093_HB2300

 
                                     LRB093 09712 EFG 09952 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 7-156 as follows:

 6        (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
 7        Sec. 7-156.  Surviving spouse annuities - amount.
 8        (a)  The amount of surviving spouse annuity shall be:
 9        1.  Upon  the  death  of  an  employee  annuitant or such
10    person entitled, upon application, to a retirement annuity at
11    date of death, (i) an amount equal to 1/2 of  the  retirement
12    annuity which was or would have been payable exclusive of the
13    amount so payable which was provided from additional credits,
14    and  disregarding  any  election  made under paragraph (b) of
15    Section 7-142, plus (ii) an annuity which could  be  provided
16    at  the  then  attained age of the surviving spouse and under
17    actuarial tables then in  effect,  from  the  excess  of  the
18    additional  credits,  (excluding  any  such  credits  used to
19    create a reversionary annuity) used to  provide  the  annuity
20    granted  pursuant  to  paragraph  (a) (2) of Section 7-142 of
21    this article over the total annuity  payments  made  pursuant
22    thereto.
23        2.  Upon  the  death  of  a  participating employee on or
24    after attainment of age 55, an amount equal  to  1/2  of  the
25    retirement  annuity which he could have had as of the date of
26    death had he then retired and applied for annuity,  exclusive
27    of  the  portion  thereof which could have been provided from
28    additional credits, and disregarding paragraph (b) of Section
29    7-142, plus an amount equal to the  annuity  which  could  be
30    provided from the total of his accumulated additional credits
31    at  date  of  death,  on the basis of the attained age of the
 
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 1    surviving spouse on such date.
 2        3.  Upon the death of a participating employee before age
 3    55, an amount equal to 1/2 of the retirement annuity which he
 4    could have had as of his attained age on the date  of  death,
 5    had  he  then  retired  and  applied  for  annuity,  and  the
 6    provisions  of  this Article that no such annuity shall begin
 7    until the employee has attained at  least  age  55  were  not
 8    applicable, exclusive of the portion thereof which could have
 9    been   provided  from  additional  credits  and  disregarding
10    paragraph (b) of Section 7-142, plus an amount equal  to  the
11    annuity  which  could  be  provided  from  the  total  of his
12    accumulated additional credits at date of death, on the basis
13    of the attained age of the surviving spouse on such date.
14        If the death occurs before the  effective  date  of  this
15    amendatory  Act  of  the  93rd  General  Assembly  and  the a
16    surviving spouse is  more  than  5  years  younger  than  the
17    deceased,  that  portion of the annuity which is not based on
18    additional credits shall be reduced in the ratio of the value
19    of a life annuity of $1 per year at an age of  5  years  less
20    than  the attained age of the deceased, at the earlier of the
21    date of the death or the date his retirement annuity  begins,
22    to the value of a life annuity of $1 per year at the attained
23    age  of  the  surviving  spouse  on  such  date, according to
24    actuarial tables approved by the Board.  If the death  occurs
25    on  or after the effective date of this amendatory Act of the
26    93rd General Assembly, this  reduction  due  to  age  of  the
27    surviving spouse does not apply.
28        In  computing  the  amount of a surviving spouse annuity,
29    incremental increases of retirement annuities to the date  of
30    death of the employee annuitant shall be considered.
31        (b)  Each  surviving spouse annuity payable on January 1,
32    1988 shall be increased on that date by 3%  of  the  original
33    amount  of  the  annuity.  Each surviving spouse annuity that
34    begins after January  1,  1988  shall  be  increased  on  the
 
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 1    January  1  next  occurring  after  the annuity begins, by an
 2    amount equal to (i) 3% of the original amount thereof if  the
 3    deceased  employee  was receiving a retirement annuity at the
 4    time of his death; otherwise  (ii)  0.167%  of  the  original
 5    amount  thereof  for  each  complete  month which has elapsed
 6    since the date the annuity began.
 7        On each January 1 after the date of the initial  increase
 8    under this subsection, each surviving spouse annuity shall be
 9    increased  by  3%  of  the  originally  granted amount of the
10    annuity.
11    (Source: P.A. 85-941.)

12        Section 90.  The State Mandates Act is amended by  adding
13    Section 8.27 as follows:

14        (30 ILCS 805/8.27 new)
15        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
16    and 8 of this Act, no reimbursement by the State is  required
17    for  the  implementation  of  any  mandate  created  by  this
18    amendatory Act of the 93rd General Assembly.

19        Section  99.  Effective date.  This Act takes effect upon
20    becoming law.