Bill
SB 1268
SB 1268 increases the IMRF flat death benefit from $3,000 to $8,000 for most deaths and annuitant deaths after Jan 1, 2026, with a grandfathering exception.
Status / key dates
- Bill number: SB 1268
- Primary sponsor: Sen. Karina Villa (co‑sponsors listed: Blanco, Inouye)
- Filed/Introduced: Jan 28 / Feb 13, 2025 (various chamber entries)
- Assigned to: Pensions (and other committees per chamber activity)
- Proposed effective date: January 1, 2026 (if enacted)
- Related legislation: HB 3628, HB 563
Purpose / intent
- Increase the statutory, lump‑sum death benefit payable under the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. The change is intended to raise the flat death benefit paid to survivors and certain beneficiaries to provide greater financial support upon the death of a participating employee or annuitant.
How the bill would change current law (key provisions)
- Amends multiple IMRF provisions (40 ILCS 5/7‑158, 7‑164, 7‑172, 7‑205, and 7‑206) to raise the flat death benefit amount:
- Current statutory flat death benefit: $3,000.
- New statutory flat death benefit: $8,000.
- The $8,000 benefit applies in the several death‑benefit scenarios specified in the IMRF Article (examples include death of an employee in service, death of a separated employee who was entitled to a retirement annuity, and death of an annuitant), except:
- Persons who first retired prior to the effective date of this amendatory Act retain the existing $3,000 death benefit (the bill makes this explicit).
- Conforming edits are made throughout the cited sections to reflect the new benefit amount.
- Amends the State Mandates Act language to require implementation of the change without state reimbursement to local units of government (i.e., any costs imposed on local governments would not be reimbursed by the State under that Act).
Who would be affected
- Directly affected: surviving spouses, children, designated beneficiaries, and estates of IMRF participants and annuitants who qualify for the flat death benefit described in statute. Most IMRF members and their survivors would see the statutory flat death benefit increase from $3,000 to $8,000 for deaths and annuitant deaths occurring after the effective date (subject to the retiree‑before‑effective‑date exception).
- Indirectly affected: IMRF (administrators) and IMRF‑participating employers (municipalities, counties, special districts, school employers that participate in IMRF) because higher death benefits may alter plan liabilities and funding requirements.
Fiscal and implementation considerations
- The bill text includes a State Mandates Act provision requiring implementation without reimbursement, indicating units of local government may bear any additional costs.
- The bill text itself does not contain a fiscal note in the provided version. Practically, raising a statutory death benefit increases plan obligations and could have a modest actuarial cost to IMRF; those costs are typically amortized through employer and/or employee contribution rates over time. The precise fiscal impact would require IMRF actuarial analysis.
- Effective date provided as January 1, 2026 (so deaths/annuitant deaths occurring on or after that date would be governed by the new amount, except as limited by the bill’s grandfathering language for earlier retirees).
Sections amended
- 40 ILCS 5/7‑158; 7‑164; 7‑172; 7‑205; 7‑206 (Illinois Pension Code — IMRF Article)
Bottom line
- SB 1268 raises the IMRF statutory flat death benefit from $3,000 to $8,000 for most qualifying deaths and annuitant deaths, with a narrow grandfathering exception for persons who first retired before the bill’s effective date. The change increases survivor benefits but will likely have a measurable (though potentially modest) actuarial and budgetary impact on IMRF and participating employers; the bill directs implementation without state reimbursement.
Compiled from official sources — confirm details with the bill’s official record.
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