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92_HB5010 LRB9209997EGfg 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 14-114, 14-119, 14-121, and 14-128 as 6 follows: 7 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114) 8 Sec. 14-114. Automatic increase in retirement annuity. 9 (a) Any person receiving a retirement annuity under this 10 Article who retires having attained age 60, or who retires 11 before age 60 having at least 35 years of creditable service, 12 or who retires on or after January 1, 2001 at an age which, 13 when added to the number of years of his or her creditable 14 service, equals at least 85, shall, on January 1 next 15 following the first full year of retirement, have the amount 16 of the then fixed and payable monthly retirement annuity 17 increased 3%. Any person receiving a retirement annuity 18 under this Article who retires before attainment of age 60 19 and with less than (i) 35 years of creditable service if 20 retirement is before January 1, 2001, or (ii) the number of 21 years of creditable service which, when added to the member's 22 age, would equal 85, if retirement is on or after January 1, 23 2001, shall have the amount of the fixed and payable 24 retirement annuity increased by 3% on the January 1 occurring 25 on or next following (1) attainment of age 60, or (2) the 26 first anniversary of retirement, whichever occurs later. 27 However, for persons who receive the alternative retirement 28 annuity under Section 14-110, references in this subsection 29 (a) to attainment of age 60 shall be deemed to refer to 30 attainment of age 55. For a person receiving early 31 retirement incentives under Section 14-108.3 whose retirement -2- LRB9209997EGfg 1 annuity began after January 1, 1992 pursuant to an extension 2 granted under subsection (e) of that Section, the first 3 anniversary of retirement shall be deemed to be January 1, 4 1993. For a person who retires on or after the effective 5 date of this amendatory Act of the 92nd General Assembly and 6 on or before the first day of the fourth calendar month 7 following the month in which this amendatory Act takes 8 effect, and whose retirement annuity is calculated, in whole 9 or in part, under Section 14-110 or subsection (g) or (h) of 10 Section 14-108, the first anniversary of retirement shall be 11 deemed to be January 1, 2002. 12 On each January 1 following the date of the initial 13 increase under this subsection, the employee's monthly 14 retirement annuity shall be increased by an additional 3%. 15 Beginning January 1, 1990, all automatic annual increases 16 payable under this Section shall be calculated as a 17 percentage of the total annuity payable at the time of the 18 increase, including previous increases granted under this 19 Article. 20 Beginning January 1, 2003, all automatic annual increases 21 payable under this Section to persons who receive the 22 alternative retirement annuity under Section 14-110 shall be 23 calculated at the rate of 4% rather than 3%. 24 (b) The provisions of subsection (a) of this Section 25 shall be applicable to an employee only if the employee makes 26 the additional contributions required after December 31, 1969 27 for the purpose of the automatic increases for not less than 28 the equivalent of one full year. If an employee becomes an 29 annuitant before his additional contributions equal one full 30 year's contributions based on his salary at the date of 31 retirement, the employee may pay the necessary balance of the 32 contributions to the system, without interest, and be 33 eligible for the increasing annuity authorized by this 34 Section. -3- LRB9209997EGfg 1 (c) The provisions of subsection (a) of this Section 2 shall not be applicable to any annuitant who is on retirement 3 on December 31, 1969, and thereafter returns to State 4 service, unless the member has established at least one year 5 of additional creditable service following reentry into 6 service. 7 (d) In addition to other increases which may be provided 8 by this Section, on January 1, 1981 any annuitant who was 9 receiving a retirement annuity on or before January 1, 1971 10 shall have his retirement annuity then being paid increased 11 $1 per month for each year of creditable service. On January 12 1, 1982, any annuitant who began receiving a retirement 13 annuity on or before January 1, 1977, shall have his 14 retirement annuity then being paid increased $1 per month for 15 each year of creditable service. 16 On January 1, 1987, any annuitant who began receiving a 17 retirement annuity on or before January 1, 1977, shall have 18 the monthly retirement annuity increased by an amount equal 19 to 8¢ per year of creditable service times the number of 20 years that have elapsed since the annuity began. 21 (e) Every person who receives the alternative retirement 22 annuity under Section 14-110 and who is eligible to receive 23 the 3% increase under subsection (a) on January 1, 1986, 24 shall also receive on that date a one-time increase in 25 retirement annuity equal to the difference between (1) his 26 actual retirement annuity on that date, including any 27 increases received under subsection (a), and (2) the amount 28 of retirement annuity he would have received on that date if 29 the amendments to subsection (a) made by Public Act 84-162 30 had been in effect since the date of his retirement. 31 (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.) 32 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119) 33 Sec. 14-119. Amount of widow's annuity. -4- LRB9209997EGfg 1 (a) The widow's annuity shall be 50% of the amount of 2 retirement annuity payable to the member on the date of death 3 while on retirement if an annuitant, or on the date of his 4 death while in service if an employee, regardless of his age 5 on such date, or on the date of withdrawal if death occurred 6 after termination of service under the conditions prescribed 7 in the preceding Section. 8 (b) If an eligible widow, regardless of age, has in her 9 care any unmarried child or children of the member under age 10 18 (under age 22 if a full-time student), the widow's annuity 11 shall be increased in the amount of 5% of the retirement 12 annuity for each such child, but the combined payments for a 13 widow and children shall not exceed 66 2/3% of the member's 14 earned retirement annuity. 15 The amount of retirement annuity from which the widow's 16 annuity is derived shall be that earned by the member without 17 regard to whether he attained age 60 prior to his withdrawal 18 under the conditions stated or prior to his death. 19 (c) Adopted children shall be considered as children of 20 the member only if the proceedings for adoption were 21 commenced at least 1 year prior to the member's death. 22 Marriage of a child shall render the child ineligible for 23 further consideration in the increase in the amount of the 24 widow's annuity. 25 Attainment of age 18 (age 22 if a full-time student) 26 shall render a child ineligible for further consideration in 27 the increase of the widow's annuity, but the annuity to the 28 widow shall be continued thereafter, without regard to her 29 age at that time. 30 (d) A widow's annuity payable on account of any covered 31 employee who shall have been a covered employee for at least 32 18 months shall be reduced by 1/2 of the amount of survivors 33 benefits to which his beneficiaries are eligible under the 34 provisions of the Federal Social Security Act, except that -5- LRB9209997EGfg 1 (1) the amount of any widow's annuity payable under this 2 Article shall not be reduced by reason of any increase under 3 that Act which occurs after the offset required by this 4 subsection is first applied to that annuity, and (2) for 5 benefits granted on or after January 1, 1992, the offset 6 under this subsection (d) shall not exceed 50% of the amount 7 of widow's annuity otherwise payable. 8 (e) Upon the death of a recipient of a widow's annuity 9 the excess, if any, of the member's accumulated 10 contributions plus credited interest over all annuity 11 payments to the member and widow, exclusive of the $500 lump 12 sum payment, shall be paid to the named beneficiary of the 13 widow, or if none has been named, to the estate of the widow, 14 provided no reversionary annuity is payable. 15 (f) On January 1, 1981, any recipient of a widow's 16 annuity who was receiving a widow's annuity on or before 17 January 1, 1971, shall have her widow's annuity then being 18 paid increased by 1% for each full year which has elapsed 19 from the date the widow's annuity began. On January 1, 1982, 20 any recipient of a widow's annuity who began receiving a 21 widow's annuity after January 1, 1971, but before January 1, 22 1981, shall have her widow's annuity then being paid 23 increased by 1% for each full year which has elapsed from the 24 date the widow's annuity began. On January 1, 1987, any 25 recipient of a widow's annuity who began receiving the 26 widow's annuity on or before January 1, 1977, shall have the 27 monthly widow's annuity increased by $1 for each full year 28 which has elapsed since the date the annuity began. 29 (g) Beginning January 1, 1990, every widow's annuity 30 shall be increased (1) on each January 1 occurring on or 31 after the commencement of the annuity if the deceased member 32 died while receiving a retirement annuity, or (2) in other 33 cases, on each January 1 occurring on or after the first 34 anniversary of the commencement of the annuity, by an amount -6- LRB9209997EGfg 1 equal to 3% of the current amount of the annuity, including 2 any previous increases under this Article. Such increases 3 shall apply without regard to whether the deceased member was 4 in service on or after the effective date of Public Act 5 86-1488, but shall not accrue for any period prior to January 6 1, 1990. 7 Beginning January 1, 2003, all automatic annual increases 8 payable under this subsection to widows of persons who 9 received or were eligible to receive an alternative 10 retirement annuity under Section 14-110 shall be calculated 11 at the rate of 4% rather than 3%. 12 (Source: P.A. 90-448, eff. 8-16-97.) 13 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121) 14 Sec. 14-121. Amount of survivors annuity. A survivors 15 annuity beneficiary shall be entitled upon death of the 16 member to a single sum payment of $1,000, payable pro rata 17 among all persons entitled thereto, together with a survivors 18 annuity payable at the rates and under the conditions 19 specified in this Article. 20 (a) If the survivors annuity beneficiary is a spouse, 21 the survivors annuity shall be 30% of final average 22 compensation subject to a maximum payment of $400 per month. 23 (b) If an eligible child or children under the care of a 24 spouse also survives the member, such spouse as natural 25 guardian of the child or children shall receive, in addition 26 to the foregoing annuity, 20% of final average compensation 27 on account of each such child and 10% of final average 28 compensation divided pro rata among such children, subject to 29 a maximum payment on account of all survivor annuity 30 beneficiaries of $600 per month, or 80% of the member's final 31 average compensation, whichever is the lesser. 32 (c) If the survivors annuity beneficiary or 33 beneficiaries consists of an unmarried child or children, the -7- LRB9209997EGfg 1 amount of survivors annuity shall be 20% of final average 2 compensation to each child, and 10% of final average 3 compensation divided pro rata among all such children 4 entitled to such annuity, subject to a maximum payment to all 5 children combined of $600 per month or 80% of the member's 6 final average compensation, whichever is the lesser. 7 (d) If the survivors annuity beneficiary is one or more 8 dependent parents, the annuity shall be 20% of final average 9 compensation to each parent and 10% of final average 10 compensation divided pro rata among the parents who qualify 11 for this annuity, subject to a maximum payment to both 12 dependent parents of $400 per month. 13 (e) The survivors annuity to the spouse, children or 14 dependent parents of a member whose death occurs after the 15 date of last withdrawal, or after retirement, or while in 16 service following reentry into service after retirement but 17 before completing 1 1/2 years of additional creditable 18 service, shall not exceed the lesser of 80% of the member's 19 earned retirement annuity at the date of death or the maximum 20 previously established in this Section. 21 (f) In applying the limitation prescribed on the 22 combined payments to 2 or more survivors annuity 23 beneficiaries, the annuity on account of each beneficiary 24 shall be reduced pro rata until such time as the number of 25 beneficiaries makes the reduction no longer applicable. 26 (g) A survivors annuity payable on account of any 27 covered employee who shall have been a covered employee for 28 at least 18 months at date of death or last withdrawal, 29 whichever is the later, shall be reduced by 1/2 of the 30 survivors benefits to which his beneficiaries are eligible 31 under the federal Social Security Act, except that (1) the 32 survivors annuity payable under this Article shall not be 33 reduced by any increase under that Act which occurs after the 34 offset required by this subsection is first applied to that -8- LRB9209997EGfg 1 annuity, and (2) for benefits granted on or after January 1, 2 1992, the offset under this subsection (g) shall not exceed 3 50% of the amount of survivors annuity otherwise payable. 4 (h) The minimum payment to a beneficiary hereunder shall 5 be $60 per month, which shall be reduced in accordance with 6 the limitation prescribed on the combined payments to all 7 beneficiaries of a member. 8 (i) Subject to the conditions set forth in Section 9 14-120, the minimum total survivors annuity benefit payable 10 to the survivors annuity beneficiaries of a deceased member 11 or annuitant whose death occurs on or after January 1, 1984, 12 shall be 50% of the amount of retirement annuity that was or 13 would have been payable to the deceased on the date of death, 14 regardless of the age of the deceased on such date. If the 15 minimum total benefit provided by this subsection exceeds the 16 maximum otherwise imposed by this Section, the minimum total 17 benefit shall nevertheless be payable. Any increase in the 18 total survivors annuity benefit resulting from the operation 19 of this subsection shall be divided among the survivors 20 annuity beneficiaries of the deceased in proportion to their 21 shares of the total survivors annuity benefit otherwise 22 payable under this Section. 23 (j) Any survivors annuity beneficiary whose annuity 24 terminates due to any condition specified in this Article 25 other than death shall be entitled to a refund of the excess, 26 if any, of the accumulated contributions of the member plus 27 credited interest over all payments to the member and 28 beneficiary or beneficiaries, exclusive of the single sum 29 payment of $1,000, provided no future survivors or 30 reversionary annuity benefits are payable. 31 (k) Upon the death of the last eligible recipient of a 32 survivors annuity the excess, if any, of the member's 33 accumulated contributions plus credited interest over all 34 annuity payments to the member and survivors exclusive of the -9- LRB9209997EGfg 1 single sum payment of $1000, shall be paid to the named 2 beneficiary of the last eligible survivor, or if none has 3 been named, to the estate of the last eligible survivor, 4 provided no reversionary annuity is payable. 5 (l) On January 1, 1981, any survivor who was receiving a 6 survivors annuity on or before January 1, 1971, shall have 7 his survivors annuity then being paid increased by 1% for 8 each full year which has elapsed from the date the annuity 9 began. On January 1, 1982, any survivor who began receiving 10 a survivor's annuity after January 1, 1971, but before 11 January 1, 1981, shall have his survivor's annuity then being 12 paid increased by 1% for each full year that has elapsed from 13 the date the annuity began. On January 1, 1987, any survivor 14 who began receiving a survivor's annuity on or before January 15 1, 1977, shall have the monthly survivor's annuity increased 16 by $1 for each full year which has elapsed since the date the 17 survivor's annuity began. 18 (m) Beginning January 1, 1990, every survivor's annuity 19 shall be increased (1) on each January 1 occurring on or 20 after the commencement of the annuity if the deceased member 21 died while receiving a retirement annuity, or (2) in other 22 cases, on each January 1 occurring on or after the first 23 anniversary of the commencement of the annuity, by an amount 24 equal to 3% of the current amount of the annuity, including 25 any previous increases under this Article. Such increases 26 shall apply without regard to whether the deceased member was 27 in service on or after the effective date of Public Act 28 86-1488, but shall not accrue for any period prior to January 29 1, 1990. 30 Beginning January 1, 2003, all automatic annual increases 31 payable under this subsection to survivors of persons who 32 received or were eligible to receive an alternative 33 retirement annuity under Section 14-110 shall be calculated 34 at the rate of 4% rather than 3%. -10- LRB9209997EGfg 1 (Source: P.A. 86-273; 86-1488; 87-794.) 2 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128) 3 Sec. 14-128. Occupational death benefit. An 4 occupational death benefit is provided for a member of the 5 System whose death, prior to retirement, is the proximate 6 result of bodily injuries sustained or a hazard undergone 7 while in the performance and within the scope of the member's 8 duties. 9 (a) Conditions for payment. 10 Exclusive of the lump sum payment provided for herein, 11 all annuities under this Section shall accrue and be payable 12 for complete calendar months, beginning on the first day of 13 the month next following the month in which the initiating 14 event occurs and ending on the last day of the month in which 15 the terminating event occurs. 16 The following named survivors of the member may be 17 eligible for an annuity under this Section: 18 (i) The member's spouse. 19 (ii) An unmarried child of the member under age 18 20 (under age 22 if a full-time student); an unmarried 21 stepchild under age 18 (under age 22 if a full-time 22 student) who has been such for at least one year at the 23 date of the member's death; an unmarried adopted child 24 under age 18 (under age 22 if a full-time student) if the 25 adoption proceedings were initiated at least one year 26 prior to the death of the member; and an unmarried child 27 over age 18 who is dependent by reason of a physical or 28 mental disability, for so long as such physical or mental 29 disability continues. For the purposes of this Section 30 disability means inability to engage in any substantial 31 gainful activity by reason of any medically determinable 32 physical or mental impairment which can be expected to 33 result in death or which has lasted or can be expected to -11- LRB9209997EGfg 1 last for a continuous period of not less than 12 months. 2 (iii) If no spouse or eligible children survive: a 3 dependent parent of the member; a dependent step-parent 4 by a marriage contracted before the member attained age 5 18; or a dependent adopting parent by whom the member was 6 adopted before he or she attained age 18. 7 The term "dependent" relating to an occupational death 8 benefit means a survivor of the member who was receiving from 9 the member at the date of the member's death at least 1/2 of 10 the support for maintenance including board, lodging, medical 11 care and like living costs. 12 Payment of the annuity shall continue until the 13 occurrence of the following: 14 (1) remarriage before age 55 that occurs before the 15 effective date of this amendatory Act of the 91st General 16 Assembly or death, in the case of a surviving spouse; 17 (2) attainment of age 18 or termination of 18 disability, death, or marriage, in the case of an 19 eligible child; 20 (3) remarriage before age 55 or death, in the case 21 of a dependent parent. 22 If none of the aforementioned beneficiaries is living at 23 the date of death of the member, no occupational death 24 benefit shall be payable, but the nonoccupational death 25 benefit shall be payable as provided in this Article. 26 The change made to this subsection by this amendatory Act 27 of the 91st General Assembly (pertaining to remarriage prior 28 to age 55) applies without regard to whether the deceased 29 member was in service on or after the effective date of this 30 amendatory Act. 31 (b) Amount of benefit. 32 The member's accumulated contributions plus credited 33 interest shall be payable in a lump sum to such person as the 34 member has nominated by written direction, duly acknowledged -12- LRB9209997EGfg 1 and filed with the Board, or if no such nomination to the 2 estate of the member. When an annuitant is re-employed by a 3 Department, the accumulated contributions plus credited 4 interest payable on the member's account shall, if the member 5 has not previously elected a reversionary annuity, consist of 6 the excess, if any, of the member's total accumulated 7 contributions plus credited interest for all creditable 8 service over the total amount of all retirement annuity 9 payments received by the member prior to death. 10 In addition to the foregoing payment, an annuity is 11 provided for eligible survivors as follows: 12 (1) If the survivor is a spouse only, the annuity 13 shall be 50% of the member's final average compensation. 14 (2) If the spouse has in his or her care an 15 eligible child or children, the annuity shall be 16 increased by an amount equal to 15% of the final average 17 compensation on account of each such child, subject to a 18 limitation on the combined annuities to a surviving 19 spouse and children of 75% of final average compensation. 20 (3) If there is no surviving spouse, or if the 21 surviving spouse dies or remarries while a child remains 22 eligible, then each such child shall be entitled to an 23 annuity of 15% of the deceased member's final average 24 compensation, subject to a limitation of 50% of final 25 average compensation to all such children. 26 (4) If there is no surviving spouse or eligible 27 children, then an annuity shall be payable to the 28 member's dependent parents, equal to 25% of final average 29 compensation to each such beneficiary. 30 If any annuity payable under this Section is less than 31 the corresponding survivors annuity, the beneficiary or 32 beneficiaries of the annuity under this Section may elect to 33 receive the survivors annuity and the nonoccupational death 34 benefit provided for in this Article in lieu of the annuity -13- LRB9209997EGfg 1 provided under this Section. 2 (c) Occupational death claims pending adjudication by 3 the Industrial Commission or a ruling by the agency 4 responsible for determining the liability of the State under 5 the "Workers' Compensation Act" or "Workers' Occupational 6 Diseases Act" shall be payable under Sections 14-120 and 7 14-121 until a ruling or adjudication occurs, if the 8 beneficiary or beneficiaries: (1) meet all conditions for 9 payment as prescribed in this Article; and (2) execute an 10 assignment of benefits payable as a result of adjudication by 11 the Industrial Commission or a ruling by the agency 12 responsible for determining the liability of the State under 13 such Acts. The assignment shall be made to the System and 14 shall be for an amount equal to the excess of benefits paid 15 under Sections 14-120 and 14-121 over benefits payable as a 16 result of adjudication of the workers' compensation claim 17 computed from the date of death of the member. 18 (d) Every occupational death annuity payable under this 19 Section shall be increased on each January 1 occurring on or 20 after (i) January 1, 1990, or (ii) the first anniversary of 21 the commencement of the annuity, whichever occurs later, by 22 an amount equal to 3% of the current amount of the annuity, 23 including any previous increases under this Article, without 24 regard to whether the deceased member was in service on the 25 effective date of this amendatory Act of 1991. 26 Beginning January 1, 2003, all automatic annual increases 27 payable under this subsection to survivors of a person who, 28 on the last day of service, was earning eligible creditable 29 service as defined in Section 14-110 shall be calculated at 30 the rate of 4% rather than 3%. 31 (Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.) 32 Section 99. Effective date. This Act takes effect upon 33 becoming law.
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