State of Illinois
91st General Assembly
Legislation

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91_HB0349

 
                                               LRB9100812EGfg

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Sections 17-119 and 17-122 and to amend  the  State  Mandates
 3    Act.

 4        Be  it  enacted  by  the People of the State of Illinois,
 5    represented in the General Assembly:

 6        Section 5.  The  Illinois  Pension  Code  is  amended  by
 7    changing Sections 17-119 and 17-122 as follows:

 8        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
 9        Sec. 17-119.  Automatic annual increase in pension.
10        (a)  Each teacher retiring on or after September 1, 1959,
11    is  entitled  to  the  annual  increase  in  pension, defined
12    herein, while he is receiving a pension from the Fund.
13             1.  The  term  "base  pension"   means   a   service
14        retirement or disability retirement pension in the amount
15        fixed and payable at the date of retirement of a teacher.
16             2.  The  annual  increase in pension shall be at the
17        rate of 1 1/2% of base pension. This increase shall first
18        occur in January of the year  next  following  the  first
19        anniversary  of  retirement.  At such time the Fund shall
20        pay the pro rata part of the increase for the period from
21        the first anniversary date  to  the  date  of  the  first
22        increase  in pension. Beginning January 1, 1972, the rate
23        of annual increase in pension shall be  2%  of  the  base
24        pension.  Beginning  January  1, 1979, the rate of annual
25        increase in pension shall be  3%  of  the  base  pension.
26        Beginning January 1, 1990, all automatic annual increases
27        payable  under  this  Section  shall  be  calculated as a
28        percentage of the total pension payable at  the  time  of
29        the  increase, including all increases previously granted
30        under this Article, notwithstanding Section 17-157.
31             3.  An increase in pension shall be granted only  if
 
                            -2-                LRB9100812EGfg
 1        the  retired  teacher  is  age 60 or over. If the teacher
 2        attains age 60 after retirement, the increase in  pension
 3        shall  begin  in  January  of the year following the 61st
 4        birthday. At such time the Fund also shall  pay  the  pro
 5        rata  part  of the increase from the 61st birthday to the
 6        date of first increase in pension.
 7        (b)  In addition to other increases which may be provided
 8    by this Section, on January  1,  1981  any  teacher  who  was
 9    receiving  a  retirement pension on or before January 1, 1971
10    shall have his retirement pension then being  paid  increased
11    $1 per month for each year of creditable service.  On January
12    1,  1982,  any  teacher  whose retirement pension began on or
13    before January 1, 1977, shall  have  his  retirement  pension
14    then  being  paid  increased  $1  per  month for each year of
15    creditable service.
16        On January 1, 1987, any teacher whose retirement  pension
17    began  on  or  before January 1, 1977, shall have the monthly
18    retirement pension increased by an amount  equal  to  8¢  per
19    year  of  creditable  service  times the number of years that
20    have elapsed since the retirement pension began.
21        (c)  On  January  1,  2000,  every  pensioner  who  began
22    receiving a retirement pension on or before January  1,  1993
23    shall  have  the  monthly  retirement pension increased by an
24    amount equal to 25¢ multiplied by the number of full years of
25    creditable service multiplied by the  number  of  full  years
26    that  have  elapsed since the pension began.  Every pensioner
27    who begins receiving a retirement pension  after  January  1,
28    1993  and  before  January  1,  2000  shall  have the monthly
29    retirement pension increased on the January 1 occurring on or
30    next following the seventh anniversary of retirement,  by  an
31    amount  equal to $1.75 multiplied by the number of full years
32    of creditable service upon which the  retirement  pension  is
33    based.   The increase under this subsection shall be included
34    in the calculation of  increases  granted  simultaneously  or
 
                            -3-                LRB9100812EGfg
 1    thereafter  under  subsection  (a).   Section 17-157 does not
 2    apply to the increase provided under this subsection.
 3    (Source: P.A. 90-566, eff. 1-2-98.)

 4        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
 5        Sec. 17-122. Survivor's and children's pensions - Amount.
 6        (a)  Upon the death of a teacher  who  has  completed  at
 7    least  1 1/2  years  of contributing service with either this
 8    Fund or the  State  Universities  Retirement  System  or  the
 9    Teachers'   Retirement  System  of  the  State  of  Illinois,
10    provided his death  occurred  while  (a)  in  active  service
11    covered  by  the  Fund  or  during  his  first  18  months of
12    continuous employment without a break in  service  under  any
13    other   participating  system  as  defined  in  the  Illinois
14    Retirement  Systems   Reciprocal   Act   except   the   State
15    Universities  Retirement  System and the Teachers' Retirement
16    System of the State of Illinois, (b) on a creditable leave of
17    absence, (c) on a noncreditable leave of absence of  no  more
18    than  one  year,  or  (d)  a  pension was deferred or pending
19    provided the teacher had  at  least  10  years  of  validated
20    service  credit,  or  upon the death of a pensioner otherwise
21    qualified  for  such  benefit,  the  surviving   spouse   and
22    unmarried minor children of the deceased teacher under age 18
23    shall  be  entitled  to pensions, under the conditions stated
24    hereinafter.  Such survivor's and children's  pensions  shall
25    be based on the average of the 4 highest consecutive years of
26    salary  in  the  last  10  years of service or on the average
27    salary for total service, if total service has been less than
28    4 years, according to the following percentages:
29             30% of average  salary  or  50%  of  the  retirement
30        pension  earned  by  the  teacher,  whichever  is larger,
31        subject to the prescribed maximum monthly payment, for  a
32        surviving spouse alone on attainment of age 50;
33             60%  of  average  salary  for a surviving spouse and
 
                            -4-                LRB9100812EGfg
 1        eligible minor children of the deceased teacher.
 2        If no eligible spouse survives, or the  surviving  spouse
 3    remarries,  or  the  parent  of  the children of the deceased
 4    member is otherwise ineligible for a  survivor's  pension,  a
 5    children's  pension  for eligible minor children under age 18
 6    shall be paid to their parent or  legal  guardian  for  their
 7    benefit according to the following percentages:
 8             30% of average salary for one child;
 9             60% of average salary for 2 or more children.
10        (b)  On  January  1,  1981, any survivor or child who was
11    receiving a survivor's or children's  pension  on  or  before
12    January  1,  1971,  shall  have  his survivor's or children's
13    pension then being paid increased by 1% for  each  full  year
14    which  has  elapsed  from  the  date  the  pension began.  On
15    January 1, 1982, any survivor or child  whose  pension  began
16    after January 1, 1971, but before January 1, 1981, shall have
17    his   survivor's   or  children's  pension  then  being  paid
18    increased 1% for each full year which has  elapsed  from  the
19    date  the pension began.  On January 1, 1987, any survivor or
20    child whose pension began on or before January 1, 1977, shall
21    have the monthly survivor's or children's  pension  increased
22    by  $1 for each full year which has elapsed since the pension
23    began.
24        (c)  On January 1, 2000,  every  survivor  or  child  who
25    began  receiving  a  survivor's  or  children's pension on or
26    before  January  1,  1993  shall  have  the  monthly  pension
27    increased by an amount equal to 25¢ multiplied by the  number
28    of full years of the deceased's creditable service multiplied
29    by  the sum of (i) the number of full years that have elapsed
30    since the survivor's or children's pension began and (ii) the
31    number of full years,  if  any,  during  which  the  deceased
32    received  a  retirement  pension  under  this Article.  Every
33    survivor or  child  who  begins  receiving  a  survivor's  or
34    children's  pension  after January 1, 1993 and before January
 
                            -5-                LRB9100812EGfg
 1    1, 2000 shall have  the  monthly  pension  increased  on  the
 2    January   1  occurring  on  or  next  following  the  seventh
 3    anniversary of the commencement of the pension, by an  amount
 4    equal  to  25¢  multiplied by the number of full years of the
 5    deceased's creditable service multiplied by the  sum  of  (i)
 6    the  number  of  full  years  that  have  elapsed  since  the
 7    survivor's  annuity  began and (ii) the number of full years,
 8    if any, during  which  the  deceased  received  a  retirement
 9    pension   under   this  Article.   The  increase  under  this
10    subsection shall be included in the calculation of  increases
11    granted  simultaneously  or  thereafter under subsection (d).
12    Section 17-157 does not apply to the increase provided  under
13    this subsection.
14        (d)  Beginning  January  1,  1990,  every  survivor's and
15    children's pension shall be increased (1) on each  January  1
16    occurring  on or after the commencement of the pension if the
17    deceased teacher died while receiving a  retirement  pension,
18    or  (2)  in  other  cases,  on each January 1 occurring on or
19    after the  first  anniversary  of  the  commencement  of  the
20    pension,  by  an  amount equal to 3% of the current amount of
21    the pension, including all increases previously granted under
22    this Article, notwithstanding Section 17-157.  Such increases
23    shall apply without regard to whether  the  deceased  teacher
24    was  in  service  on  or  after  the  effective  date of this
25    amendatory Act of 1991, but shall not accrue for  any  period
26    prior to January 1, 1990.
27        (e)  Subject   to  the  minimum  established  below,  the
28    maximum amount of pension for a surviving spouse alone or one
29    minor child shall be $400 per month, and the maximum combined
30    pensions for a surviving spouse and children of the  deceased
31    teacher  shall  be  $600  per month, with individual pensions
32    adjusted for all beneficiaries pro rata to conform with  this
33    limitation.    If   proration   is  unnecessary  the  minimum
34    survivor's and children's pensions shall be  $40  per  month.
 
                            -6-                LRB9100812EGfg
 1    The  minimum  total survivor's and children's pension payable
 2    upon the death of a contributor  or  annuitant  which  occurs
 3    after   December  31,  1986,  shall  be  50%  of  the  earned
 4    retirement  pension  of  such   contributor   or   annuitant,
 5    calculated  without  early retirement discount in the case of
 6    death in service.
 7        On death  after  retirement,  the  total  survivor's  and
 8    children's  pensions  shall not exceed the monthly retirement
 9    or  disability  pension  paid  to  the   deceased   retirant.
10    Survivor's  and children's benefits described in this Section
11    shall apply to all service and disability pensioners eligible
12    for a pension as of July 1, 1981.
13    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

14        Section 90.  The State Mandates Act is amended by  adding
15    Section 8.23 as follows:

16        (30 ILCS 805/8.23 new)
17        Sec.  8.23.  Exempt  mandate.  Notwithstanding Sections 6
18    and 8 of this Act, no reimbursement by the State is  required
19    for  the  implementation  of  any  mandate  created  by  this
20    amendatory Act of the 91st General Assembly.

21        Section  99.  Effective date.  This Act takes effect upon
22    becoming law.

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