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Public Act 92-0053
HB0478 Enrolled LRB9203724EGfg
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 1-113, 13-213, 13-302, 13-306, and 13-308
as follows:
(40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
Sec. 1-113. Investment authority of certain pension
funds, not including those established under Article 3 or 4.
The investment authority of a board of trustees of a
retirement system or pension fund established under this Code
shall, if so provided in the Article establishing such
retirement system or pension fund, embrace the following
investments:
(1) Bonds, notes and other direct obligations of the
United States Government; bonds, notes and other obligations
of any United States Government agency or instrumentality,
whether or not guaranteed; and obligations the principal and
interest of which are guaranteed unconditionally by the
United States Government or by an agency or instrumentality
thereof.
(2) Obligations of the Inter-American Development Bank,
the International Bank for Reconstruction and Development,
the African Development Bank, the International Finance
Corporation, and the Asian Development Bank.
(3) Obligations of any state, or of any political
subdivision in Illinois, or of any county or city in any
other state having a population as shown by the last federal
census of not less than 30,000 inhabitants provided that such
political subdivision is not permitted by law to become
indebted in excess of 10% of the assessed valuation of
property therein and has not defaulted for a period longer
than 30 days in the payment of interest and principal on any
of its general obligations or indebtedness during a period of
10 calendar years immediately preceding such investment.
(4) Nonconvertible bonds, debentures, notes and other
corporate obligations of any corporation created or existing
under the laws of the United States or any state, district or
territory thereof, provided there has been no default on the
obligations of the corporation or its predecessor(s) during
the 5 calendar years immediately preceding the purchase. Up
to 5% of the assets of a pension fund established under
Article 9 of this Code may be invested in nonconvertible
bonds, debentures, notes, and other corporate obligations of
corporations created or existing under the laws of a foreign
country, provided there has been no default on the
obligations of the corporation or its predecessors during the
5 calendar years immediately preceding the date of purchase.
(5) Obligations guaranteed by the Government of Canada,
or by any Province of Canada, or by any Canadian city with a
population of not less than 150,000 inhabitants, provided (a)
they are payable in United States currency and are exempt
from any Canadian withholding tax; (b) the investment in any
one issue of bonds shall not exceed 10% of the amount
outstanding; and (c) the total investments at book value in
Canadian securities shall be limited to 5% of the total
investment account of the board at book value.
(5.1) Direct obligations of the State of Israel for the
payment of money, or obligations for the payment of money
which are guaranteed as to the payment of principal and
interest by the State of Israel, or common or preferred stock
or notes issued by a bank owned or controlled in whole or in
part by the State of Israel, on the following conditions:
(a) The total investments in such obligations shall
not exceed 5% of the book value of the aggregate
investments owned by the board;
(b) The State of Israel shall not be in default in
the payment of principal or interest on any of its direct
general obligations on the date of such investment;
(c) The bonds, stock or notes, and interest thereon
shall be payable in currency of the United States;
(d) The bonds shall (1) contain an option for the
redemption thereof after 90 days from date of purchase or
(2) either become due 5 years from the date of their
purchase or be subject to redemption 120 days after the
date of notice for redemption;
(e) The investment in these obligations has been
approved in writing by investment counsel employed by the
board, which counsel shall be a national or state bank or
trust company authorized to do a trust business in the
State of Illinois, or an investment advisor qualified
under the Federal Investment Advisors Act of 1940 and
registered under the Illinois Securities Act of 1953;
(f) The fund or system making the investment shall
have at least $5,000,000 of net present assets.
(6) Notes secured by mortgages under Sections 203, 207,
220 and 221 of the National Housing Act which are insured by
the Federal Housing Commissioner, or his successor assigns,
or debentures issued by such Commissioner, which are
guaranteed as to principal and interest by the Federal
Housing Administration, or agency of the United States
Government, provided the aggregate investment shall not
exceed 20% of the total investment account of the board at
book value, and provided further that the investment in such
notes under Sections 220 and 221 shall in no event exceed
one-half of the maximum investment in notes under this
paragraph.
(7) Loans to veterans guaranteed in whole or part by the
United States Government pursuant to Title III of the Act of
Congress known as the "Servicemen's Readjustment Act of
1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
supplemented from time to time, provided such guaranteed
loans are liens upon real estate.
(8) Common and preferred stocks and convertible debt
securities authorized for investment of trust funds under the
laws of the State of Illinois, provided:
(a) the common stocks, except as provided in
subparagraph (g), are listed on a national securities
exchange or board of trade, as defined in the federal
Securities Exchange Act of 1934, or quoted in the
National Association of Securities Dealers Automated
Quotation System (NASDAQ);
(b) the securities are of a corporation created or
existing under the laws of the United States or any
state, district or territory thereof, except that up to
5% of the assets of a pension fund established under
Article 9 of this Code may be invested in securities
issued by corporations created or existing under the laws
of a foreign country, if those securities are otherwise
in conformance with this paragraph (8);
(c) the corporation is not in arrears on payment of
dividends on its preferred stock;
(d) the total book value of all stocks and
convertible debt owned by any pension fund or retirement
system shall not exceed 40% of the aggregate book value
of all investments of such pension fund or retirement
system, except for a pension fund or retirement system
governed by Article 9, 13, or 17, where the total of all
stocks and convertible debt shall not exceed 50% of the
aggregate book value of all fund investments, and except
for a pension fund or retirement system governed by
Article 13, where the total market value of all stocks
and convertible debt shall not exceed 65% of the
aggregate market value of all fund investments;
(e) the book value of stock and convertible debt
investments in any one corporation shall not exceed 5% of
the total investment account at book value in which such
securities are held, determined as of the date of the
investment, and the investments in the stock of any one
corporation shall not exceed 5% of the total outstanding
stock of such corporation, and the investments in the
convertible debt of any one corporation shall not exceed
5% of the total amount of such debt that may be
outstanding;
(f) the straight preferred stocks or convertible
preferred stocks and convertible debt securities are
issued or guaranteed by a corporation whose common stock
qualifies for investment by the board; and
(g) that any common stocks not listed or quoted as
provided in subdivision 8(a) above be limited to the
following types of institutions: (a) any bank which is a
member of the Federal Deposit Insurance Corporation
having capital funds represented by capital stock,
surplus and undivided profits of at least $20,000,000;
(b) any life insurance company having capital funds
represented by capital stock, special surplus funds and
unassigned surplus totalling at least $50,000,000; and
(c) any fire or casualty insurance company, or a
combination thereof, having capital funds represented by
capital stock, net surplus and voluntary reserves of at
least $50,000,000.
(9) Withdrawable accounts of State chartered and federal
chartered savings and loan associations insured by the
Federal Savings and Loan Insurance Corporation; deposits or
certificates of deposit in State and national banks insured
by the Federal Deposit Insurance Corporation; and share
accounts or share certificate accounts in a State or federal
credit union, the accounts of which are insured as required
by the Illinois Credit Union Act or the Federal Credit Union
Act, as applicable.
No bank or savings and loan association shall receive
investment funds as permitted by this subsection (9), unless
it has complied with the requirements established pursuant to
Section 6 of the Public Funds Investment Act.
(10) Trading, purchase or sale of listed options on
underlying securities owned by the board.
(11) Contracts and agreements supplemental thereto
providing for investments in the general account of a life
insurance company authorized to do business in Illinois.
(12) Conventional mortgage pass-through securities which
are evidenced by interests in Illinois owner-occupied
residential mortgages, having not less than an "A" rating
from at least one national securities rating service. Such
mortgages may have loan-to-value ratios up to 95%, provided
that any amount over 80% is insured by private mortgage
insurance. The pool of such mortgages shall be insured by
mortgage guaranty or equivalent insurance, in accordance with
industry standards.
(13) Pooled or commingled funds managed by a national or
State bank which is authorized to do a trust business in the
State of Illinois, shares of registered investment companies
as defined in the federal Investment Company Act of 1940
which are registered under that Act, and separate accounts of
a life insurance company authorized to do business in
Illinois, where such pooled or commingled funds, shares, or
separate accounts are comprised of common or preferred
stocks, bonds, or money market instruments.
(14) Pooled or commingled funds managed by a national or
state bank which is authorized to do a trust business in the
State of Illinois, separate accounts managed by a life
insurance company authorized to do business in Illinois, and
commingled group trusts managed by an investment adviser
registered under the federal Investment Advisors Act of 1940
(15 U.S.C. 80b-1 et seq.) and under the Illinois Securities
Law of 1953, where such pooled or commingled funds, separate
accounts or commingled group trusts are comprised of real
estate or loans upon real estate secured by first or second
mortgages. The total investment in such pooled or commingled
funds, commingled group trusts and separate accounts shall
not exceed 10% of the aggregate book value of all investments
owned by the fund.
(15) Investment companies which (a) are registered as
such under the Investment Company Act of 1940, (b) are
diversified, open-end management investment companies and (c)
invest only in money market instruments.
(16) Up to 10% of the assets of the fund may be invested
in investments not included in paragraphs (1) through (15) of
this Section, provided that such investments comply with the
requirements and restrictions set forth in Sections 1-109,
1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
The board shall have the authority to enter into such
agreements and to execute such documents as it determines to
be necessary to complete any investment transaction.
Any limitations herein set forth shall be applicable only
at the time of purchase and shall not require the liquidation
of any investment at any time.
All investments shall be clearly held and accounted for
to indicate ownership by such board. Such board may direct
the registration of securities in its own name or in the name
of a nominee created for the express purpose of registration
of securities by a national or state bank or trust company
authorized to conduct a trust business in the State of
Illinois.
Investments shall be carried at cost or at a value
determined in accordance with generally accepted accounting
principles and accounting procedures approved by such board.
(Source: P.A. 90-12, eff. 6-13-97; 90-507, eff. 8-22-97;
90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
(40 ILCS 5/13-213) (from Ch. 108 1/2, par. 13-213)
Sec. 13-213. "Contributions": Any moneys paid or payable
to into the Fund by the District or by any employee, or any
salary deduction hereunder.
(Source: P.A. 87-794.)
(40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
Sec. 13-302. Computation of retirement annuity.
(a) Computation of annuity. An employee who withdraws
from service on or after July 1, 1989 and who has met the age
and service requirements and other conditions for eligibility
set forth in Section 13-301 of this Article is entitled to
receive a retirement annuity for life equal to 2.2% of
average final salary for each of the first 20 years of
service, and 2.4% of average final salary for each year of
service in excess of 20. The retirement annuity shall not
exceed 80% of average final salary.
(b) Early retirement discount. If an employee retires
prior to attainment of age 60 with less than 30 years of
service, the annuity computed above shall be reduced by 1/2
of 1% for each full month between the date the annuity begins
and attainment of age 60, or each full month by which the
employee's service is less than 30 years, whichever is less.
However, where the employee first enters service after June
13, 1997 the effective date of this amendatory Act of 1997
and does not have at least 10 years of service exclusive of
credit under Article 20, the annuity computed above shall be
reduced by 1/2 of 1% for each full month between the date the
annuity begins and attainment of age 60.
(c) (Blank). Early retirement without discount. An
employee who has attained age 50 and retires after December
31, 1987 and before June 30, 1997, and who retires within 6
months of the last day for which retirement contributions
were required, may elect at the time of application to make a
one-time employee contribution to the Fund and thereby avoid
the early retirement reduction specified in subsection (b).
The exercise of the election shall also obligate the employer
to make a one-time nonrefundable contribution to the Fund.
The one-time employee and employer contributions shall be
a percentage of the retiring employee's last full-time annual
salary, calculated as the total amount paid during the last
260 work days immediately prior to the date of withdrawal, or
if not full-time then the full time equivalent, and based on
the employee's age and service at retirement. The employee
contribution rate shall be 7% multiplied by the lesser of the
following 2 numbers: (1) the number of years, or portion
thereof, that the employee is less than age 60; or (2) the
number of years, or portion thereof, that the employee's
service is less than 30 years. The employer contribution
shall be at the rate of 20% for each year, or portion
thereof, that the participant is less than age 60.
Upon receipt of the application, the Board shall
determine the corresponding employee and employer
contributions. The annuity shall not be payable under this
subsection until both the required contributions have been
received by the Fund. However, the date the contributions
are received shall not be considered in determining the
effective date of retirement.
The number of employees who may retire under this Section
in any year may be limited at the option of the District to a
specified percentage of those eligible, not lower than 30%,
with the right to participate to be allocated among those
applying on the basis of seniority in the service of the
employer.
An employee who has terminated employment and
subsequently re-enters service shall not be entitled to early
retirement without discount under this subsection unless the
employee continues in service for at least 4 years after
re-entry.
(c-1) Early retirement without discount; retirement
after June 29, 1997. An employee who (i) has attained age 55
(age 50 if the employee first entered service before June 13,
1997) the effective date of this amendatory Act of 1997),
(ii) has at least 10 years of service exclusive of credit
under Article 20, (iii) retires after June 29, 1997 and
before January 1, 2003, and (iv) retires within 6 months of
the last day for which retirement contributions were
required, may elect at the time of application to make a
one-time employee contribution to the Fund and thereby avoid
the early retirement reduction specified in subsection (b).
The exercise of the election shall also obligate the employer
to make a one-time nonrefundable contribution to the Fund.
The one-time employee and employer contributions shall be
a percentage of the retiring employee's highest full-time
annual salary, calculated as the total amount of salary
included in the highest 26 consecutive pay periods as used in
the average final salary calculation, and based on the
employee's age and service at retirement. The employee rate
shall be 7% multiplied by the lesser of the following 2
numbers: (1) the number of years, or portion thereof, that
the employee is less than age 60; or (2) the number of years,
or portion thereof, that the employee's service is less than
30 years. The employer contribution shall be at the rate of
20% for each year, or portion thereof, that the participant
is less than age 60.
Upon receipt of the application, the Board shall
determine the corresponding employee and employer
contributions. The annuity shall not be payable under this
subsection until both the required contributions have been
received by the Fund. However, the date the contributions
are received shall not be considered in determining the
effective date of retirement.
The number of employees who may retire under this Section
in any year may be limited at the option of the District to a
specified percentage of those eligible, not lower than 30%,
with the right to participate to be allocated among those
applying on the basis of seniority in the service of the
employer.
An employee who has terminated employment and
subsequently re-enters service shall not be entitled to early
retirement without discount under this subsection unless the
employee continues in service for at least 4 years after
re-entry.
(d) Annual increase. Except for employees retiring and
receiving a term annuity, an employee who retires on or after
July 1, 1985 but before the effective date of this amendatory
Act of the 92nd General Assembly shall, upon the first
payment date following the first anniversary of the date of
retirement, have the monthly annuity increased by 3% of the
amount of the monthly annuity fixed at the date of
retirement. Except for employees retiring and receiving a
term annuity, an employee who retires on or after the
effective date of this amendatory Act of the 92nd General
Assembly shall, on the first day of the month in which the
first anniversary of the date of retirement occurs, have the
monthly annuity increased by 3% of the amount of the monthly
annuity fixed at the date of retirement. The monthly annuity
shall be increased by an additional 3% on the same date each
year thereafter. Beginning January 1, 1993, all annual
increases payable under this subsection (or any predecessor
provision, regardless of the date of retirement) shall be
calculated at the rate of 3% of the monthly annuity payable
at the time of the increase, including any increases
previously granted under this Article.
Any employee who (i) retired before July 1, 1985 with at
least 10 years of creditable service, (ii) is receiving a
retirement annuity under this Article, other than a term
annuity, and (iii) has not received any annual increase under
this subsection, shall begin receiving the annual increases
provided under this subsection (d) beginning on the next
annuity payment date following the effective date of this
amendatory Act of 1997.
(e) Minimum retirement annuity. Beginning January 1,
1993, the minimum monthly retirement annuity shall be $500
for any annuitant having at least 10 years of service under
this Article, other than a term annuitant or an annuitant who
began receiving the annuity before attaining age 60. Any
such annuitant who is receiving a monthly annuity of less
than $500 shall have the annuity increased to $500 on that
date.
Beginning January 1, 1993, the minimum monthly retirement
annuity shall be $250 for any annuitant (other than a term or
reciprocal annuitant or an annuitant under subsection (d) of
Section 13-301) having less than 10 years of service under
this Article, and for any annuitant (other than a term
annuitant) having at least 10 years of service under this
Article who began receiving the annuity before attaining age
60. Any such annuitant who is receiving a monthly annuity of
less than $250 shall have the annuity increased to $250 on
that date.
Beginning on the first day of the month following the
month in which this amendatory Act of the 92nd General
Assembly takes effect (and without regard to whether the
annuitant was in service on or after that effective date),
the minimum monthly retirement annuity for any annuitant
having at least 10 years of service, other than an annuitant
whose annuity is subject to an early retirement discount,
shall be $500 plus $25 for each year of service in excess of
10, not to exceed $750 for an annuitant with 20 or more years
of service. In the case of a reciprocal annuity, this
minimum shall apply only if the annuitant has at least 10
years of service under this Article, and the amount of the
minimum annuity shall be reduced by the sum of all the
reciprocal annuities payable to the annuitant by other
participating systems under Article 20 of this Code.
Notwithstanding any other provision of this subsection,
beginning on the first annuity payment date following the
effective date of this amendatory Act of the 92nd General
Assembly, an employee who retired before August 23, 1989 with
at least 10 years of service under this Article but before
attaining age 60 (regardless of whether the retirement
annuity was subject to an early retirement discount) shall be
entitled to the same minimum monthly retirement annuity under
this subsection as an employee who retired with at least 10
years of service under this Article and after attaining age
60.
(Source: P.A. 90-12, eff. 6-13-97.)
(40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
Sec. 13-306. Computation of surviving spouse's annuity.
(a) Computation of the annuity. The surviving spouse's
annuity shall be equal to 60% of the retirement annuity
earned and accrued to the credit of the deceased employee,
whether death occurs while in service or after withdrawal,
plus 1% for each year of total service of the employee to a
maximum of 85%; provided, however, that if the employee's
death arises out of and in the course of the employee's
service to the employer and is compensable under either the
Illinois Workers' Compensation Act or Illinois Workers'
Occupational Diseases Act, the surviving spouse's annuity is
payable regardless of the employee's length of service and
shall be not less than 50% of the employee's salary at the
date of death.
For any death in service the early retirement discount
required under Section 13-302(b) shall not be applied in
computing the retirement annuity upon which is based the
surviving spouse's annuity.
(b) Reciprocal service. For any employee or annuitant
who retires on or after July 1, 1985 and whose death occurs
after January 1, 1991, having at least 15 years of service
with the employer under this Article, and who was eligible at
the time of death or elected at the time of retirement to
have his or her retirement annuity calculated as provided in
Section 20-131 of this Code, the surviving spouse benefit
shall be calculated as of the date of the employee's death as
indicated in subsection (a) as a percentage of the employee's
total benefit as if all service had been with the employer.
That benefit shall then be reduced by the amounts payable by
each of the reciprocal funds as of the date of death so that
the total surviving spouse benefit at that date will be equal
to the benefit which would have been payable had all service
been with the employer under this Article.
(c) Discount for age differential. The annuity for a
surviving spouse shall be discounted by 0.25% for each full
month that the spouse is younger than the employee as of the
date of withdrawal from service or death in service to a
maximum discount of 60% of the surviving spouse annuity as
calculated under subsections (a), (b), and (e) of this
Section. The discount shall be reduced by 10% for each full
year the marriage has been in continuous effect as of the
date of withdrawal or death in service. There shall be no
discount if the marriage has been in continuous effect for 10
full years or more at the time of withdrawal or death in
service.
(d) Annual increase. On the first day of each calendar
month in which there occurs an anniversary of the employee's
date of retirement or date of death, whichever occurred
first, the surviving spouse's annuity, other than a term
annuity under Section 13-307, shall be increased by an amount
equal to 3% of the amount of the annuity. Beginning January
1, 1993, all annual increases payable under this subsection
(or any predecessor provision of this Article) shall be
calculated at the rate of 3% of the monthly annuity payable
at the time of the increase, including any increases
previously granted under this Article.
Beginning January 1, 1993, surviving spouse annuitants
whose deceased spouse died, retired or withdrew from service
before August 23, 1989 with at least 10 years of service
under this Article shall be eligible for the annual increases
provided under this subsection.
(e) Minimum surviving spouse's annuity.
(1) Beginning January 1, 1993, the minimum monthly
surviving spouse's annuity shall be $500 for any annuitant
whose deceased spouse had at least 10 years of service under
this Article, other than a surviving spouse who is a term
annuitant or whose deceased spouse began receiving a
retirement annuity under this Article before attainment of
age 60. Any such surviving spouse annuitant who is receiving
a monthly annuity of less than $500 shall have the annuity
increased to $500 on that date.
Beginning January 1, 1993, the minimum monthly surviving
spouse's annuity shall be $250 for any annuitant (other than
a term or reciprocal annuitant or an annuitant survivor under
subsection (d) of Section 13-301) whose deceased spouse had
less than 10 years of service under this Article, and for any
annuitant (other than a term annuitant) whose deceased spouse
had at least 10 years of service under this Article and began
receiving a retirement annuity under this Article before
attainment of age 60. Any such surviving spouse annuitant
who is receiving a monthly annuity of less than $250 shall
have the annuity increased to $250 on that date.
(2) Beginning on the first day of the month following
the month in which this amendatory Act of the 92nd General
Assembly takes effect (and without regard to whether the
deceased spouse was in service on or after that effective
date), the minimum monthly surviving spouse's annuity for any
annuitant whose deceased spouse had at least 10 years of
service shall be the greater of the following:
(A) An amount equal to $500, plus $25 for each year
of the deceased spouse's service in excess of 10, not to
exceed $750 for an annuitant whose deceased spouse had 20
or more years of service. This subdivision (A) is not
applicable if the deceased spouse received a retirement
annuity that was subject to an early retirement discount.
(B) An amount equal to (i) 50% of the retirement
annuity earned and accrued to the credit of the deceased
spouse at the time of death, plus (ii) the amount of any
annual increases applicable to the surviving spouse's
annuity (including the amount of any reversionary
annuity) under subsection (d) before the effective date
of this amendatory Act of the 92nd General Assembly. In
any case in which a refund of excess contributions for
the surviving spouse annuity has been paid by the Fund
and the surviving spouse annuity is increased due to the
application of this subdivision (B), the amount of that
refund shall be recovered by the Fund as an offset
against the amount of the increase in annuity arising
from the application of this subdivision (B).
In the case of a reciprocal annuity, the minimum annuity
calculated under this subdivision (e)(2) shall apply only if
the deceased spouse of the annuitant had at least 10 years of
service under this Article, and the amount of the minimum
annuity shall be reduced by the sum of all the reciprocal
annuities payable to the annuitant by other participating
systems under Article 20 of this Code.
The minimum annuity calculated under this subdivision
(e)(2) is in addition to the amount of any reversionary
annuity that may be payable.
(3) Beginning on the first day of the month following
the month in which this amendatory Act of the 92nd General
Assembly takes effect (and without regard to whether the
deceased spouse was in service on or after that effective
date), any surviving spouse who is receiving a term annuity
under Section 13-307 or any predecessor provision of this
Article may have that term annuity recalculated and converted
to a minimum surviving spouse annuity under this subsection
(e).
(4) Notwithstanding any other provision of this
subsection, beginning on the first annuity payment date
following the effective date of this amendatory Act of the
92nd General Assembly, an annuitant whose deceased spouse
retired before August 23, 1989 with at least 10 years of
service under this Article but before attaining age 60
(regardless of whether the retirement annuity was subject to
an early retirement discount) shall be entitled to the same
minimum monthly surviving spouse's annuity under this
subsection as an annuitant whose deceased spouse retired with
at least 10 years of service under this Article and after
attaining age 60.
(5) The minimum annuity provided under this subsection
(e) shall be subject to the age discount provided under
subsection (c) of this Section.
(Source: P.A. 90-12, eff. 6-13-97.)
(40 ILCS 5/13-308) (from Ch. 108 1/2, par. 13-308)
Sec. 13-308. Child's annuity.
(a) Eligibility. A child's annuity shall be provided
for each unmarried child under the age of 18 years whose
employee parent dies while in service, or whose deceased
parent is an annuitant or former employee with at least 10
years of creditable service who did not take a refund of
employee contributions.
For purposes of this Section, "employee" includes a
former employee, and "child" means the issue of an employee,
or a child adopted by an employee if the proceedings for
adoption were instituted at least one year prior to the
employee's death.
Payments shall cease when a child attains the age of 18
years or marries, whichever first occurs. The annuity shall
not be payable unless the employee has been employed as an
employee for at least 36 months from the date of the
employee's original entry into service (at least 24 months in
the case of an employee who first entered service before the
effective date of this amendatory Act of 1997) and at least
12 months from the date of the employee's latest re-entry
into service; provided, however, that if death arises out of
and in the course of service to the employer and is
compensable under either the Illinois Workers' Compensation
Act or Illinois Workers' Occupational Diseases Act, the
annuity is payable regardless of the employee's length of
service.
(b) Amount. A child's annuity shall be $500 $250 per
month for one child and $350 per month for each additional
child, up to a maximum of $2,500 per month for all children
of the employee, as provided in this Section, if a parent of
the child is living. The child's annuity shall be $1,000 per
month for one child, and $500 $350 per month for each
additional child, up to a maximum of $2,500 for all children
of the employee, when neither parent is alive. The total
amount payable to all children of the employee shall be
divided equally among those children. Any child's annuity
which commenced prior to the effective date of this
amendatory Act of the 92nd General Assembly 1991 shall be
increased upon the first day of the month following the month
in which that the effective date occurs, to the amount set
forth herein.
(c) Payment. A child's annuity shall be paid to the
child's parent or other person who shall be providing for the
child without requiring formal letters of guardianship,
unless another person shall be appointed by a court of law as
guardian.
(Source: P.A. 90-12, eff. 6-13-97.)
Section 90. The State Mandates Act is amended by adding
Section 8.25 as follows:
(30 ILCS 805/8.25 new)
Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 92nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 18, 2001.
Approved July 12, 2001.
Effective July 12, 2001.
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