State of Illinois
91st General Assembly
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91_HB0351

 
                                               LRB9100690EGfg

 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 17-122 and to amend the State Mandates Act.

 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 Section 17-122 as follows:

 7        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
 8        Sec. 17-122. Survivor's and children's pensions - Amount.
 9    Upon  the death of a teacher who has completed at least 1 1/2
10    years of contributing service with either this  Fund  or  the
11    State   Universities   Retirement  System  or  the  Teachers'
12    Retirement System of the  State  of  Illinois,  provided  his
13    death  occurred  while  (a)  in active service covered by the
14    Fund or during his first 18 months of  continuous  employment
15    without  a  break  in  service  under any other participating
16    system  as  defined  in  the  Illinois   Retirement   Systems
17    Reciprocal  Act  except  the  State  Universities  Retirement
18    System  and  the  Teachers' Retirement System of the State of
19    Illinois, (b) on a creditable leave  of  absence,  (c)  on  a
20    noncreditable  leave  of absence of no more than one year, or
21    (d) a pension was deferred or pending  provided  the  teacher
22    had  at  least  10 years of validated service credit, or upon
23    the  death  of  a  pensioner  otherwise  qualified  for  such
24    benefit, the surviving spouse and unmarried minor children of
25    the deceased teacher  under  age  18  shall  be  entitled  to
26    pensions,  under  the  conditions  stated  hereinafter.  Such
27    survivor's and children's pensions  shall  be  based  on  the
28    average  of  the 4 highest consecutive years of salary in the
29    last 10 years of service or on the average salary  for  total
30    service,  if  total  service  has  been  less  than  4 years,
31    according to the following percentages:
 
                            -2-                LRB9100690EGfg
 1        30% of average salary or 50% of  the  retirement  pension
 2    earned  by  the  teacher, whichever is larger, subject to the
 3    prescribed maximum monthly payment, for  a  surviving  spouse
 4    alone on attainment of age 50;
 5        60%   of  average  salary  for  a  surviving  spouse  and
 6    eligible minor children of the deceased teacher.
 7        If no eligible spouse survives, or the  surviving  spouse
 8    remarries,  or  the  parent  of  the children of the deceased
 9    member is otherwise ineligible for a  survivor's  pension,  a
10    children's  pension  for eligible minor children under age 18
11    shall be paid to their parent or  legal  guardian  for  their
12    benefit according to the following percentages:
13        30% of average salary for one child;
14        60% of average salary for 2 or more children.
15        On  January  1,  1981,  any  survivor  or  child  who was
16    receiving a survivor's or children's  pension  on  or  before
17    January  1,  1971,  shall  have  his survivor's or children's
18    pension then being paid increased by 1% for  each  full  year
19    which has elapsed from the date the pension began. On January
20    1,  1982,  any  survivor  or  child whose pension began after
21    January 1, 1971, but before January 1, 1981, shall  have  his
22    survivor's or children's pension then being paid increased 1%
23    for  each  full  year  which  has  elapsed  from the date the
24    pension began. On January 1,  1987,  any  survivor  or  child
25    whose  pension began on or before January 1, 1977, shall have
26    the monthly survivor's or children's pension increased by  $1
27    for each full year which has elapsed since the pension began.
28        Beginning   January   1,   1990,   every  survivor's  and
29    children's pension shall be increased (1) on each  January  1
30    occurring  on or after the commencement of the pension if the
31    deceased teacher died while receiving a  retirement  pension,
32    or  (2)  in  other  cases,  on each January 1 occurring on or
33    after the  first  anniversary  of  the  commencement  of  the
34    pension,  by  an  amount equal to 3% of the current amount of
 
                            -3-                LRB9100690EGfg
 1    the pension, including all increases previously granted under
 2    this Article, notwithstanding Section 17-157.  Such increases
 3    shall apply without regard to whether  the  deceased  teacher
 4    was  in  service  on  or  after  the  effective  date of this
 5    amendatory Act of 1991, but shall not accrue for  any  period
 6    prior to January 1, 1990.
 7        Subject  to  the  minimum  established below, the maximum
 8    amount of pension for a surviving spouse alone or  one  minor
 9    child  shall  be  $400  per  month,  and the maximum combined
10    pensions for a surviving spouse and children of the  deceased
11    teacher  shall  be  $600  per month, with individual pensions
12    adjusted for all beneficiaries pro rata to conform with  this
13    limitation.    If   proration   is  unnecessary  the  minimum
14    survivor's and children's pensions shall be  $40  per  month.
15    The  minimum  total survivor's and children's pension payable
16    upon the death of a contributor  or  annuitant  which  occurs
17    after   December  31,  1986,  shall  be  50%  of  the  earned
18    retirement  pension  of  such   contributor   or   annuitant,
19    calculated  without  early retirement discount in the case of
20    death in service.  Beginning January  1,  2000,  the  minimum
21    total   survivor's  pension  payable  upon  the  death  of  a
22    contributor or annuitant that occurred before January 1, 1987
23    shall  be  50%  of  the  earned  retirement  pension  of  the
24    contributor or annuitant, calculated without early retirement
25    discount in the case of death in service, and notwithstanding
26    Section 17-157.
27        On death  after  retirement,  the  total  survivor's  and
28    children's  pensions  shall not exceed the monthly retirement
29    or  disability  pension  paid  to  the   deceased   retirant.
30    Survivor's  and children's benefits described in this Section
31    shall apply to all service and disability pensioners eligible
32    for a pension as of July 1, 1981.
33    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
 
                            -4-                LRB9100690EGfg
 1        Section 90.  The State Mandates Act is amended by  adding
 2    Section 8.23 as follows:

 3        (30 ILCS 805/8.23 new)
 4        Sec.  8.23.  Exempt  mandate.  Notwithstanding Sections 6
 5    and 8 of this Act, no reimbursement by the State is  required
 6    for  the  implementation  of  any  mandate  created  by  this
 7    amendatory Act of the 91st General Assembly.

 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.

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