093_HB1478

 
                                     LRB093 07250 EFG 07408 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 15-145 as follows:

 6        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
 7        Sec.  15-145.   Survivors  insurance benefits; conditions
 8    and amounts.
 9        (a)  The survivors insurance benefits provided under this
10    Section shall be payable  to  the  eligible  survivors  of  a
11    participant  covered  under  the  traditional benefit package
12    upon the death of (1) a participating employee with at  least
13    1 1/2  years  of  service,  (2)  a participant who terminated
14    employment with at least 10 years  of  service,  and  (3)  an
15    annuitant  in  receipt  of a retirement annuity or disability
16    retirement annuity under this Article.
17        Service under the State Employees' Retirement  System  of
18    Illinois,  the  Teachers'  Retirement  System of the State of
19    Illinois  and  the  Public  School  Teachers'   Pension   and
20    Retirement Fund of Chicago shall be considered in determining
21    eligibility for survivors benefits under this Section.
22        If  by law, a function of a governmental unit, as defined
23    by Section 20-107, is transferred in whole or in part  to  an
24    employer,  and  an  employee  transfers  employment from this
25    governmental unit to such employer within 6 months after  the
26    transfer  of  this  function,  the  service  credits  in  the
27    governmental   unit's   retirement  system  which  have  been
28    validated  under  Section  20-109  shall  be  considered   in
29    determining  eligibility  for  survivors  benefits under this
30    Section.
31        (b)  A surviving spouse of a deceased participant, or  of
 
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 1    a  deceased annuitant who did not take a refund or additional
 2    annuity  consisting  of   accumulated   survivors   insurance
 3    contributions,  shall  receive  a survivors annuity of 30% of
 4    the final rate of earnings.  Payments shall begin on the  day
 5    following  the participant's or annuitant's death or the date
 6    the surviving spouse attains age 50, whichever is later,  and
 7    continue until the death of the surviving spouse.
 8        The  removal  of the age 50 limitation by this amendatory
 9    Act of the 93rd  General  Assembly  applies  to  all  persons
10    otherwise  eligible to receive a survivors annuity under this
11    subsection  (b),  without  regard  to  whether  the  deceased
12    participant or annuitant was  in  service  on  or  after  the
13    effective  date  of  this amendatory Act.  A person otherwise
14    eligible  whose  annuity  under  this  subsection  is   being
15    deferred   due   to   the   age  50  limitation  shall,  upon
16    application, be entitled to have the annuity  begin,  payable
17    from  the effective date of this amendatory Act.  The annuity
18    shall be payable to the surviving spouse prior to  attainment
19    of  age  50  if the surviving spouse has in his or her care a
20    deceased participant's  or  annuitant's  dependent  unmarried
21    child  under age 18 (under age 22 if a full-time student) who
22    is eligible for a survivors annuity.
23        Remarriage of a surviving spouse prior to  attainment  of
24    age  55 that occurs before July 6, 2000 the effective date of
25    this amendatory  Act  of  the  91st  General  Assembly  shall
26    disqualify  him or her for the receipt of a survivors annuity
27    until July 6, 2000.
28        A surviving  spouse  whose  survivors  annuity  has  been
29    terminated  due  to remarriage may apply for reinstatement of
30    that annuity.  The reinstated annuity shall begin  to  accrue
31    on July 6, 2000, except that if, on July 6, 2000, the annuity
32    is  payable to an eligible surviving child or parent, payment
33    of  the  annuity  to  the  surviving  spouse  shall  not   be
34    reinstated  until  the  annuity  is  no longer payable to any
 
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 1    eligible surviving child or parent.  The  reinstated  annuity
 2    shall include any one-time or annual increases received prior
 3    to  the  date  of  termination, as well as any increases that
 4    would otherwise have accrued from the date of termination  to
 5    the  date  of  reinstatement.    An eligible surviving spouse
 6    whose expectation of receiving a survivors annuity  was  lost
 7    due  to  remarriage before attainment of age 50 shall also be
 8    entitled to reinstatement  under  this  subsection,  but  the
 9    resulting  survivors annuity shall not begin to accrue sooner
10    than the effective date of this amendatory Act  of  the  93rd
11    General  Assembly  upon  the surviving spouse's attainment of
12    age 50.
13        The changes made to this subsection by Public Act  92-749
14    this  amendatory Act of the 92nd General Assembly (pertaining
15    to remarriage prior to age 55 or 50) apply without regard  to
16    whether  the deceased participant or annuitant was in service
17    on or after the effective date of that this amendatory Act.
18        (c)  Each dependent unmarried child under age  18  (under
19    age  22 if a full-time student) of a deceased participant, or
20    of a  deceased  annuitant  who  did  not  take  a  refund  or
21    additional   annuity   consisting  of  accumulated  survivors
22    insurance contributions, shall receive  a  survivors  annuity
23    equal  to  the  sum of (1) 20% of the final rate of earnings,
24    and (2) 10% of the final rate  of  earnings  divided  by  the
25    number  of children entitled to this benefit.  Payments shall
26    begin on the day following the participant's  or  annuitant's
27    death  and continue until the child marries, dies, or attains
28    age 18 (age 22 if a full-time student).  If the child  is  in
29    the  care of a surviving spouse who is eligible for survivors
30    insurance benefits, the child's benefit shall be paid to  the
31    surviving spouse.
32        Each   unmarried   child   over  age  18  of  a  deceased
33    participant or of a deceased annuitant who had  a  survivor's
34    insurance  beneficiary  at the time of his or her retirement,
 
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 1    and who was dependent upon the participant  or  annuitant  by
 2    reason  of  a physical or mental disability which began prior
 3    to the date the child attained age 18 (age 22 if a  full-time
 4    student), shall receive a survivor's annuity equal to the sum
 5    of  (1) 20% of the final rate of earnings, and (2) 10% of the
 6    final rate of earnings divided  by  the  number  of  children
 7    entitled  to survivors benefits.  Payments shall begin on the
 8    day following the  participant's  or  annuitant's  death  and
 9    continue  until  the  child  marries,  dies,  or is no longer
10    disabled.  If the child is in the care of a surviving  spouse
11    who is eligible for survivors insurance benefits, the child's
12    benefit  may  be  paid  to  the  surviving  spouse.   For the
13    purposes of  this  Section,  disability  means  inability  to
14    engage  in  any substantial gainful activity by reason of any
15    medically determinable physical or mental impairment that can
16    be expected to result in death or that has lasted or  can  be
17    expected  to  last  for  a  continuous period of at least one
18    year.
19        (d)  Each dependent parent of a deceased participant,  or
20    of  a  deceased  annuitant  who  did  not  take  a  refund or
21    additional  annuity  consisting  of   accumulated   survivors
22    insurance  contributions,  shall  receive a survivors annuity
23    equal to the sum of (1) 20% of final rate  of  earnings,  and
24    (2)  10%  of  final rate of earnings divided by the number of
25    parents who qualify for the benefit.   Payments  shall  begin
26    when  the  parent  reaches  age  55  or the day following the
27    participant's or annuitant's death, whichever is  later,  and
28    continue until the parent dies.  Remarriage of a parent prior
29    to  attainment  of age 55 shall disqualify the parent for the
30    receipt of a survivors annuity.
31        (e)  In addition to the survivors annuity provided above,
32    each survivors insurance beneficiary shall, upon death of the
33    participant or annuitant,  receive  a  lump  sum  payment  of
34    $1,000 divided by the number of such beneficiaries.
 
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 1        (f)  The  changes  made  in  this  Section  by Public Act
 2    81-712  pertaining  to  survivors  annuities  in   cases   of
 3    remarriage  prior  to  age  55  shall apply to each survivors
 4    insurance beneficiary who  remarries  after  June  30,  1979,
 5    regardless  of  the  date  that  the participant or annuitant
 6    terminated his employment or died.
 7        The change made to this Section by this amendatory Act of
 8    the 91st General Assembly, pertaining to remarriage prior  to
 9    age  55,  applies  without  regard  to  whether  the deceased
10    participant or annuitant was  in  service  on  or  after  the
11    effective  date  of  this  amendatory Act of the 91st General
12    Assembly.
13        (g)  On January 1, 1981, any person who was  receiving  a
14    survivors annuity on or before January 1, 1971 shall have the
15    survivors  annuity  then  being paid increased by 1% for each
16    full year which has elapsed from the date the annuity  began.
17    On  January  1,  1982, any survivor whose annuity began after
18    January 1, 1971, but before January 1, 1981, shall  have  the
19    survivor's  annuity  then being paid increased by 1% for each
20    year which has elapsed from the date the  survivor's  annuity
21    began. On January 1, 1987, any survivor who began receiving a
22    survivor's  annuity  on or before January 1, 1977, shall have
23    the monthly survivor's annuity increased by $1 for each  full
24    year  which has elapsed since the date the survivor's annuity
25    began.
26        (h)  If the  sum  of  the  lump  sum  and  total  monthly
27    survivor  benefits  payable under this Section upon the death
28    of a participant amounts to less than the sum  of  the  death
29    benefits  payable  under items (2) and (3) of Section 15-141,
30    the difference shall be paid in a lump sum to the beneficiary
31    of the participant who  is  living  on  the  date  that  this
32    additional amount becomes payable.
33        (i)  If  the  sum  of  the  lump  sum  and  total monthly
34    survivor benefits payable under this Section upon  the  death
 
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 1    of  an annuitant receiving a retirement annuity or disability
 2    retirement annuity amounts to less  than  the  death  benefit
 3    payable under Section 15-142, the difference shall be paid to
 4    the  beneficiary  of  the annuitant who is living on the date
 5    that this additional amount becomes payable.
 6        (j)  Effective on the later of (1) January  1,  1990,  or
 7    (2)  the  January  1  on  or next after the date on which the
 8    survivor annuity begins, if the deceased  member  died  while
 9    receiving  a  retirement  annuity,  or in all other cases the
10    January 1 nearest the  first  anniversary  of  the  date  the
11    survivor  annuity  payments  begin, every survivors insurance
12    beneficiary shall receive an increase in his or  her  monthly
13    survivors annuity of 3%.  On each January 1 after the initial
14    increase, the monthly survivors annuity shall be increased by
15    3%  of  the  total  survivors  annuity  provided  under  this
16    Article,   including  previous  increases  provided  by  this
17    subsection.  Such increases  shall  apply  to  the  survivors
18    insurance  beneficiaries  of  each participant and annuitant,
19    whether or not the employment status of  the  participant  or
20    annuitant  terminates  before  the  effective  date  of  this
21    amendatory  Act of 1990.  This subsection (j) also applies to
22    persons receiving  a  survivor  annuity  under  the  portable
23    benefit package.
24        (k)  If  the  Internal  Revenue Code of 1986, as amended,
25    requires that the survivors benefits be  payable  at  an  age
26    earlier  than  that  specified  in  this Section the benefits
27    shall  begin  at  the  earlier  age,  in  which  event,   the
28    survivor's  beneficiary shall be entitled only to that amount
29    which is equal to the actuarial equivalent  of  the  benefits
30    provided by this Section.
31        (l)  The  changes made to this Section and Section 15-131
32    by this amendatory Act of  1997,  relating  to  benefits  for
33    certain  unmarried  children who are full-time students under
34    age 22, apply without regard to whether the  deceased  member
 
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 1    was  in  service  on  or  after  the  effective  date of this
 2    amendatory Act of 1997.  These changes do not  authorize  the
 3    repayment  of  a refund or a re-election of benefits, and any
 4    benefit or increase in benefits resulting from these  changes
 5    is  not  payable  retroactively  for  any  period  before the
 6    effective date of this amendatory Act of 1997.
 7    (Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)

 8        Section 99. Effective date.  This Act takes  effect  upon
 9    becoming law.