SB1985 Enrolled LRB095 14944 AMC 40889 b

1     AN ACT concerning 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 changing
5 Sections 14-119 and 14-121 as follows:
 
6     (40 ILCS 5/14-119)  (from Ch. 108 1/2, par. 14-119)
7     Sec. 14-119. Amount of widow's annuity.
8     (a) The widow's annuity shall be 50% of the amount of
9 retirement annuity payable to the member on the date of death
10 while on retirement if an annuitant, or on the date of his
11 death while in service if an employee, regardless of his age on
12 such date, or on the date of withdrawal if death occurred after
13 termination of service under the conditions prescribed in the
14 preceding Section.
15     (b) If an eligible widow, regardless of age, has in her
16 care any unmarried child or children of the member under age 18
17 (under age 22 if a full-time student), the widow's annuity
18 shall be increased in the amount of 5% of the retirement
19 annuity for each such child, but the combined payments for a
20 widow and children shall not exceed 66 2/3% of the member's
21 earned retirement annuity.
22     The amount of retirement annuity from which the widow's
23 annuity is derived shall be that earned by the member without

 

 

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1 regard to whether he attained age 60 prior to his withdrawal
2 under the conditions stated or prior to his death.
3     (c) Marriage of a child shall render the child ineligible
4 for further consideration in the increase in the amount of the
5 widow's annuity.
6     Attainment of age 18 (age 22 if a full-time student) shall
7 render a child ineligible for further consideration in the
8 increase of the widow's annuity, but the annuity to the widow
9 shall be continued thereafter, without regard to her age at
10 that time.
11     (d) Except as otherwise provided in this subsection (d), a
12 A widow's annuity payable on account of any covered employee
13 who has shall have been a covered employee for at least 18
14 months shall be reduced by 1/2 of the amount of survivors
15 benefits to which his beneficiaries are eligible under the
16 provisions of the Federal Social Security Act, except that (1)
17 the amount of any widow's annuity payable under this Article
18 shall not be reduced by reason of any increase under that Act
19 which occurs after the offset required by this subsection is
20 first applied to that annuity, and (2) for benefits granted on
21 or after January 1, 1992, the offset under this subsection (d)
22 shall not exceed 50% of the amount of widow's annuity otherwise
23 payable.
24     Beginning July 1, 2009, the offset under this subsection
25 (d) shall no longer be applied to any widow's annuity of any
26 person who began receiving retirement benefits or a widow's

 

 

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1 annuity prior to January 1, 1998.
2     Beginning July 1, 2009, the offset under this subsection
3 (d) shall no longer be applied to the widow's annuity of any
4 person who began receiving a widow's annuity on or after
5 January 1, 1998 and before the effective date of this
6 amendatory Act of the 95th General Assembly.
7     Any person who began receiving retirement benefits after
8 January 1, 1998 and before the effective date of this
9 amendatory Act of the 95th General Assembly may, during a
10 one-time election period established by the System, elect to
11 reduce his or her retirement annuity by 3.825% in exchange for
12 not having the offset under this subsection (d) applied to his
13 or her widow's annuity.
14     Any employee in service on the effective date of this
15 amendatory Act of the 95th General Assembly may, at the time of
16 retirement, elect to reduce his or her retirement annuity by
17 3.825% in exchange for not having the offset under this
18 subsection (d) applied to his or her widow's annuity.
19     If a widow's annuity is payable to the widow of an employee
20 based on the employee's death in service, then the offset under
21 this subsection (d) shall no longer be applied to the widow's
22 annuity.
23     A retiree who elects to reduce his or her retirement
24 annuity under this subsection (d) in exchange for not having
25 the offset applied may make an irrevocable election to
26 eliminate the reduction of his or her retirement annuity if

 

 

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1 there is a change in marital status due to death or divorce,
2 but the retiree is not entitled to reimbursement of any benefit
3 reduction prior to the election.
4     (e) Upon the death of a recipient of a widow's annuity the
5 excess, if any, of the member's accumulated contributions plus
6 credited interest over all annuity payments to the member and
7 widow, exclusive of the $500 lump sum payment, shall be paid to
8 the named beneficiary of the widow, or if none has been named,
9 to the estate of the widow, provided no reversionary annuity is
10 payable.
11     (f) On January 1, 1981, any recipient of a widow's annuity
12 who was receiving a widow's annuity on or before January 1,
13 1971, shall have her widow's annuity then being paid increased
14 by 1% for each full year which has elapsed from the date the
15 widow's annuity began. On January 1, 1982, any recipient of a
16 widow's annuity who began receiving a widow's annuity after
17 January 1, 1971, but before January 1, 1981, shall have her
18 widow's annuity then being paid increased by 1% for each full
19 year which has elapsed from the date the widow's annuity began.
20 On January 1, 1987, any recipient of a widow's annuity who
21 began receiving the widow's annuity on or before January 1,
22 1977, shall have the monthly widow's annuity increased by $1
23 for each full year which has elapsed since the date the annuity
24 began.
25     (g) Beginning January 1, 1990, every widow's annuity shall
26 be increased (1) on each January 1 occurring on or after the

 

 

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1 commencement of the annuity if the deceased member died while
2 receiving a retirement annuity, or (2) in other cases, on each
3 January 1 occurring on or after the first anniversary of the
4 commencement of the annuity, by an amount equal to 3% of the
5 current amount of the annuity, including any previous increases
6 under this Article. Such increases shall apply without regard
7 to whether the deceased member was in service on or after the
8 effective date of Public Act 86-1488, but shall not accrue for
9 any period prior to January 1, 1990.
10 (Source: P.A. 95-279, eff. 1-1-08.)
 
11     (40 ILCS 5/14-121)  (from Ch. 108 1/2, par. 14-121)
12     Sec. 14-121. Amount of survivors annuity. A survivors
13 annuity beneficiary shall be entitled upon death of the member
14 to a single sum payment of $1,000, payable pro rata among all
15 persons entitled thereto, together with a survivors annuity
16 payable at the rates and under the conditions specified in this
17 Article.
18     (a) If the survivors annuity beneficiary is a spouse, the
19 survivors annuity shall be 30% of final average compensation
20 subject to a maximum payment of $400 per month.
21     (b) If an eligible child or children under the care of a
22 spouse also survives the member, such spouse as natural
23 guardian of the child or children shall receive, in addition to
24 the foregoing annuity, 20% of final average compensation on
25 account of each such child and 10% of final average

 

 

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1 compensation divided pro rata among such children, subject to a
2 maximum payment on account of all survivor annuity
3 beneficiaries of $600 per month, or 80% of the member's final
4 average compensation, whichever is the lesser.
5     (c) If the survivors annuity beneficiary or beneficiaries
6 consists of an unmarried child or children, the amount of
7 survivors annuity shall be 20% of final average compensation to
8 each child, and 10% of final average compensation divided pro
9 rata among all such children entitled to such annuity, subject
10 to a maximum payment to all children combined of $600 per month
11 or 80% of the member's final average compensation, whichever is
12 the lesser.
13     (d) If the survivors annuity beneficiary is one or more
14 dependent parents, the annuity shall be 20% of final average
15 compensation to each parent and 10% of final average
16 compensation divided pro rata among the parents who qualify for
17 this annuity, subject to a maximum payment to both dependent
18 parents of $400 per month.
19     (e) The survivors annuity to the spouse, children or
20 dependent parents of a member whose death occurs after the date
21 of last withdrawal, or after retirement, or while in service
22 following reentry into service after retirement but before
23 completing 1 1/2 years of additional creditable service, shall
24 not exceed the lesser of 80% of the member's earned retirement
25 annuity at the date of death or the maximum previously
26 established in this Section.

 

 

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1     (f) In applying the limitation prescribed on the combined
2 payments to 2 or more survivors annuity beneficiaries, the
3 annuity on account of each beneficiary shall be reduced pro
4 rata until such time as the number of beneficiaries makes the
5 reduction no longer applicable.
6     (g) Except as otherwise provided in this subsection (g), a
7 survivors annuity payable on account of any covered employee
8 who has shall have been a covered employee for at least 18
9 months at date of death or last withdrawal, whichever is the
10 later, shall be reduced by 1/2 of the survivors benefits to
11 which his beneficiaries are eligible under the federal Social
12 Security Act, except that (1) the survivors annuity payable
13 under this Article shall not be reduced by any increase under
14 that Act which occurs after the offset required by this
15 subsection is first applied to that annuity, (2) for benefits
16 granted on or after January 1, 1992, the offset under this
17 subsection (g) shall not exceed 50% of the amount of survivors
18 annuity otherwise payable.
19     Beginning July 1, 2009, the offset under this subsection
20 (g) shall no longer be applied to any survivors annuity of any
21 person who began receiving retirement benefits or a survivors
22 annuity prior to January 1, 1998.
23     Beginning July 1, 2009, the offset under this subsection
24 (g) shall no longer be applied to the survivors annuity of any
25 person who began receiving a survivors annuity on or after
26 January 1, 1998 and before the effective date of this

 

 

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1 amendatory Act of the 95th General Assembly.
2     Any person who began receiving retirement benefits after
3 January 1, 1998 and before the effective date of this
4 amendatory Act of the 95th General Assembly may, during a
5 one-time election period established by the System, elect to
6 reduce his or her retirement annuity by 3.825% in exchange for
7 not having the offset under this subsection (g) applied to his
8 or her survivors annuity.
9     Any employee in service on the effective date of this
10 amendatory Act of the 95th General Assembly may, at the time of
11 retirement, elect to reduce his or her retirement annuity by
12 3.825% in exchange for not having the offset under this
13 subsection (g) applied to his or her survivors annuity.
14     If a survivors annuity is payable to the widow of an
15 employee based on the employee's death in service, then the
16 offset under this subsection (g) shall no longer be applied to
17 the survivors annuity.
18     A retiree who elects to reduce his or her retirement
19 annuity under this subsection (g) in exchange for not having
20 the offset applied may make an irrevocable election to
21 eliminate the reduction of his or her retirement annuity if
22 there is a change in marital status due to death or divorce,
23 but the retiree is not entitled to reimbursement of any benefit
24 reduction prior to the election.
25     (h) The minimum payment to a beneficiary hereunder shall be
26 $60 per month, which shall be reduced in accordance with the

 

 

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1 limitation prescribed on the combined payments to all
2 beneficiaries of a member.
3     (i) Subject to the conditions set forth in Section 14-120,
4 the minimum total survivors annuity benefit payable to the
5 survivors annuity beneficiaries of a deceased member or
6 annuitant whose death occurs on or after January 1, 1984, shall
7 be 50% of the amount of retirement annuity that was or would
8 have been payable to the deceased on the date of death,
9 regardless of the age of the deceased on such date. If the
10 minimum total benefit provided by this subsection exceeds the
11 maximum otherwise imposed by this Section, the minimum total
12 benefit shall nevertheless be payable. Any increase in the
13 total survivors annuity benefit resulting from the operation of
14 this subsection shall be divided among the survivors annuity
15 beneficiaries of the deceased in proportion to their shares of
16 the total survivors annuity benefit otherwise payable under
17 this Section.
18     (j) Any survivors annuity beneficiary whose annuity
19 terminates due to any condition specified in this Article other
20 than death shall be entitled to a refund of the excess, if any,
21 of the accumulated contributions of the member plus credited
22 interest over all payments to the member and beneficiary or
23 beneficiaries, exclusive of the single sum payment of $1,000,
24 provided no future survivors or reversionary annuity benefits
25 are payable.
26     (k) Upon the death of the last eligible recipient of a

 

 

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1 survivors annuity the excess, if any, of the member's
2 accumulated contributions plus credited interest over all
3 annuity payments to the member and survivors exclusive of the
4 single sum payment of $1000, shall be paid to the named
5 beneficiary of the last eligible survivor, or if none has been
6 named, to the estate of the last eligible survivor, provided no
7 reversionary annuity is payable.
8     (l) On January 1, 1981, any survivor who was receiving a
9 survivors annuity on or before January 1, 1971, shall have his
10 survivors annuity then being paid increased by 1% for each full
11 year which has elapsed from the date the annuity began. On
12 January 1, 1982, any survivor who began receiving a survivor's
13 annuity after January 1, 1971, but before January 1, 1981,
14 shall have his survivor's annuity then being paid increased by
15 1% for each full year that has elapsed from the date the
16 annuity began. On January 1, 1987, any survivor who began
17 receiving a survivor's annuity on or before January 1, 1977,
18 shall have the monthly survivor's annuity increased by $1 for
19 each full year which has elapsed since the date the survivor's
20 annuity began.
21     (m) Beginning January 1, 1990, every survivor's annuity
22 shall be increased (1) on each January 1 occurring on or after
23 the commencement of the annuity if the deceased member died
24 while receiving a retirement annuity, or (2) in other cases, on
25 each January 1 occurring on or after the first anniversary of
26 the commencement of the annuity, by an amount equal to 3% of

 

 

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1 the current amount of the annuity, including any previous
2 increases under this Article. Such increases shall apply
3 without regard to whether the deceased member was in service on
4 or after the effective date of Public Act 86-1488, but shall
5 not accrue for any period prior to January 1, 1990.
6 (Source: P.A. 86-273; 86-1488; 87-794.)
 
7     Section 99. Effective date. This Act takes effect upon
8 becoming law.