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91_HB0339
LRB9101310EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 14-118, 14-120, and 14-130.
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 14-118, 14-120, and 14-130 as follows:
7 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
8 Sec. 14-118. Widow's annuity - Conditions for payment.
9 A widow who exercises the right of election to receive an
10 annuity pursuant to this Section is entitled to a lump sum
11 payment of $500 plus a widow's annuity, if:
12 (1) she was married to the deceased member:
13 (i) in the case of a member who dies before
14 the effective date of this amendatory Act of the
15 91st General Assembly, for at least one 1 year prior
16 to his death or retirement, whichever first occurs,
17 and also on the day of the last termination of his
18 service as a State employee; or
19 (ii) in the case of a member who dies on or
20 after the effective date of this amendatory Act of
21 the 91st General Assembly, for at least one year
22 immediately prior to the date of death, regardless
23 of the date of withdrawal;
24 (2) the deceased member had at least 8 years of
25 creditable service if death occurred while in service, or
26 while on leave of absence from service, or while in
27 receipt of a nonoccupational disability or occupational
28 disability benefit, or after retirement;
29 (3) she was nominated exclusively to receive the
30 entire death benefit payable under this Article;
31 (4) death of the member occurred after withdrawal,
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1 and he had fulfilled the prescribed age and service
2 conditions for establishing a right in a retirement
3 annuity; and
4 (5) she elected to receive the widow's annuity
5 within 6 months from the date of death of the employee,
6 otherwise the survivors annuity if applicable, shall be
7 payable.
8 If a widow's annuity beneficiary becomes entitled to a
9 survivors annuity and a widow's annuity, she shall elect to
10 receive only one of such annuities.
11 The surviving spouse of a person who (1) died on or after
12 January 1, 1985, (2) withdrew from service prior to August 1,
13 1953, (3) was receiving an annuity from the system at the
14 time of death, and (4) meets all other requirements of this
15 Section, shall be entitled to the benefits provided under
16 this Section.
17 A widow's annuity shall be payable beginning on the first
18 of the month following the date of death of the member if the
19 widow has then attained age 50 or, if she is under age 50 on
20 such date, on the first of the month following her attainment
21 of such age; provided, that if an unmarried child or children
22 of the member under age 18 (or under age 22 if a full-time
23 student) also survive him, and the child or children are
24 under the care of the eligible widow, the widow's annuity
25 shall begin on the first of the month following the member's
26 death without regard to the age of the widow. If she is
27 under age 50 at the death of the member and she qualifies for
28 a widow's annuity, she is entitled to receive the lump sum
29 payment immediately upon application, but payment of the
30 widow's annuity shall be deferred as provided above.
31 The provision for a widow's annuity shall not be
32 construed to affect the payment of a reversionary annuity.
33 If a widow qualifies for more than one widow's annuity, or
34 for a widow's annuity and a survivors annuity, she shall
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1 elect to receive only one of such annuities.
2 This Section shall not apply to the widow of any male
3 person who first became a member after July 19, 1961.
4 (Source: P.A. 90-448, eff. 8-16-97.)
5 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
6 Sec. 14-120. Survivors annuities - Conditions for
7 payments. A survivors annuity is established for all members
8 of the System. Upon the death of any male person who was a
9 member on July 19, 1961, however, his widow may have the
10 option of receiving the widow's annuity provided in this
11 Article, in lieu of the survivors annuity.
12 (a) A survivors annuity beneficiary, as herein defined,
13 is eligible for a survivors annuity if the deceased member
14 had completed at least 1 1/2 years of contributing creditable
15 service if death occurred:
16 (1) while in service;
17 (2) while on an approved or authorized leave of
18 absence from service, not exceeding one year
19 continuously; or
20 (3) while in receipt of a non-occupational
21 disability or an occupational disability benefit.
22 (b) If death of the member occurs after withdrawal, the
23 survivors annuity beneficiary is eligible for such annuity
24 only if the member had fulfilled at the date of withdrawal
25 the prescribed service conditions for establishing a right in
26 a retirement annuity.
27 (c) Payment of the survivors annuity shall begin
28 immediately if the beneficiary is 50 years or over, or upon
29 attainment of age 50 if the beneficiary is under that age at
30 the date of the member's death. In the case of survivors of a
31 member whose death occurred between November 1, 1970 and July
32 15, 1971, the payment of the survivors annuity shall begin
33 upon October 1, 1977, if the beneficiary is then 50 years of
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1 age or older, or upon the attainment of age 50 if the
2 beneficiary is under that age on October 1, 1977.
3 If an eligible child or children, under the care of the
4 spouse also survive the member, the survivors annuity shall
5 begin immediately without regard to whether the beneficiary
6 has attained age 50.
7 Benefits under this Section shall accrue and be payable
8 for whole calendar months, beginning on the first day of the
9 month after the initiating event occurs and ending on the
10 last day of the month in which the terminating event occurs.
11 (d) A survivor annuity beneficiary means:
12 (1) A spouse of a member or annuitant if:
13 (i) in the case of a member or annuitant who
14 dies before the effective date of this amendatory
15 Act of the 91st General Assembly, the current
16 marriage with the member or annuitant was in effect
17 for at least one year at the date of the member's
18 death or at least one year at the date of his or her
19 of a spouse; (2) marriage or death, if the
20 beneficiary is of a child; or (3) remarriage before age 55 or
21 death, if the beneficiary is of a parent terminates the
22 survivors annuity payable on account of such beneficiary.
23 Remarriage of a prospective beneficiary prior to the
24 attainment of age 50 disqualifies the beneficiary for the
25 annuity expectancy hereunder. Termination due to a marriage
26 or remarriage shall be permanent regardless of any future
27 changes in marital status.
28 Any person whose survivors annuity was terminated during
29 1978 or 1979 due to remarriage at age 55 or over shall be
30 eligible to apply, not later than July 1, 1990, for a
31 resumption of that annuity, to begin on July 1, 1990.
32 (f) The term "dependent" relating to a survivors annuity
33 means a beneficiary of a survivors annuity who was receiving
34 from the member at the date of the member's death at least
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1 1/2 of the support for maintenance including board, lodging,
2 medical care and like living costs.
3 (g) If there is no eligible spouse surviving the member,
4 or if a survivors annuity beneficiary includes a spouse who
5 dies or remarries, the annuity is payable to an unmarried
6 child or children. If at the date of death of the member
7 there is no spouse or unmarried child, payments shall be made
8 to a dependent parent or parents. If no eligible survivors
9 annuity beneficiary survives the member, the non-occupational
10 death benefit is payable in the manner provided in this
11 Article.
12 (h) Survivor benefits do not affect any reversionary
13 annuity.
14 (i) If a survivors annuity beneficiary becomes entitled
15 to a widow's annuity or one or more survivors annuities or
16 both such annuities, the beneficiary shall elect to receive
17 only one of such annuities.
18 (j) Contributing creditable service under the State
19 Universities Retirement System and the Teachers' Teachers
20 Retirement System of the State of Illinois shall be
21 considered in determining whether the member has met the
22 contributing service requirements of this Section.
23 (k) In lieu of the Survivor's Annuity described in this
24 Section, the spouse of the member has the option to select
25 the Nonoccupational Death Benefit described in this Article,
26 provided the spouse is the sole survivor and the sole
27 nominated beneficiary of the member.
28 (l) The changes made to this Section and Sections
29 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
30 relating to benefits for certain unmarried children who are
31 full-time students under age 22, apply without regard to
32 whether the deceased member was in service on or after the
33 effective date of this amendatory Act of 1997. These changes
34 do not authorize the repayment of a refund or a re-election
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1 of benefits, and any benefit or increase in benefits
2 resulting from these changes is not payable retroactively for
3 any period before the effective date of this amendatory Act
4 of 1997.
5 (Source: P.A. 90-448, eff. 8-16-97; revised 2-24-98.)
6 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
7 Sec. 14-130. Refunds; rules.
8 (a) Upon withdrawal a member is entitled to receive,
9 upon written request, a refund of the member's contributions,
10 including credits granted while in receipt of disability
11 benefits, without credited interest. The board, in its
12 discretion may withhold payment of the refund of a member's
13 contributions for a period not to exceed 1 year after the
14 member has ceased to be an employee.
15 For purposes of this Section, a member will be considered
16 to have withdrawn from service if a change in, or transfer
17 of, his position results in his becoming ineligible for
18 continued membership in this System and eligible for
19 membership in another public retirement system under this
20 Act.
21 (b) A member receiving a refund forfeits and
22 relinquishes all accrued rights in the System, including all
23 accumulated creditable service. If the person again becomes
24 a member of the System and establishes at least 2 years of
25 creditable service, the member may repay the moneys
26 previously refunded. However, a former member may restore
27 credits previously forfeited by acceptance of a refund
28 without returning to service by applying in writing and
29 repaying to the System, by April 1, 1993, the amount of the
30 refund plus regular interest calculated from the date of
31 refund to the date of repayment.
32 The repayment of refunds issued prior to January 1, 1984
33 shall consist of the amount refunded plus 5% interest per
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1 annum compounded annually for the period from the date of the
2 refund to the end of the month in which repayment is made.
3 The repayment of refunds issued after January 1, 1984 shall
4 consist of the amount refunded plus regular interest for the
5 period from the date of refund to the end of the month in
6 which repayment is made. However, in the case of a refund
7 that is repaid in a lump sum between January 1, 1991 and July
8 1, 1991, repayment shall consist of the amount refunded plus
9 interest at the rate of 2.5% per annum compounded annually
10 from the date of the refund to the end of the month in which
11 repayment is made.
12 Upon repayment, the member shall receive credit for the
13 service, member contributions and regular interest that was
14 forfeited by acceptance of the refund as well as regular
15 interest for the period of non-membership. Such repayment
16 shall be made in full before retirement either in a lump sum
17 or in installment payments in accordance with such rules as
18 may be adopted by the board.
19 (b-5) The Board may adopt rules governing the repayment
20 of refunds and establishment of credits in cases involving
21 awards of back pay or reinstatement. The rules may authorize
22 repayment of a refund in installment payments and may waive
23 the payment of interest on refund amounts repaid in full
24 within a specified period.
25 (c) A member no longer in service who is unmarried and
26 on the date of retirement or who does not have an eligible
27 survivors annuity beneficiary on the at that date of
28 application therefor is entitled to a refund of contributions
29 for widow's annuity or survivors annuity purposes, or both,
30 as the case may be, without interest. A widow's annuity or
31 survivors annuity shall not be payable upon the death of a
32 person who has received this refund, unless prior to that
33 death the amount of the refund has been repaid to the System,
34 together with regular interest from the date of the refund to
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1 the date of repayment.
2 (d) Any member who has service credit in any position
3 for which an alternative retirement annuity is provided and
4 in relation to which an increase in the rate of employee
5 contribution is required, shall be entitled to a refund,
6 without interest, of that part of the member's employee
7 contribution which results from that increase in the employee
8 rate if the member does not qualify for that alternative
9 retirement annuity at the time of retirement.
10 (Source: P.A. 90-448, eff. 8-16-97.)
11 Section 99. Effective date. This Act takes effect upon
12 becoming law.