Bill Text: IL SB3037 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Downstate Teacher Article of the Illinois Pension Code. In a provision defining "eligible child" for purposes of certain survivors' benefits, changes the definition of "disability" to "dependent by reason of a physical or mental disability". Provides that the definition of "dependent by reason of a physical or mental disability" does not require that the eligible child be claimed as a dependent on the member's or annuitant's final federal income tax return. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3037 Detail]

Download: Illinois-2019-SB3037-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3037 Introduced 2/5/2020, by Sen. Laura Fine SYNOPSIS AS INTRODUCED:
40 ILCS 5/16-140 from Ch. 108 1/2, par. 16-140
Amends the Downstate Teacher Article of the Illinois Pension Code. In a provision defining "eligible child" for purposes of certain survivors' benefits, changes the definition of "disability" to "dependent by reason of a physical or mental disability". Provides that the definition of "dependent by reason of a physical or mental disability" does not require that the eligible child be claimed as a dependent on the member's or annuitant's final federal income tax return. Effective immediately.
LRB101 19066 RPS 68526 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB3037 LRB101 19066 RPS 68526 b
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 16-140 as follows:
(40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
Sec. 16-140. Survivors' benefits - definitions.
(a) For the purpose of Sections 16-138 through 16-143.2,
the following terms shall have the following meanings, unless
the context otherwise requires:
(1) "Average salary": the average salary for the
highest 4 consecutive years within the last 10 years of
creditable service immediately preceding date of death or
retirement, whichever is applicable, or the average salary
for the total creditable service if service is less than 4
years.
(2) "Member": any teacher included in the membership of
the system. However, a teacher who becomes an annuitant of
the system or a teacher whose services terminate after 20
years of service from any cause other than retirement is
considered a member, subject to the conditions and
limitations stated in this Article.
(3) "Dependent beneficiary": (A) a surviving spouse of

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a member or annuitant who was married to the member or
annuitant for the 12 month period immediately preceding and
on the date of death of such member or annuitant, except
where a child is born of such marriage, in which case the
qualifying period shall not be applicable; (A-1) a
surviving spouse of a member or annuitant who (i) was
married to the member or annuitant on the date of the
member or annuitant's death, (ii) was married to the member
or annuitant for a period of at least 12 months (but not
necessarily the 12 months immediately preceding the member
or annuitant's death), and (iii) has not received a benefit
under subsection (a) of Section 16-141 or paragraph (1) of
Section 16-142; (B) an eligible child of a member or
annuitant; and (C) a dependent parent.
Unless otherwise designated by the member, eligibility
for benefits shall be in the order named, except that a
dependent parent shall be eligible only if there is no
other dependent beneficiary. Any benefit to be received by
or paid to a dependent beneficiary to be determined under
this paragraph as provided in Sections 16-141 and 16-142
may be received by or paid to a trust established for such
dependent beneficiary if such dependent beneficiary is
living at the time such benefit would be received by or
paid to such trust.
(4) "Eligible child": an unmarried natural or adopted
child of the member or annuitant under age 18 (age 22 if a

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full-time student). An unmarried natural or adopted child,
regardless of age, who is dependent by reason of a physical
or mental disability is eligible for so long as such
physical or mental disability continues. An adopted child,
however, is eligible only if the proceedings for adoption
were finalized while the child was a minor.
For purposes of this subsection, "dependent by reason
of a physical or mental disability" means the an inability
to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment
which can be expected to result in death or which has
lasted or can be expected to last for a continuous period
of not less than 12 months, but does not require that the
eligible child be claimed as a dependent on the member's or
annuitant's final federal income tax return.
The changes made to this Section by Public Act 90-448,
relating to benefits for certain unmarried children who are
full-time students under age 22, apply without regard to
whether the deceased member was in service on or after the
effective date of that Act. These changes do not authorize
the repayment of a refund or a re-election of benefits, and
any benefit or increase in benefits resulting from these
changes is not payable retroactively for any period before
the effective date of that Act.
(5) "Dependent parent": a parent who was receiving at
least 1/2 of his or her support from a member or annuitant

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for the 12-month period immediately preceding and on the
date of such member's or annuitant's death, provided
however, that such dependent status terminates upon a
member's acceptance of a refund for survivor benefit
contributions as provided under Section 16-142.
(6) "Non-dependent beneficiary": any person,
organization or other entity designated by the member who
does not qualify as a dependent beneficiary.
(7) "In service": the condition of a member being in
receipt of salary as a teacher at any time within 12 months
immediately before his or her death, being on leave of
absence for which the member, upon return to teaching,
would be eligible to purchase service credit under
subsection (b)(5) of Section 16-127, or being in receipt of
a disability or occupational disability benefit. This term
does not include any annuitant or member who previously
accepted a refund of survivor benefit contributions under
paragraph (1) of Section 16-142 unless the conditions
specified in subsection (b) of Section 16-143.2 are met.
(b) The change to this Section made by Public Act 90-511
applies without regard to whether the deceased member or
annuitant was in service on or after the effective date of that
Act.
The change to this Section made by this amendatory Act of
the 91st General Assembly applies without regard to whether the
deceased member or annuitant was in service on or after the

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effective date of this amendatory Act.
(Source: P.A. 95-870, eff. 8-21-08.)
Section 99. Effective date. This Act takes effect upon
becoming law.