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90_HB2552
40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119
40 ILCS 5/14-121 from Ch. 108 1/2, par. 14-121
Amends the State Employee Article of the Pension Code to
remove the Social Security offset against widow and survivor
annuities for all annuitants, beginning January 1, 1999.
Effective immediately.
LRB9007947EGfg
LRB9007947EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 14-119 and 14-121.
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 14-119 and 14-121 as follows:
7 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
8 Sec. 14-119. Amount of widow's annuity.
9 (a) The widow's annuity shall be 50% of the amount of
10 retirement annuity payable to the member on the date of death
11 while on retirement if an annuitant, or on the date of his
12 death while in service if an employee, regardless of his age
13 on such date, or on the date of withdrawal if death occurred
14 after termination of service under the conditions prescribed
15 in the preceding Section.
16 (b) If an eligible widow, regardless of age, has in her
17 care any unmarried child or children of the member under age
18 18 (under age 22 if a full-time student), the widow's annuity
19 shall be increased in the amount of 5% of the retirement
20 annuity for each such child, but the combined payments for a
21 widow and children shall not exceed 66 2/3% of the member's
22 earned retirement annuity.
23 The amount of retirement annuity from which the widow's
24 annuity is derived shall be that earned by the member without
25 regard to whether he attained age 60 prior to his withdrawal
26 under the conditions stated or prior to his death.
27 (c) Adopted children shall be considered as children of
28 the member only if the proceedings for adoption were
29 commenced at least 1 year prior to the member's death.
30 Marriage of a child shall render the child ineligible for
31 further consideration in the increase in the amount of the
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1 widow's annuity.
2 Attainment of age 18 (age 22 if a full-time student)
3 shall render a child ineligible for further consideration in
4 the increase of the widow's annuity, but the annuity to the
5 widow shall be continued thereafter, without regard to her
6 age at that time.
7 (d) Until January 1, 1999, a widow's annuity payable on
8 account of any covered employee who has shall have been a
9 covered employee for at least 18 months shall be reduced by
10 1/2 of the amount of survivors benefits to which his
11 beneficiaries are eligible under the provisions of the
12 Federal Social Security Act, except that (1) the amount of
13 any widow's annuity payable under this Article shall not be
14 reduced by reason of any increase under that Act which occurs
15 after the offset required by this subsection is first applied
16 to that annuity, and (2) for benefits granted on or after
17 January 1, 1992, the offset under this subsection (d) shall
18 not exceed 50% of the amount of widow's annuity otherwise
19 payable. Beginning January 1, 1999, the offset under this
20 subsection (d) shall no longer be applied to any widow's
21 annuity, regardless of whether the deceased employee was in
22 service on or after the effective date of this amendatory Act
23 of 1998.
24 (e) Upon the death of a recipient of a widow's annuity
25 the excess, if any, of the member's accumulated
26 contributions plus credited interest over all annuity
27 payments to the member and widow, exclusive of the $500 lump
28 sum payment, shall be paid to the named beneficiary of the
29 widow, or if none has been named, to the estate of the widow,
30 provided no reversionary annuity is payable.
31 (f) On January 1, 1981, any recipient of a widow's
32 annuity who was receiving a widow's annuity on or before
33 January 1, 1971, shall have her widow's annuity then being
34 paid increased by 1% for each full year which has elapsed
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1 from the date the widow's annuity began. On January 1, 1982,
2 any recipient of a widow's annuity who began receiving a
3 widow's annuity after January 1, 1971, but before January 1,
4 1981, shall have her widow's annuity then being paid
5 increased by 1% for each full year which has elapsed from the
6 date the widow's annuity began. On January 1, 1987, any
7 recipient of a widow's annuity who began receiving the
8 widow's annuity on or before January 1, 1977, shall have the
9 monthly widow's annuity increased by $1 for each full year
10 which has elapsed since the date the annuity began.
11 (g) Beginning January 1, 1990, every widow's annuity
12 shall be increased (1) on each January 1 occurring on or
13 after the commencement of the annuity if the deceased member
14 died while receiving a retirement annuity, or (2) in other
15 cases, on each January 1 occurring on or after the first
16 anniversary of the commencement of the annuity, by an amount
17 equal to 3% of the current amount of the annuity, including
18 any previous increases under this Article. Such increases
19 shall apply without regard to whether the deceased member was
20 in service on or after the effective date of Public Act
21 86-1488, but shall not accrue for any period prior to January
22 1, 1990.
23 (Source: P.A. 90-448, eff. 8-16-97.)
24 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
25 Sec. 14-121. Amount of survivors annuity. A survivors
26 annuity beneficiary shall be entitled upon death of the
27 member to a single sum payment of $1,000, payable pro rata
28 among all persons entitled thereto, together with a survivors
29 annuity payable at the rates and under the conditions
30 specified in this Article.
31 (a) If the survivors annuity beneficiary is a spouse,
32 the survivors annuity shall be 30% of final average
33 compensation subject to a maximum payment of $400 per month.
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1 (b) If an eligible child or children under the care of a
2 spouse also survives the member, such spouse as natural
3 guardian of the child or children shall receive, in addition
4 to the foregoing annuity, 20% of final average compensation
5 on account of each such child and 10% of final average
6 compensation divided pro rata among such children, subject to
7 a maximum payment on account of all survivor annuity
8 beneficiaries of $600 per month, or 80% of the member's final
9 average compensation, whichever is the lesser.
10 (c) If the survivors annuity beneficiary or
11 beneficiaries consists of an unmarried child or children, the
12 amount of survivors annuity shall be 20% of final average
13 compensation to each child, and 10% of final average
14 compensation divided pro rata among all such children
15 entitled to such annuity, subject to a maximum payment to all
16 children combined of $600 per month or 80% of the member's
17 final average compensation, whichever is the lesser.
18 (d) If the survivors annuity beneficiary is one or more
19 dependent parents, the annuity shall be 20% of final average
20 compensation to each parent and 10% of final average
21 compensation divided pro rata among the parents who qualify
22 for this annuity, subject to a maximum payment to both
23 dependent parents of $400 per month.
24 (e) The survivors annuity to the spouse, children or
25 dependent parents of a member whose death occurs after the
26 date of last withdrawal, or after retirement, or while in
27 service following reentry into service after retirement but
28 before completing 1 1/2 years of additional creditable
29 service, shall not exceed the lesser of 80% of the member's
30 earned retirement annuity at the date of death or the maximum
31 previously established in this Section.
32 (f) In applying the limitation prescribed on the
33 combined payments to 2 or more survivors annuity
34 beneficiaries, the annuity on account of each beneficiary
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1 shall be reduced pro rata until such time as the number of
2 beneficiaries makes the reduction no longer applicable.
3 (g) Until January 1, 1999, a survivors annuity payable
4 on account of any covered employee who has shall have been a
5 covered employee for at least 18 months at date of death or
6 last withdrawal, whichever is the later, shall be reduced by
7 1/2 of the survivors benefits to which his beneficiaries are
8 eligible under the federal Social Security Act, except that
9 (1) the survivors annuity payable under this Article shall
10 not be reduced by any increase under that Act which occurs
11 after the offset required by this subsection is first applied
12 to that annuity, (2) for benefits granted on or after January
13 1, 1992, the offset under this subsection (g) shall not
14 exceed 50% of the amount of survivors annuity otherwise
15 payable. Beginning January 1, 1999, the offset under this
16 subsection (g) shall no longer be applied to any survivors
17 annuity, regardless of whether the deceased employee was in
18 service on or after the effective date of this amendatory Act
19 of 1998.
20 (h) The minimum payment to a beneficiary hereunder shall
21 be $60 per month, which shall be reduced in accordance with
22 the limitation prescribed on the combined payments to all
23 beneficiaries of a member.
24 (i) Subject to the conditions set forth in Section
25 14-120, the minimum total survivors annuity benefit payable
26 to the survivors annuity beneficiaries of a deceased member
27 or annuitant whose death occurs on or after January 1, 1984,
28 shall be 50% of the amount of retirement annuity that was or
29 would have been payable to the deceased on the date of death,
30 regardless of the age of the deceased on such date. If the
31 minimum total benefit provided by this subsection exceeds the
32 maximum otherwise imposed by this Section, the minimum total
33 benefit shall nevertheless be payable. Any increase in the
34 total survivors annuity benefit resulting from the operation
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1 of this subsection shall be divided among the survivors
2 annuity beneficiaries of the deceased in proportion to their
3 shares of the total survivors annuity benefit otherwise
4 payable under this Section.
5 (j) Any survivors annuity beneficiary whose annuity
6 terminates due to any condition specified in this Article
7 other than death shall be entitled to a refund of the excess,
8 if any, of the accumulated contributions of the member plus
9 credited interest over all payments to the member and
10 beneficiary or beneficiaries, exclusive of the single sum
11 payment of $1,000, provided no future survivors or
12 reversionary annuity benefits are payable.
13 (k) Upon the death of the last eligible recipient of a
14 survivors annuity the excess, if any, of the member's
15 accumulated contributions plus credited interest over all
16 annuity payments to the member and survivors exclusive of the
17 single sum payment of $1000, shall be paid to the named
18 beneficiary of the last eligible survivor, or if none has
19 been named, to the estate of the last eligible survivor,
20 provided no reversionary annuity is payable.
21 (l) On January 1, 1981, any survivor who was receiving a
22 survivors annuity on or before January 1, 1971, shall have
23 his survivors annuity then being paid increased by 1% for
24 each full year which has elapsed from the date the annuity
25 began. On January 1, 1982, any survivor who began receiving
26 a survivor's annuity after January 1, 1971, but before
27 January 1, 1981, shall have his survivor's annuity then being
28 paid increased by 1% for each full year that has elapsed from
29 the date the annuity began. On January 1, 1987, any survivor
30 who began receiving a survivor's annuity on or before January
31 1, 1977, shall have the monthly survivor's annuity increased
32 by $1 for each full year which has elapsed since the date the
33 survivor's annuity began.
34 (m) Beginning January 1, 1990, every survivor's annuity
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1 shall be increased (1) on each January 1 occurring on or
2 after the commencement of the annuity if the deceased member
3 died while receiving a retirement annuity, or (2) in other
4 cases, on each January 1 occurring on or after the first
5 anniversary of the commencement of the annuity, by an amount
6 equal to 3% of the current amount of the annuity, including
7 any previous increases under this Article. Such increases
8 shall apply without regard to whether the deceased member was
9 in service on or after the effective date of Public Act
10 86-1488, but shall not accrue for any period prior to January
11 1, 1990.
12 (Source: P.A. 86-273; 86-1488; 87-794.)
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.