Public Act 095-1043
 
SB1985 Enrolled LRB095 14944 AMC 40889 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 14-119 and 14-121 as follows:
 
    (40 ILCS 5/14-119)  (from Ch. 108 1/2, par. 14-119)
    Sec. 14-119. Amount of widow's annuity.
    (a) The widow's annuity shall be 50% of the amount of
retirement annuity payable to the member on the date of death
while on retirement if an annuitant, or on the date of his
death while in service if an employee, regardless of his age on
such date, or on the date of withdrawal if death occurred after
termination of service under the conditions prescribed in the
preceding Section.
    (b) If an eligible widow, regardless of age, has in her
care any unmarried child or children of the member under age 18
(under age 22 if a full-time student), the widow's annuity
shall be increased in the amount of 5% of the retirement
annuity for each such child, but the combined payments for a
widow and children shall not exceed 66 2/3% of the member's
earned retirement annuity.
    The amount of retirement annuity from which the widow's
annuity is derived shall be that earned by the member without
regard to whether he attained age 60 prior to his withdrawal
under the conditions stated or prior to his death.
    (c) Marriage of a child shall render the child ineligible
for further consideration in the increase in the amount of the
widow's annuity.
    Attainment of age 18 (age 22 if a full-time student) shall
render a child ineligible for further consideration in the
increase of the widow's annuity, but the annuity to the widow
shall be continued thereafter, without regard to her age at
that time.
    (d) Except as otherwise provided in this subsection (d), a
A widow's annuity payable on account of any covered employee
who has shall have been a covered employee for at least 18
months shall be reduced by 1/2 of the amount of survivors
benefits to which his beneficiaries are eligible under the
provisions of the Federal Social Security Act, except that (1)
the amount of any widow's annuity payable under this Article
shall not be reduced by reason of any increase under that Act
which occurs after the offset required by this subsection is
first applied to that annuity, and (2) for benefits granted on
or after January 1, 1992, the offset under this subsection (d)
shall not exceed 50% of the amount of widow's annuity otherwise
payable.
    Beginning July 1, 2009, the offset under this subsection
(d) shall no longer be applied to any widow's annuity of any
person who began receiving retirement benefits or a widow's
annuity prior to January 1, 1998.
    Beginning July 1, 2009, the offset under this subsection
(d) shall no longer be applied to the widow's annuity of any
person who began receiving a widow's annuity on or after
January 1, 1998 and before the effective date of this
amendatory Act of the 95th General Assembly.
    Any person who began receiving retirement benefits after
January 1, 1998 and before the effective date of this
amendatory Act of the 95th General Assembly may, during a
one-time election period established by the System, elect to
reduce his or her retirement annuity by 3.825% in exchange for
not having the offset under this subsection (d) applied to his
or her widow's annuity.
    Any employee in service on the effective date of this
amendatory Act of the 95th General Assembly may, at the time of
retirement, elect to reduce his or her retirement annuity by
3.825% in exchange for not having the offset under this
subsection (d) applied to his or her widow's annuity.
    If a widow's annuity is payable to the widow of an employee
based on the employee's death in service, then the offset under
this subsection (d) shall no longer be applied to the widow's
annuity.
    A retiree who elects to reduce his or her retirement
annuity under this subsection (d) in exchange for not having
the offset applied may make an irrevocable election to
eliminate the reduction of his or her retirement annuity if
there is a change in marital status due to death or divorce,
but the retiree is not entitled to reimbursement of any benefit
reduction prior to the election.
    (e) Upon the death of a recipient of a widow's annuity the
excess, if any, of the member's accumulated contributions plus
credited interest over all annuity payments to the member and
widow, exclusive of the $500 lump sum payment, shall be paid to
the named beneficiary of the widow, or if none has been named,
to the estate of the widow, provided no reversionary annuity is
payable.
    (f) On January 1, 1981, any recipient of a widow's annuity
who was receiving a widow's annuity on or before January 1,
1971, shall have her widow's annuity then being paid increased
by 1% for each full year which has elapsed from the date the
widow's annuity began. On January 1, 1982, any recipient of a
widow's annuity who began receiving a widow's annuity after
January 1, 1971, but before January 1, 1981, shall have her
widow's annuity then being paid increased by 1% for each full
year which has elapsed from the date the widow's annuity began.
On January 1, 1987, any recipient of a widow's annuity who
began receiving the widow's annuity on or before January 1,
1977, shall have the monthly widow's annuity increased by $1
for each full year which has elapsed since the date the annuity
began.
    (g) Beginning January 1, 1990, every widow's annuity shall
be increased (1) on each January 1 occurring on or after the
commencement of the annuity if the deceased member died while
receiving a retirement annuity, or (2) in other cases, on each
January 1 occurring on or after the first anniversary of the
commencement of the annuity, by an amount equal to 3% of the
current amount of the annuity, including any previous increases
under this Article. Such increases shall apply without regard
to whether the deceased member was in service on or after the
effective date of Public Act 86-1488, but shall not accrue for
any period prior to January 1, 1990.
(Source: P.A. 95-279, eff. 1-1-08.)
 
    (40 ILCS 5/14-121)  (from Ch. 108 1/2, par. 14-121)
    Sec. 14-121. Amount of survivors annuity. A survivors
annuity beneficiary shall be entitled upon death of the member
to a single sum payment of $1,000, payable pro rata among all
persons entitled thereto, together with a survivors annuity
payable at the rates and under the conditions specified in this
Article.
    (a) If the survivors annuity beneficiary is a spouse, the
survivors annuity shall be 30% of final average compensation
subject to a maximum payment of $400 per month.
    (b) If an eligible child or children under the care of a
spouse also survives the member, such spouse as natural
guardian of the child or children shall receive, in addition to
the foregoing annuity, 20% of final average compensation on
account of each such child and 10% of final average
compensation divided pro rata among such children, subject to a
maximum payment on account of all survivor annuity
beneficiaries of $600 per month, or 80% of the member's final
average compensation, whichever is the lesser.
    (c) If the survivors annuity beneficiary or beneficiaries
consists of an unmarried child or children, the amount of
survivors annuity shall be 20% of final average compensation to
each child, and 10% of final average compensation divided pro
rata among all such children entitled to such annuity, subject
to a maximum payment to all children combined of $600 per month
or 80% of the member's final average compensation, whichever is
the lesser.
    (d) If the survivors annuity beneficiary is one or more
dependent parents, the annuity shall be 20% of final average
compensation to each parent and 10% of final average
compensation divided pro rata among the parents who qualify for
this annuity, subject to a maximum payment to both dependent
parents of $400 per month.
    (e) The survivors annuity to the spouse, children or
dependent parents of a member whose death occurs after the date
of last withdrawal, or after retirement, or while in service
following reentry into service after retirement but before
completing 1 1/2 years of additional creditable service, shall
not exceed the lesser of 80% of the member's earned retirement
annuity at the date of death or the maximum previously
established in this Section.
    (f) In applying the limitation prescribed on the combined
payments to 2 or more survivors annuity beneficiaries, the
annuity on account of each beneficiary shall be reduced pro
rata until such time as the number of beneficiaries makes the
reduction no longer applicable.
    (g) Except as otherwise provided in this subsection (g), a
survivors annuity payable on account of any covered employee
who has shall have been a covered employee for at least 18
months at date of death or last withdrawal, whichever is the
later, shall be reduced by 1/2 of the survivors benefits to
which his beneficiaries are eligible under the federal Social
Security Act, except that (1) the survivors annuity payable
under this Article shall not be reduced by any increase under
that Act which occurs after the offset required by this
subsection is first applied to that annuity, (2) for benefits
granted on or after January 1, 1992, the offset under this
subsection (g) shall not exceed 50% of the amount of survivors
annuity otherwise payable.
    Beginning July 1, 2009, the offset under this subsection
(g) shall no longer be applied to any survivors annuity of any
person who began receiving retirement benefits or a survivors
annuity prior to January 1, 1998.
    Beginning July 1, 2009, the offset under this subsection
(g) shall no longer be applied to the survivors annuity of any
person who began receiving a survivors annuity on or after
January 1, 1998 and before the effective date of this
amendatory Act of the 95th General Assembly.
    Any person who began receiving retirement benefits after
January 1, 1998 and before the effective date of this
amendatory Act of the 95th General Assembly may, during a
one-time election period established by the System, elect to
reduce his or her retirement annuity by 3.825% in exchange for
not having the offset under this subsection (g) applied to his
or her survivors annuity.
    Any employee in service on the effective date of this
amendatory Act of the 95th General Assembly may, at the time of
retirement, elect to reduce his or her retirement annuity by
3.825% in exchange for not having the offset under this
subsection (g) applied to his or her survivors annuity.
    If a survivors annuity is payable to the widow of an
employee based on the employee's death in service, then the
offset under this subsection (g) shall no longer be applied to
the survivors annuity.
    A retiree who elects to reduce his or her retirement
annuity under this subsection (g) in exchange for not having
the offset applied may make an irrevocable election to
eliminate the reduction of his or her retirement annuity if
there is a change in marital status due to death or divorce,
but the retiree is not entitled to reimbursement of any benefit
reduction prior to the election.
    (h) The minimum payment to a beneficiary hereunder shall be
$60 per month, which shall be reduced in accordance with the
limitation prescribed on the combined payments to all
beneficiaries of a member.
    (i) Subject to the conditions set forth in Section 14-120,
the minimum total survivors annuity benefit payable to the
survivors annuity beneficiaries of a deceased member or
annuitant whose death occurs on or after January 1, 1984, shall
be 50% of the amount of retirement annuity that was or would
have been payable to the deceased on the date of death,
regardless of the age of the deceased on such date. If the
minimum total benefit provided by this subsection exceeds the
maximum otherwise imposed by this Section, the minimum total
benefit shall nevertheless be payable. Any increase in the
total survivors annuity benefit resulting from the operation of
this subsection shall be divided among the survivors annuity
beneficiaries of the deceased in proportion to their shares of
the total survivors annuity benefit otherwise payable under
this Section.
    (j) Any survivors annuity beneficiary whose annuity
terminates due to any condition specified in this Article other
than death shall be entitled to a refund of the excess, if any,
of the accumulated contributions of the member plus credited
interest over all payments to the member and beneficiary or
beneficiaries, exclusive of the single sum payment of $1,000,
provided no future survivors or reversionary annuity benefits
are payable.
    (k) Upon the death of the last eligible recipient of a
survivors annuity the excess, if any, of the member's
accumulated contributions plus credited interest over all
annuity payments to the member and survivors exclusive of the
single sum payment of $1000, shall be paid to the named
beneficiary of the last eligible survivor, or if none has been
named, to the estate of the last eligible survivor, provided no
reversionary annuity is payable.
    (l) On January 1, 1981, any survivor who was receiving a
survivors annuity on or before January 1, 1971, shall have his
survivors annuity then being paid increased by 1% for each full
year which has elapsed from the date the annuity began. On
January 1, 1982, any survivor who began receiving a survivor's
annuity after January 1, 1971, but before January 1, 1981,
shall have his survivor's annuity then being paid increased by
1% for each full year that has elapsed from the date the
annuity began. On January 1, 1987, any survivor who began
receiving a survivor's annuity on or before January 1, 1977,
shall have the monthly survivor's annuity increased by $1 for
each full year which has elapsed since the date the survivor's
annuity began.
    (m) Beginning January 1, 1990, every survivor's annuity
shall be increased (1) on each January 1 occurring on or after
the commencement of the annuity if the deceased member died
while receiving a retirement annuity, or (2) in other cases, on
each January 1 occurring on or after the first anniversary of
the commencement of the annuity, by an amount equal to 3% of
the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply
without regard to whether the deceased member was in service on
or after the effective date of Public Act 86-1488, but shall
not accrue for any period prior to January 1, 1990.
(Source: P.A. 86-273; 86-1488; 87-794.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 3/26/2009