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92nd General Assembly

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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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