40 ILCS 5/13-306
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 13 - Metropolitan Water Reclamation District Retirement Fund

 (from Ch. 108 1/2, par. 13-306)Sec. 13-306. Computation of surviving spouse's annuity.(a) Computation of the annuity.  The surviving spouse's annuity shall be  equal to 60% of the retirement annuity earned and accrued to the  credit of the deceased employee, whether death occurs while in service or  after withdrawal, plus 1% for each year of total service of the employee to  a maximum of 85%; provided, however, that if the employee's death arises  out of and in the course of the employee's service to the employer and is  compensable under either the Illinois Workers' Compensation Act or Illinois  Workers' Occupational Diseases Act, the surviving spouse's annuity is payable  regardless of the employee's length of service and shall be  not less than 50% of the employee's salary at the date of death.For any death in service the early retirement discount required under  Section 13-302(b) shall not be applied in computing the retirement annuity  upon which is based the surviving spouse's annuity.For any death after withdrawal and prior to application for annuity benefits, the early retirement discount required under Section 13-302(b) shall be applied in computing the retirement annuity upon which the surviving spouse's annuity is based. The maximum age discount applied to the employee's retirement annuity shall not exceed 60%.Further, the annuity for a surviving spouse of a withdrawn employee who was eligible for an annuity upon attainment of age 62 pursuant to Section 13-301(b) but who died prior to age 60 shall be based upon an employee annuity that has been reduced by 1/2% for each full month between the date the surviving spouse's annuity begins and the employee's attainment of age 60.(b) Reciprocal service.  For any employee or annuitant who retires on or  after July 1, 1985 and whose death occurs after January 1, 1991, having  at least 15 years of service with the employer under this Article, and  who was eligible at the time of death or elected at the time of retirement  to have his or her retirement annuity calculated as provided in Section 20-131  of this Code, the surviving spouse benefit shall be calculated as of the  date of the employee's death as indicated in subsection  (a) as a percentage of the employee's total benefit as if all service had  been with the employer.  That benefit shall then be reduced by  the amounts payable by each of the reciprocal funds as of the date of death  so that the total surviving spouse benefit at that date will be equal to  the benefit which would have been payable had all service been with the  employer under this Article.(c) Discount for age differential.  The annuity for a surviving spouse  shall be discounted by 0.25% for each full month that the spouse is younger  than the employee as of the date of withdrawal from service or death in service  to a maximum discount of 60% of the surviving spouse annuity as calculated  under subsections (a), (b), and (e) of this Section.  The discount shall be  reduced by 10% for each full  year the marriage has been in continuous effect as of the date of  withdrawal or death in service.  There shall be no discount if the marriage has  been in continuous effect for 10 full years or more at the  time of withdrawal or death in service.(d) Annual increase.  Effective August 23, 1989, on the first day of  each calendar month in which  there occurs an anniversary of the employee's date of retirement or date of  death, whichever occurred first, the surviving spouse's annuity, other than a  term annuity under Section 13-307, shall be increased by an amount equal to 3%  of the amount of the annuity.  Beginning January 1, 1993, all annual increases  payable under this subsection (or any predecessor provision of this  Article) shall be calculated at the rate of 3% of the monthly annuity payable  at the time of the increase, including any increases previously granted under  this Article.Beginning January 1, 1993, surviving spouse annuitants whose deceased  spouse died, retired or withdrew from service before August 23, 1989 with  at least 10 years of service under this Article shall be eligible for the  annual increases provided under this subsection.(e) Minimum surviving spouse's annuity.(1) Beginning January 1, 1993, the minimum monthly     surviving spouse's annuity shall be $500 for any annuitant whose deceased spouse had at least 10 years of service under this Article, other than a surviving spouse who is a term annuitant or whose deceased spouse began receiving a retirement annuity under this Article before attainment of age 60.  Any such surviving spouse annuitant who is receiving a monthly annuity of less than $500 shall have the annuity increased to $500 on that date.Beginning January 1, 1993, the minimum monthly     surviving spouse's annuity shall be $250 for any annuitant (other than a term or reciprocal annuitant or an annuitant survivor under subsection (d) of Section 13-301) whose deceased spouse had less than 10 years of service under this Article, and for any annuitant (other than a term annuitant) whose deceased spouse had at least 10 years of service under this Article and began receiving a retirement annuity under this Article before attainment of age 60.  Any such surviving spouse annuitant who is receiving a monthly annuity of less than $250 shall have the annuity increased to $250 on that date.(2) Beginning August 1, 2001 (and without regard to     whether the deceased spouse was in service on or after that date), the minimum monthly surviving spouse's annuity for any annuitant whose deceased spouse had at least 10 years of service shall be the greater of the following:(A) An amount equal to $500, plus $25 for each         year of the deceased spouse's service in excess of 10, not to exceed $750 for an annuitant whose deceased spouse had 20 or more years of service.  This subdivision (A) is not applicable if the deceased spouse received a retirement annuity that was subject to an early retirement discount.(B) An amount equal to (i) 50% of the retirement         annuity earned and accrued to the credit of the deceased spouse at the time of death, plus (ii) the amount of any annual increases applicable to the surviving spouse's annuity (including the amount of any reversionary annuity) under subsection (d) before July 12, 2001. In any case in which a refund of excess contributions for the surviving spouse annuity has been paid by the Fund and the surviving spouse annuity is increased due to the application of this subdivision (B), the amount of that refund shall be recovered by the Fund as an offset against the amount of the increase in annuity arising from the application of this subdivision (B).In the case of a reciprocal annuity, the minimum         annuity calculated under this subdivision (e)(2) shall apply only if the deceased spouse of the annuitant had at least 10 years of service under this Article, and the amount of the minimum annuity shall be reduced by the sum of all the reciprocal annuities payable to the annuitant by other participating systems under Article 20 of this Code.The minimum annuity calculated under this         subdivision (e)(2) is in addition to the amount of any reversionary annuity that may be payable.(3) Beginning August 1, 2001 (and without regard to     whether the deceased spouse was in service on or after that  date), any surviving spouse who is receiving a term annuity under Section 13-307 or any predecessor provision of this Article may have that term annuity recalculated and converted to a minimum surviving spouse annuity under this subsection (e).(4) Notwithstanding any other provision of this     subsection, beginning August 1, 2001, an annuitant whose deceased spouse retired before August 23, 1989 with at least 10 years of service under this Article but before attaining age 60 (regardless of whether the retirement annuity was subject to an early retirement discount) shall be entitled to the same minimum monthly surviving spouse's annuity under this subsection as an annuitant whose deceased spouse retired with at least 10 years of service under this Article and after attaining age 60.  Further notwithstanding any other provision of this subsection, beginning on the first day of the month following the month in which this amendatory Act of the 94th General Assembly takes effect, an annuitant whose deceased spouse retired on or after August 23, 1989 with at least 10 years of service under this Article but before attaining age 60 (regardless of whether the retirement annuity was subject to an early retirement discount) shall be entitled to the same minimum monthly surviving spouse's annuity under this subsection as an annuitant whose deceased spouse retired with at least 10 years of service under this Article and after attaining age 60.(5) The minimum annuity provided under this     subsection (e) shall be subject to the age discount provided under subsection (c) of this Section.       (Source: P.A. 94-621, eff. 8-18-05.)