104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0704 Introduced , by Rep. Emanuel "Chris" Welch 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. LRB104 04595 RPS 14622 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0704 Introduced , by Rep. Emanuel "Chris" Welch SYNOPSIS AS INTRODUCED: 40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119 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. LRB104 04595 RPS 14622 b LRB104 04595 RPS 14622 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0704 Introduced , by Rep. Emanuel "Chris" Welch SYNOPSIS AS INTRODUCED: 40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119 40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119 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. LRB104 04595 RPS 14622 b LRB104 04595 RPS 14622 b LRB104 04595 RPS 14622 b A BILL FOR HB0704LRB104 04595 RPS 14622 b HB0704 LRB104 04595 RPS 14622 b HB0704 LRB104 04595 RPS 14622 b 1 AN ACT concerning 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 Section 14-119 as follows: 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 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0704 Introduced , by Rep. Emanuel "Chris" Welch SYNOPSIS AS INTRODUCED: 40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119 40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119 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. LRB104 04595 RPS 14622 b LRB104 04595 RPS 14622 b LRB104 04595 RPS 14622 b A BILL FOR 40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119 LRB104 04595 RPS 14622 b HB0704 LRB104 04595 RPS 14622 b HB0704- 2 -LRB104 04595 RPS 14622 b HB0704 - 2 - LRB104 04595 RPS 14622 b HB0704 - 2 - LRB104 04595 RPS 14622 b 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. HB0704 - 2 - LRB104 04595 RPS 14622 b HB0704- 3 -LRB104 04595 RPS 14622 b HB0704 - 3 - LRB104 04595 RPS 14622 b HB0704 - 3 - LRB104 04595 RPS 14622 b 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, HB0704 - 3 - LRB104 04595 RPS 14622 b HB0704- 4 -LRB104 04595 RPS 14622 b HB0704 - 4 - LRB104 04595 RPS 14622 b HB0704 - 4 - LRB104 04595 RPS 14622 b 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 HB0704 - 4 - LRB104 04595 RPS 14622 b HB0704- 5 -LRB104 04595 RPS 14622 b HB0704 - 5 - LRB104 04595 RPS 14622 b HB0704 - 5 - LRB104 04595 RPS 14622 b HB0704 - 5 - LRB104 04595 RPS 14622 b