | (40 ILCS 5/17-124) (from Ch. 108 1/2, par. 17-124)
| ||||||
30 | Sec. 17-124. Death Benefits - Death on pension.
On written | ||||||
31 | application to the Board, there shall be paid to the
estate of | ||||||
32 | a deceased teacher-pensioner pension payments, accrued,
| ||||||
33 | temporarily withheld or represented by checks uncashed at the | ||||||
34 | date of
his death and the excess, if any, of an amount equal to | ||||||
35 | his refundable
contributions for service or disability |
| |||||||
| |||||||
1 | retirement pension over pension
to the date of death; provided, | ||||||
2 | that if there be filed with the Board
prior to the death of the | ||||||
3 | pensioner his written direction, signed and
acknowledged | ||||||
4 | before an officer authorized to take acknowledgments, that
such | ||||||
5 | payments be paid to designated beneficiaries, they shall be so | ||||||
6 | paid
on written application therefor to the Board. If none of | ||||||
7 | several
named
beneficiaries survives the pensioner and no | ||||||
8 | directive was furnished by
the member to cover this | ||||||
9 | contingency, the deceased beneficiary's share
shall be paid to | ||||||
10 | the estate of the pensioner.
| ||||||
11 | If a reversionary pension is payable upon death of a | ||||||
12 | pensioner, the
determination and payment of any refund of | ||||||
13 | contributions payable under
this Section shall be made upon | ||||||
14 | death of the reversionary pensioner. At
such time a refund of | ||||||
15 | contributions less (1) the amount contributed for
annual | ||||||
16 | increases in pension and (2) total pension payments to the
| ||||||
17 | teacher-pensioner and survivor shall be paid in the manner | ||||||
18 | provided in
this Section to the designated beneficiaries, or | ||||||
19 | estate of the deceased
survivor.
| ||||||
20 | If a pension is payable to a surviving spouse ,
eligible | ||||||
21 | child, or an eligible parent
and/or minor children
upon death | ||||||
22 | of a pensioner, the determination of any refund of
| ||||||
23 | contributions payable under this Section shall be made when the | ||||||
24 | last of those
pensions is no longer payable
upon death of the | ||||||
25 | survivor and
marriage or attainment of age 18
of minor | ||||||
26 | children . At that
time a refund of contributions for retirement | ||||||
27 | and survivors' and
children's pensions less total pension | ||||||
28 | payments to the teacher-pensioner,
surviving spouse, eligible
| ||||||
29 | survivor
and minor children ,
and eligible parents
shall be
paid | ||||||
30 | in the manner provided in this
Section to the designated | ||||||
31 | beneficiaries, or estate of the deceased
survivor.
| ||||||
32 | If eligible beneficiaries for survivors' or children's | ||||||
33 | benefits
existed at the time of a pensioner's retirement but | ||||||
34 | not on the date of
his death thereafter, the excess of total | ||||||
35 | contributions for retirement
and survivors' and children's | ||||||
36 | pensions over pensions paid shall be
determined upon death of |
| |||||||
| |||||||
1 | the pensioner and paid in the manner provided
in this Section | ||||||
2 | to the designated beneficiaries, or estate of the
deceased | ||||||
3 | teacher-pensioner.
| ||||||
4 | Reversionary or survivor's pension payments accrued, | ||||||
5 | temporarily
withheld, or represented by uncashed checks to the | ||||||
6 | date of death shall
be paid to the reversionary pensioner's or | ||||||
7 | survivor's designated
beneficiaries, or estate in the manner | ||||||
8 | provided in this Section.
| ||||||
9 | On death of a retired teacher whose death occurs on
or | ||||||
10 | after the effective date of this amendatory Act of 1991, there | ||||||
11 | shall
be payable a lump sum
death benefit equal to 6 times the | ||||||
12 | teacher's salary rate for his last
month of service or $10,000, | ||||||
13 | whichever is less, upon death during the
first year on pension | ||||||
14 | minus 1/5 of the death benefit, as defined herein,
for each | ||||||
15 | year or fraction thereof on pension after the first full year,
| ||||||
16 | to a minimum of $5,000.
| ||||||
17 | Notwithstanding Section 17-157, the changes made in this | ||||||
18 | Section and
Section 17-123 by this amendatory Act of 1991 shall | ||||||
19 | apply to teachers dying
on or after the effective date of this | ||||||
20 | amendatory Act of 1991 without
regard to whether service | ||||||
21 | terminated prior to that date.
| ||||||
22 | (Source: P.A. 90-566, eff. 1-2-98.)
| ||||||
23 | (40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
| ||||||
24 | Sec. 17-125. Refund of contributions.
Upon certification | ||||||
25 | by the Employer of his resignation or cancellation
of his | ||||||
26 | teaching certificate prior to completion of the
minimum term of | ||||||
27 | service required to establish eligibility for a pension
and on | ||||||
28 | written application therefor, a teacher shall be paid a refund | ||||||
29 | of
all the amounts he has contributed to the Fund, less any | ||||||
30 | former
refund
that has not been repaid.
| ||||||
31 | Upon certification by the Employer of his resignation or
| ||||||
32 | cancellation of his teaching certificate after completion of | ||||||
33 | the minimum
term of service required to establish eligibility | ||||||
34 | for a pension and on
written application therefor, a teacher | ||||||
35 | shall be paid a refund of all
the amounts he has contributed, |
| |||||||
| |||||||
1 | less (1) any former refund that has not
been repaid, and (2) | ||||||
2 | pension payments received, provided he has executed
and | ||||||
3 | delivered to the Board his written receipt and release in
that
| ||||||
4 | behalf. Thereupon, he shall have no further interest in or | ||||||
5 | claim against
the Fund.
| ||||||
6 | A request for refund under either of the preceding | ||||||
7 | paragraphs shall
be considered valid if withdrawal from service | ||||||
8 | occurred at least 2
months prior to the filing of such request.
| ||||||
9 | Upon retirement of a teacher either on immediate or | ||||||
10 | deferred pension,
if the teacher is not then married, or if his | ||||||
11 | spouse ,
or children , or
parents do not
meet the qualifying | ||||||
12 | conditions for survivor's or children's pensions,
the total | ||||||
13 | amount contributed by him or otherwise paid by deductions from
| ||||||
14 | salary for survivor's pension, shall be refunded to him, | ||||||
15 | without
interest. No survivor's or children's pension rights | ||||||
16 | shall be effective
thereafter in such a case.
| ||||||
17 | During a teacher's term of service, no refund is payable | ||||||
18 | except
contributions made in error.
| ||||||
19 | (Source: P.A. 90-566, eff. 1-2-98.)
| ||||||
20 | Section 90. The State Mandates Act is amended by adding | ||||||
21 | Section 8.28 as
follows:
| ||||||
22 | (30 ILCS 805/8.28 new)
| ||||||
23 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
24 | of this
Act, no reimbursement by the State is required for the | ||||||
25 | implementation of
any mandate created by this amendatory Act of | ||||||
26 | the 93rd General Assembly.
| ||||||
27 | Section 99. Effective date. This Act takes effect upon | ||||||
28 | becoming law. |