97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3394

 

Introduced 2/24/2011, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-122  from Ch. 108 1/2, par. 17-122
30 ILCS 805/8.35 new

    Amends the Chicago Teacher Article of the Illinois Pension Code to increase the minimum total survivor's pension to 50% of the earned retirement pension for survivors of members who died before January 1, 1987. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB097 05116 JDS 45161 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3394LRB097 05116 JDS 45161 b

1    AN ACT in relation to public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 17-122 as follows:
 
6    (40 ILCS 5/17-122)  (from Ch. 108 1/2, par. 17-122)
7    Sec. 17-122. Survivor's and children's pensions - Amount.
8Upon the death of a teacher who has completed at least 1 1/2
9years of contributing service with either this Fund or the
10State Universities Retirement System or the Teachers'
11Retirement System of the State of Illinois, provided his death
12occurred while (a) in active service covered by the Fund or
13during his first 18 months of continuous employment without a
14break in service under any other participating system as
15defined in the Illinois Retirement Systems Reciprocal Act
16except the State Universities Retirement System and the
17Teachers' Retirement System of the State of Illinois, (b) on a
18creditable leave of absence, (c) on a noncreditable leave of
19absence of no more than one year, or (d) a pension was deferred
20or pending provided the teacher had at least 10 years of
21validated service credit, or upon the death of a pensioner
22otherwise qualified for such benefit, the surviving spouse and
23unmarried minor children of the deceased teacher under age 18

 

 

HB3394- 2 -LRB097 05116 JDS 45161 b

1shall be entitled to pensions, under the conditions stated
2hereinafter. Such survivor's and children's pensions shall be
3based on the average of the 4 highest consecutive years of
4salary in the last 10 years of service or on the average salary
5for total service, if total service has been less than 4 years,
6according to the following percentages:
7    30% of average salary or 50% of the retirement pension
8earned by the teacher, whichever is larger, subject to the
9prescribed maximum monthly payment, for a surviving spouse
10alone on attainment of age 50;
11    60% of average salary for a surviving spouse and eligible
12minor children of the deceased teacher.
13    If no eligible spouse survives, or the surviving spouse
14remarries, or the parent of the children of the deceased member
15is otherwise ineligible for a survivor's pension, a children's
16pension for eligible minor children under age 18 shall be paid
17to their parent or legal guardian for their benefit according
18to the following percentages:
19    30% of average salary for one child;
20    60% of average salary for 2 or more children.
21    On January 1, 1981, any survivor or child who was receiving
22a survivor's or children's pension on or before January 1,
231971, shall have his survivor's or children's pension then
24being paid increased by 1% for each full year which has elapsed
25from the date the pension began. On January 1, 1982, any
26survivor or child whose pension began after January 1, 1971,

 

 

HB3394- 3 -LRB097 05116 JDS 45161 b

1but before January 1, 1981, shall have his survivor's or
2children's pension then being paid increased 1% for each full
3year which has elapsed from the date the pension began. On
4January 1, 1987, any survivor or child whose pension began on
5or before January 1, 1977, shall have the monthly survivor's or
6children's pension increased by $1 for each full year which has
7elapsed since the pension began.
8    Beginning January 1, 1990, every survivor's and children's
9pension shall be increased (1) on each January 1 occurring on
10or after the commencement of the pension if the deceased
11teacher died while receiving a retirement pension, or (2) in
12other cases, on each January 1 occurring on or after the first
13anniversary of the commencement of the pension, by an amount
14equal to 3% of the current amount of the pension, including all
15increases previously granted under this Article,
16notwithstanding Section 17-157. Such increases shall apply
17without regard to whether the deceased teacher was in service
18on or after the effective date of this amendatory Act of 1991,
19but shall not accrue for any period prior to January 1, 1990.
20    Subject to the minimum established below, the maximum
21amount of pension for a surviving spouse alone or one minor
22child shall be $400 per month, and the maximum combined
23pensions for a surviving spouse and children of the deceased
24teacher shall be $600 per month, with individual pensions
25adjusted for all beneficiaries pro rata to conform with this
26limitation. If proration is unnecessary the minimum survivor's

 

 

HB3394- 4 -LRB097 05116 JDS 45161 b

1and children's pensions shall be $40 per month. The minimum
2total survivor's and children's pension payable upon the death
3of a contributor or annuitant which occurs after December 31,
41986, shall be 50% of the earned retirement pension of such
5contributor or annuitant, calculated without early retirement
6discount in the case of death in service. Beginning January 1,
72012, the minimum total survivor's pension payable upon the
8death of a contributor or annuitant that occurred before
9January 1, 1987 shall be 50% of the earned retirement pension
10of the contributor or annuitant, calculated without early
11retirement discount in the case of death in service, and
12notwithstanding Section 17-157.
13    On death after retirement, the total survivor's and
14children's pensions shall not exceed the monthly retirement or
15disability pension paid to the deceased retirant. Survivor's
16and children's benefits described in this Section shall apply
17to all service and disability pensioners eligible for a pension
18as of July 1, 1981.
19(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
 
20    Section 90. The State Mandates Act is amended by adding
21Section 8.35 as follows:
 
22    (30 ILCS 805/8.35 new)
23    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
24of this Act, no reimbursement by the State is required for the

 

 

HB3394- 5 -LRB097 05116 JDS 45161 b

1implementation of any mandate created by this amendatory Act of
2the 97th General Assembly.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.