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92_HB2370enr HB2370 Enrolled LRB9205288EGfg 1 AN ACT in relation to public employee benefits. 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 15-135, 15-145, 15-146, and 15-153.3 and 6 adding Section 15-167.3 as follows: 7 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135) 8 Sec. 15-135. Retirement annuities - Conditions. 9 (a) A participant who retires in one of the following 10 specified years with the specified amount of service is 11 entitled to a retirement annuity at any age under the 12 retirement program applicable to the participant: 13 35 years if retirement is in 1997 or before; 14 34 years if retirement is in 1998; 15 33 years if retirement is in 1999; 16 32 years if retirement is in 2000; 17 31 years if retirement is in 2001; 18 30 years if retirement is in 2002 or later.;1935 years if retirement is in 2003 or later.20 A participant with 8 or more years of service after 21 September 1, 1941, is entitled to a retirement annuity on or 22 after attainment of age 55. 23 A participant with at least 5 but less than 8 years of 24 service after September 1, 1941, is entitled to a retirement 25 annuity on or after attainment of age 62. 26 A participant who has at least 25 years of service in 27 this system as a police officer or firefighter is entitled to 28 a retirement annuity on or after the attainment of age 50, if 29 Rule 4 of Section 15-136 is applicable to the participant. 30 (b) The annuity payment period shall begin on the date 31 specified by the participant submitting a written HB2370 Enrolled -2- LRB9205288EGfg 1 application, which date shall not be prior to termination of 2 employment or more than one year before the application is 3 received by the board; however, if the participant is not an 4 employee of an employer participating in this System or in a 5 participating system as defined in Article 20 of this Code on 6 April 1 of the calendar year next following the calendar year 7 in which the participant attains age 70 1/2, the annuity 8 payment period shall begin on that date regardless of whether 9 an application has been filed. 10 (c) An annuity is not payable if the amount provided 11 under Section 15-136 is less than $10 per month. 12 (Source: P.A. 90-65, eff. 7-7-97; 90-766, eff. 8-14-98.) 13 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145) 14 Sec. 15-145. Survivors insurance benefits; conditions 15 and amounts. 16 (a) The survivors insurance benefits provided under this 17 Section shall be payable to the eligible survivors of a 18 participant covered under the traditional benefit package 19 upon the death of (1) a participating employee with at least 20 1 1/2 years of service, (2) a participant who terminated 21 employment with at least 10 years of service, and (3) an 22 annuitant in receipt of a retirement annuity or disability 23 retirement annuity under this Article. 24 Service under the State Employees' Retirement System of 25 Illinois, the Teachers' Retirement System of the State of 26 Illinois and the Public School Teachers' Pension and 27 Retirement Fund of Chicago shall be considered in determining 28 eligibility for survivors benefits under this Section. 29 If by law, a function of a governmental unit, as defined 30 by Section 20-107, is transferred in whole or in part to an 31 employer, and an employee transfers employment from this 32 governmental unit to such employer within 6 months after the 33 transfer of this function, the service credits in the HB2370 Enrolled -3- LRB9205288EGfg 1 governmental unit's retirement system which have been 2 validated under Section 20-109 shall be considered in 3 determining eligibility for survivors benefits under this 4 Section. 5 (b) A surviving spouse of a deceased participant, or of 6 a deceased annuitant who did not take a refund or additional 7 annuity consisting of accumulated survivors insurance 8 contributions, shall receive a survivors annuity of 30% of 9 the final rate of earnings. Payments shall begin on the day 10 following the participant's or annuitant's death or the date 11 the surviving spouse attains age 50, whichever is later, and 12 continue until the death of the surviving spouse. The 13 annuity shall be payable to the surviving spouse prior to 14 attainment of age 50 if the surviving spouse has in his or 15 her care a deceased participant's or annuitant's dependent 16 unmarried child under age 18 (under age 22 if a full-time 17 student) who is eligible for a survivors annuity. 18 Remarriage of a surviving spouse prior to attainment of 19 age 55 that occurs before the effective date of this 20 amendatory Act of the 91st General Assembly shall disqualify 21 him or her for the receipt of a survivors annuity until July 22 6, 2000. 23 A surviving spouse whose survivors annuity has been 24 terminated due to remarriage may apply for reinstatement of 25 that annuity. The reinstated annuity shall begin to accrue 26 on July 6, 2000, except that if, on July 6, 2000, the annuity 27 is payable to an eligible surviving child or parent, payment 28 of the annuity to the surviving spouse shall not be 29 reinstated until the annuity is no longer payable to any 30 eligible surviving child or parent. The reinstated annuity 31 shall include any one-time or annual increases received prior 32 to the date of termination, as well as any increases that 33 would otherwise have accrued from the date of termination to 34 the date of reinstatement. An eligible surviving spouse HB2370 Enrolled -4- LRB9205288EGfg 1 whose expectation of receiving a survivors annuity was lost 2 due to remarriage before attainment of age 50 shall also be 3 entitled to reinstatement under this subsection, but the 4 resulting survivors annuity shall not begin to accrue sooner 5 than upon the surviving spouse's attainment of age 50. 6 The changes made to this subsection by this amendatory 7 Act of the 92nd General Assembly (pertaining to remarriage 8 prior to age 55 or 50) apply without regard to whether the 9 deceased participant or annuitant was in service on or after 10 the effective date of this amendatory Act. 11 (c) Each dependent unmarried child under age 18 (under 12 age 22 if a full-time student) of a deceased participant, or 13 of a deceased annuitant who did not take a refund or 14 additional annuity consisting of accumulated survivors 15 insurance contributions, shall receive a survivors annuity 16 equal to the sum of (1) 20% of the final rate of earnings, 17 and (2) 10% of the final rate of earnings divided by the 18 number of children entitled to this benefit. Payments shall 19 begin on the day following the participant's or annuitant's 20 death and continue until the child marries, dies, or attains 21 age 18 (age 22 if a full-time student). If the child is in 22 the care of a surviving spouse who is eligible for survivors 23 insurance benefits, the child's benefit shall be paid to the 24 surviving spouse. 25 Each unmarried child over age 18 of a deceased 26 participant or of a deceased annuitant who had a survivor's 27 insurance beneficiary at the time of his or her retirement, 28 and who was dependent upon the participant or annuitant by 29 reason of a physical or mental disability which began prior 30 to the date the child attained age 18 (age 22 if a full-time 31 student), shall receive a survivor's annuity equal to the sum 32 of (1) 20% of the final rate of earnings, and (2) 10% of the 33 final rate of earnings divided by the number of children 34 entitled to survivors benefits. Payments shall begin on the HB2370 Enrolled -5- LRB9205288EGfg 1 day following the participant's or annuitant's death and 2 continue until the child marries, dies, or is no longer 3 disabled. If the child is in the care of a surviving spouse 4 who is eligible for survivors insurance benefits, the child's 5 benefit may be paid to the surviving spouse. For the 6 purposes of this Section, disability means inability to 7 engage in any substantial gainful activity by reason of any 8 medically determinable physical or mental impairment that can 9 be expected to result in death or that has lasted or can be 10 expected to last for a continuous period of at least one 11 year. 12 (d) Each dependent parent of a deceased participant, or 13 of a deceased annuitant who did not take a refund or 14 additional annuity consisting of accumulated survivors 15 insurance contributions, shall receive a survivors annuity 16 equal to the sum of (1) 20% of final rate of earnings, and 17 (2) 10% of final rate of earnings divided by the number of 18 parents who qualify for the benefit. Payments shall begin 19 when the parent reaches age 55 or the day following the 20 participant's or annuitant's death, whichever is later, and 21 continue until the parent dies. Remarriage of a parent prior 22 to attainment of age 55 shall disqualify the parent for the 23 receipt of a survivors annuity. 24 (e) In addition to the survivors annuity provided above, 25 each survivors insurance beneficiary shall, upon death of the 26 participant or annuitant, receive a lump sum payment of 27 $1,000 divided by the number of such beneficiaries. 28 (f) The changes made in this Section by Public Act 29 81-712 pertaining to survivors annuities in cases of 30 remarriage prior to age 55 shall apply to each survivors 31 insurance beneficiary who remarries after June 30, 1979, 32 regardless of the date that the participant or annuitant 33 terminated his employment or died. 34 The change made to this Section by this amendatory Act of HB2370 Enrolled -6- LRB9205288EGfg 1 the 91st General Assembly, pertaining to remarriage prior to 2 age 55, applies without regard to whether the deceased 3 participant or annuitant was in service on or after the 4 effective date of this amendatory Act of the 91st General 5 Assembly. 6 (g) On January 1, 1981, any person who was receiving a 7 survivors annuity on or before January 1, 1971 shall have the 8 survivors annuity then being paid increased by 1% for each 9 full year which has elapsed from the date the annuity began. 10 On January 1, 1982, any survivor whose annuity began after 11 January 1, 1971, but before January 1, 1981, shall have the 12 survivor's annuity then being paid increased by 1% for each 13 year which has elapsed from the date the survivor's annuity 14 began. On January 1, 1987, any survivor who began receiving a 15 survivor's annuity on or before January 1, 1977, shall have 16 the monthly survivor's annuity increased by $1 for each full 17 year which has elapsed since the date the survivor's annuity 18 began. 19 (h) If the sum of the lump sum and total monthly 20 survivor benefits payable under this Section upon the death 21 of a participant amounts to less than the sum of the death 22 benefits payable under items (2) and (3) of Section 15-141, 23 the difference shall be paid in a lump sum to the beneficiary 24 of the participant who is living on the date that this 25 additional amount becomes payable. 26 (i) If the sum of the lump sum and total monthly 27 survivor benefits payable under this Section upon the death 28 of an annuitant receiving a retirement annuity or disability 29 retirement annuity amounts to less than the death benefit 30 payable under Section 15-142, the difference shall be paid to 31 the beneficiary of the annuitant who is living on the date 32 that this additional amount becomes payable. 33 (j) Effective on the later of (1) January 1, 1990, or 34 (2) the January 1 on or next after the date on which the HB2370 Enrolled -7- LRB9205288EGfg 1 survivor annuity begins, if the deceased member died while 2 receiving a retirement annuity, or in all other cases the 3 January 1 nearest the first anniversary of the date the 4 survivor annuity payments begin, every survivors insurance 5 beneficiary shall receive an increase in his or her monthly 6 survivors annuity of 3%. On each January 1 after the initial 7 increase, the monthly survivors annuity shall be increased by 8 3% of the total survivors annuity provided under this 9 Article, including previous increases provided by this 10 subsection. Such increases shall apply to the survivors 11 insurance beneficiaries of each participant and annuitant, 12 whether or not the employment status of the participant or 13 annuitant terminates before the effective date of this 14 amendatory Act of 1990. This subsection (j) also applies to 15 persons receiving a survivor annuity under the portable 16 benefit package. 17 (k) If the Internal Revenue Code of 1986, as amended, 18 requires that the survivors benefits be payable at an age 19 earlier than that specified in this Section the benefits 20 shall begin at the earlier age, in which event, the 21 survivor's beneficiary shall be entitled only to that amount 22 which is equal to the actuarial equivalent of the benefits 23 provided by this Section. 24 (l) The changes made to this Section and Section 15-131 25 by this amendatory Act of 1997, relating to benefits for 26 certain unmarried children who are full-time students under 27 age 22, apply without regard to whether the deceased member 28 was in service on or after the effective date of this 29 amendatory Act of 1997. These changes do not authorize the 30 repayment of a refund or a re-election of benefits, and any 31 benefit or increase in benefits resulting from these changes 32 is not payable retroactively for any period before the 33 effective date of this amendatory Act of 1997. 34 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; HB2370 Enrolled -8- LRB9205288EGfg 1 91-887, eff. 7-6-00.) 2 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146) 3 Sec. 15-146. Survivors insurance benefits - Minimum 4 amounts. 5 (a) The minimum total survivors annuity payable on 6 account of the death of a participant shall be 50% of the 7 retirement annuity which would have been provided under Rule 8 1, Rule 2, Rule 3, or Rule 5 of Section 15-136 upon the 9 participant's attainment of the minimum age at which the 10 penalty for early retirement would not be applicable or the 11 date of the participant's death, whichever is later, on the 12 basis of credits earned prior to the time of death. 13 (b) The minimum total survivors annuity payable on 14 account of the death of an annuitant shall be 50% of the 15 retirement annuity which is payable under Section 15-136 at 16 the time of death or 50% of the disability retirement annuity 17 payable under Section 15-153.2. This minimum survivors 18 annuity shall apply to each participant and annuitant who 19 dies after September 16, 1979, whether or not his or her 20 employee status terminates before or after that date. 21 (c) If an annuitant has elected a reversionary annuity, 22 the retirement annuity referred to in this Section is that 23 which would have been payable had such election not been 24 filed. 25 (d) Beginning January 1, 2002, any person who is 26 receiving a survivors annuity under this Article which, after 27 inclusion of all one-time and automatic annual increases to 28 which the person is entitled, is less than the sum of $17.50 29 for each year (up to a maximum of 30 years) of the deceased 30 member's service credit, shall be entitled to a monthly 31 supplemental payment equal to the difference. 32 If 2 or more persons are receiving survivors annuities 33 based on the same deceased member, the calculation of the HB2370 Enrolled -9- LRB9205288EGfg 1 supplemental payment under this subsection shall be based on 2 the total of those annuities and divided pro rata. The 3 supplemental payment is not subject to any limitation on the 4 maximum amount of the annuity and shall not be included in 5 the calculation of any automatic annual increase under 6 Section 15-145. 7 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; 8 91-887, eff. 7-6-00.) 9 (40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3) 10 Sec. 15-153.3. Automatic increase in disability benefit. 11 Each disability benefit payable under Section 15-150 and 12 calculated under Section 15-153 or 15-153.2 that has not yet 13 received an initial increase under this Section shall be 14 increased by 0.25% of the monthly disability benefit 15 multiplied by the number of full months that have elapsed 16 since the benefit began7% of the original fixed amount of17such benefiton January 1, 20021991or the January 1on or18 next following thefourth anniversary of thegranting of the 19 benefit, whichever occurs later. 20 On each January 1 following the initial7%increase under 21 this Section, the disability benefit shall be increased by 3% 22 of the current amount of the benefit, including prior 23 increases under this Article. 24 The changes made to this Section by this amendatory Act 25 of the 92nd General Assembly apply without regard to whether 26 the benefit recipient was in service on or after the 27 effective date of this amendatory Act. 28 (Source: P.A. 90-766, eff. 8-14-98.) 29 (40 ILCS 5/15-167.3 new) 30 Sec. 15-167.3. To use emerging investment managers, 31 minority-owned businesses, female-owned businesses, and 32 businesses owned by persons with disabilities in managing the HB2370 Enrolled -10- LRB9205288EGfg 1 System's assets. 2 (a) For the purposes of this Section: 3 "Emerging investment manager" means a qualified 4 investment adviser that manages an investment portfolio of at 5 least $10,000,000 but less than $500,000,000 and is a 6 minority-owned business, female-owned business, or business 7 owned by a person with a disability, as those terms are 8 defined in this Section. 9 "Minority-owned business" means a business concern that 10 is at least 51% owned by one or more minority persons or, in 11 the case of a corporation, at least 51% of the stock in which 12 is owned by one or more minority persons; and the management 13 and daily business operations of which are controlled by one 14 or more of the minority persons who own it. 15 "Female owned business" means a business concern that is 16 at least 51% owned by one or more females or, in the case of 17 a corporation, at least 51% of the stock in which is owned by 18 one or more females; and the management and daily business 19 operations of which are controlled by one or more of the 20 females who own it. 21 "Business owned by a person with a disability" means a 22 business concern that is at least 51% owned by one or more 23 persons with disabilities and the management and daily 24 business operations of which are controlled by one or more of 25 the persons with disabilities who own it. 26 "Minority person", "female", and "person with a 27 disability" have the meanings given them in the Business 28 Enterprise for Minorities, Females, and Persons with 29 Disabilities Act. 30 (b) It is hereby declared to be the public policy of the 31 State of Illinois to encourage the trustees of the System to 32 use emerging investment managers, minority-owned businesses, 33 female-owned businesses, and businesses owned by persons with 34 disabilities in managing the System's assets to the greatest HB2370 Enrolled -11- LRB9205288EGfg 1 extent feasible within the bounds of financial and fiduciary 2 prudence, and to take affirmative steps to remove any 3 barriers to the full participation of emerging investment 4 managers, minority-owned businesses, female-owned businesses, 5 and businesses owned by persons with disabilities in 6 investment opportunities afforded by the System. 7 (c) The System shall prepare a report to be submitted to 8 the Governor and the General Assembly by September 1 of each 9 year. The report shall identify the emerging investment 10 managers, minority-owned businesses, female-owned businesses, 11 and businesses owned by persons with disabilities used by the 12 System, the percentage of the System's assets under the 13 investment control of those managers and businesses, and the 14 actions the System has undertaken to increase the use of 15 those managers and businesses, including encouraging other 16 investment managers to use emerging investment managers, 17 minority-owned businesses, female-owned businesses, and 18 businesses owned by persons with disabilities as 19 subcontractors when the opportunity arises. 20 (d) With respect to this System, this Section supersedes 21 the provisions of subsection (4) of Section 1-109.1 of this 22 Code. 23 Section 99. Effective date. This Act takes effect upon 24 becoming law.