Bill Text: IL SB1070 | 2025-2026 | 104th General Assembly | Introduced
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 (Republican 1-0)
Status: (Introduced) 2025-01-24 - Referred to Assignments [SB1070 Detail]
Download: Illinois-2025-SB1070-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by | |||||||||||||||||||
5 | changing Section 14-119 as follows:
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6 | (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119) | |||||||||||||||||||
7 | Sec. 14-119. Amount of widow's annuity. | |||||||||||||||||||
8 | (a) The The widow's annuity shall be 50% of the amount of | |||||||||||||||||||
9 | retirement annuity payable to the member on the date of death | |||||||||||||||||||
10 | while on retirement if an annuitant, or on the date of his | |||||||||||||||||||
11 | death while in service if an employee, regardless of his age on | |||||||||||||||||||
12 | such date, or on the date of withdrawal if death occurred after | |||||||||||||||||||
13 | termination of service under the conditions prescribed in the | |||||||||||||||||||
14 | preceding Section. | |||||||||||||||||||
15 | (b) If an eligible widow, regardless of age, has in her | |||||||||||||||||||
16 | care any unmarried child or children of the member under age 18 | |||||||||||||||||||
17 | (under age 22 if a full-time student), the widow's annuity | |||||||||||||||||||
18 | shall be increased in the amount of 5% of the retirement | |||||||||||||||||||
19 | annuity for each such child, but the combined payments for a | |||||||||||||||||||
20 | widow and children shall not exceed 66 2/3% of the member's | |||||||||||||||||||
21 | earned retirement annuity. | |||||||||||||||||||
22 | The amount of retirement annuity from which the widow's | |||||||||||||||||||
23 | annuity is derived shall be that earned by the member without |
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1 | regard to whether he attained age 60 prior to his withdrawal | ||||||
2 | under the conditions stated or prior to his death. | ||||||
3 | (c) Marriage of a child shall render the child ineligible | ||||||
4 | for further consideration in the increase in the amount of the | ||||||
5 | widow's annuity. | ||||||
6 | Attainment of age 18 (age 22 if a full-time student) shall | ||||||
7 | render a child ineligible for further consideration in the | ||||||
8 | increase of the widow's annuity, but the annuity to the widow | ||||||
9 | shall be continued thereafter, without regard to her age at | ||||||
10 | that time. | ||||||
11 | (d) Except as otherwise provided in this subsection (d), a | ||||||
12 | widow's annuity payable on account of any covered employee who | ||||||
13 | has been a covered employee for at least 18 months shall be | ||||||
14 | reduced by 1/2 of the amount of survivors benefits to which his | ||||||
15 | beneficiaries are eligible under the provisions of the Federal | ||||||
16 | Social Security Act, except that (1) the amount of any widow's | ||||||
17 | annuity payable under this Article shall not be reduced by | ||||||
18 | reason of any increase under that Act which occurs after the | ||||||
19 | offset required by this subsection is first applied to that | ||||||
20 | annuity, and (2) for benefits granted on or after January 1, | ||||||
21 | 1992, the offset under this subsection (d) shall not exceed | ||||||
22 | 50% of the amount of widow's annuity otherwise payable. | ||||||
23 | Beginning July 1, 2009, the offset under this subsection | ||||||
24 | (d) shall no longer be applied to any widow's annuity of any | ||||||
25 | person who began receiving retirement benefits or a widow's | ||||||
26 | annuity prior to January 1, 1998. |
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1 | Beginning July 1, 2009, the offset under this subsection | ||||||
2 | (d) shall no longer be applied to the widow's annuity of any | ||||||
3 | person who began receiving a widow's annuity on or after | ||||||
4 | January 1, 1998 and before the effective date of this | ||||||
5 | amendatory Act of the 95th General Assembly. | ||||||
6 | Any person who began receiving retirement benefits after | ||||||
7 | January 1, 1998 and before the effective date of this | ||||||
8 | amendatory Act of the 95th General Assembly may, during a | ||||||
9 | one-time election period established by the System, elect to | ||||||
10 | reduce his or her retirement annuity by 3.825% in exchange for | ||||||
11 | not having the offset under this subsection (d) applied to his | ||||||
12 | or her widow's annuity. | ||||||
13 | Any employee in service on the effective date of this | ||||||
14 | amendatory Act of the 95th General Assembly may, at the time of | ||||||
15 | retirement, elect to reduce his or her retirement annuity by | ||||||
16 | 3.825% in exchange for not having the offset under this | ||||||
17 | subsection (d) applied to his or her widow's annuity. | ||||||
18 | If a widow's annuity is payable to the widow of an employee | ||||||
19 | based on the employee's death in service, then the offset | ||||||
20 | under this subsection (d) shall no longer be applied to the | ||||||
21 | widow's annuity. | ||||||
22 | A retiree who elects to reduce his or her retirement | ||||||
23 | annuity under this subsection (d) in exchange for not having | ||||||
24 | the offset applied may make an irrevocable election to | ||||||
25 | eliminate the reduction of his or her retirement annuity if | ||||||
26 | there is a change in marital status due to death or divorce, |
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1 | but the retiree is not entitled to reimbursement of any | ||||||
2 | benefit reduction prior to the election. | ||||||
3 | (e) Upon the death of a recipient of a widow's annuity the | ||||||
4 | excess, if any, of the member's accumulated contributions plus | ||||||
5 | credited interest over all annuity payments to the member and | ||||||
6 | widow, exclusive of the $500 lump sum payment, shall be paid to | ||||||
7 | the named beneficiary of the widow, or if none has been named, | ||||||
8 | to the estate of the widow, provided no reversionary annuity | ||||||
9 | is payable. | ||||||
10 | (f) On January 1, 1981, any recipient of a widow's annuity | ||||||
11 | who was receiving a widow's annuity on or before January 1, | ||||||
12 | 1971, shall have her widow's annuity then being paid increased | ||||||
13 | by 1% for each full year which has elapsed from the date the | ||||||
14 | widow's annuity began. On January 1, 1982, any recipient of a | ||||||
15 | widow's annuity who began receiving a widow's annuity after | ||||||
16 | January 1, 1971, but before January 1, 1981, shall have her | ||||||
17 | widow's annuity then being paid increased by 1% for each full | ||||||
18 | year which has elapsed from the date the widow's annuity | ||||||
19 | began. On January 1, 1987, any recipient of a widow's annuity | ||||||
20 | who began receiving the widow's annuity on or before January | ||||||
21 | 1, 1977, shall have the monthly widow's annuity increased by | ||||||
22 | $1 for each full year which has elapsed since the date the | ||||||
23 | annuity began. | ||||||
24 | (g) Beginning January 1, 1990, every widow's annuity shall | ||||||
25 | be increased (1) on each January 1 occurring on or after the | ||||||
26 | commencement of the annuity if the deceased member died while |
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1 | receiving a retirement annuity, or (2) in other cases, on each | ||||||
2 | January 1 occurring on or after the first anniversary of the | ||||||
3 | commencement of the annuity, by an amount equal to 3% of the | ||||||
4 | current amount of the annuity, including any previous | ||||||
5 | increases under this Article. Such increases shall apply | ||||||
6 | without regard to whether the deceased member was in service | ||||||
7 | on or after the effective date of Public Act 86-1488, but shall | ||||||
8 | not accrue for any period prior to January 1, 1990. | ||||||
9 | (Source: P.A. 95-279, eff. 1-1-08; 95-1043, eff. 3-26-09.) |