102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1063

 

Introduced 2/25/2021, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-119  from Ch. 108 1/2, par. 14-119

    Amends the State Employees Article of the Illinois Pension Code. Makes a technical change in a Section concerning widow's annuities.


LRB102 04870 RPS 14889 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1063LRB102 04870 RPS 14889 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Section 14-119 as follows:
 
6    (40 ILCS 5/14-119)  (from Ch. 108 1/2, par. 14-119)
7    Sec. 14-119. Amount of widow's annuity.
8    (a) The The widow's annuity shall be 50% of the amount of
9retirement annuity payable to the member on the date of death
10while on retirement if an annuitant, or on the date of his
11death while in service if an employee, regardless of his age on
12such date, or on the date of withdrawal if death occurred after
13termination of service under the conditions prescribed in the
14preceding Section.
15    (b) If an eligible widow, regardless of age, has in her
16care any unmarried child or children of the member under age 18
17(under age 22 if a full-time student), the widow's annuity
18shall be increased in the amount of 5% of the retirement
19annuity for each such child, but the combined payments for a
20widow and children shall not exceed 66 2/3% of the member's
21earned retirement annuity.
22    The amount of retirement annuity from which the widow's
23annuity is derived shall be that earned by the member without

 

 

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1regard to whether he attained age 60 prior to his withdrawal
2under the conditions stated or prior to his death.
3    (c) Marriage of a child shall render the child ineligible
4for further consideration in the increase in the amount of the
5widow's annuity.
6    Attainment of age 18 (age 22 if a full-time student) shall
7render a child ineligible for further consideration in the
8increase of the widow's annuity, but the annuity to the widow
9shall be continued thereafter, without regard to her age at
10that time.
11    (d) Except as otherwise provided in this subsection (d), a
12widow's annuity payable on account of any covered employee who
13has been a covered employee for at least 18 months shall be
14reduced by 1/2 of the amount of survivors benefits to which his
15beneficiaries are eligible under the provisions of the Federal
16Social Security Act, except that (1) the amount of any widow's
17annuity payable under this Article shall not be reduced by
18reason of any increase under that Act which occurs after the
19offset required by this subsection is first applied to that
20annuity, and (2) for benefits granted on or after January 1,
211992, the offset under this subsection (d) shall not exceed
2250% of the amount of widow's annuity otherwise payable.
23    Beginning July 1, 2009, the offset under this subsection
24(d) shall no longer be applied to any widow's annuity of any
25person who began receiving retirement benefits or a widow's
26annuity prior to January 1, 1998.

 

 

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1    Beginning July 1, 2009, the offset under this subsection
2(d) shall no longer be applied to the widow's annuity of any
3person who began receiving a widow's annuity on or after
4January 1, 1998 and before the effective date of this
5amendatory Act of the 95th General Assembly.
6    Any person who began receiving retirement benefits after
7January 1, 1998 and before the effective date of this
8amendatory Act of the 95th General Assembly may, during a
9one-time election period established by the System, elect to
10reduce his or her retirement annuity by 3.825% in exchange for
11not having the offset under this subsection (d) applied to his
12or her widow's annuity.
13    Any employee in service on the effective date of this
14amendatory Act of the 95th General Assembly may, at the time of
15retirement, elect to reduce his or her retirement annuity by
163.825% in exchange for not having the offset under this
17subsection (d) applied to his or her widow's annuity.
18    If a widow's annuity is payable to the widow of an employee
19based on the employee's death in service, then the offset
20under this subsection (d) shall no longer be applied to the
21widow's annuity.
22    A retiree who elects to reduce his or her retirement
23annuity under this subsection (d) in exchange for not having
24the offset applied may make an irrevocable election to
25eliminate the reduction of his or her retirement annuity if
26there is a change in marital status due to death or divorce,

 

 

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1but the retiree is not entitled to reimbursement of any
2benefit reduction prior to the election.
3    (e) Upon the death of a recipient of a widow's annuity the
4excess, if any, of the member's accumulated contributions plus
5credited interest over all annuity payments to the member and
6widow, exclusive of the $500 lump sum payment, shall be paid to
7the named beneficiary of the widow, or if none has been named,
8to the estate of the widow, provided no reversionary annuity
9is payable.
10    (f) On January 1, 1981, any recipient of a widow's annuity
11who was receiving a widow's annuity on or before January 1,
121971, shall have her widow's annuity then being paid increased
13by 1% for each full year which has elapsed from the date the
14widow's annuity began. On January 1, 1982, any recipient of a
15widow's annuity who began receiving a widow's annuity after
16January 1, 1971, but before January 1, 1981, shall have her
17widow's annuity then being paid increased by 1% for each full
18year which has elapsed from the date the widow's annuity
19began. On January 1, 1987, any recipient of a widow's annuity
20who began receiving the widow's annuity on or before January
211, 1977, shall have the monthly widow's annuity increased by
22$1 for each full year which has elapsed since the date the
23annuity began.
24    (g) Beginning January 1, 1990, every widow's annuity shall
25be increased (1) on each January 1 occurring on or after the
26commencement of the annuity if the deceased member died while

 

 

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1receiving a retirement annuity, or (2) in other cases, on each
2January 1 occurring on or after the first anniversary of the
3commencement of the annuity, by an amount equal to 3% of the
4current amount of the annuity, including any previous
5increases under this Article. Such increases shall apply
6without regard to whether the deceased member was in service
7on or after the effective date of Public Act 86-1488, but shall
8not accrue for any period prior to January 1, 1990.
9(Source: P.A. 95-279, eff. 1-1-08; 95-1043, eff. 3-26-09.)