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91_HB2365
LRB9105295EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 15-135, 15-145, and 15-146.
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 15-135, 15-145, and 15-146 as follows:
7 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
8 Sec. 15-135. Retirement annuities - Conditions.
9 (a) A participant who retires with at least 30 years of
10 creditable service in one of the following specified years
11 with the specified amount of service is entitled to a
12 retirement annuity at any age under the retirement program
13 applicable to the participant.:
14 35 years if retirement is in 1997 or before;
15 34 years if retirement is in 1998;
16 33 years if retirement is in 1999;
17 32 years if retirement is in 2000;
18 31 years if retirement is in 2001;
19 30 years if retirement is in 2002;
20 35 years if retirement is in 2003 or later.
21 A participant with 8 or more years of service after
22 September 1, 1941, is entitled to a retirement annuity on or
23 after attainment of age 55.
24 A participant with at least 5 but less than 8 years of
25 service after September 1, 1941, is entitled to a retirement
26 annuity on or after attainment of age 62.
27 A participant who has at least 25 years of service in
28 this system as a police officer or firefighter is entitled to
29 a retirement annuity on or after the attainment of age 50, if
30 Rule 4 of Section 15-136 is applicable to the participant.
31 (b) The annuity payment period shall begin on the date
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1 specified by the participant submitting a written
2 application, which date shall not be prior to termination of
3 employment or more than one year before the application is
4 received by the board; however, if the participant is not an
5 employee of an employer participating in this System or in a
6 participating system as defined in Article 20 of this Code on
7 April 1 of the calendar year next following the calendar year
8 in which the participant attains age 70 1/2, the annuity
9 payment period shall begin on that date regardless of whether
10 an application has been filed.
11 (c) An annuity is not payable if the amount provided
12 under Section 15-136 is less than $10 per month.
13 (Source: P.A. 90-65, eff. 7-7-97; 90-766, eff. 8-14-98.)
14 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
15 Sec. 15-145. Survivors insurance benefits; conditions
16 and amounts.
17 (a) The survivors insurance benefits provided under this
18 Section shall be payable to the eligible survivors of a
19 participant covered under the traditional benefit package
20 upon the death of (1) a participating employee with at least
21 1 1/2 years of service, (2) a participant who terminated
22 employment with at least 10 years of service, and (3) an
23 annuitant in receipt of a retirement annuity or disability
24 retirement annuity under this Article.
25 Service under the State Employees' Retirement System of
26 Illinois, the Teachers' Retirement System of the State of
27 Illinois and the Public School Teachers' Pension and
28 Retirement Fund of Chicago shall be considered in determining
29 eligibility for survivors benefits under this Section.
30 If by law, a function of a governmental unit, as defined
31 by Section 20-107, is transferred in whole or in part to an
32 employer, and an employee transfers employment from this
33 governmental unit to such employer within 6 months after the
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1 transfer of this function, the service credits in the
2 governmental unit's retirement system which have been
3 validated under Section 20-109 shall be considered in
4 determining eligibility for survivors benefits under this
5 Section.
6 (b) A surviving spouse of a deceased participant, or of
7 a deceased annuitant who had a survivors insurance
8 beneficiary at the time of retirement, shall receive a
9 survivors annuity of 30% of the final rate of earnings.
10 Payments shall begin on the day following the participant's
11 or annuitant's death or the date the surviving spouse attains
12 age 50, whichever is later, and continue until the death of
13 the surviving spouse. The annuity shall be payable to the
14 surviving spouse prior to attainment of age 50 if the
15 surviving spouse has in his or her care a deceased
16 participant's or annuitant's dependent unmarried child under
17 age 18 (under age 22 if a full-time student) who is eligible
18 for a survivors annuity. Remarriage of a surviving spouse
19 prior to attainment of age 55 shall disqualify him or her for
20 the receipt of a survivors annuity.
21 (c) Each dependent unmarried child under age 18 (under
22 age 23 22 if a full-time student) of a deceased participant,
23 or of a deceased annuitant who had a survivors insurance
24 beneficiary at the time of his or her retirement, shall
25 receive a survivors annuity equal to the sum of (1) 20% of
26 the final rate of earnings, and (2) 10% of the final rate of
27 earnings divided by the number of children entitled to this
28 benefit. Payments shall begin on the day following the
29 participant's or annuitant's death and continue until the
30 child marries, dies, or attains age 18 (age 23 22 if a
31 full-time student). If the child (under age 18) is in the
32 care of a surviving spouse who is eligible for survivors
33 insurance benefits, the child's benefit shall be paid to the
34 surviving spouse.
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1 Each unmarried child over age 18 of a deceased
2 participant or of a deceased annuitant who had a survivor's
3 insurance beneficiary at the time of his or her retirement,
4 and who was dependent upon the participant or annuitant by
5 reason of a physical or mental disability which began prior
6 to the date the child attained age 18 (age 22 if a full-time
7 student), shall receive a survivor's annuity equal to the sum
8 of (1) 20% of the final rate of earnings, and (2) 10% of the
9 final rate of earnings divided by the number of children
10 entitled to survivors benefits. Payments shall begin on the
11 day following the participant's or annuitant's death and
12 continue until the child marries, dies, or is no longer
13 disabled. If the child is in the care of a surviving spouse
14 who is eligible for survivors insurance benefits, the child's
15 benefit may be paid to the surviving spouse. For the
16 purposes of this Section, disability means inability to
17 engage in any substantial gainful activity by reason of any
18 medically determinable physical or mental impairment that can
19 be expected to result in death or that has lasted or can be
20 expected to last for a continuous period of at least one
21 year.
22 (d) Each dependent parent of a deceased participant, or
23 of a deceased annuitant who had a survivors insurance
24 beneficiary at the time of his or her retirement, shall
25 receive a survivors annuity equal to the sum of (1) 20% of
26 final rate of earnings, and (2) 10% of final rate of earnings
27 divided by the number of parents who qualify for the benefit.
28 Payments shall begin when the parent reaches age 55 or the
29 day following the participant's or annuitant's death,
30 whichever is later, and continue until the parent dies.
31 Remarriage of a parent prior to attainment of age 55 shall
32 disqualify the parent for the receipt of a survivors annuity.
33 (e) In addition to the survivors annuity provided above,
34 each survivors insurance beneficiary shall, upon death of the
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1 participant or annuitant, receive a lump sum payment of
2 $1,000 divided by the number of such beneficiaries.
3 (f) The changes made in this Section by Public Act
4 81-712 pertaining to survivors annuities in cases of
5 remarriage prior to age 55 shall apply to each survivors
6 insurance beneficiary who remarries after June 30, 1979,
7 regardless of the date that the participant or annuitant
8 terminated his employment or died.
9 (g) On January 1, 1981, any person who was receiving a
10 survivors annuity on or before January 1, 1971 shall have the
11 survivors annuity then being paid increased by 1% for each
12 full year which has elapsed from the date the annuity began.
13 On January 1, 1982, any survivor whose annuity began after
14 January 1, 1971, but before January 1, 1981, shall have the
15 survivor's annuity then being paid increased by 1% for each
16 year which has elapsed from the date the survivor's annuity
17 began. On January 1, 1987, any survivor who began receiving a
18 survivor's annuity on or before January 1, 1977, shall have
19 the monthly survivor's annuity increased by $1 for each full
20 year which has elapsed since the date the survivor's annuity
21 began.
22 (h) If the sum of the lump sum and total monthly
23 survivor benefits payable under this Section upon the death
24 of a participant amounts to less than the sum of the death
25 benefits payable under items (2) and (3) of Section 15-141,
26 the difference shall be paid in a lump sum to the beneficiary
27 of the participant who is living on the date that this
28 additional amount becomes payable.
29 (i) If the sum of the lump sum and total monthly
30 survivor benefits payable under this Section upon the death
31 of an annuitant receiving a retirement annuity or disability
32 retirement annuity amounts to less than the death benefit
33 payable under Section 15-142, the difference shall be paid to
34 the beneficiary of the annuitant who is living on the date
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1 that this additional amount becomes payable.
2 (j) Effective on the later of (1) January 1, 1990, or
3 (2) the January 1 on or next after the date on which the
4 survivor annuity begins, if the deceased member died while
5 receiving a retirement annuity, or in all other cases the
6 January 1 nearest the first anniversary of the date the
7 survivor annuity payments begin, every survivors insurance
8 beneficiary shall receive an increase in his or her monthly
9 survivors annuity of 3%. On each January 1 after the initial
10 increase, the monthly survivors annuity shall be increased by
11 3% of the total survivors annuity provided under this
12 Article, including previous increases provided by this
13 subsection. Such increases shall apply to the survivors
14 insurance beneficiaries of each participant and annuitant,
15 whether or not the employment status of the participant or
16 annuitant terminates before the effective date of this
17 amendatory Act of 1990.
18 (k) If the Internal Revenue Code of 1986, as amended,
19 requires that the survivors benefits be payable at an age
20 earlier than that specified in this Section the benefits
21 shall begin at the earlier age, in which event, the
22 survivor's beneficiary shall be entitled only to that amount
23 which is equal to the actuarial equivalent of the benefits
24 provided by this Section.
25 (l) The changes made to this Section and Section 15-131
26 by this amendatory Act of 1997, relating to benefits for
27 certain unmarried children who are full-time students under
28 age 22, apply without regard to whether the deceased member
29 was in service on or after the effective date of this
30 amendatory Act of 1997. These changes do not authorize the
31 repayment of a refund or a re-election of benefits, and any
32 benefit or increase in benefits resulting from these changes
33 is not payable retroactively for any period before the
34 effective date of this amendatory Act of 1997.
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1 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
2 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
3 Sec. 15-146. Survivors insurance benefits - Minimum
4 amounts.
5 (a) The minimum total survivors annuity payable on
6 account of the death of a participant shall be 50% of the
7 retirement annuity which would have been provided under Rule
8 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
9 attainment of the minimum age at which the penalty for early
10 retirement would not be applicable or the date of the
11 participant's death, whichever is later, on the basis of
12 credits earned prior to the time of death.
13 (b) The minimum total survivors annuity payable on
14 account of the death of an annuitant shall be 50% of the
15 retirement annuity which is payable under Section 15-136 at
16 the time of death or 50% of the disability retirement annuity
17 payable under Section 15-153.2. This minimum survivors
18 annuity shall apply to each participant and annuitant who
19 dies after September 16, 1979, whether or not his or her
20 employee status terminates before or after that date.
21 (c) If an annuitant has elected a reversionary annuity,
22 the retirement annuity referred to in this Section is that
23 which would have been payable had such election not been
24 filed.
25 (d) Beginning January 1, 2000, any person who is
26 receiving a survivors annuity under this Article which, after
27 inclusion of all one-time and automatic annual increases to
28 which the person is entitled, is less than the minimum
29 monthly survivors annuity amount specified in subsection (e)
30 of this Section, shall be entitled to a monthly supplemental
31 payment equal to the difference.
32 (e) For purposes of the calculation in subsection (d),
33 the minimum monthly survivors annuity amount is the sum of
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1 $25 for each year of the deceased member's service credit, up
2 to a maximum of 30 years of service.
3 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.