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Public Act 92-0749
HB2370 Enrolled LRB9205288EGfg
AN ACT in relation to 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 15-135, 15-145, 15-146, and 15-153.3 and
adding Section 15-167.3 as follows:
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities - Conditions.
(a) A participant who retires in one of the following
specified years with the specified amount of service is
entitled to a retirement annuity at any age under the
retirement program applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.;
35 years if retirement is in 2003 or later.
A participant with 8 or more years of service after
September 1, 1941, is entitled to a retirement annuity on or
after attainment of age 55.
A participant with at least 5 but less than 8 years of
service after September 1, 1941, is entitled to a retirement
annuity on or after attainment of age 62.
A participant who has at least 25 years of service in
this system as a police officer or firefighter is entitled to
a retirement annuity on or after the attainment of age 50, if
Rule 4 of Section 15-136 is applicable to the participant.
(b) The annuity payment period shall begin on the date
specified by the participant submitting a written
application, which date shall not be prior to termination of
employment or more than one year before the application is
received by the board; however, if the participant is not an
employee of an employer participating in this System or in a
participating system as defined in Article 20 of this Code on
April 1 of the calendar year next following the calendar year
in which the participant attains age 70 1/2, the annuity
payment period shall begin on that date regardless of whether
an application has been filed.
(c) An annuity is not payable if the amount provided
under Section 15-136 is less than $10 per month.
(Source: P.A. 90-65, eff. 7-7-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
Sec. 15-145. Survivors insurance benefits; conditions
and amounts.
(a) The survivors insurance benefits provided under this
Section shall be payable to the eligible survivors of a
participant covered under the traditional benefit package
upon the death of (1) a participating employee with at least
1 1/2 years of service, (2) a participant who terminated
employment with at least 10 years of service, and (3) an
annuitant in receipt of a retirement annuity or disability
retirement annuity under this Article.
Service under the State Employees' Retirement System of
Illinois, the Teachers' Retirement System of the State of
Illinois and the Public School Teachers' Pension and
Retirement Fund of Chicago shall be considered in determining
eligibility for survivors benefits under this Section.
If by law, a function of a governmental unit, as defined
by Section 20-107, is transferred in whole or in part to an
employer, and an employee transfers employment from this
governmental unit to such employer within 6 months after the
transfer of this function, the service credits in the
governmental unit's retirement system which have been
validated under Section 20-109 shall be considered in
determining eligibility for survivors benefits under this
Section.
(b) A surviving spouse of a deceased participant, or of
a deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions, shall receive a survivors annuity of 30% of
the final rate of earnings. Payments shall begin on the day
following the participant's or annuitant's death or the date
the surviving spouse attains age 50, whichever is later, and
continue until the death of the surviving spouse. The
annuity shall be payable to the surviving spouse prior to
attainment of age 50 if the surviving spouse has in his or
her care a deceased participant's or annuitant's dependent
unmarried child under age 18 (under age 22 if a full-time
student) who is eligible for a survivors annuity.
Remarriage of a surviving spouse prior to attainment of
age 55 that occurs before the effective date of this
amendatory Act of the 91st General Assembly shall disqualify
him or her for the receipt of a survivors annuity until July
6, 2000.
A surviving spouse whose survivors annuity has been
terminated due to remarriage may apply for reinstatement of
that annuity. The reinstated annuity shall begin to accrue
on July 6, 2000, except that if, on July 6, 2000, the annuity
is payable to an eligible surviving child or parent, payment
of the annuity to the surviving spouse shall not be
reinstated until the annuity is no longer payable to any
eligible surviving child or parent. The reinstated annuity
shall include any one-time or annual increases received prior
to the date of termination, as well as any increases that
would otherwise have accrued from the date of termination to
the date of reinstatement. An eligible surviving spouse
whose expectation of receiving a survivors annuity was lost
due to remarriage before attainment of age 50 shall also be
entitled to reinstatement under this subsection, but the
resulting survivors annuity shall not begin to accrue sooner
than upon the surviving spouse's attainment of age 50.
The changes made to this subsection by this amendatory
Act of the 92nd General Assembly (pertaining to remarriage
prior to age 55 or 50) apply without regard to whether the
deceased participant or annuitant was in service on or after
the effective date of this amendatory Act.
(c) Each dependent unmarried child under age 18 (under
age 22 if a full-time student) of a deceased participant, or
of a deceased annuitant who did not take a refund or
additional annuity consisting of accumulated survivors
insurance contributions, shall receive a survivors annuity
equal to the sum of (1) 20% of the final rate of earnings,
and (2) 10% of the final rate of earnings divided by the
number of children entitled to this benefit. Payments shall
begin on the day following the participant's or annuitant's
death and continue until the child marries, dies, or attains
age 18 (age 22 if a full-time student). If the child is in
the care of a surviving spouse who is eligible for survivors
insurance benefits, the child's benefit shall be paid to the
surviving spouse.
Each unmarried child over age 18 of a deceased
participant or of a deceased annuitant who had a survivor's
insurance beneficiary at the time of his or her retirement,
and who was dependent upon the participant or annuitant by
reason of a physical or mental disability which began prior
to the date the child attained age 18 (age 22 if a full-time
student), shall receive a survivor's annuity equal to the sum
of (1) 20% of the final rate of earnings, and (2) 10% of the
final rate of earnings divided by the number of children
entitled to survivors benefits. Payments shall begin on the
day following the participant's or annuitant's death and
continue until the child marries, dies, or is no longer
disabled. If the child is in the care of a surviving spouse
who is eligible for survivors insurance benefits, the child's
benefit may be paid to the surviving spouse. For the
purposes of this Section, disability means inability to
engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can
be expected to result in death or that has lasted or can be
expected to last for a continuous period of at least one
year.
(d) Each dependent parent of a deceased participant, or
of a deceased annuitant who did not take a refund or
additional annuity consisting of accumulated survivors
insurance contributions, shall receive a survivors annuity
equal to the sum of (1) 20% of final rate of earnings, and
(2) 10% of final rate of earnings divided by the number of
parents who qualify for the benefit. Payments shall begin
when the parent reaches age 55 or the day following the
participant's or annuitant's death, whichever is later, and
continue until the parent dies. Remarriage of a parent prior
to attainment of age 55 shall disqualify the parent for the
receipt of a survivors annuity.
(e) In addition to the survivors annuity provided above,
each survivors insurance beneficiary shall, upon death of the
participant or annuitant, receive a lump sum payment of
$1,000 divided by the number of such beneficiaries.
(f) The changes made in this Section by Public Act
81-712 pertaining to survivors annuities in cases of
remarriage prior to age 55 shall apply to each survivors
insurance beneficiary who remarries after June 30, 1979,
regardless of the date that the participant or annuitant
terminated his employment or died.
The change made to this Section by this amendatory Act of
the 91st General Assembly, pertaining to remarriage prior to
age 55, applies without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act of the 91st General
Assembly.
(g) On January 1, 1981, any person who was receiving a
survivors annuity on or before January 1, 1971 shall have the
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 whose annuity began after
January 1, 1971, but before January 1, 1981, shall have the
survivor's annuity then being paid increased by 1% for each
year which has elapsed from the date the survivor's 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.
(h) If the sum of the lump sum and total monthly
survivor benefits payable under this Section upon the death
of a participant amounts to less than the sum of the death
benefits payable under items (2) and (3) of Section 15-141,
the difference shall be paid in a lump sum to the beneficiary
of the participant who is living on the date that this
additional amount becomes payable.
(i) If the sum of the lump sum and total monthly
survivor benefits payable under this Section upon the death
of an annuitant receiving a retirement annuity or disability
retirement annuity amounts to less than the death benefit
payable under Section 15-142, the difference shall be paid to
the beneficiary of the annuitant who is living on the date
that this additional amount becomes payable.
(j) Effective on the later of (1) January 1, 1990, or
(2) the January 1 on or next after the date on which the
survivor annuity begins, if the deceased member died while
receiving a retirement annuity, or in all other cases the
January 1 nearest the first anniversary of the date the
survivor annuity payments begin, every survivors insurance
beneficiary shall receive an increase in his or her monthly
survivors annuity of 3%. On each January 1 after the initial
increase, the monthly survivors annuity shall be increased by
3% of the total survivors annuity provided under this
Article, including previous increases provided by this
subsection. Such increases shall apply to the survivors
insurance beneficiaries of each participant and annuitant,
whether or not the employment status of the participant or
annuitant terminates before the effective date of this
amendatory Act of 1990. This subsection (j) also applies to
persons receiving a survivor annuity under the portable
benefit package.
(k) If the Internal Revenue Code of 1986, as amended,
requires that the survivors benefits be payable at an age
earlier than that specified in this Section the benefits
shall begin at the earlier age, in which event, the
survivor's beneficiary shall be entitled only to that amount
which is equal to the actuarial equivalent of the benefits
provided by this Section.
(l) The changes made to this Section and Section 15-131
by this amendatory Act of 1997, relating to benefits for
certain unmarried children who are full-time students under
age 22, apply without regard to whether the deceased member
was in service on or after the effective date of this
amendatory Act of 1997. These changes do not authorize the
repayment of a refund or a re-election of benefits, and any
benefit or increase in benefits resulting from these changes
is not payable retroactively for any period before the
effective date of this amendatory Act of 1997.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98;
91-887, eff. 7-6-00.)
(40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
Sec. 15-146. Survivors insurance benefits - Minimum
amounts.
(a) The minimum total survivors annuity payable on
account of the death of a participant shall be 50% of the
retirement annuity which would have been provided under Rule
1, Rule 2, Rule 3, or Rule 5 of Section 15-136 upon the
participant's attainment of the minimum age at which the
penalty for early retirement would not be applicable or the
date of the participant's death, whichever is later, on the
basis of credits earned prior to the time of death.
(b) The minimum total survivors annuity payable on
account of the death of an annuitant shall be 50% of the
retirement annuity which is payable under Section 15-136 at
the time of death or 50% of the disability retirement annuity
payable under Section 15-153.2. This minimum survivors
annuity shall apply to each participant and annuitant who
dies after September 16, 1979, whether or not his or her
employee status terminates before or after that date.
(c) If an annuitant has elected a reversionary annuity,
the retirement annuity referred to in this Section is that
which would have been payable had such election not been
filed.
(d) Beginning January 1, 2002, any person who is
receiving a survivors annuity under this Article which, after
inclusion of all one-time and automatic annual increases to
which the person is entitled, is less than the sum of $17.50
for each year (up to a maximum of 30 years) of the deceased
member's service credit, shall be entitled to a monthly
supplemental payment equal to the difference.
If 2 or more persons are receiving survivors annuities
based on the same deceased member, the calculation of the
supplemental payment under this subsection shall be based on
the total of those annuities and divided pro rata. The
supplemental payment is not subject to any limitation on the
maximum amount of the annuity and shall not be included in
the calculation of any automatic annual increase under
Section 15-145.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98;
91-887, eff. 7-6-00.)
(40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
Sec. 15-153.3. Automatic increase in disability benefit.
Each disability benefit payable under Section 15-150 and
calculated under Section 15-153 or 15-153.2 that has not yet
received an initial increase under this Section shall be
increased by 0.25% of the monthly disability benefit
multiplied by the number of full months that have elapsed
since the benefit began 7% of the original fixed amount of
such benefit on January 1, 2002 1991 or the January 1 on or
next following the fourth anniversary of the granting of the
benefit, whichever occurs later.
On each January 1 following the initial 7% increase under
this Section, the disability benefit shall be increased by 3%
of the current amount of the benefit, including prior
increases under this Article.
The changes made to this Section by this amendatory Act
of the 92nd General Assembly apply without regard to whether
the benefit recipient was in service on or after the
effective date of this amendatory Act.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/15-167.3 new)
Sec. 15-167.3. To use emerging investment managers,
minority-owned businesses, female-owned businesses, and
businesses owned by persons with disabilities in managing the
System's assets.
(a) For the purposes of this Section:
"Emerging investment manager" means a qualified
investment adviser that manages an investment portfolio of at
least $10,000,000 but less than $500,000,000 and is a
minority-owned business, female-owned business, or business
owned by a person with a disability, as those terms are
defined in this Section.
"Minority-owned business" means a business concern that
is at least 51% owned by one or more minority persons or, in
the case of a corporation, at least 51% of the stock in which
is owned by one or more minority persons; and the management
and daily business operations of which are controlled by one
or more of the minority persons who own it.
"Female owned business" means a business concern that is
at least 51% owned by one or more females or, in the case of
a corporation, at least 51% of the stock in which is owned by
one or more females; and the management and daily business
operations of which are controlled by one or more of the
females who own it.
"Business owned by a person with a disability" means a
business concern that is at least 51% owned by one or more
persons with disabilities and the management and daily
business operations of which are controlled by one or more of
the persons with disabilities who own it.
"Minority person", "female", and "person with a
disability" have the meanings given them in the Business
Enterprise for Minorities, Females, and Persons with
Disabilities Act.
(b) It is hereby declared to be the public policy of the
State of Illinois to encourage the trustees of the System to
use emerging investment managers, minority-owned businesses,
female-owned businesses, and businesses owned by persons with
disabilities in managing the System's assets to the greatest
extent feasible within the bounds of financial and fiduciary
prudence, and to take affirmative steps to remove any
barriers to the full participation of emerging investment
managers, minority-owned businesses, female-owned businesses,
and businesses owned by persons with disabilities in
investment opportunities afforded by the System.
(c) The System shall prepare a report to be submitted to
the Governor and the General Assembly by September 1 of each
year. The report shall identify the emerging investment
managers, minority-owned businesses, female-owned businesses,
and businesses owned by persons with disabilities used by the
System, the percentage of the System's assets under the
investment control of those managers and businesses, and the
actions the System has undertaken to increase the use of
those managers and businesses, including encouraging other
investment managers to use emerging investment managers,
minority-owned businesses, female-owned businesses, and
businesses owned by persons with disabilities as
subcontractors when the opportunity arises.
(d) With respect to this System, this Section supersedes
the provisions of subsection (4) of Section 1-109.1 of this
Code.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 08, 2002.
Approved August 02, 2002.
Effective August 02, 2002.
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