093_SB1151 LRB093 06789 LRD 06929 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 17-122 as follows: 6 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122) 7 Sec. 17-122. Survivor's and children's pensions - Amount. 8 Upon the death of a teacher who has completed at least 1 1/2 9 years of contributing service with either this Fund or the 10 State Universities Retirement System or the Teachers' 11 Retirement System of the State of Illinois, provided his 12 death occurred while (a) in active service covered by the 13 Fund or during his first 18 months of continuous employment 14 without a break in service under any other participating 15 system as defined in the Illinois Retirement Systems 16 Reciprocal Act except the State Universities Retirement 17 System and the Teachers' Retirement System of the State of 18 Illinois, (b) on a creditable leave of absence, (c) on a 19 noncreditable leave of absence of no more than one year, or 20 (d) a pension was deferred or pending provided the teacher 21 had at least 10 years of validated service credit, or upon 22 the death of a pensioner otherwise qualified for such 23 benefit, the surviving spouse and unmarried minor children of 24 the deceased teacher under age 18 shall be entitled to 25 pensions, under the conditions stated hereinafter. Such 26 survivor's and children's pensions shall be based on the 27 average of the 4 highest consecutive years of salary in the 28 last 10 years of service or on the average salary for total 29 service, if total service has been less than 4 years, 30 according to the following percentages: 31 30% of average salary or 50% of the retirement pension -2- LRB093 06789 LRD 06929 b 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 5 eligible 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 8 member is otherwise ineligible for a survivor's pension, a 9 children's pension for eligible minor children under age 18 10 shall be paid to their parent or legal guardian for their 11 benefit according to the following percentages: 12 30% of average salary for one child; 13 60% of average salary for 2 or more children. 14 On January 1, 1981, any survivor or child who was 15 receiving a survivor's or children's pension on or before 16 January 1, 1971, shall have his survivor's or children's 17 pension then being paid increased by 1% for each full year 18 which has elapsed from the date the pension began. On January 19 1, 1982, any survivor or child whose pension began after 20 January 1, 1971, but before January 1, 1981, shall have his 21 survivor's or children's pension then being paid increased 1% 22 for each full year which has elapsed from the date the 23 pension began. On January 1, 1987, any survivor or child 24 whose pension began on or before January 1, 1977, shall have 25 the monthly survivor's or children's pension increased by $1 26 for each full year which has elapsed since the pension began. 27 Beginning January 1, 1990, every survivor's and 28 children's pension shall be increased (1) on each January 1 29 occurring on or after the commencement of the pension if the 30 deceased teacher died while receiving a retirement pension, 31 or (2) in other cases, on each January 1 occurring on or 32 after the first anniversary of the commencement of the 33 pension, by an amount equal to 3% of the current amount of 34 the pension, including all increases previously granted under -3- LRB093 06789 LRD 06929 b 1 this Article, notwithstanding Section 17-157. Such increases 2 shall apply without regard to whether the deceased teacher 3 was in service on or after the effective date of this 4 amendatory Act of 1991, but shall not accrue for any period 5 prior to January 1, 1990. 6 Subject to the minimum established below, the maximum 7 amount of pension for a surviving spouse alone or one minor 8 child shall be $400 per month, and the maximum combined 9 pensions for a surviving spouse and children of the deceased 10 teacher shall be $600 per month, with individual pensions 11 adjusted for all beneficiaries pro rata to conform with this 12 limitation. If proration is unnecessary the minimum 13 survivor's and children's pensions shall be $40 per month. 14 The minimum total survivor's and children's pension payable 15 upon the death of a contributor or annuitant which occurs 16 after December 31, 1986, shall be 50% of the earned 17 retirement pension of such contributor or annuitant, 18 calculated without early retirement discount in the case of 19 death in service. Beginning January 1, 2004, the minimum 20 total survivor's pension payable upon the death of a 21 contributor or annuitant that occurred before January 1, 1987 22 shall be 50% of the earned retirement pension of the 23 contributor or annuitant, calculated without early retirement 24 discount in the case of death in service, and notwithstanding 25 Section 17-157. 26 On death after retirement, the total survivor's and 27 children's pensions shall not exceed the monthly retirement 28 or disability pension paid to the deceased retirant. 29 Survivor's and children's benefits described in this Section 30 shall apply to all service and disability pensioners eligible 31 for a pension as of July 1, 1981. 32 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.) 33 Section 90. The State Mandates Act is amended by adding -4- LRB093 06789 LRD 06929 b 1 Section 8.27 as follows: 2 (30 ILCS 805/8.27 new) 3 Sec. 8.27. Exempt mandate. Notwithstanding Sections 6 4 and 8 of this Act, no reimbursement by the State is required 5 for the implementation of any mandate created by this 6 amendatory Act of the 93rd General Assembly. 7 Section 99. Effective date. This Act takes effect upon 8 becoming law.