40 ILCS 5/15-136.4
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 15 - State Universities Retirement System

Sec. 15-136.4. Retirement and Survivor Benefits Under Portable  Benefit Package.(a) This Section 15-136.4 describes the form of annuity and survivor  benefits available to a participant who has elected the portable benefit  package and has completed the one-year waiting period required under subsection  (e) of Section 15-134.5.  For purposes of this Section, the term  "eligible spouse" means the husband or wife of a participant to whom the  participant is married on the date the participant's annuity  payment period begins, provided however, that if the participant should die prior  to the commencement of retirement annuity benefits, then "eligible spouse"  means the husband or wife, if any, to whom  the participant was married throughout the one-year period preceding the date  of his or her death.(b) This subsection (b) describes the normal form of annuity payable  to a participant subject to this Section 15-136.4.  If the participant is  unmarried on the date his or her annuity payment period begins, then the annuity  payments shall be made in the form of a single-life annuity as described in  Section 15-118.  If the participant is married on the date his or her annuity  payments commence, then the annuity payments shall be paid in the form of a  qualified joint and survivor annuity that is the actuarial equivalent of the  single-life annuity.  Under the "qualified joint and survivor annuity", a  reduced amount shall be paid to the participant for his or her lifetime and his  or her eligible spouse, if surviving at the participant's death, shall be  entitled to receive thereafter a lifetime survivorship annuity in a monthly  amount equal to 50% of the reduced monthly amount that was payable to the  participant.  The last payment of a qualified joint and survivor annuity shall  be made as of the first day of the month in which the death of the survivor  occurs.(c) Instead of the normal form of annuity that would be paid under  subsection (b), a participant may elect in writing within the 180-day period  prior to the date his or her annuity payments commence to waive the normal form  of annuity payment and receive an optional form of payment as described in  subsection (h).  If the participant is married and elects an optional form of  payment under subsection (h) other than a joint and survivor annuity with the  eligible spouse designated as the contingent annuitant, then such election  shall require the consent of his or her eligible spouse in the manner described  in subsection (d).  At any time during the 180-day period preceding the date the  participant's payment period begins, the participant may revoke the optional form  of payment elected under this subsection (c) and reinstate coverage under the qualified  joint and survivor annuity without the spouse's consent, but an election to  revoke the optional form elected and elect a new optional form of payment or designate a  different contingent annuitant shall not be effective without the eligible  spouse's consent.(d) The eligible spouse's consent to any election made  pursuant to this Section that requires the eligible spouse's consent shall be  in writing and shall acknowledge the effect of the consent.  In addition, the  eligible spouse's signature on the written consent must be witnessed by a  notary public.  The eligible spouse's consent need not be obtained if the  system is satisfied that there is no eligible spouse, that the eligible spouse  cannot be located, or because of any other relevant circumstances.  An eligible  spouse's consent under this Section is valid only with respect to the specified  optional form of payment and, if applicable, contingent  annuitant designated by the participant.  If the optional form of payment or  the contingent annuitant is subsequently changed (other than  by a revocation of the optional form of payment and reinstatement of the qualified joint  and survivor annuity), a new consent by the eligible spouse is required.  The  eligible spouse's consent to an election made by a participant pursuant to this  Section, once made, may not be revoked by the eligible spouse.(e) Within a reasonable period of time preceding the date a  participant's annuity commences, a participant shall be supplied with a written  explanation of (1) the terms and conditions of the normal form single-life  annuity and qualified joint and survivor annuity, (2) the  participant's right to elect a single-life annuity or an optional  form of payment under subsection (h) subject to his or her eligible  spouse's consent, if applicable, and (3) the participant's right to  reinstate coverage under the qualified joint and survivor annuity  prior to his or her annuity commencement date by revoking an election of an  optional form of payment under subsection (h).(f) If a married participant with at least 1.5 years of  service dies prior to commencing retirement annuity payments and prior to  taking a refund under Section 15-154, his or her eligible spouse is entitled  to receive a pre-retirement survivor annuity, if there is not then in effect  a waiver of the pre-retirement survivor annuity.  The pre-retirement survivor  annuity payable under this subsection shall be a monthly annuity payable for  the eligible spouse's life, commencing as of the beginning of the month next  following the later of the date of the participant's death or the date the  participant would have first met the eligibility requirements for retirement,  and continuing through the beginning of the month in which the death of the  eligible spouse occurs.  The monthly amount payable to the spouse under the  pre-retirement survivor annuity shall be equal to the monthly  amount that would be payable as a survivor annuity under the qualified joint  and survivor annuity described in subsection (b) if: (1) in the case of a  participant who dies on or after the date on which the participant has  met the eligibility requirements for retirement, the participant had retired  with an immediate qualified joint and  survivor annuity on the day before the participant's date  of death; or (2) in  the case of a participant who dies before the earliest date on  which the participant would have met the eligibility requirements for retirement age, the participant had separated from  service on the date of death, survived to the earliest retirement age based  on service prior to his or her death, retired with an immediate qualified  joint and survivor annuity at the earliest retirement age, and died on the day  after the day on which the participant would have attained the earliest  retirement age.(g) A married participant who has not retired may elect at any time to  waive the pre-retirement survivor annuity described in subsection (f).  Any  such election shall require the consent of the participant's eligible spouse  in the manner described in subsection (d).  A waiver of the pre-retirement  survivor annuity shall increase the lump sum death benefit payable under  subsection (b) of Section 15-141.  Prior to electing any waiver of the  pre-retirement survivor annuity, the participant shall be provided with a  written explanation of (1) the terms and conditions of the pre-retirement  survivor annuity and the death benefits payable from the system both with and  without the pre-retirement survivor annuity, (2) the participant's right to  elect a waiver of the pre-retirement survivor annuity coverage subject to his  or her spouse's consent, and (3) the participant's right to reinstate  pre-retirement survivor annuity coverage at any time by revoking a prior waiver  of such coverage.(h) By filing a timely election with the system, a participant who will  be eligible to receive a retirement annuity under this Section may waive the  normal form of annuity payment described in subsection (b), subject to  obtaining the consent of his or her eligible spouse, if applicable, and elect  to receive any one of the following optional forms of payment:(1) Joint and Survivor Annuity Options:  The     participant may elect to receive a reduced annuity payable for his or her life and to have a lifetime survivorship annuity in a monthly amount equal to 50%, 75%, or 100% (as elected by the participant) of that reduced monthly amount, to be paid after the participant's death to his or her contingent annuitant, if the contingent annuitant is alive at the time of the participant's death.(2) Single-Life Annuity Option (optional for married     participants).  The participant may elect to receive a single-life annuity payable for his or her life only.(3) Lump sum retirement benefit. The participant may     elect to receive a lump sum retirement benefit that is equal to the amount of a refund payable under Section 15-154(a-2).  All joint and survivor annuity forms shall be in an amount that is the actuarial  equivalent of the single-life annuity.For the purposes of this Section, the term "contingent annuitant" means the  beneficiary who is designated by a participant at the time the participant  elects a joint and survivor annuity to receive the lifetime survivorship  annuity in the event the beneficiary survives the participant at the  participant's death.(i) Under no circumstances may an option be elected, changed, or revoked  after the date the participant's retirement annuity commences.(j) An election made pursuant to subsection (h)  shall become inoperative if the participant or the  contingent annuitant dies before the date the participant's annuity payments  commence, or if the eligible spouse's consent is required and not given.(k) (Blank).(l) The automatic annual increases described in subsection (d) of Section  15-136 shall apply to retirement benefits under the portable benefit package  and the automatic annual increases described in subsection (j) of Section  15-145 shall apply to survivor benefits under the portable benefit package.  (Source: P.A. 96-586, eff. 8-18-09; 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)