State of Illinois
90th General Assembly
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90_HB0913

      40 ILCS 5/15-134          from Ch. 108 1/2, par. 15-134
      40 ILCS 5/15-135          from Ch. 108 1/2, par. 15-135
      40 ILCS 5/15-136          from Ch. 108 1/2, par. 15-136
      40 ILCS 5/15-136.2        from Ch. 108 1/2, par. 15-136.2
      40 ILCS 5/15-145          from Ch. 108 1/2, par. 15-145
      40 ILCS 5/15-146          from Ch. 108 1/2, par. 15-146
      40 ILCS 5/15-153.3        from Ch. 108 1/2, par. 15-153.3
          Amends the State  Universities  Article  of  the  Pension
      Code.   Provides  a new flat rate retirement formula equal to
      2.2% of the final rate of earnings for each year of  service.
      Increases  the  maximum retirement annuity from 75% to 80% of
      the final rate of earnings.  Extends the deadline  for  early
      retirement  without  discount  to September 1, 2002.  Removes
      the compensation limits for persons employed by more than one
      employer.  Changes the service requirement for retirement  at
      any  age  from  35  to  30  years.  Allows a surviving spouse
      without dependents to  begin  receiving  survivor's  benefits
      before  attaining  age 50.  Provides for a minimum survivor's
      benefit based on  the  amount  of  service  of  the  deceased
      member.  Extends the survivor's benefit for a dependent child
      until   age   23   if  the  child  is  a  full-time  student.
      Accelerates  the  initial  annual  increase   in   disability
      benefits.  Effective immediately.
                                                     LRB9003542EGfg
                                               LRB9003542EGfg
 1        AN ACT to amend the Illinois Pension Code.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing  Sections  15-134, 15-135, 15-136, 15-136.2, 15-145,
 6    15-146, and 15-153.3 as follows:
 7        (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
 8        Sec. 15-134.  Participant.
 9        (a)  Each person shall, as  a  condition  of  employment,
10    become  a  participant  and be subject to this Article on the
11    date that he or she becomes an employee.
12        An employee who becomes a participant shall  continue  to
13    be  a  participant until he or she becomes an annuitant, dies
14    or accepts a refund of contributions, except  that  a  person
15    shall  not  be deemed a participant while participating in an
16    optional program  for  part-time  workers  established  under
17    Section  15-158.1 or participating in an optional program for
18    employees established under Section 15-158.2.
19        (b)  A  person  employed  concurrently  by  2   or   more
20    employers  is  eligible  to  participate  in  the  system  on
21    compensation received from all employers; however, his or her
22    combined  basic  compensation and combined earnings shall not
23    exceed the basic compensation and earnings which  would  have
24    been  payable  for full-time employment by the employer under
25    which the  employee's  basic  compensation  is  the  highest.
26    However,  effective  for  all  employment on or after July 1,
27    1991, where a person is employed to  render  service  to  one
28    employer during an academic or summer term and is employed by
29    another   employer   to  render  service  to  it  during  the
30    succeeding, nonoverlapping  academic  or  summer  term,  then
31    exclusively  for  the  purposes  of  this Section, the person
                            -2-                LRB9003542EGfg
 1    shall be considered to be successively employed by more  than
 2    one  employer, rather than concurrently employed by 2 or more
 3    employers.
 4    (Source: P.A. 89-430, eff. 12-15-95.)
 5        (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
 6        Sec.  15-135.   Retirement  annuities  -  Conditions.   A
 7    participant  with  30 35 or more years of service is entitled
 8    to a retirement annuity at any age.
 9        A participant with 8  or  more  years  of  service  after
10    September  1, 1941, is entitled to a retirement annuity on or
11    after attainment of age 55.
12        A participant with at least 5 but less than  8  years  of
13    service  after September 1, 1941, is entitled to a retirement
14    annuity on or after attainment of age 62.
15        A participant who has at least 25  years  of  service  in
16    this system as a police officer or firefighter is entitled to
17    a retirement annuity on or after the attainment of age 50, if
18    Rule 4 of Section 15-136 is applicable to the participant.
19        The  annuity  payment  period  shall  begin  on  the date
20    specified   by   the   participant   submitting   a   written
21    application, which date shall not be prior to termination  of
22    employment  or  more  than one year before the application is
23    received by the board; however, if the participant is not  an
24    employee  on  April 1 following the attainment of age 70 1/2,
25    the annuity payment period shall begin on that date.
26        An annuity is not payable if the  amount  provided  under
27    Section 15-136 is less than $10 per month.
28    (Source: P.A. 86-273.)
29        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
30        Sec. 15-136.  Retirement annuities - Amount.
31        (a)  The  amount  of  the  retirement  annuity  shall  be
32    determined  by whichever of the following rules is applicable
                            -3-                LRB9003542EGfg
 1    and provides the largest annuity:
 2        Rule 1:  The retirement annuity shall be 1.67%  of  final
 3    rate  of  earnings for each of the first 10 years of service,
 4    1.90% for each of the next 10 years  of  service,  2.10%  for
 5    each  year  of  service in excess of 20 but not exceeding 30,
 6    and 2.30% for each year in excess of 30; or for  persons  who
 7    retire  on or after the effective date of this amendatory Act
 8    of 1997, 2.2% of the final rate of earnings for each year  of
 9    service.
10        Rule  2:  The  retirement annuity shall be the sum of the
11    following,  determined   from   amounts   credited   to   the
12    participant  in  accordance with the actuarial tables and the
13    prescribed rate  of  interest  in  effect  at  the  time  the
14    retirement annuity begins:
15             (i)  The  normal annuity which can be provided on an
16        actuarially   actuarial   equivalent   basis,   by    the
17        accumulated  normal  contributions  as  of  the  date the
18        annuity begins; and
19             (ii)  an annuity from employer contributions  of  an
20        amount which can be provided on an actuarially equivalent
21        basis  from  the accumulated normal contributions made by
22        the  participant  under  Section  15-113.6  and   Section
23        15-113.7  plus  1.4  times  all  other accumulated normal
24        contributions made by the participant.
25        Rule 3:  The retirement annuity of a participant  who  is
26    employed  at  least  one-half time during the period on which
27    his or her final rate of earnings is based, shall be equal to
28    the  participant's  years  of  service  not  to  exceed   30,
29    multiplied  by  (1)  $96  if  the participant's final rate of
30    earnings is less than $3,500, (2) $108 if the final  rate  of
31    earnings is at least $3,500 but less than $4,500, (3) $120 if
32    the  final  rate of earnings is at least $4,500 but less than
33    $5,500, (4) $132 if the final rate of earnings  is  at  least
34    $5,500  but  less  than $6,500, (5) $144 if the final rate of
                            -4-                LRB9003542EGfg
 1    earnings is at least $6,500 but less than $7,500, (6) $156 if
 2    the final rate of earnings is at least $7,500 but  less  than
 3    $8,500,  (7)  $168  if the final rate of earnings is at least
 4    $8,500 but less than $9,500, and (8) $180 if the  final  rate
 5    of earnings is $9,500 or more.
 6        Rule  4:  A participant who is at least age 50 and has 25
 7    or more years of service as a police officer or  firefighter,
 8    and  a  participant who is age 55 or over and has at least 20
 9    but less than 25 years of service  as  a  police  officer  or
10    firefighter,  shall  be entitled to a retirement annuity of 2
11    1/4% of the final rate of earnings for each of the  first  10
12    years  of  service as a police officer or firefighter, 2 1/2%
13    for each of the next 10 years of service as a police  officer
14    or  firefighter,  and  2  3/4%  for each year of service as a
15    police  officer  or  firefighter  in  excess  of   20.    The
16    retirement  annuity  for  all other service shall be computed
17    under Rule 1.
18        (b)  The retirement annuity provided under Rules 1 and  3
19    above  shall  be  reduced  by  1/2  of  1% for each month the
20    participant is under  age  60  at  the  time  of  retirement.
21    However,  this  reduction  shall  not  apply in the following
22    cases:
23             (1)  For a  disabled  participant  whose  disability
24        benefits  have  been  discontinued  because he or she has
25        exhausted  eligibility  for  disability  benefits   under
26        clause (6) (5) of Section 15-152;
27             (2)  For  a participant who has at least 35 years of
28        service; or
29             (3)  For that portion of a retirement annuity  which
30        has   been   provided   on  account  of  service  of  the
31        participant during periods when he or she  performed  the
32        duties  of  a  police  officer  or  firefighter, if these
33        duties were performed for at least  5  years  immediately
34        preceding the date the retirement annuity is to begin.
                            -5-                LRB9003542EGfg
 1        (c)  The  maximum retirement annuity provided under Rules
 2    1, 2, and 4 shall be the lesser of (1) the  annual  limit  of
 3    benefits  as specified in Section 415 of the Internal Revenue
 4    Code of 1986, as such Section may be  amended  from  time  to
 5    time  and  as  such  benefit  limits shall be adjusted by the
 6    Commissioner of Internal Revenue, and (2) 80%  75%  of  final
 7    rate  of  earnings;  however, this limitation of 75% of final
 8    rate of earnings shall  not  apply  to  a  person  who  is  a
 9    participant  or annuitant on September 15, 1977 if it results
10    in a retirement annuity less than that which  is  payable  to
11    the  annuitant  or  which  would  have  been  payable  to the
12    participant under the provisions of this Article in effect on
13    June 30, 1977.
14        (d)  An annuitant whose status as an employee  terminates
15    after  August  14,  1969 shall receive automatic increases in
16    his or her retirement annuity as follows:
17        Effective January 1 immediately following  the  date  the
18    retirement  annuity  begins,  the  annuitant shall receive an
19    increase in his or her monthly retirement annuity  of  0.125%
20    of the monthly retirement annuity provided under Rule 1, Rule
21    2,  Rule  3, or Rule 4, contained in this Section, multiplied
22    by the number of full months which elapsed from the date  the
23    retirement  annuity  payments  began to January 1, 1972, plus
24    0.1667% of such annuity, multiplied by  the  number  of  full
25    months  which  elapsed  from January 1, 1972, or the date the
26    retirement annuity payments began,  whichever  is  later,  to
27    January 1, 1978, plus 0.25% of such annuity multiplied by the
28    number  of full months which elapsed from January 1, 1978, or
29    the date the retirement annuity payments began, whichever  is
30    later, to the effective date of the increase.
31        The  annuitant  shall  receive  an increase in his or her
32    monthly retirement  annuity  on  each  January  1  thereafter
33    during  the  annuitant's  life  of  3% of the monthly annuity
34    provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
                            -6-                LRB9003542EGfg
 1    this Section.  The change made under this subsection by  P.A.
 2    81-970  is  effective  January  1,  1980  and applies to each
 3    annuitant whose status as an employee  terminates  before  or
 4    after that date.
 5        Beginning January 1, 1990, all automatic annual increases
 6    payable   under   this  Section  shall  be  calculated  as  a
 7    percentage of the total annuity payable at the  time  of  the
 8    increase,  including  all  increases previously granted under
 9    this Article.      The change made in this subsection by P.A.
10    85-1008 is effective January  26,  1988,  and  is  applicable
11    without  regard  to  whether status as an employee terminated
12    before that date.
13        (e)  If, on January 1, 1987, or the date  the  retirement
14    annuity payment period begins, whichever is later, the sum of
15    the  retirement  annuity  provided  under Rule 1 or Rule 2 of
16    this Section and  the  automatic  annual  increases  provided
17    under  the  preceding subsection or Section 15-136.1, amounts
18    to less than the retirement annuity which would  be  provided
19    by  Rule  3,  the retirement annuity shall be increased as of
20    January 1, 1987, or the date the retirement  annuity  payment
21    period  begins, whichever is later, to the amount which would
22    be provided by Rule 3 of this Section. Such increased  amount
23    shall  be considered as the retirement annuity in determining
24    benefits provided under other Sections of this Article.  This
25    paragraph applies without regard  to  whether  status  as  an
26    employee   terminated  before  the  effective  date  of  this
27    amendatory Act of  1987,  provided  that  the  annuitant  was
28    employed  at  least  one-half time during the period on which
29    the final rate of earnings was based.
30        (f)  A participant is entitled to such additional annuity
31    as may be provided on an actuarial equivalent basis,  by  any
32    accumulated  additional  contributions  to his or her credit.
33    However, the additional contributions made by the participant
34    toward the automatic increases in annuity provided under this
                            -7-                LRB9003542EGfg
 1    Section shall not be taken into account  in  determining  the
 2    amount of such additional annuity.
 3        (g)  If,  (1)  by law, a function of a governmental unit,
 4    as defined by Section 20-107 of this Code, is transferred  in
 5    whole  or  in  part  to  an  employer,  and (2) a participant
 6    transfers employment from  such  governmental  unit  to  such
 7    employer  within 6 months after the transfer of the function,
 8    and (3) the sum of (A) the annuity payable to the participant
 9    under Rule 1, 2, or 3 of this Section  (B)  all  proportional
10    annuities  payable to the participant by all other retirement
11    systems covered by Article 20, and (C)  the  initial  primary
12    insurance  amount  to which the participant is entitled under
13    the Social Security Act, is less than the retirement  annuity
14    which  would  have  been  payable if all of the participant's
15    pension credits  validated  under  Section  20-109  had  been
16    validated  under this system, a supplemental annuity equal to
17    the difference in  such  amounts  shall  be  payable  to  the
18    participant.
19        (h)  On January 1, 1981, an annuitant who was receiving a
20    retirement  annuity  on  or before January 1, 1971 shall have
21    his or her retirement annuity then being  paid  increased  $1
22    per  month for each year of creditable service. On January 1,
23    1982, an annuitant  whose  retirement  annuity  began  on  or
24    before  January  1,  1977,  shall  have his or her retirement
25    annuity then being paid increased $1 per month for each  year
26    of creditable service.
27        (i)  On  January  1, 1987, any annuitant whose retirement
28    annuity began on or before January 1, 1977,  shall  have  the
29    monthly retirement annuity increased by an amount equal to 8¢
30    per year of creditable service times the number of years that
31    have elapsed since the annuity began.
32    (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
33        (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
                            -8-                LRB9003542EGfg
 1        Sec.  15-136.2.  Early  retirement  without  discount.  A
 2    participant whose retirement annuity  begins  after  June  1,
 3    1981  and  on or before September 1, 2002 1997 and within six
 4    months of the last day of  employment  for  which  retirement
 5    contributions  were  required,  may  elect  at  the  time  of
 6    application  to  make a one time employee contribution to the
 7    System and thereby avoid the early  retirement  reduction  in
 8    retirement  annuity specified under subsection (b) of Section
 9    15-136.  The exercise of the election shall obligate the last
10    employer to also make a one time non-refundable  contribution
11    to the System.
12        The one time employee and employer contributions shall be
13    a  percentage of the retiring participant's highest full time
14    annual salary rate  during  the  academic  years  which  were
15    considered  in determining his or her final rate of earnings,
16    or if not full time  then  the  full  time  equivalent.   The
17    employee  contribution  rate  shall  be  7% multiplied by the
18    lesser of the following 2 sums: (1) the number of years  that
19    the  participant  is  less  than age 60; or (2) the number of
20    years that the participant's creditable service is less  than
21    35  years.  The employer contribution shall be at the rate of
22    20% for each year the participant is less than age  60.   The
23    employer  shall  pay  the employer contribution from the same
24    source  of  funds  which  is  used  in  paying  earnings   to
25    employees.
26        Upon  receipt of the application and election, the System
27    shall  determine  the  one   time   employee   and   employer
28    contributions.   The  provisions of this Section shall not be
29    applicable until all the above  outlined  contributions  have
30    been   received   by  the  System;  however,  the  date  such
31    contributions  are  received  shall  not  be  considered   in
32    determining the effective date of retirement.
33        For  persons  who  apply to the Board after the effective
34    date of this amendatory Act of 1993 and before July 1,  1993,
                            -9-                LRB9003542EGfg
 1    requesting a retirement annuity to begin no earlier than July
 2    1,  1993  and no later than June 30, 1994, the employer shall
 3    pay both the employee  and  employer  contributions  required
 4    under this Section.
 5        The  number  of  employees retiring under this Section in
 6    any fiscal year may be limited at the option of the  employer
 7    to  no  less  than 15% of those eligible.  The right to elect
 8    early retirement without discount shall  be  allocated  among
 9    those  applying  on  the basis of seniority in the service of
10    the last employer.
11    (Source: P.A. 87-794; 87-1265.)
12        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
13        Sec. 15-145.  Survivors  insurance  benefits;  Conditions
14    and amounts.
15        (a)  The survivors insurance benefits provided under this
16    Section   shall   be   payable   upon  the  death  of  (1)  a
17    participating employee with at least 1 1/2 years of  service,
18    (2)  a participant who terminated employment with at least 10
19    years of service, and  (3)  an  annuitant  in  receipt  of  a
20    retirement  annuity  or  disability  retirement annuity under
21    this Article.
22        Service under the State Employees' Retirement  System  of
23    Illinois,  the  Teachers'  Retirement  System of the State of
24    Illinois  and  the  Public  School  Teacher's   Pension   and
25    Retirement Fund of Chicago shall be considered in determining
26    eligibility for survivors benefits under this Section.
27        If  by law, a function of a governmental unit, as defined
28    by Section 20-107, is transferred in whole or in part  to  an
29    employer,  and  an  employee  transfers  employment from this
30    governmental unit to such employer within 6 months after  the
31    transfer  of  this  function,  the  service  credits  in  the
32    governmental   unit's   retirement  system  which  have  been
33    validated  under  Section  20-109  shall  be  considered   in
                            -10-               LRB9003542EGfg
 1    determining  eligibility  for  survivors  benefits under this
 2    Section.
 3        (b)  A surviving spouse of a deceased participant, or  of
 4    a   deceased   annuitant   who   had  a  survivors  insurance
 5    beneficiary at  the  time  of  retirement,  shall  receive  a
 6    survivors  annuity  of  30%  of  the  final rate of earnings.
 7    Payments shall begin on the day following  the  participant's
 8    or annuitant's death or the date the surviving spouse attains
 9    age  50,  whichever is later, and continue until the death of
10    the surviving spouse. The annuity shall  be  payable  to  the
11    surviving  spouse  prior  to  attainment  of  age  50  if the
12    surviving  spouse  has  in  his  or  her  care   a   deceased
13    participant's  or annuitant's dependent unmarried child under
14    age 18 who is eligible for a survivors  annuity.   Remarriage
15    of  a  surviving  spouse  prior to attainment of age 55 shall
16    disqualify him or her for the receipt of a survivors annuity.
17        (c)  Each dependent unmarried child under age  18  (under
18    age  23 if a full-time student) of a deceased participant, or
19    of  a  deceased  annuitant  who  had  a  survivors  insurance
20    beneficiary at the time  of  his  or  her  retirement,  shall
21    receive  a  survivors  annuity equal to the sum of (1) 20% of
22    the final rate of earnings, and (2) 10% of the final rate  of
23    earnings  divided  by the number of children entitled to this
24    benefit. Payments  shall  begin  on  the  day  following  the
25    participant's  or  annuitant's  death  and continue until the
26    child marries, dies or attains age 18 (age 23 if a  full-time
27    student).  If  the  child  (under age 18) is in the care of a
28    surviving spouse who  is  eligible  for  survivors  insurance
29    benefits,  the child's benefit shall be paid to the surviving
30    spouse.
31        Each  unmarried  child  over  age  18   of   a   deceased
32    participant  or  of a deceased annuitant who had a survivor's
33    insurance beneficiary at the time of his or  her  retirement,
34    and  who  was  dependent upon the participant or annuitant by
                            -11-               LRB9003542EGfg
 1    reason of a physical or mental disability which  began  prior
 2    to  the  date  the  child  attained  age  18, shall receive a
 3    survivor's annuity equal to the sum of (1) 20% of  the  final
 4    rate  of  earnings, and (2) 10% of the final rate of earnings
 5    divided by the  number  of  children  entitled  to  survivors
 6    benefits.   Payments  shall  begin  on  the day following the
 7    participant's or annuitant's death  and  continue  until  the
 8    child  marries,  dies or is no longer disabled.  If the child
 9    is in the care of a surviving  spouse  who  is  eligible  for
10    survivors insurance benefits, the child's benefit may be paid
11    to  the  surviving spouse.  For the purposes of this Section,
12    disability means  inability  to  engage  in  any  substantial
13    gainful  activity  by  reason  of  any medically determinable
14    physical or mental impairment that can be expected to  result
15    in  death or that has lasted or can be expected to last for a
16    continuous period of at least one year.
17        (d)  Each dependent parent of a deceased participant,  or
18    of  a  deceased  annuitant  who  had  a  survivors  insurance
19    beneficiary  at  the  time  of  his  or her retirement, shall
20    receive a survivors annuity equal to the sum of  (1)  20%  of
21    final rate of earnings, and (2) 10% of final rate of earnings
22    divided by the number of parents who qualify for the benefit.
23    Payments  shall  begin  when the parent reaches age 55 or the
24    day  following  the  participant's  or   annuitant's   death,
25    whichever  is  later,  and  continue  until  the parent dies.
26    Remarriage of a parent prior to attainment of  age  55  shall
27    disqualify the parent for the receipt of a survivors annuity.
28        (e)  In addition to the survivors annuity provided above,
29    each survivors insurance beneficiary shall, upon death of the
30    participant  or  annuitant,  receive  a  lump  sum payment of
31    $1,000 divided by the number of such beneficiaries.
32        (f)  The changes made  in  this  Section  by  Public  Act
33    81-712   pertaining   to  survivors  annuities  in  cases  of
34    remarriage prior to age 55  shall  apply  to  each  survivors
                            -12-               LRB9003542EGfg
 1    insurance  beneficiary  who  remarries  after  June 30, 1979,
 2    regardless of the date  that  the  participant  or  annuitant
 3    terminated his employment or died.
 4        (g)  On  January  1, 1981, any person who was receiving a
 5    survivors annuity on or before January 1, 1971 shall have the
 6    survivors annuity then being paid increased by  1%  for  each
 7    full  year which has elapsed from the date the annuity began.
 8    On January 1, 1982, any survivor whose  annuity  began  after
 9    January  1,  1971, but before January 1, 1981, shall have the
10    survivor's annuity then being paid increased by 1%  for  each
11    year  which  has elapsed from the date the survivor's annuity
12    began. On January 1, 1987, any survivor who began receiving a
13    survivor's annuity on or before January 1, 1977,  shall  have
14    the  monthly survivor's annuity increased by $1 for each full
15    year which has elapsed since the date the survivor's  annuity
16    began.
17        (h)  If  the  sum  of  the  lump  sum  and  total monthly
18    survivor benefits payable under this Section upon  the  death
19    of  a  participant  amounts to less than the sum of the death
20    benefits payable under items (2) and (3) of  Section  15-141,
21    the difference shall be paid in a lump sum to the beneficiary
22    of  the  participant  who  is  living  on  the date that this
23    additional amount becomes payable.
24        (i)  If the  sum  of  the  lump  sum  and  total  monthly
25    survivor  benefits  payable under this Section upon the death
26    of an annuitant receiving a retirement annuity or  disability
27    retirement  annuity  amounts  to  less than the death benefit
28    payable under Section 15-142, the difference shall be paid to
29    the beneficiary of the annuitant who is living  on  the  date
30    that this additional amount becomes payable.
31        (j)  Effective  on  the  later of (1) January 1, 1990, or
32    (2) the January 1 on or next after  the  date  on  which  the
33    survivor  annuity  begins,  if the deceased member died while
34    receiving a retirement annuity, or in  all  other  cases  the
                            -13-               LRB9003542EGfg
 1    January  1  nearest  the  first  anniversary  of the date the
 2    survivor annuity payments begin,  every  survivors  insurance
 3    beneficiary  shall  receive an increase in his or her monthly
 4    survivors annuity of 3%.  On each January 1 after the initial
 5    increase, the monthly survivors annuity shall be increased by
 6    3%  of  the  total  survivors  annuity  provided  under  this
 7    Article,  including  previous  increases  provided  by   this
 8    subsection.   Such  increases  shall  apply  to the survivors
 9    insurance beneficiaries of each  participant  and  annuitant,
10    whether  or  not  the employment status of the participant or
11    annuitant  terminates  before  the  effective  date  of  this
12    amendatory Act of 1990.
13        (k)  If the Internal Revenue Code of  1986,  as  amended,
14    requires  that  the  survivors  benefits be payable at an age
15    earlier than that specified  in  this  Section  the  benefits
16    shall   begin  at  the  earlier  age,  in  which  event,  the
17    survivor's beneficiary shall be entitled only to that  amount
18    which  is  equal  to the actuarial equivalent of the benefits
19    provided by this Section.
20    (Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
21        (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
22        Sec. 15-146.   Survivors  insurance  benefits  -  Minimum
23    amounts.  (a)  The minimum total survivors annuity payable on
24    account of the death of a participant shall  be  50%  of  the
25    retirement  annuity which would have been provided under Rule
26    1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
27    attainment of the minimum age at which the penalty for  early
28    retirement  would  not  be  applicable  or  the  date  of the
29    participant's death, whichever is  later,  on  the  basis  of
30    credits earned prior to the time of death.
31        (b)  The  minimum  total  survivors  annuity  payable  on
32    account  of  the  death  of  an annuitant shall be 50% of the
33    retirement annuity which is payable under Section  15-136  at
                            -14-               LRB9003542EGfg
 1    the time of death or 50% of the disability retirement annuity
 2    payable   under  Section  15-153.2.  This  minimum  survivors
 3    annuity shall apply to each  participant  and  annuitant  who
 4    dies  after  September  16,  1979,  whether or not his or her
 5    employee status terminates before or after that date.
 6        (c)  If an annuitant has elected a reversionary  annuity,
 7    the  retirement  annuity  referred to in this Section is that
 8    which would have been payable  had  such  election  not  been
 9    filed.
10        (d)  Beginning   January  1,  1998,  any  person  who  is
11    receiving a survivors annuity under this Article which, after
12    inclusion of all one-time and automatic annual  increases  to
13    which  the  person  is  entitled,  is  less  than the minimum
14    monthly survivors annuity amount specified in subsection  (e)
15    of  this Section, shall be entitled to a monthly supplemental
16    payment equal to the difference.
17        (e)  For purposes of the calculation in  subsection  (d),
18    the  minimum  monthly  survivors annuity amount is the sum of
19    $25 for each year of the deceased member's service credit, up
20    to a maximum of 30 years of service.
21    (Source: P.A. 83-1362; 83-1440.)
22        (40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
23        Sec. 15-153.3.  Automatic increase in disability benefit.
24    Each disability benefit  payable  under  Section  15-150  and
25    calculated   under   Section  15-153  or  15-153.2  shall  be
26    increased by  3%  of  the  current  amount  of  the  benefit,
27    including prior increases under this Article, on January 1 of
28    each  year 7% of the original fixed amount of such benefit on
29    January 1, 1991 or January 1 following the fourth anniversary
30    of the granting of the benefit, whichever occurs  later.   On
31    each  January  1  following  the  7% increase, the disability
32    benefit shall be increased by 3% of the current amount of the
33    benefit, including prior increases under this Article.
                            -15-               LRB9003542EGfg
 1    (Source: P.A. 86-1488.)
 2        Section 99.  Effective date.  This Act takes effect  upon
 3    becoming law.

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