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91_HB1256
LRB9101882EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 15-145.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 15-145 as follows:
7 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
8 Sec. 15-145. Survivors insurance benefits; conditions
9 and amounts.
10 (a) The survivors insurance benefits provided under this
11 Section shall be payable to the eligible survivors of a
12 participant covered under the traditional benefit package
13 upon the death of (1) a participating employee with at least
14 1 1/2 years of service, (2) a participant who terminated
15 employment with at least 10 years of service, and (3) an
16 annuitant in receipt of a retirement annuity or disability
17 retirement annuity under this Article.
18 Service under the State Employees' Retirement System of
19 Illinois, the Teachers' Retirement System of the State of
20 Illinois and the Public School Teachers' Pension and
21 Retirement Fund of Chicago shall be considered in determining
22 eligibility for survivors benefits under this Section.
23 If, by law, a function of a governmental unit, as defined
24 by Section 20-107, is transferred in whole or in part to an
25 employer, and an employee transfers employment from this
26 governmental unit to such employer within 6 months after the
27 transfer of this function, the service credits in the
28 governmental unit's retirement system which have been
29 validated under Section 20-109 shall be considered in
30 determining eligibility for survivors benefits under this
31 Section.
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1 (b) A surviving spouse of a deceased participant, or of
2 a deceased annuitant who had a survivors insurance
3 beneficiary at the time of retirement, shall receive a
4 survivors annuity of 30% of the final rate of earnings.
5 Payments shall begin on the day following the participant's
6 or annuitant's death or the date the surviving spouse attains
7 age 50, whichever is later, and continue until the death of
8 the surviving spouse.
9 The removal of the age 50 limitation by this amendatory
10 Act of the 91st General Assembly applies to all persons
11 otherwise eligible to receive a survivors annuity under this
12 subsection (b), without regard to whether the deceased
13 participant or annuitant was in service on or after the
14 effective date of this amendatory Act. A person otherwise
15 eligible whose annuity under this subsection is being
16 deferred due to the age 50 limitation shall, upon
17 application, be entitled to have the annuity begin, payable
18 from the effective date of this amendatory Act. The annuity
19 shall be payable to the surviving spouse prior to attainment
20 of age 50 if the surviving spouse has in his or her care a
21 deceased participant's or annuitant's dependent unmarried
22 child under age 18 (under age 22 if a full-time student) who
23 is eligible for a survivors annuity.
24 Remarriage of a surviving spouse prior to attainment of
25 age 55 shall disqualify him or her for the receipt of a
26 survivors annuity.
27 (c) Each dependent unmarried child under age 18 (under
28 age 22 if a full-time student) of a deceased participant, or
29 of a deceased annuitant who had a survivors insurance
30 beneficiary at the time of his or her retirement, shall
31 receive a survivors annuity equal to the sum of (1) 20% of
32 the final rate of earnings, and (2) 10% of the final rate of
33 earnings divided by the number of children entitled to this
34 benefit. Payments shall begin on the day following the
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1 participant's or annuitant's death and continue until the
2 child marries, dies, or attains age 18 (age 22 if a full-time
3 student). If the child is in the care of a surviving spouse
4 who is eligible for survivors insurance benefits, the child's
5 benefit shall be paid to the surviving spouse.
6 Each unmarried child over age 18 of a deceased
7 participant or of a deceased annuitant who had a survivor's
8 insurance beneficiary at the time of his or her retirement,
9 and who was dependent upon the participant or annuitant by
10 reason of a physical or mental disability which began prior
11 to the date the child attained age 18 (age 22 if a full-time
12 student), shall receive a survivor's annuity equal to the sum
13 of (1) 20% of the final rate of earnings, and (2) 10% of the
14 final rate of earnings divided by the number of children
15 entitled to survivors benefits. Payments shall begin on the
16 day following the participant's or annuitant's death and
17 continue until the child marries, dies, or is no longer
18 disabled. If the child is in the care of a surviving spouse
19 who is eligible for survivors insurance benefits, the child's
20 benefit may be paid to the surviving spouse. For the
21 purposes of this Section, disability means inability to
22 engage in any substantial gainful activity by reason of any
23 medically determinable physical or mental impairment that can
24 be expected to result in death or that has lasted or can be
25 expected to last for a continuous period of at least one
26 year.
27 (d) Each dependent parent of a deceased participant, or
28 of a deceased annuitant who had a survivors insurance
29 beneficiary at the time of his or her retirement, shall
30 receive a survivors annuity equal to the sum of (1) 20% of
31 final rate of earnings, and (2) 10% of final rate of earnings
32 divided by the number of parents who qualify for the benefit.
33 Payments shall begin when the parent reaches age 55 or the
34 day following the participant's or annuitant's death,
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1 whichever is later, and continue until the parent dies.
2 Remarriage of a parent prior to attainment of age 55 shall
3 disqualify the parent for the receipt of a survivors annuity.
4 (e) In addition to the survivors annuity provided above,
5 each survivors insurance beneficiary shall, upon death of the
6 participant or annuitant, receive a lump sum payment of
7 $1,000 divided by the number of such beneficiaries.
8 (f) The changes made in this Section by Public Act
9 81-712 pertaining to survivors annuities in cases of
10 remarriage prior to age 55 shall apply to each survivors
11 insurance beneficiary who remarries after June 30, 1979,
12 regardless of the date that the participant or annuitant
13 terminated his employment or died.
14 (g) On January 1, 1981, any person who was receiving a
15 survivors annuity on or before January 1, 1971 shall have the
16 survivors annuity then being paid increased by 1% for each
17 full year which has elapsed from the date the annuity began.
18 On January 1, 1982, any survivor whose annuity began after
19 January 1, 1971, but before January 1, 1981, shall have the
20 survivor's annuity then being paid increased by 1% for each
21 year which has elapsed from the date the survivor's annuity
22 began. On January 1, 1987, any survivor who began receiving a
23 survivor's annuity on or before January 1, 1977, shall have
24 the monthly survivor's annuity increased by $1 for each full
25 year which has elapsed since the date the survivor's annuity
26 began.
27 (h) If the sum of the lump sum and total monthly
28 survivor benefits payable under this Section upon the death
29 of a participant amounts to less than the sum of the death
30 benefits payable under items (2) and (3) of Section 15-141,
31 the difference shall be paid in a lump sum to the beneficiary
32 of the participant who is living on the date that this
33 additional amount becomes payable.
34 (i) If the sum of the lump sum and total monthly
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1 survivor benefits payable under this Section upon the death
2 of an annuitant receiving a retirement annuity or disability
3 retirement annuity amounts to less than the death benefit
4 payable under Section 15-142, the difference shall be paid to
5 the beneficiary of the annuitant who is living on the date
6 that this additional amount becomes payable.
7 (j) Effective on the later of (1) January 1, 1990, or
8 (2) the January 1 on or next after the date on which the
9 survivor annuity begins, if the deceased member died while
10 receiving a retirement annuity, or in all other cases the
11 January 1 nearest the first anniversary of the date the
12 survivor annuity payments begin, every survivors insurance
13 beneficiary shall receive an increase in his or her monthly
14 survivors annuity of 3%. On each January 1 after the initial
15 increase, the monthly survivors annuity shall be increased by
16 3% of the total survivors annuity provided under this
17 Article, including previous increases provided by this
18 subsection. Such increases shall apply to the survivors
19 insurance beneficiaries of each participant and annuitant,
20 whether or not the employment status of the participant or
21 annuitant terminates before the effective date of this
22 amendatory Act of 1990.
23 (k) If the Internal Revenue Code of 1986, as amended,
24 requires that the survivors benefits be payable at an age
25 earlier than that specified in this Section the benefits
26 shall begin at the earlier age, in which event, the
27 survivor's beneficiary shall be entitled only to that amount
28 which is equal to the actuarial equivalent of the benefits
29 provided by this Section.
30 (l) The changes made to this Section and Section 15-131
31 by this amendatory Act of 1997, relating to benefits for
32 certain unmarried children who are full-time students under
33 age 22, apply without regard to whether the deceased member
34 was in service on or after the effective date of this
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1 amendatory Act of 1997. These changes do not authorize the
2 repayment of a refund or a re-election of benefits, and any
3 benefit or increase in benefits resulting from these changes
4 is not payable retroactively for any period before the
5 effective date of this amendatory Act of 1997.
6 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.