SB3538eng 96TH GENERAL ASSEMBLY

SB3538 Engrossed LRB096 18789 AMC 34174 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 adding Section 6-229 as follows:

(40 ILCS 5/6-229 new)

Sec. 6-229. Reversionary annuity.

(a) A fireman, prior to retirement on annuity, may elect to take a lesser amount of annuity and provide, with the actuarial value of the amount by which his or her annuity is reduced, a reversionary annuity for a spouse. The option may be exercised by filing a written designation with the board prior to retirement, and may be revoked by the fireman at any time before retirement. The death of the fireman prior to his or her retirement shall automatically void the option.

(b) The death of the designated reversionary annuitant prior to the fireman's retirement shall automatically void the option. If the reversionary annuitant dies after the fireman's retirement and before the death of the fireman annuitant, the reduced annuity being paid to the retired fireman annuitant shall be increased to the amount of annuity before reduction for the reversionary annuity and no reversionary annuity shall be payable. The option is subject to the further condition that no reversionary annuity shall be paid if the fireman dies before the expiration of 730 days from the date his or her written designation was filed with the board, even though he has retired and is receiving a reduced annuity.

(c) A fireman exercising this option may not reduce his or her annuity by more than $400 per month or elect to provide a reversionary annuity of less than $100 per month.

(d) A reversionary annuity shall begin on the day following the death of the annuitant, with the first prorated payment due and payable the first day of the month following the date of death, and shall continue monthly thereafter until the death of the reversionary annuitant, with the last payment prorated to date of death.

(e) Notwithstanding the fact that a fireman has elected to receive a reduced annuity under this Section, the increases in annuity provided in Section 6-164 of this Article shall be calculated on the amount of the original unreduced annuity.

(f) The amount of the monthly reversionary annuity shall be determined by multiplying the amount of the monthly reduction in the fireman's annuity by the applicable factor in the following table based on the age of the fireman and the difference in the age of the fireman and the age of the fireman's spouse at the starting date of the fireman's annuity: Fireman's Age: 50-52 53-55 56-58 59-61 62-64 65 & over Spouse's Age: 30 or more years younger 2.92 2.48 2.10 1.77 1.48 1.24 25-29 years younger 3.06 2.60 2.20 1.86 1.57 1.32 20-24 years younger 3.25 2.76 2.35 2.00 1.69 1.42 15-19 years younger 3.50 2.99 2.56 2.19 1.86 1.57 10-14 years younger 3.86 3.31 2.85 2.45 2.10 1.79 5-9 years younger 4.36 3.77 3.26 2.83 2.44 2.10 0-4 years younger 5.06 4.40 3.85 3.36 2.93 2.55 1-5 years older 6.04 5.30 4.68 4.13 3.63 3.19 6-10 years older 7.40 6.56 5.86 5.23 4.63 4.09 11-15 years older 9.31 8.33 7.51 6.75 6.01 5.31 16-20 years older 11.95 10.78 9.78 8.84 7.90 7.02 21-25 years older 15.54 14.07 12.86 11.73 10.60 9.56 26-30 years older 20.37 18.55 17.15 15.94 14.73 13.62 31 or more years older 27.03 24.90 23.51 22.52 21.60 20.90

Section 90. The State Mandates Act is amended by adding Section 8.34 as follows:

(30 ILCS 805/8.34 new)

Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 96th General Assembly.