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91_HB0602
LRB9100993EGfg
1 AN ACT in relation to public employee pensions, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 14-114, 14-119, 14-121, 15-136, 15-136.3,
7 15-145, 16-133.1, 16-143.1, 17-119, and 17-122 as follows:
8 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
9 Sec. 14-114. Automatic increase in retirement annuity.
10 (a) Any person receiving a retirement annuity under this
11 Article who retires having attained age 60, or who retires
12 before age 60 having at least 35 years of creditable service,
13 shall on January 1, next following the first full year of
14 retirement, have the amount of the then fixed and payable
15 monthly retirement annuity increased 3%. Any person
16 receiving a retirement annuity under this Article who retires
17 before attainment of age 60 and with less than 35 years of
18 creditable service shall have the amount of the fixed and
19 payable retirement annuity increased by 3% on the January 1
20 occurring on or next following (1) attainment of age 60, or
21 (2) the first anniversary of retirement, whichever occurs
22 later. However, for persons who receive the alternative
23 retirement annuity under Section 14-110, references in this
24 subsection (a) to attainment of age 60 shall be deemed to
25 refer to attainment of age 55. For a person receiving early
26 retirement incentives under Section 14-108.3 whose retirement
27 annuity began after January 1, 1992 pursuant to an extension
28 granted under subsection (e) of that Section, the first
29 anniversary of retirement shall be deemed to be January 1,
30 1993.
31 On each January 1 following the date of the initial
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1 increase under this subsection, the employee's monthly
2 retirement annuity shall be increased by an additional 3%.
3 Beginning January 1, 1990, all automatic annual increases
4 payable under this Section shall be calculated as a
5 percentage of the total annuity payable at the time of the
6 increase, including previous increases granted under this
7 Article.
8 (b) The provisions of subsection (a) of this Section
9 shall be applicable to an employee only if the employee makes
10 the additional contributions required after December 31, 1969
11 for the purpose of the automatic increases for not less than
12 the equivalent of one full year. If an employee becomes an
13 annuitant before his additional contributions equal one full
14 year's contributions based on his salary at the date of
15 retirement, the employee may pay the necessary balance of the
16 contributions to the system, without interest, and be
17 eligible for the increasing annuity authorized by this
18 Section.
19 (c) The provisions of subsection (a) of this Section
20 shall not be applicable to any annuitant who is on retirement
21 on December 31, 1969, and thereafter returns to State
22 service, unless the member has established at least one year
23 of additional creditable service following reentry into
24 service.
25 (d) In addition to other increases which may be provided
26 by this Section, on January 1, 1981 any annuitant who was
27 receiving a retirement annuity on or before January 1, 1971
28 shall have his retirement annuity then being paid increased
29 $1 per month for each year of creditable service. On January
30 1, 1982, any annuitant who began receiving a retirement
31 annuity on or before January 1, 1977, shall have his
32 retirement annuity then being paid increased $1 per month for
33 each year of creditable service.
34 On January 1, 1987, any annuitant who began receiving a
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1 retirement annuity on or before January 1, 1977, shall have
2 the monthly retirement annuity increased by an amount equal
3 to 8¢ per year of creditable service times the number of
4 years that have elapsed since the annuity began.
5 (d-1) On January 1, 2000, every annuitant who began
6 receiving a retirement annuity on or before January 1, 1991
7 shall have the monthly retirement annuity increased by an
8 amount equal to 25¢ multiplied by the number of full years of
9 creditable service multiplied by the number of full years
10 that have elapsed since the annuity began. Every annuitant
11 who begins receiving a retirement annuity after January 1,
12 1991 and before January 1, 1998 shall have the monthly
13 retirement annuity increased on January 1, 2000 or on the
14 January 1 occurring on or next following the seventh
15 anniversary of retirement, whichever is later, by an amount
16 equal to $1.75 multiplied by the number of full years of
17 creditable service upon which the retirement annuity is
18 based. The increase under this subsection shall be included
19 in the calculation of increases granted simultaneously or
20 thereafter under subsection (a).
21 (e) Every person who receives the alternative retirement
22 annuity under Section 14-110 and who is eligible to receive
23 the 3% increase under subsection (a) on January 1, 1986,
24 shall also receive on that date a one-time increase in
25 retirement annuity equal to the difference between (1) his
26 actual retirement annuity on that date, including any
27 increases received under subsection (a), and (2) the amount
28 of retirement annuity he would have received on that date if
29 the amendments to subsection (a) made by Public Act 84-162
30 had been in effect since the date of his retirement.
31 (Source: P.A. 86-273; 87-1265.)
32 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
33 Sec. 14-119. Amount of widow's annuity.
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1 (a) The widow's annuity shall be 50% of the amount of
2 retirement annuity payable to the member on the date of death
3 while on retirement if an annuitant, or on the date of his
4 death while in service if an employee, regardless of his age
5 on such date, or on the date of withdrawal if death occurred
6 after termination of service under the conditions prescribed
7 in the preceding Section.
8 (b) If an eligible widow, regardless of age, has in her
9 care any unmarried child or children of the member under age
10 18 (under age 22 if a full-time student), the widow's annuity
11 shall be increased in the amount of 5% of the retirement
12 annuity for each such child, but the combined payments for a
13 widow and children shall not exceed 66 2/3% of the member's
14 earned retirement annuity.
15 The amount of retirement annuity from which the widow's
16 annuity is derived shall be that earned by the member without
17 regard to whether he attained age 60 prior to his withdrawal
18 under the conditions stated or prior to his death.
19 (c) Adopted children shall be considered as children of
20 the member only if the proceedings for adoption were
21 commenced at least 1 year prior to the member's death.
22 Marriage of a child shall render the child ineligible for
23 further consideration in the increase in the amount of the
24 widow's annuity.
25 Attainment of age 18 (age 22 if a full-time student)
26 shall render a child ineligible for further consideration in
27 the increase of the widow's annuity, but the annuity to the
28 widow shall be continued thereafter, without regard to her
29 age at that time.
30 (d) A widow's annuity payable on account of any covered
31 employee who shall have been a covered employee for at least
32 18 months shall be reduced by 1/2 of the amount of survivors
33 benefits to which his beneficiaries are eligible under the
34 provisions of the Federal Social Security Act, except that
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1 (1) the amount of any widow's annuity payable under this
2 Article shall not be reduced by reason of any increase under
3 that Act which occurs after the offset required by this
4 subsection is first applied to that annuity, and (2) for
5 benefits granted on or after January 1, 1992, the offset
6 under this subsection (d) shall not exceed 50% of the amount
7 of widow's annuity otherwise payable.
8 (e) Upon the death of a recipient of a widow's annuity
9 the excess, if any, of the member's accumulated
10 contributions plus credited interest over all annuity
11 payments to the member and widow, exclusive of the $500 lump
12 sum payment, shall be paid to the named beneficiary of the
13 widow, or if none has been named, to the estate of the widow,
14 provided no reversionary annuity is payable.
15 (f) On January 1, 1981, any recipient of a widow's
16 annuity who was receiving a widow's annuity on or before
17 January 1, 1971, shall have her widow's annuity then being
18 paid increased by 1% for each full year which has elapsed
19 from the date the widow's annuity began. On January 1, 1982,
20 any recipient of a widow's annuity who began receiving a
21 widow's annuity after January 1, 1971, but before January 1,
22 1981, shall have her widow's annuity then being paid
23 increased by 1% for each full year which has elapsed from the
24 date the widow's annuity began. On January 1, 1987, any
25 recipient of a widow's annuity who began receiving the
26 widow's annuity on or before January 1, 1977, shall have the
27 monthly widow's annuity increased by $1 for each full year
28 which has elapsed since the date the annuity began.
29 (f-1) On January 1, 2000, every widow who began
30 receiving a widow's annuity on or before January 1, 1991
31 shall have the monthly widow's annuity increased by an amount
32 equal to 25¢ multiplied by the number of full years of the
33 deceased spouse's creditable service multiplied by the sum of
34 (i) the number of full years that have elapsed since the
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1 widow's annuity began and (ii) the number of full years, if
2 any, during which the deceased spouse received a retirement
3 annuity under this Article. Every widow who begins receiving
4 a widow's annuity after January 1, 1991 and before January 1,
5 2000 shall have the monthly widow's annuity increased on
6 January 1, 2000 or on the January 1 occurring on or next
7 following the seventh anniversary of the commencement of the
8 widow's annuity, whichever is later, by an amount equal to
9 25¢ multiplied by the number of full years of the deceased
10 spouse's creditable service multiplied by the sum of (i) the
11 number of full years that have elapsed since the widow's
12 annuity began and (ii) the number of full years, if any,
13 during which the deceased spouse received a retirement
14 annuity under this Article. The increase under this
15 subsection shall be included in the calculation of increases
16 granted simultaneously or thereafter under subsection (g).
17 (g) Beginning January 1, 1990, every widow's annuity
18 shall be increased (1) on each January 1 occurring on or
19 after the commencement of the annuity if the deceased member
20 died while receiving a retirement annuity, or (2) in other
21 cases, on each January 1 occurring on or after the first
22 anniversary of the commencement of the annuity, by an amount
23 equal to 3% of the current amount of the annuity, including
24 any previous increases under this Article. Such increases
25 shall apply without regard to whether the deceased member was
26 in service on or after the effective date of Public Act
27 86-1488, but shall not accrue for any period prior to January
28 1, 1990.
29 (Source: P.A. 90-448, eff. 8-16-97.)
30 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
31 Sec. 14-121. Amount of survivors annuity. A survivors
32 annuity beneficiary shall be entitled upon death of the
33 member to a single sum payment of $1,000, payable pro rata
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1 among all persons entitled thereto, together with a survivors
2 annuity payable at the rates and under the conditions
3 specified in this Article.
4 (a) If the survivors annuity beneficiary is a spouse,
5 the survivors annuity shall be 30% of final average
6 compensation subject to a maximum payment of $400 per month.
7 (b) If an eligible child or children under the care of a
8 spouse also survives the member, such spouse as natural
9 guardian of the child or children shall receive, in addition
10 to the foregoing annuity, 20% of final average compensation
11 on account of each such child and 10% of final average
12 compensation divided pro rata among such children, subject to
13 a maximum payment on account of all survivor annuity
14 beneficiaries of $600 per month, or 80% of the member's final
15 average compensation, whichever is the lesser.
16 (c) If the survivors annuity beneficiary or
17 beneficiaries consists of an unmarried child or children, the
18 amount of survivors annuity shall be 20% of final average
19 compensation to each child, and 10% of final average
20 compensation divided pro rata among all such children
21 entitled to such annuity, subject to a maximum payment to all
22 children combined of $600 per month or 80% of the member's
23 final average compensation, whichever is the lesser.
24 (d) If the survivors annuity beneficiary is one or more
25 dependent parents, the annuity shall be 20% of final average
26 compensation to each parent and 10% of final average
27 compensation divided pro rata among the parents who qualify
28 for this annuity, subject to a maximum payment to both
29 dependent parents of $400 per month.
30 (e) The survivors annuity to the spouse, children or
31 dependent parents of a member whose death occurs after the
32 date of last withdrawal, or after retirement, or while in
33 service following reentry into service after retirement but
34 before completing 1 1/2 years of additional creditable
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1 service, shall not exceed the lesser of 80% of the member's
2 earned retirement annuity at the date of death or the maximum
3 previously established in this Section.
4 (f) In applying the limitation prescribed on the
5 combined payments to 2 or more survivors annuity
6 beneficiaries, the annuity on account of each beneficiary
7 shall be reduced pro rata until such time as the number of
8 beneficiaries makes the reduction no longer applicable.
9 (g) A survivors annuity payable on account of any
10 covered employee who shall have been a covered employee for
11 at least 18 months at date of death or last withdrawal,
12 whichever is the later, shall be reduced by 1/2 of the
13 survivors benefits to which his beneficiaries are eligible
14 under the federal Social Security Act, except that (1) the
15 survivors annuity payable under this Article shall not be
16 reduced by any increase under that Act which occurs after the
17 offset required by this subsection is first applied to that
18 annuity, and (2) for benefits granted on or after January 1,
19 1992, the offset under this subsection (g) shall not exceed
20 50% of the amount of survivors annuity otherwise payable.
21 (h) The minimum payment to a beneficiary hereunder shall
22 be $60 per month, which shall be reduced in accordance with
23 the limitation prescribed on the combined payments to all
24 beneficiaries of a member.
25 (i) Subject to the conditions set forth in Section
26 14-120, the minimum total survivors annuity benefit payable
27 to the survivors annuity beneficiaries of a deceased member
28 or annuitant whose death occurs on or after January 1, 1984,
29 shall be 50% of the amount of retirement annuity that was or
30 would have been payable to the deceased on the date of death,
31 regardless of the age of the deceased on such date. If the
32 minimum total benefit provided by this subsection exceeds the
33 maximum otherwise imposed by this Section, the minimum total
34 benefit shall nevertheless be payable. Any increase in the
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1 total survivors annuity benefit resulting from the operation
2 of this subsection shall be divided among the survivors
3 annuity beneficiaries of the deceased in proportion to their
4 shares of the total survivors annuity benefit otherwise
5 payable under this Section.
6 (j) Any survivors annuity beneficiary whose annuity
7 terminates due to any condition specified in this Article
8 other than death shall be entitled to a refund of the excess,
9 if any, of the accumulated contributions of the member plus
10 credited interest over all payments to the member and
11 beneficiary or beneficiaries, exclusive of the single sum
12 payment of $1,000, provided no future survivors or
13 reversionary annuity benefits are payable.
14 (k) Upon the death of the last eligible recipient of a
15 survivors annuity the excess, if any, of the member's
16 accumulated contributions plus credited interest over all
17 annuity payments to the member and survivors exclusive of the
18 single sum payment of $1000, shall be paid to the named
19 beneficiary of the last eligible survivor, or if none has
20 been named, to the estate of the last eligible survivor,
21 provided no reversionary annuity is payable.
22 (l) On January 1, 1981, any survivor who was receiving a
23 survivors annuity on or before January 1, 1971, shall have
24 his survivors annuity then being paid increased by 1% for
25 each full year which has elapsed from the date the annuity
26 began. On January 1, 1982, any survivor who began receiving
27 a survivor's annuity after January 1, 1971, but before
28 January 1, 1981, shall have his survivor's annuity then being
29 paid increased by 1% for each full year that has elapsed from
30 the date the annuity began. On January 1, 1987, any survivor
31 who began receiving a survivor's annuity on or before January
32 1, 1977, shall have the monthly survivor's annuity increased
33 by $1 for each full year which has elapsed since the date the
34 survivor's annuity began.
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1 (m) Beginning January 1, 1990, every survivor's annuity
2 shall be increased (1) on each January 1 occurring on or
3 after the commencement of the annuity if the deceased member
4 died while receiving a retirement annuity, or (2) in other
5 cases, on each January 1 occurring on or after the first
6 anniversary of the commencement of the annuity, by an amount
7 equal to 3% of the current amount of the annuity, including
8 any previous increases under this Article. Such increases
9 shall apply without regard to whether the deceased member was
10 in service on or after the effective date of Public Act
11 86-1488, but shall not accrue for any period prior to January
12 1, 1990.
13 (n) On January 1, 2000, every survivor who began
14 receiving a survivor's annuity on or before January 1, 1991
15 shall have the monthly survivor's annuity increased by an
16 amount equal to 25¢ multiplied by the number of full years of
17 the deceased's creditable service multiplied by the sum of
18 (i) the number of full years that have elapsed since the
19 survivor's annuity began and (ii) the number of full years,
20 if any, during which the deceased received a retirement
21 annuity under this Article. Every survivor who begins
22 receiving a survivor's annuity after January 1, 1991 and
23 before January 1, 2000 shall have the monthly survivor's
24 annuity increased on January 1, 2000 or on the January 1
25 occurring on or next following the seventh anniversary of the
26 commencement of the survivor's annuity, whichever is later,
27 by an amount equal to 25¢ multiplied by the number of full
28 years of the deceased's creditable service multiplied by the
29 sum of (i) the number of full years that have elapsed since
30 the survivor's annuity began and (ii) the number of full
31 years, if any, during which the deceased received a
32 retirement annuity under this Article. The increase under
33 this subsection shall be included in the calculation of
34 increases granted simultaneously or thereafter under
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1 subsection (m).
2 (Source: P.A. 86-273; 86-1488; 87-794.)
3 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
4 Sec. 15-136. Retirement annuities - Amount. The
5 provisions of this Section 15-136 apply only to those
6 participants who are participating in the traditional benefit
7 package or the portable benefit package and do not apply to
8 participants who are participating in the self-managed plan.
9 (a) The amount of a participant's retirement annuity,
10 expressed in the form of a single-life annuity, shall be
11 determined by whichever of the following rules is applicable
12 and provides the largest annuity:
13 Rule 1: The retirement annuity shall be 1.67% of final
14 rate of earnings for each of the first 10 years of service,
15 1.90% for each of the next 10 years of service, 2.10% for
16 each year of service in excess of 20 but not exceeding 30,
17 and 2.30% for each year in excess of 30; or for persons who
18 retire on or after January 1, 1998, 2.2% of the final rate of
19 earnings for each year of service.
20 Rule 2: The retirement annuity shall be the sum of the
21 following, determined from amounts credited to the
22 participant in accordance with the actuarial tables and the
23 prescribed rate of interest in effect at the time the
24 retirement annuity begins:
25 (i) the normal annuity which can be provided on an
26 actuarially equivalent basis, by the accumulated normal
27 contributions as of the date the annuity begins; and
28 (ii) an annuity from employer contributions of an
29 amount which can be provided on an actuarially equivalent
30 basis from the accumulated normal contributions made by
31 the participant under Section 15-113.6 and Section
32 15-113.7 plus 1.4 times all other accumulated normal
33 contributions made by the participant.
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1 With respect to a police officer or firefighter who retires
2 on or after the effective date of this amendatory Act of
3 1998, the accumulated normal contributions taken into account
4 under clauses (i) and (ii) of this Rule 2 shall include the
5 additional normal contributions made by the police officer or
6 firefighter under Section 15-157(a).
7 Rule 3: The retirement annuity of a participant who is
8 employed at least one-half time during the period on which
9 his or her final rate of earnings is based, shall be equal to
10 the participant's years of service not to exceed 30,
11 multiplied by (1) $96 if the participant's final rate of
12 earnings is less than $3,500, (2) $108 if the final rate of
13 earnings is at least $3,500 but less than $4,500, (3) $120 if
14 the final rate of earnings is at least $4,500 but less than
15 $5,500, (4) $132 if the final rate of earnings is at least
16 $5,500 but less than $6,500, (5) $144 if the final rate of
17 earnings is at least $6,500 but less than $7,500, (6) $156 if
18 the final rate of earnings is at least $7,500 but less than
19 $8,500, (7) $168 if the final rate of earnings is at least
20 $8,500 but less than $9,500, and (8) $180 if the final rate
21 of earnings is $9,500 or more, except that the annuity for
22 those persons having made an election under Section
23 15-154(a-1) shall be calculated and payable under the
24 portable retirement benefit program pursuant to the
25 provisions of Section 15-136.4.
26 Rule 4: A participant who is at least age 50 and has 25
27 or more years of service as a police officer or firefighter,
28 and a participant who is age 55 or over and has at least 20
29 but less than 25 years of service as a police officer or
30 firefighter, shall be entitled to a retirement annuity of
31 2 1/4% of the final rate of earnings for each of the first 10
32 years of service as a police officer or firefighter, 2 1/2%
33 for each of the next 10 years of service as a police officer
34 or firefighter, and 2 3/4% for each year of service as a
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1 police officer or firefighter in excess of 20. The
2 retirement annuity for all other service shall be computed
3 under Rule 1.
4 For purposes of this Rule 4, a participant's service as a
5 firefighter shall also include the following:
6 (i) service that is performed while the person is
7 an employee under subsection (h) of Section 15-107; and
8 (ii) in the case of an individual who was a
9 participating employee employed in the fire department of
10 the University of Illinois's Champaign-Urbana campus
11 immediately prior to the elimination of that fire
12 department and who immediately after the elimination of
13 that fire department transferred to another job with the
14 University of Illinois, service performed as an employee
15 of the University of Illinois in a position other than
16 police officer or firefighter, from the date of that
17 transfer until the employee's next termination of service
18 with the University of Illinois.
19 (b) The retirement annuity provided under Rules 1 and 3
20 above shall be reduced by 1/2 of 1% for each month the
21 participant is under age 60 at the time of retirement.
22 However, this reduction shall not apply in the following
23 cases:
24 (1) For a disabled participant whose disability
25 benefits have been discontinued because he or she has
26 exhausted eligibility for disability benefits under
27 clause (6) of Section 15-152;
28 (2) For a participant who has at least the number
29 of years of service required to retire at any age under
30 subsection (a) of Section 15-135; or
31 (3) For that portion of a retirement annuity which
32 has been provided on account of service of the
33 participant during periods when he or she performed the
34 duties of a police officer or firefighter, if these
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1 duties were performed for at least 5 years immediately
2 preceding the date the retirement annuity is to begin.
3 (c) The maximum retirement annuity provided under Rules
4 1, 2, and 4 shall be the lesser of (1) the annual limit of
5 benefits as specified in Section 415 of the Internal Revenue
6 Code of 1986, as such Section may be amended from time to
7 time and as such benefit limits shall be adjusted by the
8 Commissioner of Internal Revenue, and (2) 80% of final rate
9 of earnings.
10 (d) An annuitant whose status as an employee terminates
11 after August 14, 1969 shall receive automatic increases in
12 his or her retirement annuity as follows:
13 Effective January 1 immediately following the date the
14 retirement annuity begins, the annuitant shall receive an
15 increase in his or her monthly retirement annuity of 0.125%
16 of the monthly retirement annuity provided under Rule 1, Rule
17 2, Rule 3, or Rule 4, contained in this Section, multiplied
18 by the number of full months which elapsed from the date the
19 retirement annuity payments began to January 1, 1972, plus
20 0.1667% of such annuity, multiplied by the number of full
21 months which elapsed from January 1, 1972, or the date the
22 retirement annuity payments began, whichever is later, to
23 January 1, 1978, plus 0.25% of such annuity multiplied by the
24 number of full months which elapsed from January 1, 1978, or
25 the date the retirement annuity payments began, whichever is
26 later, to the effective date of the increase.
27 The annuitant shall receive an increase in his or her
28 monthly retirement annuity on each January 1 thereafter
29 during the annuitant's life of 3% of the monthly annuity
30 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
31 this Section. The change made under this subsection by P.A.
32 81-970 is effective January 1, 1980 and applies to each
33 annuitant whose status as an employee terminates before or
34 after that date.
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1 Beginning January 1, 1990, all automatic annual increases
2 payable under this Section shall be calculated as a
3 percentage of the total annuity payable at the time of the
4 increase, including all increases previously granted under
5 this Article.
6 The change made in this subsection by P.A. 85-1008 is
7 effective January 26, 1988, and is applicable without regard
8 to whether status as an employee terminated before that date.
9 (e) If, on January 1, 1987, or the date the retirement
10 annuity payment period begins, whichever is later, the sum of
11 the retirement annuity provided under Rule 1 or Rule 2 of
12 this Section and the automatic annual increases provided
13 under the preceding subsection or Section 15-136.1, amounts
14 to less than the retirement annuity which would be provided
15 by Rule 3, the retirement annuity shall be increased as of
16 January 1, 1987, or the date the retirement annuity payment
17 period begins, whichever is later, to the amount which would
18 be provided by Rule 3 of this Section. Such increased amount
19 shall be considered as the retirement annuity in determining
20 benefits provided under other Sections of this Article. This
21 paragraph applies without regard to whether status as an
22 employee terminated before the effective date of this
23 amendatory Act of 1987, provided that the annuitant was
24 employed at least one-half time during the period on which
25 the final rate of earnings was based.
26 (f) A participant is entitled to such additional annuity
27 as may be provided on an actuarially equivalent basis, by any
28 accumulated additional contributions to his or her credit.
29 However, the additional contributions made by the participant
30 toward the automatic increases in annuity provided under this
31 Section shall not be taken into account in determining the
32 amount of such additional annuity.
33 (g) If, (1) by law, a function of a governmental unit,
34 as defined by Section 20-107 of this Code, is transferred in
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1 whole or in part to an employer, and (2) a participant
2 transfers employment from such governmental unit to such
3 employer within 6 months after the transfer of the function,
4 and (3) the sum of (A) the annuity payable to the participant
5 under Rule 1, 2, or 3 of this Section (B) all proportional
6 annuities payable to the participant by all other retirement
7 systems covered by Article 20, and (C) the initial primary
8 insurance amount to which the participant is entitled under
9 the Social Security Act, is less than the retirement annuity
10 which would have been payable if all of the participant's
11 pension credits validated under Section 20-109 had been
12 validated under this system, a supplemental annuity equal to
13 the difference in such amounts shall be payable to the
14 participant.
15 (h) On January 1, 1981, an annuitant who was receiving a
16 retirement annuity on or before January 1, 1971 shall have
17 his or her retirement annuity then being paid increased $1
18 per month for each year of creditable service. On January 1,
19 1982, an annuitant whose retirement annuity began on or
20 before January 1, 1977, shall have his or her retirement
21 annuity then being paid increased $1 per month for each year
22 of creditable service.
23 (i) On January 1, 1987, any annuitant whose retirement
24 annuity began on or before January 1, 1977, shall have the
25 monthly retirement annuity increased by an amount equal to 8¢
26 per year of creditable service times the number of years that
27 have elapsed since the annuity began.
28 (j) On January 1, 2000, every annuitant who began
29 receiving a retirement annuity on or before January 1, 1991
30 shall have the monthly retirement annuity increased by an
31 amount equal to 25¢ multiplied by the number of full years of
32 creditable service multiplied by the number of full years
33 that have elapsed since the annuity began. Every annuitant
34 who begins receiving a retirement annuity after January 1,
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1 1991 and before January 1, 1998 shall have the monthly
2 retirement annuity increased on January 1, 2000 or on the
3 January 1 occurring on or next following the seventh
4 anniversary of retirement, whichever is later, by an amount
5 equal to $1.75 multiplied by the number of full years of
6 creditable service upon which the retirement annuity is
7 based. The increase under this subsection shall be included
8 in the calculation of increases granted simultaneously or
9 thereafter under subsection (d).
10 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
11 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
12 90-766, eff. 8-14-98.)
13 (40 ILCS 5/15-136.3)
14 Sec. 15-136.3. Minimum retirement annuity.
15 (a) Beginning January 1, 1997, any person who is
16 receiving a monthly retirement annuity under this Article
17 which, after inclusion of (1) all one-time and automatic
18 annual increases to which the person is entitled, (2) any
19 supplemental annuity payable under Section 15-136.1, and (3)
20 any amount deducted under Section 15-138 or 15-140 to provide
21 a reversionary annuity, is less than the minimum monthly
22 retirement benefit amount specified in subsection (b) of this
23 Section, shall be entitled to a monthly supplemental payment
24 equal to the difference.
25 (b) For purposes of the calculation in subsection (a),
26 the minimum monthly retirement benefit amount is the sum of
27 $25 for each year of service credit, up to a maximum of 30
28 years of service, plus the amount of the increase received by
29 the annuitant under subsection (j) of Section 15-136, if any.
30 (c) This Section applies to all persons receiving a
31 retirement annuity under this Article, without regard to
32 whether or not employment terminated prior to the effective
33 date of this Section.
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1 (Source: P.A. 89-616, eff. 8-9-96.)
2 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
3 Sec. 15-145. Survivors insurance benefits; conditions
4 and amounts.
5 (a) The survivors insurance benefits provided under this
6 Section shall be payable to the eligible survivors of a
7 participant covered under the traditional benefit package
8 upon the death of (1) a participating employee with at least
9 1 1/2 years of service, (2) a participant who terminated
10 employment with at least 10 years of service, and (3) an
11 annuitant in receipt of a retirement annuity or disability
12 retirement annuity under this Article.
13 Service under the State Employees' Retirement System of
14 Illinois, the Teachers' Retirement System of the State of
15 Illinois and the Public School Teachers' Pension and
16 Retirement Fund of Chicago shall be considered in determining
17 eligibility for survivors benefits under this Section.
18 If by law, a function of a governmental unit, as defined
19 by Section 20-107, is transferred in whole or in part to an
20 employer, and an employee transfers employment from this
21 governmental unit to such employer within 6 months after the
22 transfer of this function, the service credits in the
23 governmental unit's retirement system which have been
24 validated under Section 20-109 shall be considered in
25 determining eligibility for survivors benefits under this
26 Section.
27 (b) A surviving spouse of a deceased participant, or of
28 a deceased annuitant who had a survivors insurance
29 beneficiary at the time of retirement, shall receive a
30 survivors annuity of 30% of the final rate of earnings.
31 Payments shall begin on the day following the participant's
32 or annuitant's death or the date the surviving spouse attains
33 age 50, whichever is later, and continue until the death of
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1 the surviving spouse. The annuity shall be payable to the
2 surviving spouse prior to attainment of age 50 if the
3 surviving spouse has in his or her care a deceased
4 participant's or annuitant's dependent unmarried child under
5 age 18 (under age 22 if a full-time student) who is eligible
6 for a survivors annuity. Remarriage of a surviving spouse
7 prior to attainment of age 55 shall disqualify him or her for
8 the receipt of a survivors annuity.
9 (c) Each dependent unmarried child under age 18 (under
10 age 22 if a full-time student) of a deceased participant, or
11 of a deceased annuitant who had a survivors insurance
12 beneficiary at the time of his or her retirement, shall
13 receive a survivors annuity equal to the sum of (1) 20% of
14 the final rate of earnings, and (2) 10% of the final rate of
15 earnings divided by the number of children entitled to this
16 benefit. Payments shall begin on the day following the
17 participant's or annuitant's death and continue until the
18 child marries, dies, or attains age 18 (age 22 if a full-time
19 student). If the child is in the care of a surviving spouse
20 who is eligible for survivors insurance benefits, the child's
21 benefit shall be paid to the surviving spouse.
22 Each unmarried child over age 18 of a deceased
23 participant or of a deceased annuitant who had a survivor's
24 insurance beneficiary at the time of his or her retirement,
25 and who was dependent upon the participant or annuitant by
26 reason of a physical or mental disability which began prior
27 to the date the child attained age 18 (age 22 if a full-time
28 student), shall receive a survivor's annuity equal to the sum
29 of (1) 20% of the final rate of earnings, and (2) 10% of the
30 final rate of earnings divided by the number of children
31 entitled to survivors benefits. Payments shall begin on the
32 day following the participant's or annuitant's death and
33 continue until the child marries, dies, or is no longer
34 disabled. If the child is in the care of a surviving spouse
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1 who is eligible for survivors insurance benefits, the child's
2 benefit may be paid to the surviving spouse. For the
3 purposes of this Section, disability means inability to
4 engage in any substantial gainful activity by reason of any
5 medically determinable physical or mental impairment that can
6 be expected to result in death or that has lasted or can be
7 expected to last for a continuous period of at least one
8 year.
9 (d) Each dependent parent of a deceased participant, or
10 of a deceased annuitant who had a survivors insurance
11 beneficiary at the time of his or her retirement, shall
12 receive a survivors annuity equal to the sum of (1) 20% of
13 final rate of earnings, and (2) 10% of final rate of earnings
14 divided by the number of parents who qualify for the benefit.
15 Payments shall begin when the parent reaches age 55 or the
16 day following the participant's or annuitant's death,
17 whichever is later, and continue until the parent dies.
18 Remarriage of a parent prior to attainment of age 55 shall
19 disqualify the parent for the receipt of a survivors annuity.
20 (e) In addition to the survivors annuity provided above,
21 each survivors insurance beneficiary shall, upon death of the
22 participant or annuitant, receive a lump sum payment of
23 $1,000 divided by the number of such beneficiaries.
24 (f) The changes made in this Section by Public Act
25 81-712 pertaining to survivors annuities in cases of
26 remarriage prior to age 55 shall apply to each survivors
27 insurance beneficiary who remarries after June 30, 1979,
28 regardless of the date that the participant or annuitant
29 terminated his employment or died.
30 (g) On January 1, 1981, any person who was receiving a
31 survivors annuity on or before January 1, 1971 shall have the
32 survivors annuity then being paid increased by 1% for each
33 full year which has elapsed from the date the annuity began.
34 On January 1, 1982, any survivor whose annuity began after
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1 January 1, 1971, but before January 1, 1981, shall have the
2 survivor's annuity then being paid increased by 1% for each
3 year which has elapsed from the date the survivor's annuity
4 began. On January 1, 1987, any survivor who began receiving a
5 survivor's annuity on or before January 1, 1977, shall have
6 the monthly survivor's annuity increased by $1 for each full
7 year which has elapsed since the date the survivor's annuity
8 began.
9 (g-1) On January 1, 2000, every survivor who began
10 receiving a survivor's annuity on or before January 1, 1991
11 shall have the monthly survivor's annuity increased by an
12 amount equal to 25¢ multiplied by the number of full years of
13 the deceased's creditable service multiplied by the sum of
14 (i) the number of full years that have elapsed since the
15 survivor's annuity began and (ii) the number of full years,
16 if any, during which the deceased received a retirement
17 annuity under this Article. Every survivor who begins
18 receiving a survivor's annuity after January 1, 1991 and
19 before January 1, 2000 shall have the monthly survivor's
20 annuity increased on January 1, 2000 or on the January 1
21 occurring on or next following the seventh anniversary of the
22 commencement of the survivor's annuity, whichever is later,
23 by an amount equal to 25¢ multiplied by the number of full
24 years of the deceased's creditable service multiplied by the
25 sum of (i) the number of full years that have elapsed since
26 the survivor's annuity began and (ii) the number of full
27 years, if any, during which the deceased received a
28 retirement annuity under this Article. The increase under
29 this subsection shall be included in the calculation of
30 increases granted simultaneously or thereafter under
31 subsection (j).
32 (h) If the sum of the lump sum and total monthly
33 survivor benefits payable under this Section upon the death
34 of a participant amounts to less than the sum of the death
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1 benefits payable under items (2) and (3) of Section 15-141,
2 the difference shall be paid in a lump sum to the beneficiary
3 of the participant who is living on the date that this
4 additional amount becomes payable.
5 (i) If the sum of the lump sum and total monthly
6 survivor benefits payable under this Section upon the death
7 of an annuitant receiving a retirement annuity or disability
8 retirement annuity amounts to less than the death benefit
9 payable under Section 15-142, the difference shall be paid to
10 the beneficiary of the annuitant who is living on the date
11 that this additional amount becomes payable.
12 (j) Effective on the later of (1) January 1, 1990, or
13 (2) the January 1 on or next after the date on which the
14 survivor annuity begins, if the deceased member died while
15 receiving a retirement annuity, or in all other cases the
16 January 1 nearest the first anniversary of the date the
17 survivor annuity payments begin, every survivors insurance
18 beneficiary shall receive an increase in his or her monthly
19 survivors annuity of 3%. On each January 1 after the initial
20 increase, the monthly survivors annuity shall be increased by
21 3% of the total survivors annuity provided under this
22 Article, including previous increases provided by this
23 subsection. Such increases shall apply to the survivors
24 insurance beneficiaries of each participant and annuitant,
25 whether or not the employment status of the participant or
26 annuitant terminates before the effective date of this
27 amendatory Act of 1990.
28 (k) If the Internal Revenue Code of 1986, as amended,
29 requires that the survivors benefits be payable at an age
30 earlier than that specified in this Section the benefits
31 shall begin at the earlier age, in which event, the
32 survivor's beneficiary shall be entitled only to that amount
33 which is equal to the actuarial equivalent of the benefits
34 provided by this Section.
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1 (l) The changes made to this Section and Section 15-131
2 by this amendatory Act of 1997, relating to benefits for
3 certain unmarried children who are full-time students under
4 age 22, apply without regard to whether the deceased member
5 was in service on or after the effective date of this
6 amendatory Act of 1997. These changes do not authorize the
7 repayment of a refund or a re-election of benefits, and any
8 benefit or increase in benefits resulting from these changes
9 is not payable retroactively for any period before the
10 effective date of this amendatory Act of 1997.
11 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
12 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
13 Sec. 16-133.1. Automatic annual increase in annuity.
14 (a) Each member with creditable service and retiring on
15 or after August 26, 1969 is entitled to the automatic annual
16 increases in annuity provided under this Section while
17 receiving a retirement annuity or disability retirement
18 annuity from the system.
19 An annuitant shall first be entitled to an initial
20 increase under this Section on the January 1 next following
21 the first anniversary of retirement, or January 1 of the year
22 next following attainment of age 61, whichever is later. At
23 such time, the system shall pay an initial increase
24 determined as follows: 1.5% of the originally granted
25 retirement annuity or disability retirement annuity
26 multiplied by the number of years elapsed from the later of
27 (1) attainment of age 55, or (2) the date of retirement,
28 until January 1, 1972, plus 2% of the originally granted
29 annuity multiplied by the number of years elapsed between
30 January 1, 1972 and January 1, 1978, plus 3% of the
31 originally granted annuity multiplied by the number of years
32 elapsed between January 1, 1978 and the effective date of the
33 initial increase. However, the initial annual increase
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1 calculated under this Section for the recipient of a
2 disability retirement annuity granted under Section 16-149.2
3 shall be reduced by an amount equal to the total of all
4 increases in that annuity received under Section 16-149.5
5 (but not exceeding 100% of the amount of the initial increase
6 otherwise provided under this Section).
7 Following the initial increase, automatic annual
8 increases in annuity shall be payable on each January 1
9 thereafter during the lifetime of the annuitant, determined
10 as a percentage of the originally granted retirement annuity
11 or disability retirement annuity for increases granted prior
12 to January 1, 1990, and calculated as a percentage of the
13 total amount of annuity, including previous increases under
14 this Section, for increases granted on or after January 1,
15 1990, as follows: 1.5% for periods prior to January 1, 1972,
16 2% for periods after December 31, 1971 and prior to January
17 1, 1978, and 3% for periods after December 31, 1977.
18 (b) The automatic annual increases in annuity provided
19 under this Section shall not be applicable unless a member
20 has made contributions toward such increases for a period
21 equivalent to one full year of creditable service. If a
22 member contributes for service performed after August 26,
23 1969 but the member becomes an annuitant before such
24 contributions amount to one full year's contributions based
25 on the salary at the date of retirement, he or she may pay
26 the necessary balance of the contributions to the system and
27 be eligible for the automatic annual increases in annuity
28 provided under this Section.
29 (c) Each member shall make contributions toward the cost
30 of the automatic annual increases in annuity as provided
31 under Section 16-152.
32 (d) An annuitant receiving a retirement annuity or
33 disability retirement annuity on July 1, 1969, who
34 subsequently re-enters service as a teacher is eligible for
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1 the automatic annual increases in annuity provided under this
2 Section if he or she renders at least one year of creditable
3 service following the latest re-entry.
4 (e) In addition to the automatic annual increases in
5 annuity provided under this Section, an annuitant who meets
6 the service requirements of this Section and whose retirement
7 annuity or disability retirement annuity began on or before
8 January 1, 1971 shall receive, on January 1, 1981, an
9 increase in the annuity then being paid of one dollar per
10 month for each year of creditable service. On January 1,
11 1982, an annuitant whose retirement annuity or disability
12 retirement annuity began on or before January 1, 1977 shall
13 receive an increase in the annuity then being paid of one
14 dollar per month for each year of creditable service.
15 On January 1, 1987, any annuitant whose retirement
16 annuity began on or before January 1, 1977, shall receive an
17 increase in the monthly retirement annuity equal to 8¢ per
18 year of creditable service times the number of years that
19 have elapsed since the annuity began.
20 (f) On January 1, 2000, every annuitant who began
21 receiving a retirement annuity on or before January 1, 1991
22 shall have the monthly retirement annuity increased by an
23 amount equal to 25¢ multiplied by the number of full years of
24 creditable service multiplied by the number of full years
25 that have elapsed since the annuity began. Every annuitant
26 who begins receiving a retirement annuity after January 1,
27 1991 and before July 1, 1998 shall have the monthly
28 retirement annuity increased on January 1, 2000 or on the
29 January 1 occurring on or next following the seventh
30 anniversary of retirement, whichever is later, by an amount
31 equal to $1.75 multiplied by the number of full years of
32 creditable service upon which the retirement annuity is
33 based. The increase under this subsection shall be included
34 in the calculation of increases granted simultaneously or
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1 thereafter under subsection (a).
2 (Source: P.A. 86-273; 86-1488.)
3 (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
4 Sec. 16-143.1. Increase in survivor benefits.
5 (a) Beginning January 1, 1990, each survivor's benefit
6 and each reversionary annuity payable under Section 16-136
7 shall be increased by 3% of the currently payable amount
8 thereof (1) on each January 1 occurring on or after the
9 commencement of the annuity if the deceased teacher died
10 while receiving a retirement or disability retirement
11 annuity, or (2) in other cases, on each January 1 occurring
12 on or after the first anniversary of the granting of the
13 benefit, without regard to whether the deceased teacher was
14 in service on or after the effective date of this amendatory
15 Act of 1991, but such increases shall not accrue for any
16 period prior to January 1, 1990.
17 (b) On January 1, 1981, any beneficiary who was
18 receiving a survivor's monthly benefit on or before January
19 1, 1971, shall have the benefit then being paid increased by
20 1% for each full year elapsed from the date the survivor's
21 benefit began. On January 1, 1982, any beneficiary who began
22 receiving a survivor's monthly benefit after January 1, 1971,
23 but before January 1, 1981 shall have the benefit then being
24 paid increased by 1% for each year elapsed from the date the
25 survivor's benefit began.
26 On January 1, 1987, any beneficiary whose monthly
27 survivor's benefit began on or before January 1, 1977, shall
28 have the monthly survivor's benefit increased by $1 for each
29 full year which has elapsed since the date the survivor's
30 benefit began.
31 (c) On January 1, 2000, every survivor who began
32 receiving a survivor's benefit on or before January 1, 1991
33 shall have the monthly survivor's benefit increased by an
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1 amount equal to 25¢ multiplied by the number of full years of
2 the deceased's creditable service multiplied by the sum of
3 (i) the number of full years that have elapsed since the
4 survivor's benefit began and (ii) the number of full years,
5 if any, during which the deceased received a retirement
6 annuity under this Article. Every survivor who begins
7 receiving a survivor's benefit after January 1, 1991 and
8 before January 1, 2000 shall have the monthly survivor's
9 benefit increased on January 1, 2000 or on the January 1
10 occurring on or next following the seventh anniversary of the
11 commencement of the survivor's benefit, whichever is later,
12 by an amount equal to 25¢ multiplied by the number of full
13 years of the deceased's creditable service multiplied by the
14 sum of (i) the number of full years that have elapsed since
15 the survivor's benefit began and (ii) the number of full
16 years, if any, during which the deceased received a
17 retirement annuity under this Article. The increase under
18 this subsection shall be included in the calculation of
19 increases granted simultaneously or thereafter under
20 subsection (a).
21 (Source: P.A. 86-273; 86-1488.)
22 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
23 Sec. 17-119. Automatic annual increase in pension.
24 (a) Each teacher retiring on or after September 1, 1959,
25 is entitled to the annual increase in pension, defined
26 herein, while he is receiving a pension from the Fund.
27 1. The term "base pension" means a service
28 retirement or disability retirement pension in the amount
29 fixed and payable at the date of retirement of a teacher.
30 2. The annual increase in pension shall be at the
31 rate of 1 1/2% of base pension. This increase shall first
32 occur in January of the year next following the first
33 anniversary of retirement. At such time the Fund shall
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1 pay the pro rata part of the increase for the period from
2 the first anniversary date to the date of the first
3 increase in pension. Beginning January 1, 1972, the rate
4 of annual increase in pension shall be 2% of the base
5 pension. Beginning January 1, 1979, the rate of annual
6 increase in pension shall be 3% of the base pension.
7 Beginning January 1, 1990, all automatic annual increases
8 payable under this Section shall be calculated as a
9 percentage of the total pension payable at the time of
10 the increase, including all increases previously granted
11 under this Article, notwithstanding Section 17-157.
12 3. An increase in pension shall be granted only if
13 the retired teacher is age 60 or over. If the teacher
14 attains age 60 after retirement, the increase in pension
15 shall begin in January of the year following the 61st
16 birthday. At such time the Fund also shall pay the pro
17 rata part of the increase from the 61st birthday to the
18 date of first increase in pension.
19 (b) In addition to other increases which may be provided
20 by this Section, on January 1, 1981 any teacher who was
21 receiving a retirement pension on or before January 1, 1971
22 shall have his retirement pension then being paid increased
23 $1 per month for each year of creditable service. On January
24 1, 1982, any teacher whose retirement pension began on or
25 before January 1, 1977, shall have his retirement pension
26 then being paid increased $1 per month for each year of
27 creditable service.
28 On January 1, 1987, any teacher whose retirement pension
29 began on or before January 1, 1977, shall have the monthly
30 retirement pension increased by an amount equal to 8¢ per
31 year of creditable service times the number of years that
32 have elapsed since the retirement pension began.
33 (c) On January 1, 2000, every pensioner who began
34 receiving a retirement pension on or before January 1, 1991
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1 shall have the monthly retirement pension increased by an
2 amount equal to 25¢ multiplied by the number of full years of
3 creditable service multiplied by the number of full years
4 that have elapsed since the pension began. Every pensioner
5 who begins receiving a retirement pension after January 1,
6 1991 and before July 1, 1998 shall have the monthly
7 retirement pension increased on January 1, 2000 or on the
8 January 1 occurring on or next following the seventh
9 anniversary of retirement, whichever is later, by an amount
10 equal to $1.75 multiplied by the number of full years of
11 creditable service upon which the retirement pension is
12 based. The increase under this subsection shall be included
13 in the calculation of increases granted simultaneously or
14 thereafter under subsection (a). Section 17-157 does not
15 apply to the increase provided under this subsection.
16 (Source: P.A. 90-566, eff. 1-2-98.)
17 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
18 Sec. 17-122. Survivor's and children's pensions - Amount.
19 (a) Upon the death of a teacher who has completed at
20 least 1 1/2 years of contributing service with either this
21 Fund or the State Universities Retirement System or the
22 Teachers' Retirement System of the State of Illinois,
23 provided his death occurred while (a) in active service
24 covered by the Fund or during his first 18 months of
25 continuous employment without a break in service under any
26 other participating system as defined in the Illinois
27 Retirement Systems Reciprocal Act except the State
28 Universities Retirement System and the Teachers' Retirement
29 System of the State of Illinois, (b) on a creditable leave of
30 absence, (c) on a noncreditable leave of absence of no more
31 than one year, or (d) a pension was deferred or pending
32 provided the teacher had at least 10 years of validated
33 service credit, or upon the death of a pensioner otherwise
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1 qualified for such benefit, the surviving spouse and
2 unmarried minor children of the deceased teacher under age 18
3 shall be entitled to pensions, under the conditions stated
4 hereinafter. Such survivor's and children's pensions shall
5 be based on the average of the 4 highest consecutive years of
6 salary in the last 10 years of service or on the average
7 salary for total service, if total service has been less than
8 4 years, according to the following percentages:
9 30% of average salary or 50% of the retirement
10 pension earned by the teacher, whichever is larger,
11 subject to the prescribed maximum monthly payment, for a
12 surviving spouse alone on attainment of age 50;
13 60% of average salary for a surviving spouse and
14 eligible minor children of the deceased teacher.
15 If no eligible spouse survives, or the surviving spouse
16 remarries, or the parent of the children of the deceased
17 member is otherwise ineligible for a survivor's pension, a
18 children's pension for eligible minor children under age 18
19 shall be paid to their parent or legal guardian for their
20 benefit according to the following percentages:
21 30% of average salary for one child;
22 60% of average salary for 2 or more children.
23 (b) On January 1, 1981, any survivor or child who was
24 receiving a survivor's or children's pension on or before
25 January 1, 1971, shall have his survivor's or children's
26 pension then being paid increased by 1% for each full year
27 which has elapsed from the date the pension began. On
28 January 1, 1982, any survivor or child whose pension began
29 after January 1, 1971, but before January 1, 1981, shall have
30 his survivor's or children's pension then being paid
31 increased 1% for each full year which has elapsed from the
32 date the pension began. On January 1, 1987, any survivor or
33 child whose pension began on or before January 1, 1977, shall
34 have the monthly survivor's or children's pension increased
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1 by $1 for each full year which has elapsed since the pension
2 began.
3 (c) On January 1, 2000, every survivor or child who
4 began receiving a survivor's or children's pension on or
5 before January 1, 1991 shall have the monthly pension
6 increased by an amount equal to 25¢ multiplied by the number
7 of full years of the deceased's creditable service multiplied
8 by the sum of (i) the number of full years that have elapsed
9 since the survivor's or children's pension began and (ii) the
10 number of full years, if any, during which the deceased
11 received a retirement pension under this Article. Every
12 survivor or child who begins receiving a survivor's or
13 children's pension after January 1, 1991 and before January
14 1, 2000 shall have the monthly pension increased on January
15 1, 2000 or on the January 1 occurring on or next following
16 the seventh anniversary of the commencement of the pension,
17 whichever is later, by an amount equal to 25¢ multiplied by
18 the number of full years of the deceased's creditable service
19 multiplied by the sum of (i) the number of full years that
20 have elapsed since the survivor's annuity began and (ii) the
21 number of full years, if any, during which the deceased
22 received a retirement pension under this Article. The
23 increase under this subsection shall be included in the
24 calculation of increases granted simultaneously or thereafter
25 under subsection (d). Section 17-157 does not apply to the
26 increase provided under this subsection.
27 (d) Beginning January 1, 1990, every survivor's and
28 children's pension shall be increased (1) on each January 1
29 occurring on or after the commencement of the pension if the
30 deceased teacher died while receiving a retirement pension,
31 or (2) in other cases, on each January 1 occurring on or
32 after the first anniversary of the commencement of the
33 pension, by an amount equal to 3% of the current amount of
34 the pension, including all increases previously granted under
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1 this Article, notwithstanding Section 17-157. Such increases
2 shall apply without regard to whether the deceased teacher
3 was in service on or after the effective date of this
4 amendatory Act of 1991, but shall not accrue for any period
5 prior to January 1, 1990.
6 (e) Subject to the minimum established below, the
7 maximum amount of pension for a surviving spouse alone or one
8 minor child shall be $400 per month, and the maximum combined
9 pensions for a surviving spouse and children of the deceased
10 teacher shall be $600 per month, with individual pensions
11 adjusted for all beneficiaries pro rata to conform with this
12 limitation. If proration is unnecessary the minimum
13 survivor's and children's pensions shall be $40 per month.
14 The minimum total survivor's and children's pension payable
15 upon the death of a contributor or annuitant which occurs
16 after December 31, 1986, shall be 50% of the earned
17 retirement pension of such contributor or annuitant,
18 calculated without early retirement discount in the case of
19 death in service.
20 On death after retirement, the total survivor's and
21 children's pensions shall not exceed the monthly retirement
22 or disability pension paid to the deceased retirant.
23 Survivor's and children's benefits described in this Section
24 shall apply to all service and disability pensioners eligible
25 for a pension as of July 1, 1981.
26 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
27 Section 90. The State Mandates Act is amended by adding
28 Section 8.23 as follows:
29 (30 ILCS 805/8.23 new)
30 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
31 and 8 of this Act, no reimbursement by the State is required
32 for the implementation of any mandate created by this
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1 amendatory Act of the 91st General Assembly.
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.