State of Illinois
91st General Assembly
Legislation

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91_HB1067

 
                                               LRB9102041EGfg

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Section 7-156 and to amend the State Mandates Act.

 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 Section 7-156 as follows:

 7        (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
 8        Sec. 7-156.  Surviving spouse annuities - amount.
 9        (a)  The amount of surviving spouse annuity shall be:
10        1.  Upon the death  of  an  employee  annuitant  or  such
11    person entitled, upon application, to a retirement annuity at
12    date  of  death, (i) an amount equal to 1/2 of the retirement
13    annuity which was or would have been payable exclusive of the
14    amount so payable which was provided from additional credits,
15    and disregarding any election made  under  paragraph  (b)  of
16    Section  7-142,  plus (ii) an annuity which could be provided
17    at the then attained age of the surviving  spouse  and  under
18    actuarial  tables  then  in  effect,  from  the excess of the
19    additional credits,  (excluding  any  such  credits  used  to
20    create  a  reversionary  annuity) used to provide the annuity
21    granted pursuant to paragraph (a) (2)  of  Section  7-142  of
22    this  article  over  the total annuity payments made pursuant
23    thereto.
24        2.  Upon the death of  a  participating  employee  on  or
25    after  attainment  of  age  55, an amount equal to 1/2 of the
26    retirement annuity which he could have had as of the date  of
27    death  had he then retired and applied for annuity, exclusive
28    of the portion thereof which could have  been  provided  from
29    additional credits, and disregarding paragraph (b) of Section
30    7-142,  plus  an  amount  equal to the annuity which could be
31    provided from the total of his accumulated additional credits
 
                            -2-                LRB9102041EGfg
 1    at date of death, on the basis of the  attained  age  of  the
 2    surviving spouse on such date.
 3        3.  Upon the death of a participating employee before age
 4    55, an amount equal to 1/2 of the retirement annuity which he
 5    could  have  had as of his attained age on the date of death,
 6    had  he  then  retired  and  applied  for  annuity,  and  the
 7    provisions of this Article that no such annuity  shall  begin
 8    until  the  employee  has  attained  at least age 55 were not
 9    applicable, exclusive of the portion thereof which could have
10    been  provided  from  additional  credits  and   disregarding
11    paragraph  (b)  of Section 7-142, plus an amount equal to the
12    annuity which  could  be  provided  from  the  total  of  his
13    accumulated additional credits at date of death, on the basis
14    of the attained age of the surviving spouse on such date.
15        If  a  surviving spouse is more than 5 years younger than
16    the deceased, that portion of the annuity which is not  based
17    on  additional  credits  shall be reduced in the ratio of the
18    value of a life annuity of $1 per year at an age of  5  years
19    less than the attained age of the deceased, at the earlier of
20    the  date  of  the  death  or the date his retirement annuity
21    begins, to the value of a life annuity of $1 per year at  the
22    attained  age of the surviving spouse on such date, according
23    to actuarial tables approved by the Board.
24        In computing the amount of a  surviving  spouse  annuity,
25    incremental  increases of retirement annuities to the date of
26    death of the employee annuitant shall be considered.
27        (b)  Each surviving spouse annuity payable on January  1,
28    1988  shall  be  increased on that date by 3% of the original
29    amount of the annuity.  Each surviving  spouse  annuity  that
30    begins  after  January  1,  1988  shall  be  increased on the
31    January 1 next occurring after  the  annuity  begins,  by  an
32    amount  equal to (i) 3% of the original amount thereof if the
33    deceased employee was receiving a retirement annuity  at  the
34    time  of  his  death;  otherwise  (ii) 0.167% of the original
 
                            -3-                LRB9102041EGfg
 1    amount thereof for each  complete  month  which  has  elapsed
 2    since the date the annuity began.
 3        On  each January 1 after the date of the initial increase
 4    under this subsection, each surviving spouse annuity shall be
 5    increased by 3% of  the  originally  granted  amount  of  the
 6    annuity.
 7        Beginning  January  1, 2000, for all surviving spouses of
 8    sheriff's law enforcement employees, the increases under this
 9    subsection (b), other than the  initial  increase,  shall  be
10    equal  to  3% of the current amount of the annuity, including
11    any previous increases under this Article, without regard  to
12    whether  the  deceased  sheriff's  law  enforcement  employee
13    terminated   service   before  the  effective  date  of  this
14    amendatory Act of the 91st General Assembly.
15    (Source: P.A. 85-941.)

16        Section 90.  The State Mandates Act is amended by  adding
17    Section 8.23 as follows:

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

23        Section  99.  Effective date.  This Act takes effect upon
24    becoming law.

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