State of Illinois
91st General Assembly
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91_HB1449

 
                                               LRB9104339EGfg

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Sections 14-109, 14-119, 14-121, 15-136.3, 15-146,  16-136.2,
 3    16-142.1,  17-122,  and  17-156.3  and  to  amend  the  State
 4    Mandates Act.

 5        Be  it  enacted  by  the People of the State of Illinois,
 6    represented in the General Assembly:

 7        Section 5.  The  Illinois  Pension  Code  is  amended  by
 8    changing  Sections  14-109, 14-119, 14-121, 15-136.3, 15-146,
 9    16-136.2, 16-142.1, 17-122, and 17-156.3 as follows:

10        (40 ILCS 5/14-109) (from Ch. 108 1/2, par. 14-109)
11        Sec. 14-109. Minimum retirement annuity.
12        (a)  Beginning  January  1,  1987,  any  person  who   is
13    receiving  a  monthly  retirement  annuity under this Article
14    which, after inclusion of  (1)  all  one-time  and  automatic
15    annual  increases  to  which  the person is entitled, (2) any
16    supplemental annuity payable under Section  14-115,  and  (3)
17    any  amount  deducted  under  Section  14-113  to  provide  a
18    reversionary  annuity,  is  less  than  the  minimum  monthly
19    retirement benefit amount specified in subsection (b) of this
20    Section,  shall be entitled to a monthly supplemental payment
21    equal to the difference.
22        (b)  For purposes of the calculation in subsection (a):
23             (1)  Until January  1,  1997,  the  minimum  monthly
24        retirement benefit amount is the sum of $15 for each year
25        of  service as a noncovered employee, plus $7.50 for each
26        year of service as a covered employee, up to a maximum of
27        30 years of service.
28             (2)  Beginning  January  1,  1997  and   until   the
29        effective date of this amendatory Act of the 91st General
30        Assembly,  the  minimum monthly retirement benefit amount
31        is the  sum  of  $25  for  each  year  of  service  as  a
 
                            -2-                LRB9104339EGfg
 1        noncovered employee, plus $15 for each year of service as
 2        a  covered  employee,  up  to  a  maximum  of 30 years of
 3        service.
 4             (3)  Beginning  on  the  effective  date   of   this
 5        amendatory  Act of the 91st General Assembly, the minimum
 6        monthly retirement benefit amount is the sum of  $35  for
 7        each  year  of service as a noncovered employee, plus $25
 8        for each year of service as a covered employee, up  to  a
 9        maximum of 30 years of service.
10        (c)  This  Section  applies  to  all  persons receiving a
11    retirement annuity under  this  Article,  without  regard  to
12    whether  or  not employment terminated prior to the effective
13    date of this amendatory Act of the 91st General Assembly 1996
14    .
15    (Source: P.A. 89-616, eff. 8-9-96.)

16        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
17        Sec. 14-119.  Amount of widow's annuity.
18        (a)  The widow's annuity shall be 50% of  the  amount  of
19    retirement annuity payable to the member on the date of death
20    while  on  retirement  if an annuitant, or on the date of his
21    death while in service if an employee, regardless of his  age
22    on  such date, or on the date of withdrawal if death occurred
23    after termination of service under the conditions  prescribed
24    in the preceding Section.
25        (b)  If  an eligible widow, regardless of age, has in her
26    care any unmarried child or children of the member under  age
27    18 (under age 22 if a full-time student), the widow's annuity
28    shall  be  increased  in  the  amount of 5% of the retirement
29    annuity for each such child, but the combined payments for  a
30    widow  and  children shall not exceed 66 2/3% of the member's
31    earned retirement annuity.
32        The amount of retirement annuity from which  the  widow's
33    annuity is derived shall be that earned by the member without
 
                            -3-                LRB9104339EGfg
 1    regard  to whether he attained age 60 prior to his withdrawal
 2    under the conditions stated or prior to his death.
 3        (c)  Adopted children shall be considered as children  of
 4    the   member  only  if  the  proceedings  for  adoption  were
 5    commenced at least 1 year prior to the member's death.
 6        Marriage of a child shall render the child ineligible for
 7    further consideration in the increase in the  amount  of  the
 8    widow's annuity.
 9        Attainment  of  age  18  (age  22 if a full-time student)
10    shall render a child ineligible for further consideration  in
11    the  increase  of the widow's annuity, but the annuity to the
12    widow shall be continued thereafter, without  regard  to  her
13    age at that time.
14        (d)  A  widow's annuity payable on account of any covered
15    employee who shall have been a covered employee for at  least
16    18  months shall be reduced by 1/2 of the amount of survivors
17    benefits to which his beneficiaries are  eligible  under  the
18    provisions  of  the  Federal Social Security Act, except that
19    (1) the amount of any  widow's  annuity  payable  under  this
20    Article  shall not be reduced by reason of any increase under
21    that Act which occurs  after  the  offset  required  by  this
22    subsection  is  first  applied  to  that annuity, and (2) for
23    benefits granted on or after  January  1,  1992,  the  offset
24    under  this subsection (d) shall not exceed 50% of the amount
25    of widow's annuity otherwise payable.
26        (e)  Upon the death of a recipient of a  widow's  annuity
27    the   excess,   if      any,   of  the  member's  accumulated
28    contributions  plus  credited  interest  over   all   annuity
29    payments  to the member and widow, exclusive of the $500 lump
30    sum payment, shall be paid to the named  beneficiary  of  the
31    widow, or if none has been named, to the estate of the widow,
32    provided no reversionary annuity is payable.
33        (f)  On  January  1,  1981,  any  recipient  of a widow's
34    annuity who was receiving a  widow's  annuity  on  or  before
 
                            -4-                LRB9104339EGfg
 1    January  1,  1971,  shall have her widow's annuity then being
 2    paid increased by 1% for each full  year  which  has  elapsed
 3    from the date the widow's annuity began.  On January 1, 1982,
 4    any  recipient  of  a  widow's  annuity who began receiving a
 5    widow's annuity after January 1, 1971, but before January  1,
 6    1981,   shall  have  her  widow's  annuity  then  being  paid
 7    increased by 1% for each full year which has elapsed from the
 8    date the widow's annuity began.   On  January  1,  1987,  any
 9    recipient  of  a  widow's  annuity  who  began  receiving the
10    widow's annuity on or before January 1, 1977, shall have  the
11    monthly  widow's  annuity  increased by $1 for each full year
12    which has elapsed since the date the annuity began.
13        (g)  Beginning January 1,  1990,  every  widow's  annuity
14    shall  be  increased  (1)  on  each January 1 occurring on or
15    after the commencement of the annuity if the deceased  member
16    died  while  receiving  a retirement annuity, or (2) in other
17    cases, on each January 1 occurring  on  or  after  the  first
18    anniversary  of the commencement of the annuity, by an amount
19    equal to 3% of the current amount of the  annuity,  including
20    any  previous  increases  under  this Article. Such increases
21    shall apply without regard to whether the deceased member was
22    in service on or after  the  effective  date  of  Public  Act
23    86-1488, but shall not accrue for any period prior to January
24    1, 1990.
25        (h)  Beginning  on  the effective date of this amendatory
26    Act of the 91st General Assembly, the minimum monthly widow's
27    annuity payable on account  of  the  death  of  a  member  or
28    annuitant  shall  be  $17.50  for  each  year  of  creditable
29    service,  up  to a maximum of 30 years of creditable service,
30    if that minimum is more  than  the  minimum  widow's  annuity
31    otherwise  provided  under this Article.  This subsection (h)
32    applies without regard to whether employment terminated prior
33    to the effective date of this amendatory Act.
34    (Source: P.A. 90-448, eff. 8-16-97.)
 
                            -5-                LRB9104339EGfg
 1        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
 2        Sec. 14-121.  Amount of survivors annuity.   A  survivors
 3    annuity  beneficiary  shall  be  entitled  upon  death of the
 4    member to a single sum payment of $1,000,  payable  pro  rata
 5    among all persons entitled thereto, together with a survivors
 6    annuity  payable  at  the  rates  and  under  the  conditions
 7    specified in this Article.
 8        (a)  If  the  survivors  annuity beneficiary is a spouse,
 9    the  survivors  annuity  shall  be  30%  of   final   average
10    compensation subject to a maximum payment of $400 per month.
11        (b)  If an eligible child or children under the care of a
12    spouse  also  survives  the  member,  such  spouse as natural
13    guardian of the child or children shall receive, in  addition
14    to  the  foregoing annuity, 20% of final average compensation
15    on account of each  such  child  and  10%  of  final  average
16    compensation divided pro rata among such children, subject to
17    a   maximum  payment  on  account  of  all  survivor  annuity
18    beneficiaries of $600 per month, or 80% of the member's final
19    average compensation, whichever is the lesser.
20        (c)  If   the   survivors    annuity    beneficiary    or
21    beneficiaries consists of an unmarried child or children, the
22    amount  of  survivors  annuity  shall be 20% of final average
23    compensation  to  each  child,  and  10%  of  final   average
24    compensation   divided  pro  rata  among  all  such  children
25    entitled to such annuity, subject to a maximum payment to all
26    children combined of $600 per month or 80%  of  the  member's
27    final average compensation, whichever is the lesser.
28        (d)  If  the survivors annuity beneficiary is one or more
29    dependent parents, the annuity shall be 20% of final  average
30    compensation   to  each  parent  and  10%  of  final  average
31    compensation divided pro rata among the parents  who  qualify
32    for  this  annuity,  subject  to  a  maximum  payment to both
33    dependent parents of $400 per month.
34        (e)  The survivors annuity to  the  spouse,  children  or
 
                            -6-                LRB9104339EGfg
 1    dependent  parents  of  a member whose death occurs after the
 2    date of last withdrawal, or after  retirement,  or  while  in
 3    service  following  reentry into service after retirement but
 4    before  completing  1  1/2  years  of  additional  creditable
 5    service, shall not exceed the lesser of 80% of  the  member's
 6    earned retirement annuity at the date of death or the maximum
 7    previously established in this Section.
 8        (f)  In   applying   the  limitation  prescribed  on  the
 9    combined  payments   to   2   or   more   survivors   annuity
10    beneficiaries,  the  annuity  on  account of each beneficiary
11    shall be reduced pro rata until such time as  the  number  of
12    beneficiaries makes the reduction no longer applicable.
13        (g)  A  survivors  annuity  payable  on  account  of  any
14    covered  employee  who shall have been a covered employee for
15    at least 18 months at  date  of  death  or  last  withdrawal,
16    whichever  is  the  later,  shall  be  reduced  by 1/2 of the
17    survivors benefits to which his  beneficiaries  are  eligible
18    under  the  federal  Social Security Act, except that (1) the
19    survivors annuity payable under this  Article  shall  not  be
20    reduced by any increase under that Act which occurs after the
21    offset  required  by this subsection is first applied to that
22    annuity, and (2) for benefits granted on or after January  1,
23    1992,  the  offset under this subsection (g) shall not exceed
24    50% of the amount of survivors annuity otherwise payable.
25        (h)  The minimum payment to a beneficiary hereunder shall
26    be $60 per month, which shall be reduced in  accordance  with
27    the  limitation  prescribed  on  the combined payments to all
28    beneficiaries of a member.
29        (h-1)  Beginning on the effective date of this amendatory
30    Act  of  the  91st  General  Assembly,  the  minimum  monthly
31    survivors annuity payable on account of the death of a member
32    or annuitant shall be $17.50  for  each  year  of  creditable
33    service,  up  to a maximum of 30 years of creditable service,
34    if that minimum is more than the  minimum  annuity  otherwise
 
                            -7-                LRB9104339EGfg
 1    provided  under  this Article.  This subsection (h-1) applies
 2    without regard to whether employment terminated prior to  the
 3    effective date of this amendatory Act.
 4        (i)  Subject  to  the  conditions  set  forth  in Section
 5    14-120, the minimum total survivors annuity  benefit  payable
 6    to  the  survivors annuity beneficiaries of a deceased member
 7    or annuitant whose death occurs on or after January 1,  1984,
 8    shall  be 50% of the amount of retirement annuity that was or
 9    would have been payable to the deceased on the date of death,
10    regardless of the age of the deceased on such date.   If  the
11    minimum total benefit provided by this subsection exceeds the
12    maximum  otherwise imposed by this Section, the minimum total
13    benefit shall nevertheless be payable.  Any increase  in  the
14    total  survivors annuity benefit resulting from the operation
15    of this subsection  shall  be  divided  among  the  survivors
16    annuity  beneficiaries of the deceased in proportion to their
17    shares of  the  total  survivors  annuity  benefit  otherwise
18    payable under this Section.
19        (j)  Any  survivors  annuity  beneficiary  whose  annuity
20    terminates  due  to  any  condition specified in this Article
21    other than death shall be entitled to a refund of the excess,
22    if any, of the accumulated contributions of the  member  plus
23    credited  interest  over  all  payments  to  the  member  and
24    beneficiary  or  beneficiaries,  exclusive  of the single sum
25    payment  of  $1,000,  provided   no   future   survivors   or
26    reversionary annuity benefits are payable.
27        (k)  Upon  the  death of the last eligible recipient of a
28    survivors  annuity  the  excess,  if  any,  of  the  member's
29    accumulated contributions plus  credited  interest  over  all
30    annuity payments to the member and survivors exclusive of the
31    single  sum  payment  of  $1000,  shall  be paid to the named
32    beneficiary of the last eligible survivor,  or  if  none  has
33    been  named,  to  the  estate  of the last eligible survivor,
34    provided no reversionary annuity is payable.
 
                            -8-                LRB9104339EGfg
 1        (l)  On January 1, 1981, any survivor who was receiving a
 2    survivors annuity on or before January 1,  1971,  shall  have
 3    his  survivors  annuity  then  being paid increased by 1% for
 4    each full year which has elapsed from the  date  the  annuity
 5    began.   On January 1, 1982, any survivor who began receiving
 6    a survivor's  annuity  after  January  1,  1971,  but  before
 7    January 1, 1981, shall have his survivor's annuity then being
 8    paid increased by 1% for each full year that has elapsed from
 9    the  date the annuity began. On January 1, 1987, any survivor
10    who began receiving a survivor's annuity on or before January
11    1, 1977, shall have the monthly survivor's annuity  increased
12    by $1 for each full year which has elapsed since the date the
13    survivor's annuity began.
14        (m)  Beginning  January 1, 1990, every survivor's annuity
15    shall be increased (1) on each  January  1  occurring  on  or
16    after  the commencement of the annuity if the deceased member
17    died while receiving a retirement annuity, or  (2)  in  other
18    cases,  on  each  January  1  occurring on or after the first
19    anniversary of the commencement of the annuity, by an  amount
20    equal  to  3% of the current amount of the annuity, including
21    any previous increases under this Article.    Such  increases
22    shall apply without regard to whether the deceased member was
23    in  service  on  or  after  the  effective date of Public Act
24    86-1488, but shall not accrue for any period prior to January
25    1, 1990.
26    (Source: P.A. 86-273; 86-1488; 87-794.)

27        (40 ILCS 5/15-136.3)
28        Sec. 15-136.3. Minimum retirement annuity.
29        (a)  Beginning  January  1,  1997,  any  person  who   is
30    receiving  a  monthly  retirement  annuity under this Article
31    which, after inclusion of  (1)  all  one-time  and  automatic
32    annual  increases  to  which  the person is entitled, (2) any
33    supplemental annuity payable under Section 15-136.1, and  (3)
 
                            -9-                LRB9104339EGfg
 1    any amount deducted under Section 15-138 or 15-140 to provide
 2    a  reversionary  annuity,  is  less  than the minimum monthly
 3    retirement benefit amount specified in subsection (b) of this
 4    Section, shall be entitled to a monthly supplemental  payment
 5    equal to the difference.
 6        (b)  For purposes of the calculation in subsection (a):
 7             (1)  Until the effective date of this amendatory Act
 8        of   the  91st  General  Assembly,  the  minimum  monthly
 9        retirement benefit amount is the sum of $25 for each year
10        of service credit,  up  to  a  maximum  of  30  years  of
11        service.
12             (2)  Beginning   on   the  effective  date  of  this
13        amendatory Act of the 91st General Assembly, the  minimum
14        monthly  retirement  benefit amount is the sum of $35 for
15        each year of service credit, up to a maximum of 30  years
16        of service.
17        (c)  This  Section  applies  to  all  persons receiving a
18    retirement annuity under  this  Article,  without  regard  to
19    whether  or  not employment terminated prior to the effective
20    date of this amendatory Act  of  the  91st  General  Assembly
21    Section.
22    (Source: P.A. 89-616, eff. 8-9-96.)

23        (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
24        Sec.  15-146.   Survivors  insurance  benefits  - Minimum
25    amounts.
26        (a)  The  minimum  total  survivors  annuity  payable  on
27    account of the death of a participant shall  be  50%  of  the
28    retirement  annuity which would have been provided under Rule
29    1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
30    attainment of the minimum age at which the penalty for  early
31    retirement  would  not  be  applicable  or  the  date  of the
32    participant's death, whichever is  later,  on  the  basis  of
33    credits earned prior to the time of death.
 
                            -10-               LRB9104339EGfg
 1        (b)  The  minimum  total  survivors  annuity  payable  on
 2    account  of  the  death  of  an annuitant shall be 50% of the
 3    retirement annuity which is payable under Section  15-136  at
 4    the time of death or 50% of the disability retirement annuity
 5    payable  under  Section  15-153.2.   This  minimum  survivors
 6    annuity  shall  apply  to  each participant and annuitant who
 7    dies after September 16, 1979, whether  or  not  his  or  her
 8    employee status terminates before or after that date.
 9        (c)  If  an annuitant has elected a reversionary annuity,
10    the retirement annuity referred to in this  Section  is  that
11    which  would  have  been  payable  had such election not been
12    filed.
13        (d)  Beginning on the effective date of  this  amendatory
14    Act   of   the  91st  General  Assembly,  the  minimum  total
15    survivor's annuity payable on  account  of  the  death  of  a
16    participant  or  annuitant shall be $17.50 per month for each
17    year of creditable service, up to a maximum of  30  years  of
18    creditable  service, if that minimum is more than the minimum
19    benefit  otherwise  provided  under   this   Article.    This
20    subsection  (d)  applies without regard to whether employment
21    terminated prior to the effective  date  of  this  amendatory
22    Act.
23    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

24        (40 ILCS 5/16-136.2) (from Ch. 108 1/2, par. 16-136.2)
25        Sec. 16-136.2.  Minimum retirement annuity.
26        (a)  Any  annuitant  receiving a retirement annuity under
27    this  Article  is  entitled  to  such  additional  amount  of
28    retirement annuity under this Section, if necessary, that  is
29    sufficient to provide a minimum retirement annuity of $10 per
30    month  for  each year of creditable service forming the basis
31    of the retirement annuity, up to $300 per  month  for  30  or
32    more years of creditable service.  Effective January 1, 1984,
33    the  minimum retirement annuity under this Section is $15 per
 
                            -11-               LRB9104339EGfg
 1    month per year of service up to $450  per  month.   Beginning
 2    January 1, 1996, the minimum retirement annuity payable under
 3    this  Section  shall  be  $25  per  month  for  each  year of
 4    creditable service, up to a maximum of $750 per month for  30
 5    or  more  years  of  creditable  service.    Beginning on the
 6    effective date of this amendatory Act  of  the  91st  General
 7    Assembly,  the  minimum retirement annuity payable under this
 8    Section shall be $35 per month for each  year  of  creditable
 9    service,  up  to a maximum of 30 years of creditable service,
10    without regard to whether employment terminated prior to  the
11    effective date of this amendatory Act.
12        An  annuitant  entitled  to  an  increase  in  retirement
13    annuity under this Section shall be entitled to such increase
14    in  retirement annuity effective the later of (1) September 1
15    following attainment of age 60; (2) September 1 following the
16    first anniversary in retirement; or  (3)  the  first  of  the
17    month   following   receipt   of   the   required  qualifying
18    contribution from the annuitant.
19        (b)  An annuitant who qualifies for an additional  amount
20    of  retirement  annuity  under subsection (a) of this Section
21    must make a one-time payment of 1%  of  the  monthly  average
22    salary  for  each full year of the creditable service forming
23    the basis of the retirement annuity  or,  if  the  retirement
24    annuity  was  not  computed  using  average salary, 1% of the
25    original monthly retirement annuity for  each  full  year  of
26    service forming the basis of the retirement annuity.
27        (c)  The  minimum  retirement annuity provided under this
28    Section shall continue to be paid only  to  the  extent  that
29    funds are available in the minimum retirement annuity reserve
30    established under Section 16-186.3.
31        (d)  The  annual increase provided on and after September
32    1, 1977 under Section 16-136.1 and on and  after  January  1,
33    1978  under Section 16-133.1 shall be paid in addition to the
34    minimum retirement annuity.  Where  an  initial  increase  is
 
                            -12-               LRB9104339EGfg
 1    first  payable  on  or  after  September  1,  1977, only that
 2    portion of the increase based on  the  period  in  retirement
 3    after  August  31,  1976,  under  Section  16-136.1 and after
 4    December 31, 1976, under Section 16-133.1 may be added to the
 5    minimum retirement annuity.
 6    (Source: P.A. 89-21, eff. 6-6-95; 89-25, eff. 6-21-95.)

 7        (40 ILCS 5/16-142.1) (from Ch. 108 1/2, par. 16-142.1)
 8        Sec. 16-142.1.  Survivors' benefits - minimum amounts.
 9        (a)  The  minimum  survivor's   benefit   for   any   one
10    beneficiary  shall be the lesser of (1) $30 per month, or (2)
11    80% of the retirement annuity for which the member would have
12    been eligible at age 60.
13        (b)  When the death of a member or annuitant occurs after
14    June 30, 1975, the following minimum survivor's benefit shall
15    be payable:
16        (1)  The minimum  total  survivor's  benefit  payable  on
17    account  of  the  death  of  a  member  shall  be  50% of the
18    retirement annuity earned by the member under  paragraph  (B)
19    of  Section  16-133 as of the date of death of the member and
20    which would have been payable upon the later of attainment of
21    age  60  or  date  of  death  when  death  occurs  prior   to
22    retirement.
23        (2)  The  minimum  total  survivor's  benefit  payable on
24    account of the death of an annuitant  shall  be  50%  of  the
25    retirement  annuity  or disability retirement annuity paid to
26    the annuitant at the time of death.
27        (c)  The minimum survivor's  benefit  for  the  surviving
28    spouse  of  a  member who died on or before December 31, 1983
29    after 10 or more years of creditable service  shall  be  $200
30    per month.
31        (d)  Beginning  on  the effective date of this amendatory
32    Act  of  the  91st  General  Assembly,  the   minimum   total
33    survivor's  benefit  payable  on  account  of  the death of a
 
                            -13-               LRB9104339EGfg
 1    member or annuitant shall be $17.50 per month for  each  year
 2    of  creditable  service,  up  to  a  maximum  of  30 years of
 3    creditable service, if that minimum is more than the  minimum
 4    benefit   otherwise   provided   under  this  Article.   This
 5    subsection (d) applies without regard to  whether  employment
 6    terminated  prior  to  the  effective date of this amendatory
 7    Act.
 8    (Source: P.A. 83-1440.)

 9        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
10        Sec. 17-122. Survivor's and children's pensions - Amount.
11    Upon the death of a teacher who has completed at least 1  1/2
12    years  of  contributing  service with either this Fund or the
13    State  Universities  Retirement  System  or   the   Teachers'
14    Retirement  System  of  the  State  of Illinois, provided his
15    death occurred while (a) in active  service  covered  by  the
16    Fund  or  during his first 18 months of continuous employment
17    without a break in  service  under  any  other  participating
18    system   as   defined  in  the  Illinois  Retirement  Systems
19    Reciprocal  Act  except  the  State  Universities  Retirement
20    System and the Teachers' Retirement System of  the  State  of
21    Illinois,  (b)  on  a  creditable  leave of absence, (c) on a
22    noncreditable leave of absence of no more than one  year,  or
23    (d)  a  pension  was deferred or pending provided the teacher
24    had at least 10 years of validated service  credit,  or  upon
25    the  death  of  a  pensioner  otherwise  qualified  for  such
26    benefit, the surviving spouse and unmarried minor children of
27    the  deceased  teacher  under  age  18  shall  be entitled to
28    pensions, under  the  conditions  stated  hereinafter.   Such
29    survivor's  and  children's  pensions  shall  be based on the
30    average of the 4 highest consecutive years of salary  in  the
31    last  10  years of service or on the average salary for total
32    service, if  total  service  has  been  less  than  4  years,
33    according to the following percentages:
 
                            -14-               LRB9104339EGfg
 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
 
                            -15-               LRB9104339EGfg
 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.
21        Beginning on the effective date of this amendatory Act of
22    the  91st  General Assembly, the minimum total survivor's and
23    children's pensions payable on account  of  the  death  of  a
24    contributor  or  annuitant shall be $17.50 per month for each
25    year of creditable service, up to a maximum of  30  years  of
26    creditable  service, if that minimum is more than the minimum
27    benefit  otherwise  provided  under   this   Article.    This
28    amendatory  Act  of the 91st General Assembly applies without
29    regard  to  whether  employment  terminated  prior   to   the
30    effective  date  of  this  amendatory Act and notwithstanding
31    Section 17-157.
32        On death  after  retirement,  the  total  survivor's  and
33    children's  pensions  shall not exceed the monthly retirement
34    or  disability  pension  paid  to  the   deceased   retirant.
 
                            -16-               LRB9104339EGfg
 1    Survivor's  and children's benefits described in this Section
 2    shall apply to all service and disability pensioners eligible
 3    for a pension as of July 1, 1981.
 4    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

 5        (40 ILCS 5/17-156.3) (from Ch. 108 1/2, par. 17-156.3)
 6        Sec. 17-156.3.  Minimum retirement pension.
 7        (a)  Beginning  January  1,  1987,  any  person  who   is
 8    receiving  a  monthly  retirement  pension under this Article
 9    which, after inclusion of  (1)  all  one-time  and  automatic
10    annual  increases  to  which  the person is entitled, (2) any
11    supplementary payment payable under Section 17-154,  and  (3)
12    any  amount  deducted  under  Section  17-120  to  provide  a
13    reversionary  pension,  is  less  than  the  minimum  monthly
14    retirement benefit amount specified in subsection (b) of this
15    Section,  shall be entitled to a monthly supplemental payment
16    equal to the difference.
17        (b)  For purposes of the calculation in subsection (a):
18             (1)  Beginning  January  1,  1996  and   until   the
19        effective date of this amendatory Act of the 91st General
20        Assembly,  for  purposes of the calculation in subsection
21        (a), the minimum monthly retirement benefit amount is the
22        sum of $25 for each year of service, up to a  maximum  of
23        $750  per  month  for  30  or  more  years  of creditable
24        service.
25             (2)  Beginning  on  the  effective  date   of   this
26        amendatory  Act of the 91st General Assembly, the minimum
27        monthly retirement benefit amount is the sum of  $35  for
28        each  year of service credit, up to a maximum of 30 years
29        of service.
30        (c)  The changes made to this Section by this  amendatory
31    Act  of  the  91st General Assembly 1995 apply to all persons
32    receiving a retirement pension under  this  Article,  without
33    regard  to  whether or not employment terminated prior to the
 
                            -17-               LRB9104339EGfg
 1    effective  date  of  this  amendatory   Act   of   1995   and
 2    notwithstanding Section 17-157.
 3    (Source: P.A. 89-21, eff. 6-6-95; 89-25, eff. 6-21-95.)

 4        Section  90.  The State Mandates Act is amended by adding
 5    Section 8.23 as follows:

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

11        Section 99. Effective date.  This Act takes  effect  upon
12    becoming law.

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