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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0555
Introduced 1/27/2005, by Rep. Robert S. Molaro - Raymond Poe SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/14-119 |
from Ch. 108 1/2, par. 14-119 |
40 ILCS 5/14-121 |
from Ch. 108 1/2, par. 14-121 |
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Amends the State Employee Article of the Pension Code to remove the Social
Security offset against widow and survivor annuities for all annuitants,
beginning January 1, 2006. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB0555 |
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LRB094 05636 AMC 35685 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing |
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| Sections 14-119
and 14-121 as follows:
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| (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
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| Sec. 14-119. Amount of widow's annuity.
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| (a) The widow's annuity shall be 50% of the amount of |
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| retirement annuity
payable to the member on the date of death |
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| while on retirement if an
annuitant, or on the date of his |
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| death while in service if an employee,
regardless of his age on |
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| such date, or on the date of withdrawal if death
occurred after |
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| termination of service under the conditions prescribed in
the |
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| preceding Section.
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| (b) If an eligible widow, regardless of age, has in her |
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| care any
unmarried child or children of the member under age 18 |
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| (under age 22 if a
full-time student), the widow's
annuity |
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| shall be increased in the amount of 5% of the retirement |
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| annuity
for each such child, but the combined payments for a |
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| widow and
children shall not exceed 66 2/3% of the member's |
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| earned
retirement annuity.
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| The amount of retirement annuity from which the widow's
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| annuity is derived shall be that earned by the member without |
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| regard to
whether he attained age 60 prior to his withdrawal |
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| under the conditions
stated or prior to his death.
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| (c) Adopted children shall be considered as children of the |
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| member
only if the proceedings for adoption were commenced at |
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| least 1 year
prior to the member's death.
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| Marriage of a child shall render the child ineligible for |
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| further
consideration in the increase in the amount of the |
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| widow's annuity.
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| Attainment of age 18 (age 22 if a full-time student)
shall |
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HB0555 |
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LRB094 05636 AMC 35685 b |
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| render a child ineligible for
further consideration in the |
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| increase of the widow's annuity, but the
annuity to the widow |
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| shall be continued thereafter, without regard to
her age at |
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| that time.
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| (d) Until January 1, 2006, a widow's annuity payable on
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| account of any covered employee who has
shall have
been a |
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| covered employee for at least 18 months shall be reduced
by 1/2 |
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| of the amount of survivors benefits to which his beneficiaries |
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| are
eligible under the provisions of the Federal Social |
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| Security Act, except
that (1) the amount of any widow's annuity |
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| payable under this Article shall
not be reduced by reason of |
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| any increase under that Act which occurs after
the offset |
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| required by this subsection is first applied to that annuity,
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| and (2) for benefits granted on or after January 1, 1992, the |
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| offset under
this subsection (d) shall not exceed 50% of the |
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| amount of widow's annuity
otherwise payable.
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| Beginning January 1, 2006, the offset under this subsection |
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| (d) shall
no longer be applied to any widow's annuity, |
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| regardless of whether the
deceased employee was in service on |
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| or after the effective date of this
amendatory Act of the 94th |
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| General Assembly.
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| (e) Upon the death of a recipient of a widow's annuity the |
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| excess, if
any, of the member's accumulated contributions plus |
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| credited interest over
all annuity payments to the member and |
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| widow, exclusive of the $500 lump
sum payment, shall be paid to |
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| the named beneficiary of the widow, or if
none has been named, |
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| to the estate of the widow, provided no reversionary
annuity is |
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| payable.
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| (f) On January 1, 1981, any recipient of a widow's annuity |
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| who was receiving
a widow's annuity on or before January 1, |
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| 1971, shall have her widow's annuity
then being paid increased |
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| by 1% for each full year which has elapsed from
the date the |
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| widow's annuity began. On January 1, 1982, any recipient
of a |
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| widow's annuity who began receiving a widow's annuity after |
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| January
1, 1971, but before January 1, 1981, shall have her |
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| widow's annuity then
being paid increased by 1% for each full |
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LRB094 05636 AMC 35685 b |
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| year which has elapsed from the
date the widow's annuity began. |
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| On January 1, 1987, any recipient of a
widow's annuity who |
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| began receiving the widow's annuity on or before January
1, |
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| 1977, shall have the monthly widow's annuity increased by $1
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| for each full year which has elapsed since the date the
annuity |
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| began.
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| (g) Beginning January 1, 1990, every widow's annuity shall |
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| be
increased (1) on each January 1 occurring on or after the |
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| commencement
of the annuity if the deceased member died while |
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| receiving a retirement
annuity, or (2) in other cases, on each |
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| January 1 occurring on or after
the first anniversary of the |
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| commencement of the annuity, by an amount
equal to 3% of the |
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| current amount of the annuity, including any previous
increases |
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| under this Article. Such increases shall apply without regard |
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| to
whether the deceased member was in service on or after the |
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| effective date
of Public Act 86-1488, but shall not accrue for |
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| any period prior to January
1, 1990.
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| (Source: P.A. 90-448, eff. 8-16-97.)
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| (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
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| Sec. 14-121. Amount of survivors annuity. A survivors |
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| annuity
beneficiary shall be entitled upon death of the member |
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| to a single sum
payment of $1,000, payable pro rata among all |
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| persons entitled thereto,
together with a survivors annuity |
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| payable at the rates and under the
conditions specified in this |
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| Article.
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| (a) If the survivors annuity beneficiary is a spouse, the |
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| survivors
annuity shall be 30% of final average compensation |
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| subject to a maximum
payment of $400 per month.
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| (b) If an eligible child or children under the care of a |
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| spouse also
survives the member, such spouse as natural |
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| guardian of the child or
children shall receive, in addition to |
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| the foregoing annuity, 20% of final
average compensation on |
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| account of each such child and 10% of final average
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| compensation divided pro rata among such children, subject to a |
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| maximum
payment on account of all survivor annuity |
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HB0555 |
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LRB094 05636 AMC 35685 b |
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| beneficiaries of $600 per month,
or 80% of the member's final |
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| average compensation, whichever is the lesser.
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| (c) If the survivors annuity beneficiary or beneficiaries |
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| consists of
an unmarried child or children, the amount of |
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| survivors annuity shall be
20% of final average compensation to |
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| each child, and 10% of final average
compensation divided pro |
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| rata among all such children entitled to such annuity,
subject |
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| to a maximum payment to all children combined of $600 per month
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| or 80% of the member's final average compensation, whichever is |
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| the lesser.
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| (d) If the survivors annuity beneficiary is one or more |
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| dependent parents,
the annuity shall be 20% of final average |
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| compensation to each parent and
10% of final average |
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| compensation divided pro rata among the parents who
qualify for |
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| this annuity, subject to a maximum payment to both dependent
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| parents of $400 per month.
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| (e) The survivors annuity to the spouse, children or |
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| dependent parents of
a member whose death occurs after the date |
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| of last withdrawal, or after
retirement, or while in service |
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| following reentry into service after
retirement but before |
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| completing 1 1/2 years of additional creditable
service, shall |
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| not exceed the lesser of 80% of the member's earned
retirement |
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| annuity at the date of death or the maximum previously
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| established in this Section.
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| (f) In applying the limitation prescribed on the combined |
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| payments to
2 or more survivors annuity beneficiaries, the |
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| annuity on account of each
beneficiary shall be reduced pro |
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| rata until such time as the number of
beneficiaries makes the |
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| reduction no longer applicable.
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| (g) Until January 1, 2006, a survivors annuity payable on |
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| account of
any covered employee who has
shall have been a |
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| covered employee for at
least 18 months at date of death or |
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| last withdrawal, whichever is the later,
shall be reduced by |
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| 1/2 of the survivors benefits to which his beneficiaries
are |
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| eligible under the federal Social Security Act, except that (1) |
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| the
survivors annuity payable under this Article shall not be |
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HB0555 |
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LRB094 05636 AMC 35685 b |
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| reduced by any
increase under that Act which occurs after the |
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| offset required by this
subsection is first applied to that |
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| annuity, (2) for benefits granted on or
after January 1, 1992, |
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| the offset under this subsection (g) shall not exceed
50% of |
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| the amount of survivors annuity otherwise payable.
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| Beginning January 1, 2006, the offset under this subsection |
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| (g) shall no
longer be applied to any survivors annuity, |
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| regardless of whether the deceased
employee was in service on |
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| or after the effective date of this amendatory Act
of the 94th |
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| General Assembly.
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| (h) The minimum payment to a beneficiary hereunder shall be |
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| $60 per month,
which shall be reduced in accordance with the |
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| limitation prescribed on the
combined payments to all |
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| beneficiaries of a member.
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| (i) Subject to the conditions set forth in Section 14-120, |
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| the minimum
total survivors annuity benefit payable to the |
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| survivors annuity beneficiaries
of a deceased member or |
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| annuitant whose death occurs on or after January
1, 1984, shall |
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| be 50% of the amount of retirement annuity that was or would
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| have been payable to the deceased on the date of death, |
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| regardless of the
age of the deceased on such date. If the |
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| minimum total benefit provided
by this subsection exceeds the |
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| maximum otherwise imposed by this Section,
the minimum total |
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| benefit shall nevertheless be payable. Any increase in
the |
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| total survivors annuity benefit resulting from the operation of |
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| this
subsection shall be divided among the survivors annuity |
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| beneficiaries of
the deceased in proportion to their shares of |
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| the total survivors annuity
benefit otherwise payable under |
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| this Section.
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| (j) Any survivors annuity beneficiary whose annuity |
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| terminates due to any
condition specified in this Article other |
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| than death shall be entitled to
a refund of the excess, if any, |
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| of the accumulated contributions of the
member plus credited |
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| interest over all payments to the member and beneficiary
or |
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| beneficiaries, exclusive of the single sum payment of $1,000, |
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| provided
no future survivors or reversionary annuity benefits |
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LRB094 05636 AMC 35685 b |
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| are payable.
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| (k) Upon the death of the last eligible recipient of a |
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| survivors
annuity the excess, if any, of the member's |
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| accumulated contributions plus
credited interest over all |
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| annuity payments to the member and survivors
exclusive of the |
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| single sum payment of $1000, shall be paid to the named
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| beneficiary of the last eligible survivor, or if none has been |
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| named, to
the estate of the last eligible survivor, provided no |
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| reversionary annuity
is payable.
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| (l) On January 1, 1981, any survivor who was receiving a |
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| survivors
annuity on or before January 1, 1971, shall have his |
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| survivors annuity then
being paid increased by 1% for each full |
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| year which has elapsed from the
date the annuity began. On |
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| January 1, 1982, any survivor who began receiving
a survivor's |
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| annuity after January 1, 1971, but before January 1, 1981,
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| shall have his survivor's annuity then being paid increased by |
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| 1% for each
full year that has elapsed from the date the |
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| annuity began.
On January 1, 1987, any survivor who began |
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| receiving a survivor's annuity
on or before January 1, 1977, |
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| shall have the monthly survivor's annuity
increased by $1 for |
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| each full year which has elapsed since the date the
survivor's |
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| annuity began.
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| (m) Beginning January 1, 1990, every survivor's annuity |
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| shall be increased
(1) on each January 1 occurring on or after |
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| the commencement of the annuity if
the deceased member died |
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| while receiving a retirement annuity, or (2) in
other cases, on |
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| each January 1 occurring on or after the first anniversary
of |
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| the commencement of the annuity, by an amount equal to 3% of |
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| the current
amount of the annuity, including any previous |
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| increases under this Article.
Such increases shall apply |
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| without regard to whether the deceased member
was in service on |
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| or after the effective date of Public Act 86-1488,
but shall |
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| not accrue for any period prior to January 1, 1990.
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| (Source: P.A. 86-273; 86-1488; 87-794.)
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| Section 99. Effective date. This Act takes effect upon |