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90_SB1917
40 ILCS 5/17-121 from Ch. 108 1/2, par. 17-121
40 ILCS 5/17-122 from Ch. 108 1/2, par. 17-122
40 ILCS 5/17-124 from Ch. 108 1/2, par. 17-124
30 ILCS 805/8.22 new
Amends the Chicago Teacher Article of the Pension Code to
extend eligibility for survivor benefits beyond attainment of
age 18 for dependent disabled children. Amends the State
Mandates Act to require implementation without reimbursement.
Effective immediately.
LRB9011593EGfg
LRB9011593EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 17-121, 17-122, and 17-124 and to amend the State
3 Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 17-121, 17-122, and 17-124 as follows:
8 (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
9 Sec. 17-121. Survivor's and Children's pensions -
10 Eligibility. A surviving spouse of a teacher shall be
11 entitled to a survivor's pension only if he was married to
12 the contributor for at least 1 1/2 years immediately prior to
13 his death or retirement, whichever first occurs, and also on
14 the date of the last termination of his service.
15 If the surviving spouse is under age 50 and there are no
16 eligible minor children born to or legally adopted by the
17 contributor and his surviving spouse, payment of the
18 survivor's pension shall begin when the surviving spouse
19 attains age 50.
20 For the purposes of this Article, a child is an "eligible
21 child" if the child is the unmarried natural or legally
22 adopted child of the teacher and is (i) under age 18 or (ii)
23 dependent by reason of a physical or mental disability,
24 regardless of age. In this context, "disability" means an
25 inability to engage in any substantial gainful activity by
26 reason of any medically determinable physical or mental
27 impairment that can be expected to result in death or has
28 lasted or can be expected to last for a continuous period of
29 at least 12 months.
30 Remarriage of the surviving spouse prior to September 1,
31 1983 while in receipt of a survivor's pension shall
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1 permanently terminate payment thereof, regardless of any
2 subsequent change in marital status; however, beginning
3 September 1, 1983, remarriage of a surviving spouse after
4 attainment of age 55 shall not terminate the survivor's
5 pension.
6 A surviving spouse whose pension was terminated on or
7 after September 1, 1983 due to remarriage after attainment of
8 age 55, and who applies for reinstatement of that pension
9 before January 1, 1990, shall be entitled to have the pension
10 reinstated effective January 1, 1990.
11 (Source: P.A. 86-273.)
12 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
13 Sec. 17-122. Survivor's and children's pensions - Amount.
14 Upon the death of a teacher who has completed at least 1 1/2
15 years of contributing service with either this Fund or the
16 State Universities Retirement System or the Teachers'
17 Retirement System of the State of Illinois, provided his
18 death occurred while (a) in active service covered by the
19 Fund or during his first 18 months of continuous employment
20 without a break in service under any other participating
21 system as defined in the Illinois Retirement Systems
22 Reciprocal Act except the State Universities Retirement
23 System and the Teachers' Retirement System of the State of
24 Illinois, (b) on a creditable leave of absence, (c) on a
25 noncreditable leave of absence of no more than one year, or
26 (d) a pension was deferred or pending provided the teacher
27 had at least 10 years of validated service credit, or upon
28 the death of a pensioner otherwise qualified for such
29 benefit, the surviving spouse and eligible unmarried minor
30 children of the deceased teacher under age 18 shall be
31 entitled to pensions, under the conditions stated
32 hereinafter. Such survivor's and children's pensions shall
33 be based on the average of the 4 highest consecutive years of
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1 salary in the last 10 years of service or on the average
2 salary for total service, if total service has been less than
3 4 years, according to the following percentages:
4 30% of average salary or 50% of the retirement pension
5 earned by the teacher, whichever is larger, subject to the
6 prescribed maximum monthly payment, for a surviving spouse
7 alone on attainment of age 50;
8 60% of average salary for a surviving spouse and eligible
9 minor children of the deceased teacher.
10 If no eligible spouse survives, or the surviving spouse
11 remarries, or the parent of the children of the deceased
12 member is otherwise ineligible for a survivor's pension, a
13 children's pension for eligible minor children under age 18
14 shall be paid to their parent or legal guardian for their
15 benefit according to the following percentages:
16 30% of average salary for one child;
17 60% of average salary for 2 or more children.
18 On January 1, 1981, any survivor or child who was
19 receiving a survivor's or children's pension on or before
20 January 1, 1971, shall have his survivor's or children's
21 pension then being paid increased by 1% for each full year
22 which has elapsed from the date the pension began. On January
23 1, 1982, any survivor or child whose pension began after
24 January 1, 1971, but before January 1, 1981, shall have his
25 survivor's or children's pension then being paid increased 1%
26 for each full year which has elapsed from the date the
27 pension began. On January 1, 1987, any survivor or child
28 whose pension began on or before January 1, 1977, shall have
29 the monthly survivor's or children's pension increased by $1
30 for each full year which has elapsed since the pension began.
31 Beginning January 1, 1990, every survivor's and
32 children's pension shall be increased (1) on each January 1
33 occurring on or after the commencement of the pension if the
34 deceased teacher died while receiving a retirement pension,
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1 or (2) in other cases, on each January 1 occurring on or
2 after the first anniversary of the commencement of the
3 pension, by an amount equal to 3% of the current amount of
4 the pension, including all increases previously granted under
5 this Article, notwithstanding Section 17-157. Such increases
6 shall apply without regard to whether the deceased teacher
7 was in service on or after the effective date of this
8 amendatory Act of 1991, but shall not accrue for any period
9 prior to January 1, 1990.
10 Subject to the minimum established below, the maximum
11 amount of pension for a surviving spouse alone or one
12 eligible minor child shall be $400 per month, and the maximum
13 combined pensions for a surviving spouse and eligible
14 children of the deceased teacher shall be $600 per month,
15 with individual pensions adjusted for all beneficiaries pro
16 rata to conform with this limitation. If proration is
17 unnecessary the minimum survivor's and children's pensions
18 shall be $40 per month. The minimum total survivor's and
19 children's pension payable upon the death of a contributor or
20 annuitant which occurs after December 31, 1986, shall be 50%
21 of the earned retirement pension of such contributor or
22 annuitant, calculated without early retirement discount in
23 the case of death in service.
24 On death after retirement, the total survivor's and
25 children's pensions shall not exceed the monthly retirement
26 or disability pension paid to the deceased retirant.
27 Survivor's and children's benefits described in this Section
28 shall apply to all service and disability pensioners eligible
29 for a pension as of July 1, 1981.
30 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
31 (40 ILCS 5/17-124) (from Ch. 108 1/2, par. 17-124)
32 Sec. 17-124. Death Benefits - Death on pension. On
33 written application to the Board, there shall be paid to the
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1 estate of a deceased teacher-pensioner pension payments,
2 accrued, temporarily withheld or represented by checks
3 uncashed at the date of his death and the excess, if any, of
4 an amount equal to his refundable contributions for service
5 or disability retirement pension over pension to the date of
6 death; provided, that if there be filed with the Board prior
7 to the death of the pensioner his written direction, signed
8 and acknowledged before an officer authorized to take
9 acknowledgments, that such payments be paid to designated
10 beneficiaries, they shall be so paid on written application
11 therefor to the Board. If none of several named beneficiaries
12 survives the pensioner and no directive was furnished by the
13 member to cover this contingency, the deceased beneficiary's
14 share shall be paid to the estate of the pensioner.
15 If a reversionary pension is payable upon death of a
16 pensioner, the determination and payment of any refund of
17 contributions payable under this Section shall be made upon
18 death of the reversionary pensioner. At such time a refund
19 of contributions less (1) the amount contributed for annual
20 increases in pension and (2) total pension payments to the
21 teacher-pensioner and survivor shall be paid in the manner
22 provided in this Section to the designated beneficiaries, or
23 estate of the deceased survivor.
24 If a pension is payable to a surviving spouse or an
25 eligible child and/or minor children upon death of a
26 pensioner, the determination of any refund of contributions
27 payable under this Section shall be made upon death of the
28 survivor and termination of the eligibility of the last
29 eligible child marriage or attainment of age 18 of minor
30 children. At that time a refund of contributions for
31 retirement and survivors' and children's pensions less total
32 pension payments to the teacher-pensioner, survivor, and
33 eligible minor children shall be paid in the manner provided
34 in this Section to the designated beneficiaries, or the
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1 estate of the deceased survivor.
2 If eligible beneficiaries for survivors' or children's
3 benefits existed at the time of a pensioner's retirement but
4 not on the date of his death thereafter, the excess of total
5 contributions for retirement and survivors' and children's
6 pensions over pensions paid shall be determined upon death of
7 the pensioner and paid in the manner provided in this Section
8 to the designated beneficiaries, or the estate of the
9 deceased teacher-pensioner.
10 Reversionary or survivor's pension payments accrued,
11 temporarily withheld, or represented by uncashed checks to
12 the date of death shall be paid to the reversionary
13 pensioner's or survivor's designated beneficiaries, or estate
14 in the manner provided in this Section.
15 On death of a retired teacher whose death occurs on or
16 after the effective date of this amendatory Act of 1991,
17 there shall be payable a lump sum death benefit equal to 6
18 times the teacher's salary rate for his last month of service
19 or $10,000, whichever is less, upon death during the first
20 year on pension minus 1/5 of the death benefit, as defined
21 herein, for each year or fraction thereof on pension after
22 the first full year, to a minimum of $5,000.
23 Notwithstanding Section 17-157, the changes made in this
24 Section and Section 17-123 by this amendatory Act of 1991
25 shall apply to teachers dying on or after the effective date
26 of this amendatory Act of 1991 without regard to whether
27 service terminated prior to that date.
28 (Source: P.A. 90-566, eff. 1-2-98.)
29 Section 90. The State Mandates Act is amended by adding
30 Section 8.22 as follows:
31 (30 ILCS 805/8.22 new)
32 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
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1 and 8 of this Act, no reimbursement by the State is required
2 for the implementation of any mandate created by this
3 amendatory Act of 1998.
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.