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90_HB0115
40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119
40 ILCS 5/14-121 from Ch. 108 1/2, par. 14-121
Amends the State Employee Article of the Pension Code to
remove the Social Security offset against widow and survivor
annuities for all annuitants, beginning January 1, 1998.
Effective immediately.
LRB9000258EGfg
LRB9000258EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 14-119 and 14-121.
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 Sections 14-119 and 14-121 as follows:
7 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
8 Sec. 14-119. Amount of widow's annuity.
9 (a) The widow's annuity shall be 50% of the amount of
10 retirement annuity payable to the member on the date of death
11 while on retirement if an annuitant, or on the date of his
12 death while in service if an employee, regardless of his age
13 on such date, or on the date of withdrawal if death occurred
14 after termination of service under the conditions prescribed
15 in the preceding Section.
16 (b) If an eligible widow, regardless of age, has in her
17 care any unmarried child or children of the member under age
18 18, the widow's annuity shall be increased in the amount of
19 5% of the retirement annuity for each such child, but the
20 combined payments for a widow and children shall not exceed
21 66 2/3% of the member's earned retirement annuity.
22 The amount of retirement annuity from which the widow's
23 annuity is derived shall be that earned by the member without
24 regard to whether he attained age 60 prior to his withdrawal
25 under the conditions stated or prior to his death.
26 (c) Adopted children shall be considered as children of
27 the member only if the proceedings for adoption were
28 commenced at least 1 year prior to the member's death.
29 Marriage of a child shall render the child ineligible for
30 further consideration in the increase in the amount of the
31 widow's annuity.
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1 Attainment of age 18 of a child shall render him
2 ineligible for further consideration in the increase of the
3 widow's annuity, but the annuity to the widow shall be
4 continued thereafter, without regard to her age at that time.
5 (d) Until January 1, 1998, a widow's annuity payable on
6 account of any covered employee who has shall have been a
7 covered employee for at least 18 months shall be reduced by
8 1/2 of the amount of survivors benefits to which his
9 beneficiaries are eligible under the provisions of the
10 federal Social Security Act, except that (1) the amount of
11 any widow's annuity payable under this Article shall not be
12 reduced by reason of any increase under that Act which occurs
13 after the offset required by this subsection is first applied
14 to that annuity, and (2) for benefits granted on or after
15 January 1, 1992, the offset under this subsection (d) shall
16 not exceed 50% of the amount of widow's annuity otherwise
17 payable. Beginning January 1, 1998, the offset under this
18 subsection (d) shall no longer be applied to any widow's
19 annuity, regardless of whether the deceased employee was in
20 service on or after the effective date of this amendatory Act
21 of 1997.
22 (e) Upon the death of a recipient of a widow's annuity
23 the excess, if any, of the member's accumulated contributions
24 plus credited interest over all annuity payments to the
25 member and widow, exclusive of the $500 lump sum payment,
26 shall be paid to the named beneficiary of the widow, or if
27 none has been named, to the estate of the widow, provided no
28 reversionary annuity is payable.
29 (f) On January 1, 1981, any recipient of a widow's
30 annuity who was receiving a widow's annuity on or before
31 January 1, 1971, shall have her widow's annuity then being
32 paid increased by 1% for each full year which has elapsed
33 from the date the widow's annuity began. On January 1, 1982,
34 any recipient of a widow's annuity who began receiving a
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1 widow's annuity after January 1, 1971, but before January 1,
2 1981, shall have her widow's annuity then being paid
3 increased by 1% for each full year which has elapsed from the
4 date the widow's annuity began. On January 1, 1987, any
5 recipient of a widow's annuity who began receiving the
6 widow's annuity on or before January 1, 1977, shall have the
7 monthly widow's annuity increased by $1 for each full year
8 which has elapsed since the date the annuity began.
9 (g) Beginning January 1, 1990, every widow's annuity
10 shall be increased (1) on each January 1 occurring on or
11 after the commencement of the annuity if the deceased member
12 died while receiving a retirement annuity, or (2) in other
13 cases, on each January 1 occurring on or after the first
14 anniversary of the commencement of the annuity, by an amount
15 equal to 3% of the current amount of the annuity, including
16 any previous increases under this Article. Such increases
17 shall apply without regard to whether the deceased member was
18 in service on or after the effective date of Public Act
19 86-1488, but shall not accrue for any period prior to January
20 1, 1990.
21 (Source: P.A. 86-273; 86-1488; 87-794.)
22 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
23 Sec. 14-121. Amount of survivors annuity. A survivors
24 annuity beneficiary shall be entitled upon death of the
25 member to a single sum payment of $1,000, payable pro rata
26 among all persons entitled thereto, together with a survivors
27 annuity payable at the rates and under the conditions
28 specified in this Article.
29 (a) If the survivors annuity beneficiary is a spouse,
30 the survivors annuity shall be 30% of final average
31 compensation subject to a maximum payment of $400 per month.
32 (b) If an eligible child or children under the care of a
33 spouse also survives the member, such spouse as natural
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1 guardian of the child or children shall receive, in addition
2 to the foregoing annuity, 20% of final average compensation
3 on account of each such child and 10% of final average
4 compensation divided pro rata among such children, subject to
5 a maximum payment on account of all survivor annuity
6 beneficiaries of $600 per month, or 80% of the member's final
7 average compensation, whichever is the lesser.
8 (c) If the survivors annuity beneficiary or
9 beneficiaries consists of an unmarried child or children, the
10 amount of survivors annuity shall be 20% of final average
11 compensation to each child, and 10% of final average
12 compensation divided pro rata among all such children
13 entitled to such annuity, subject to a maximum payment to all
14 children combined of $600 per month or 80% of the member's
15 final average compensation, whichever is the lesser.
16 (d) If the survivors annuity beneficiary is one or more
17 dependent parents, the annuity shall be 20% of final average
18 compensation to each parent and 10% of final average
19 compensation divided pro rata among the parents who qualify
20 for this annuity, subject to a maximum payment to both
21 dependent parents of $400 per month.
22 (e) The survivors annuity to the spouse, children or
23 dependent parents of a member whose death occurs after the
24 date of last withdrawal, or after retirement, or while in
25 service following reentry into service after retirement but
26 before completing 1 1/2 years of additional creditable
27 service, shall not exceed the lesser of 80% of the member's
28 earned retirement annuity at the date of death or the maximum
29 previously established in this Section.
30 (f) In applying the limitation prescribed on the
31 combined payments to 2 or more survivors annuity
32 beneficiaries, the annuity on account of each beneficiary
33 shall be reduced pro rata until such time as the number of
34 beneficiaries makes the reduction no longer applicable.
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1 (g) Until January 1, 1998, a survivors annuity payable
2 on account of any covered employee who has shall have been a
3 covered employee for at least 18 months at date of death or
4 last withdrawal, whichever is the later, shall be reduced by
5 1/2 of the survivors benefits to which his beneficiaries are
6 eligible under the federal Social Security Act, except that
7 (1) the survivors annuity payable under this Article shall
8 not be reduced by any increase under that Act which occurs
9 after the offset required by this subsection is first applied
10 to that annuity, (2) for benefits granted on or after January
11 1, 1992, the offset under this subsection (g) shall not
12 exceed 50% of the amount of survivors annuity otherwise
13 payable. Beginning January 1, 1998, the offset under this
14 subsection (g) shall no longer be applied to any survivors
15 annuity, regardless of whether the deceased employee was in
16 service on or after the effective date of this amendatory Act
17 of 1997.
18 (h) The minimum payment to a beneficiary hereunder shall
19 be $60 per month, which shall be reduced in accordance with
20 the limitation prescribed on the combined payments to all
21 beneficiaries of a member.
22 (i) Subject to the conditions set forth in Section
23 14-120, the minimum total survivors annuity benefit payable
24 to the survivors annuity beneficiaries of a deceased member
25 or annuitant whose death occurs on or after January 1, 1984,
26 shall be 50% of the amount of retirement annuity that was or
27 would have been payable to the deceased on the date of death,
28 regardless of the age of the deceased on such date. If the
29 minimum total benefit provided by this subsection exceeds the
30 maximum otherwise imposed by this Section, the minimum total
31 benefit shall nevertheless be payable. Any increase in the
32 total survivors annuity benefit resulting from the operation
33 of this subsection shall be divided among the survivors
34 annuity beneficiaries of the deceased in proportion to their
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1 shares of the total survivors annuity benefit otherwise
2 payable under this Section.
3 (j) Any survivors annuity beneficiary whose annuity
4 terminates due to any condition specified in this Article
5 other than death shall be entitled to a refund of the excess,
6 if any, of the accumulated contributions of the member plus
7 credited interest over all payments to the member and
8 beneficiary or beneficiaries, exclusive of the single sum
9 payment of $1,000, provided no future survivors or
10 reversionary annuity benefits are payable.
11 (k) Upon the death of the last eligible recipient of a
12 survivors annuity the excess, if any, of the member's
13 accumulated contributions plus credited interest over all
14 annuity payments to the member and survivors exclusive of the
15 single sum payment of $1000, shall be paid to the named
16 beneficiary of the last eligible survivor, or if none has
17 been named, to the estate of the last eligible survivor,
18 provided no reversionary annuity is payable.
19 (l) On January 1, 1981, any survivor who was receiving a
20 survivors annuity on or before January 1, 1971, shall have
21 his survivors annuity then being paid increased by 1% for
22 each full year which has elapsed from the date the annuity
23 began. On January 1, 1982, any survivor who began receiving
24 a survivor's annuity after January 1, 1971, but before
25 January 1, 1981, shall have his survivor's annuity then being
26 paid increased by 1% for each full year that has elapsed from
27 the date the annuity began. On January 1, 1987, any survivor
28 who began receiving a survivor's annuity on or before January
29 1, 1977, shall have the monthly survivor's annuity increased
30 by $1 for each full year which has elapsed since the date the
31 survivor's annuity began.
32 (m) Beginning January 1, 1990, every survivor's annuity
33 shall be increased (1) on each January 1 occurring on or
34 after the commencement of the annuity if the deceased member
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1 died while receiving a retirement annuity, or (2) in other
2 cases, on each January 1 occurring on or after the first
3 anniversary of the commencement of the annuity, by an amount
4 equal to 3% of the current amount of the annuity, including
5 any previous increases under this Article. Such increases
6 shall apply without regard to whether the deceased member was
7 in service on or after the effective date of Public Act
8 86-1488, but shall not accrue for any period prior to January
9 1, 1990.
10 (Source: P.A. 86-273; 86-1488; 87-794.)
11 Section 99. Effective date. This Act takes effect upon
12 becoming law.