Sec. 16-142.3. Required distributions.

338 words·~2 min read·/il/chapter-40/act-5/16-142-3

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(a)A person who would be eligible to receive a monthly survivor benefit under this Article but for the fact that the person has not yet attained age 50, and who has not elected to receive a lump sum distribution under subsection

(a)of Section 16-141, shall be eligible for a monthly distribution under this subsection (a), provided that the payment of such distribution is required by federal law.

The distribution shall become payable on

(i)July 1, 1987,

(ii)December 1 of the calendar year immediately following the calendar year in which the member or annuitant died, or

(iii)December 1 of the calendar year in which the deceased member or annuitant would have attained age 72, whichever occurs latest, and shall remain payable until the first of the following to occur:

(1)the person becomes eligible to receive a monthly survivor benefit under this Article;

(2)the day following the date on which the member ceases to be eligible to receive a monthly survivor benefit upon attainment of age 50, due to remarriage or death; or

(3)the day on which such distribution ceases to be required by federal law.

The amount of the distribution shall be fixed at the time the distribution first becomes payable, and shall be calculated in the same manner as the monthly survivor benefit under Sections 16-141, 16-142, 16-142.1 and 16-142.2, but excluding any automatic annual increases, supplemental increases, or one-time increases that may be provided by law for monthly survivor benefits.

(b)For the purpose of this Section, a distribution shall be deemed to be required by federal law if:

(1)directly mandated by federal statute, rule, or administrative or court decision; or

(2)indirectly mandated through imposition of substantial tax or other penalties for noncompliance.

(c)Notwithstanding Section 1-103.1 of this Code, a member need not be in service on or after the effective date of this amendatory Act of 1989 for the member's surviving spouse to be eligible for a distribution under this Section.