(40 ILCS 5/8-139)
(from Ch. 108 1/2, par. 8-139)
(a) An employee, prior to retirement on annuity, may elect to take a lesser
amount of annuity and provide, with the actuarial value of the amount by which
his annuity is reduced, a reversionary annuity for a wife, husband, parent,
child, brother or sister. The option shall be exercised by filing a written
designation with the board prior to retirement, and may be revoked by the
employee at any time before retirement. The death of the employee prior to
his retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant prior to the
employee's retirement shall automatically void the option. If the
reversionary annuitant dies after the employee's retirement, and before
the death of the employee annuitant, the reduced
annuity being paid to the retired employee annuitant shall be increased
to the amount of annuity before reduction for the reversionary annuity
and no reversionary annuity shall be payable.
The option is subject to the further condition that no reversionary annuity
shall be paid to a parent, child, brother, or sister if the employee dies
before the expiration of 365 days from the date his written
designation was filed with the board, even though he has retired and is
receiving a reduced annuity.
(c) The employee exercising this option shall not reduce his retirement
annuity by more than $400 a month, or elect to provide a
reversionary annuity of less than $50 per month. No option shall be permitted
if the reversionary annuity for a widow, when added to the widow's annuity
payable under this Article, exceeds 100% of the reduced annuity
payable to the employee.
(d) A reversionary annuity shall begin on the day following the death of
the annuitant and shall be paid as provided in Section 8-125.
(e) The increases in annuity provided in Section 8-137 of this Article
shall, as to an employee so electing a reduced annuity relate to the amount
of the original annuity, and such amount shall
constitute the annuity on
which such automatic increases shall be based.
(f) For annuities elected after June 30, 1983, the amount of the monthly
reversionary annuity shall be determined by multiplying the amount of the
monthly reduction in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in the age of
the employee and the age of the reversionary annuitant at the starting date
of the employee's annuity: