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91_HB3264
LRB9110061EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 17-119 and 17-122 and to amend the State Mandates
3 Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 17-119 and 17-122 as follows:
8 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
9 Sec. 17-119. Automatic annual increase in pension.
10 (a) Each teacher retiring on or after September 1, 1959,
11 is entitled to the annual increase in pension, defined
12 herein, while he is receiving a pension from the Fund.
13 1. The term "base pension" means a service
14 retirement or disability retirement pension in the amount
15 fixed and payable at the date of retirement of a teacher.
16 2. The annual increase in pension shall be at the
17 rate of 1 1/2% of base pension. This increase shall first
18 occur in January of the year next following the first
19 anniversary of retirement. At such time the Fund shall
20 pay the pro rata part of the increase for the period from
21 the first anniversary date to the date of the first
22 increase in pension. Beginning January 1, 1972, the rate
23 of annual increase in pension shall be 2% of the base
24 pension. Beginning January 1, 1979, the rate of annual
25 increase in pension shall be 3% of the base pension.
26 Beginning January 1, 1990, all automatic annual increases
27 payable under this Section shall be calculated as a
28 percentage of the total pension payable at the time of
29 the increase, including all increases previously granted
30 under this Article, notwithstanding Section 17-157.
31 3. An increase in pension shall be granted only if
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1 the retired teacher is age 60 or over. If the teacher
2 attains age 60 after retirement, the increase in pension
3 shall begin in January of the year following the 61st
4 birthday. At such time the Fund also shall pay the pro
5 rata part of the increase from the 61st birthday to the
6 date of first increase in pension.
7 (b) In addition to other increases which may be provided
8 by this Section, on January 1, 1981 any teacher who was
9 receiving a retirement pension on or before January 1, 1971
10 shall have his retirement pension then being paid increased
11 $1 per month for each year of creditable service. On January
12 1, 1982, any teacher whose retirement pension began on or
13 before January 1, 1977, shall have his retirement pension
14 then being paid increased $1 per month for each year of
15 creditable service.
16 On January 1, 1987, any teacher whose retirement pension
17 began on or before January 1, 1977, shall have the monthly
18 retirement pension increased by an amount equal to 8¢ per
19 year of creditable service times the number of years that
20 have elapsed since the retirement pension began.
21 (c) On January 1, 2001, every pensioner who began
22 receiving a retirement pension on or before January 1, 1993
23 shall have the monthly retirement pension increased by an
24 amount equal to 25¢ multiplied by the number of full years of
25 creditable service multiplied by the number of full years
26 that have elapsed since the pension began. Every pensioner
27 who begins receiving a retirement pension after January 1,
28 1993 and before January 1, 2001 shall have the monthly
29 retirement pension increased on the January 1 occurring on or
30 next following the seventh anniversary of retirement, by an
31 amount equal to $1.75 multiplied by the number of full years
32 of creditable service upon which the retirement pension is
33 based. The increase under this subsection shall be included
34 in the calculation of increases granted simultaneously or
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1 thereafter under subsection (a). Section 17-157 does not
2 apply to the increase provided under this subsection.
3 (Source: P.A. 90-566, eff. 1-2-98.)
4 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
5 Sec. 17-122. Survivor's and children's pensions - Amount.
6 (a) Upon the death of a teacher who has completed at
7 least 1 1/2 years of contributing service with either this
8 Fund or the State Universities Retirement System or the
9 Teachers' Retirement System of the State of Illinois,
10 provided his death occurred while (a) in active service
11 covered by the Fund or during his first 18 months of
12 continuous employment without a break in service under any
13 other participating system as defined in the Illinois
14 Retirement Systems Reciprocal Act except the State
15 Universities Retirement System and the Teachers' Retirement
16 System of the State of Illinois, (b) on a creditable leave of
17 absence, (c) on a noncreditable leave of absence of no more
18 than one year, or (d) a pension was deferred or pending
19 provided the teacher had at least 10 years of validated
20 service credit, or upon the death of a pensioner otherwise
21 qualified for such benefit, the surviving spouse and
22 unmarried minor children of the deceased teacher under age 18
23 shall be entitled to pensions, under the conditions stated
24 hereinafter. Such survivor's and children's pensions shall
25 be based on the average of the 4 highest consecutive years of
26 salary in the last 10 years of service or on the average
27 salary for total service, if total service has been less than
28 4 years, according to the following percentages:
29 30% of average salary or 50% of the retirement
30 pension earned by the teacher, whichever is larger,
31 subject to the prescribed maximum monthly payment, for a
32 surviving spouse alone on attainment of age 50;
33 60% of average salary for a surviving spouse and
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1 eligible minor children of the deceased teacher.
2 If no eligible spouse survives, or the surviving spouse
3 remarries, or the parent of the children of the deceased
4 member is otherwise ineligible for a survivor's pension, a
5 children's pension for eligible minor children under age 18
6 shall be paid to their parent or legal guardian for their
7 benefit according to the following percentages:
8 30% of average salary for one child;
9 60% of average salary for 2 or more children.
10 (b) On January 1, 1981, any survivor or child who was
11 receiving a survivor's or children's pension on or before
12 January 1, 1971, shall have his survivor's or children's
13 pension then being paid increased by 1% for each full year
14 which has elapsed from the date the pension began. On
15 January 1, 1982, any survivor or child whose pension began
16 after January 1, 1971, but before January 1, 1981, shall have
17 his survivor's or children's pension then being paid
18 increased 1% for each full year which has elapsed from the
19 date the pension began. On January 1, 1987, any survivor or
20 child whose pension began on or before January 1, 1977, shall
21 have the monthly survivor's or children's pension increased
22 by $1 for each full year which has elapsed since the pension
23 began.
24 (c) On January 1, 2001, every survivor or child who
25 began receiving a survivor's or children's pension on or
26 before January 1, 1993 shall have the monthly pension
27 increased by an amount equal to 25¢ multiplied by the number
28 of full years of the deceased's creditable service multiplied
29 by the sum of (i) the number of full years that have elapsed
30 since the survivor's or children's pension began and (ii) the
31 number of full years, if any, during which the deceased
32 received a retirement pension under this Article. Every
33 survivor or child who begins receiving a survivor's or
34 children's pension after January 1, 1993 and before January
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1 1, 2001 shall have the monthly pension increased on the
2 January 1 occurring on or next following the seventh
3 anniversary of the commencement of the pension, by an amount
4 equal to 25¢ multiplied by the number of full years of the
5 deceased's creditable service multiplied by the sum of (i)
6 the number of full years that have elapsed since the
7 survivor's annuity began and (ii) the number of full years,
8 if any, during which the deceased received a retirement
9 pension under this Article. The increase under this
10 subsection shall be included in the calculation of increases
11 granted simultaneously or thereafter under subsection (d).
12 Section 17-157 does not apply to the increase provided under
13 this subsection.
14 (d) Beginning January 1, 1990, every survivor's and
15 children's pension shall be increased (1) on each January 1
16 occurring on or after the commencement of the pension if the
17 deceased teacher died while receiving a retirement pension,
18 or (2) in other cases, on each January 1 occurring on or
19 after the first anniversary of the commencement of the
20 pension, by an amount equal to 3% of the current amount of
21 the pension, including all increases previously granted under
22 this Article, notwithstanding Section 17-157. Such increases
23 shall apply without regard to whether the deceased teacher
24 was in service on or after the effective date of this
25 amendatory Act of 1991, but shall not accrue for any period
26 prior to January 1, 1990.
27 (e) Subject to the minimum established below, the
28 maximum amount of pension for a surviving spouse alone or one
29 minor child shall be $400 per month, and the maximum combined
30 pensions for a surviving spouse and children of the deceased
31 teacher shall be $600 per month, with individual pensions
32 adjusted for all beneficiaries pro rata to conform with this
33 limitation. If proration is unnecessary the minimum
34 survivor's and children's pensions shall be $40 per month.
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1 The minimum total survivor's and children's pension payable
2 upon the death of a contributor or annuitant which occurs
3 after December 31, 1986, shall be 50% of the earned
4 retirement pension of such contributor or annuitant,
5 calculated without early retirement discount in the case of
6 death in service.
7 On death after retirement, the total survivor's and
8 children's pensions shall not exceed the monthly retirement
9 or disability pension paid to the deceased retirant.
10 Survivor's and children's benefits described in this Section
11 shall apply to all service and disability pensioners eligible
12 for a pension as of July 1, 1981.
13 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
14 Section 90. The State Mandates Act is amended by adding
15 Section 8.24 as follows:
16 (30 ILCS 805/8.24 new)
17 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
18 and 8 of this Act, no reimbursement by the State is required
19 for the implementation of any mandate created by this
20 amendatory Act of the 91st General Assembly.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.