093_HB1555

 
                                     LRB093 02118 EFG 02125 b

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Section 14-121 as follows:

 6        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
 7        Sec. 14-121.  Amount of survivors annuity.   A  survivors
 8    annuity  beneficiary  shall  be  entitled  upon  death of the
 9    member to a single sum payment of $1,000,  payable  pro  rata
10    among all persons entitled thereto, together with a survivors
11    annuity  payable  at  the  rates  and  under  the  conditions
12    specified in this Article.
13        (a)  If  the  survivors  annuity beneficiary is a spouse,
14    the  survivors  annuity  shall  be  30%  of   final   average
15    compensation subject to a maximum payment of $400 per month.
16        (b)  If an eligible child or children under the care of a
17    spouse  also  survives  the  member,  such  spouse as natural
18    guardian of the child or children shall receive, in  addition
19    to  the  foregoing annuity, 20% of final average compensation
20    on account of each  such  child  and  10%  of  final  average
21    compensation divided pro rata among such children, subject to
22    a   maximum  payment  on  account  of  all  survivor  annuity
23    beneficiaries of $600 per month, or 80% of the member's final
24    average compensation, whichever is the lesser.
25        (c)  If   the   survivors    annuity    beneficiary    or
26    beneficiaries consists of an unmarried child or children, the
27    amount  of  survivors  annuity  shall be 20% of final average
28    compensation  to  each  child,  and  10%  of  final   average
29    compensation   divided  pro  rata  among  all  such  children
30    entitled to such annuity, subject to a maximum payment to all
31    children combined of $600 per month or 80%  of  the  member's
 
                            -2-      LRB093 02118 EFG 02125 b
 1    final average compensation, whichever is the lesser.
 2        (d)  If  the survivors annuity beneficiary is one or more
 3    dependent parents, the annuity shall be 20% of final  average
 4    compensation   to  each  parent  and  10%  of  final  average
 5    compensation divided pro rata among the parents  who  qualify
 6    for  this  annuity,  subject  to  a  maximum  payment to both
 7    dependent parents of $400 per month.
 8        (e)  The survivors annuity to  the  spouse,  children  or
 9    dependent  parents  of  a member whose death occurs after the
10    date of last withdrawal, or after  retirement,  or  while  in
11    service  following  reentry into service after retirement but
12    before  completing  1  1/2  years  of  additional  creditable
13    service, shall not exceed the lesser of 80% of  the  member's
14    earned retirement annuity at the date of death or the maximum
15    previously established in this Section.
16        (f)  In   applying   the  limitation  prescribed  on  the
17    combined  payments   to   2   or   more   survivors   annuity
18    beneficiaries,  the  annuity  on  account of each beneficiary
19    shall be reduced pro rata until such time as  the  number  of
20    beneficiaries makes the reduction no longer applicable.
21        (g)  A  survivors  annuity  payable  on  account  of  any
22    covered  employee  who shall have been a covered employee for
23    at least 18 months at  date  of  death  or  last  withdrawal,
24    whichever  is  the  later,  shall  be  reduced  by 1/2 of the
25    survivors benefits to which his  beneficiaries  are  eligible
26    under  the  federal  Social Security Act, except that (1) the
27    survivors annuity payable under this  Article  shall  not  be
28    reduced by any increase under that Act which occurs after the
29    offset  required  by this subsection is first applied to that
30    annuity, and (2) for benefits granted on or after January  1,
31    1992,  the  offset under this subsection (g) shall not exceed
32    50% of the amount of survivors annuity otherwise payable.
33        (h)  The minimum payment to a beneficiary hereunder shall
34    be $60 per month, which shall be reduced in  accordance  with
 
                            -3-      LRB093 02118 EFG 02125 b
 1    the  limitation  prescribed  on  the combined payments to all
 2    beneficiaries of a member.
 3        (i)  Subject to  the  conditions  set  forth  in  Section
 4    14-120,  the  minimum total survivors annuity benefit payable
 5    to the survivors annuity beneficiaries of a  deceased  member
 6    or  annuitant whose death occurs on or after January 1, 1984,
 7    shall be 50% of the amount of retirement annuity that was  or
 8    would have been payable to the deceased on the date of death,
 9    regardless of the age of the deceased on such date, except as
10    otherwise provided in this subsection.
11        Subject  to  the  conditions set forth in Section 14-120,
12    beginning  January  1,  2004,  the  minimum  total  survivors
13    annuity   benefit   payable   to   the   survivors    annuity
14    beneficiaries  of  a deceased member who was earning eligible
15    creditable service at the time of termination of  service  or
16    of   a   deceased  annuitant  whose  retirement  annuity  was
17    calculated under Section 14-110 shall be 65% of the amount of
18    retirement annuity that was or would have been payable to the
19    deceased on the date of death, regardless of the age  of  the
20    deceased  on  that  date.  The change to this Section made by
21    this amendatory Act of  the  93rd  General  Assembly  is  not
22    limited  to  survivors  of persons in service on or after its
23    effective date.
24        If the minimum total benefit provided by this  subsection
25    exceeds  the  maximum  otherwise imposed by this Section, the
26    minimum total benefit shall  nevertheless  be  payable.   Any
27    increase  in  the  total  survivors annuity benefit resulting
28    from the operation of this subsection shall be divided  among
29    the  survivors  annuity  beneficiaries  of  the  deceased  in
30    proportion  to  their  shares  of the total survivors annuity
31    benefit otherwise payable under this Section.
32        (j)  Any  survivors  annuity  beneficiary  whose  annuity
33    terminates due to any condition  specified  in  this  Article
34    other than death shall be entitled to a refund of the excess,
 
                            -4-      LRB093 02118 EFG 02125 b
 1    if  any,  of the accumulated contributions of the member plus
 2    credited  interest  over  all  payments  to  the  member  and
 3    beneficiary or beneficiaries, exclusive  of  the  single  sum
 4    payment   of   $1,000,   provided   no  future  survivors  or
 5    reversionary annuity benefits are payable.
 6        (k)  Upon the death of the last eligible recipient  of  a
 7    survivors  annuity  the  excess,  if  any,  of  the  member's
 8    accumulated  contributions  plus  credited  interest over all
 9    annuity payments to the member and survivors exclusive of the
10    single sum payment of $1000,  shall  be  paid  to  the  named
11    beneficiary  of  the  last  eligible survivor, or if none has
12    been named, to the estate  of  the  last  eligible  survivor,
13    provided no reversionary annuity is payable.
14        (l)  On January 1, 1981, any survivor who was receiving a
15    survivors  annuity  on  or before January 1, 1971, shall have
16    his survivors annuity then being paid  increased  by  1%  for
17    each  full  year  which has elapsed from the date the annuity
18    began.  On January 1, 1982, any survivor who began  receiving
19    a  survivor's  annuity  after  January  1,  1971,  but before
20    January 1, 1981, shall have his survivor's annuity then being
21    paid increased by 1% for each full year that has elapsed from
22    the date the annuity began. On January 1, 1987, any  survivor
23    who began receiving a survivor's annuity on or before January
24    1,  1977, shall have the monthly survivor's annuity increased
25    by $1 for each full year which has elapsed since the date the
26    survivor's annuity began.
27        (m)  Beginning January 1, 1990, every survivor's  annuity
28    shall  be  increased  (1)  on  each January 1 occurring on or
29    after the commencement of the annuity if the deceased  member
30    died  while  receiving  a retirement annuity, or (2) in other
31    cases, on each January 1 occurring  on  or  after  the  first
32    anniversary  of the commencement of the annuity, by an amount
33    equal to 3% of the current amount of the  annuity,  including
34    any  previous  increases  under this Article.  Such increases
 
                            -5-      LRB093 02118 EFG 02125 b
 1    shall apply without regard to whether the deceased member was
 2    in service on or after  the  effective  date  of  Public  Act
 3    86-1488, but shall not accrue for any period prior to January
 4    1, 1990.
 5    (Source: P.A. 86-273; 86-1488; 87-794.)

 6        Section  99.  Effective date.  This Act takes effect upon
 7    becoming law.