Bill Text: IL SB0468 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the State Employees Article of the Illinois Pension Code. Makes a technical change in a Section concerning widow's annuities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB0468 Detail]

Download: Illinois-2013-SB0468-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB0468 Introduced 1/23/2013, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED:
40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119
Amends the State Employees Article of the Illinois Pension Code. Makes a technical change in a Section concerning widow's annuities.
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PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Section 14-119 as follows:
(40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
Sec. 14-119. Amount of widow's annuity.
(a) The The widow's annuity shall be 50% of the amount of
retirement annuity payable to the member on the date of death
while on retirement if an annuitant, or on the date of his
death while in service if an employee, regardless of his age on
such date, or on the date of withdrawal if death occurred after
termination of service under the conditions prescribed in the
preceding Section.
(b) If an eligible widow, regardless of age, has in her
care any unmarried child or children of the member under age 18
(under age 22 if a full-time student), the widow's annuity
shall be increased in the amount of 5% of the retirement
annuity for each such child, but the combined payments for a
widow and children shall not exceed 66 2/3% of the member's
earned retirement annuity.
The amount of retirement annuity from which the widow's
annuity is derived shall be that earned by the member without

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regard to whether he attained age 60 prior to his withdrawal
under the conditions stated or prior to his death.
(c) Marriage of a child shall render the child ineligible
for further consideration in the increase in the amount of the
widow's annuity.
Attainment of age 18 (age 22 if a full-time student) shall
render a child ineligible for further consideration in the
increase of the widow's annuity, but the annuity to the widow
shall be continued thereafter, without regard to her age at
that time.
(d) Except as otherwise provided in this subsection (d), a
widow's annuity payable on account of any covered employee who
has been a covered employee for at least 18 months shall be
reduced by 1/2 of the amount of survivors benefits to which his
beneficiaries are eligible under the provisions of the Federal
Social Security Act, except that (1) the amount of any widow's
annuity payable under this Article shall not be reduced by
reason of any increase under that Act which occurs after the
offset required by this subsection is first applied to that
annuity, and (2) for benefits granted on or after January 1,
1992, the offset under this subsection (d) shall not exceed 50%
of the amount of widow's annuity otherwise payable.
Beginning July 1, 2009, the offset under this subsection
(d) shall no longer be applied to any widow's annuity of any
person who began receiving retirement benefits or a widow's
annuity prior to January 1, 1998.

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Beginning July 1, 2009, the offset under this subsection
(d) shall no longer be applied to the widow's annuity of any
person who began receiving a widow's annuity on or after
January 1, 1998 and before the effective date of this
amendatory Act of the 95th General Assembly.
Any person who began receiving retirement benefits after
January 1, 1998 and before the effective date of this
amendatory Act of the 95th General Assembly may, during a
one-time election period established by the System, elect to
reduce his or her retirement annuity by 3.825% in exchange for
not having the offset under this subsection (d) applied to his
or her widow's annuity.
Any employee in service on the effective date of this
amendatory Act of the 95th General Assembly may, at the time of
retirement, elect to reduce his or her retirement annuity by
3.825% in exchange for not having the offset under this
subsection (d) applied to his or her widow's annuity.
If a widow's annuity is payable to the widow of an employee
based on the employee's death in service, then the offset under
this subsection (d) shall no longer be applied to the widow's
annuity.
A retiree who elects to reduce his or her retirement
annuity under this subsection (d) in exchange for not having
the offset applied may make an irrevocable election to
eliminate the reduction of his or her retirement annuity if
there is a change in marital status due to death or divorce,

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but the retiree is not entitled to reimbursement of any benefit
reduction prior to the election.
(e) Upon the death of a recipient of a widow's annuity the
excess, if any, of the member's accumulated contributions plus
credited interest over all annuity payments to the member and
widow, exclusive of the $500 lump sum payment, shall be paid to
the named beneficiary of the widow, or if none has been named,
to the estate of the widow, provided no reversionary annuity is
payable.
(f) On January 1, 1981, any recipient of a widow's annuity
who was receiving a widow's annuity on or before January 1,
1971, shall have her widow's annuity then being paid increased
by 1% for each full year which has elapsed from the date the
widow's annuity began. On January 1, 1982, any recipient of a
widow's annuity who began receiving a widow's annuity after
January 1, 1971, but before January 1, 1981, shall have her
widow's annuity then being paid increased by 1% for each full
year which has elapsed from the date the widow's annuity began.
On January 1, 1987, any recipient of a widow's annuity who
began receiving the widow's annuity on or before January 1,
1977, shall have the monthly widow's annuity increased by $1
for each full year which has elapsed since the date the annuity
began.
(g) Beginning January 1, 1990, every widow's annuity shall
be increased (1) on each January 1 occurring on or after the
commencement of the annuity if the deceased member died while

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receiving a retirement annuity, or (2) in other cases, on each
January 1 occurring on or after the first anniversary of the
commencement of the annuity, by an amount equal to 3% of the
current amount of the annuity, including any previous increases
under this Article. Such increases shall apply without regard
to whether the deceased member was in service on or after the
effective date of Public Act 86-1488, but shall not accrue for
any period prior to January 1, 1990.
(Source: P.A. 95-279, eff. 1-1-08; 95-1043, eff. 3-26-09.)