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91_HB3263 LRB9110067EGfg 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- LRB9110067EGfg 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- LRB9110067EGfg 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, 2001, 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- LRB9110067EGfg 1 Section 90. The State Mandates Act is amended by adding 2 Section 8.24 as follows: 3 (30 ILCS 805/8.24 new) 4 Sec. 8.24. 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.