|
|
||||
| Public Act 095-1043 |
||||
| ||||
| ||||
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.
| ||