Public Act 103-0529
HB2352 EnrolledLRB103 27717 RPS 54094 b HB2352 Enrolled LRB103 27717 RPS 54094 b
HB2352 Enrolled LRB103 27717 RPS 54094 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 1-160, 9-169, 9-179.1, 9-184, 9-185, 9-195,
and 9-199 and by adding Sections 9-169.1, 9-169.2, and 9-240
as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
HB2352 Enrolled LRB103 27717 RPS 54094 b
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
5-27-22.)
(40 ILCS 5/9-169) (from Ch. 108 1/2, par. 9-169)
Sec. 9-169. Financing; tax Financing - Tax levy and other
funding sources.
(a) The county board shall levy a tax annually upon all
taxable property in the county at the rate that will produce a
sum which, when added to the amounts deducted from the
salaries of the employees or otherwise contributed by them is
sufficient for the requirements of this Article.
For the years before 1962 the tax rate shall be as provided
in "The 1925 Act". For the years 1962 and 1963 the tax rate
shall be not more than .0200 per cent; for the years 1964 and
1965 the tax rate shall be not more than .0202 per cent; for
the years 1966 and 1967 the tax rate shall be not more than
.0207 per cent; for the year 1968 the tax rate shall be not
more than .0220 per cent; for the year 1969 the tax rate shall
be not more than .0233 per cent; for the year 1970 the tax rate
shall be not more than .0255 per cent; for the year 1971 the
tax rate shall be not more than .0268 per cent of the value, as
equalized or assessed by the Department of Revenue upon all
taxable property in the county. Beginning with the year 1972
and for each year thereafter the county shall levy a tax
annually at a rate on the dollar of the value, as equalized or
assessed by the Department of Revenue of all taxable property
within the county that will produce, when extended, not to
exceed an amount equal to the total amount of contributions
made by the employees to the fund in the calendar year 2 years
prior to the year for which the annual applicable tax is levied
multiplied by .8 for the years 1972 through 1976; by .8 for the
year 1977; by .87 for the year 1978; by .94 for the year 1979;
by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
1.18 for the year 1982 and by 1.36 for the year 1983 and by
1.54 for the year 1984 and for each year thereafter.
This tax shall be levied and collected in like manner with
the general taxes of the county, and shall be in addition to
all other taxes which the county is authorized to levy upon the
aggregate valuation of all taxable property within the county
and shall be exclusive of and in addition to the amount of tax
the county is authorized to levy for general purposes under
any laws which may limit the amount of tax which the county may
levy for general purposes. The county clerk, in reducing tax
levies under any Act concerning the levy and extension of
taxes, shall not consider this tax as a part of the general tax
levy for county purposes, and shall not include it within any
limitation of the per cent of the assessed valuation upon
which taxes are required to be extended for the county. It is
lawful to extend this tax in addition to the general county
rate fixed by statute, without being authorized as additional
by a vote of the people of the county.
Revenues derived from this tax shall be paid to the
treasurer of the county and held by the treasurer him for the
benefit of the fund.
If the payments on account of taxes are insufficient
during any year to meet the requirements of this Article, the
county may issue tax anticipation warrants against the current
tax levy.
(b) By January 10, annually, the board shall notify the
county board of the requirement of this Article that this tax
shall be levied. The board shall make an annual determination
of the required county contributions, and shall certify the
results thereof to the county board.
(c) Beginning in the year 2024, the county's minimum
required employer contribution as provided in Section 9-169.2
shall be paid with the portion of the tax levy as provided in
subsection (a) of this Section and any other lawfully
available funds of the county. The county shall disburse to
and deposit with the county treasurer on a monthly basis
beginning no later than the December 31 preceding the
beginning of the Fund's fiscal year 1/12 of the balance of what
is not paid under subsection (a), for the benefit of the Fund,
to be held in accordance with this Article. This amount,
together with such real estate taxes as are specifically
levied under this Section for that year, shall not be less than
the amount of the minimum required employer contribution for
that year as certified by the Fund to the county board. The
deposit may be derived from any source otherwise legally
available to the county for that purpose, including, but not
limited to, home rule taxes. The making of a deposit shall
satisfy the requirements of this Section for that year to the
extent of the amounts so deposited. Amounts deposited under
this subsection may be used by the Fund for any of the purposes
for which the proceeds of real estate taxes levied by the
county under this Section may otherwise be used, including the
payment of any amount that is otherwise required by this
Article to be paid from the proceeds of that tax. If the
county, before the effective date of this amendatory Act of
the 103rd General Assembly, made a contribution or agreed to
make a contribution to the Fund from sources other than real
estate taxes, this paragraph confirms the validity of or
ratifies such contribution or agreement, and neither the
county nor any of its officers or employees shall be required
to answer for such contribution or agreement in any court. The
various sums to be contributed by the county board and
allocated for the purposes of this Article and any interest to
be contributed by the county shall be taken from the revenue
derived from this tax and no money of the county derived from
any source other than the levy and collection of this tax or
the sale of tax anticipation warrants, except state or federal
funds contributed for annuity and benefit purposes for
employees of a county department of public aid under "The
Illinois Public Aid Code", approved April 11, 1967, as now or
hereafter amended, may be used to provide revenue for the
fund.
If it is not possible or practicable for the county to make
contributions for age and service annuity and widow's annuity
concurrently with the employee contributions made for such
purposes, such county shall make such contributions as soon as
possible and practicable thereafter with interest thereon at
the effective rate until the time it shall be made.
(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the
board has elected to establish a manpower program reserve, the
board shall compute the amounts necessary to be credited to
the manpower program reserves established and maintained as
herein provided, and shall make a periodic determination of
the amount of required contributions from the County to the
reserve to be reimbursed by the federal government in
accordance with rules and regulations established by the
Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the County Board.
Any such amounts shall become a credit to the County and will
be used to reduce the amount which the County would otherwise
contribute during succeeding years for all employees.
(e) In lieu of establishing a manpower program reserve
with respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as authorized by subsection (d), the board may
elect to establish a special County contribution rate for all
such employees. If this option is elected, the County shall
contribute to the Fund from federal funds provided under the
Comprehensive Employment and Training Act program at the
special rate so established and such contributions shall
become a credit to the County and be used to reduce the amount
which the County would otherwise contribute during succeeding
years for all employees.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/9-169.1 new)
Sec. 9-169.1. Annual actuarial report. The retirement
board shall retain an actuary who is a member in good standing
of the American Academy of Actuaries to produce an annual
actuarial report of the Fund. The annual actuarial report
shall include, but not be limited to: (1) a statement of the
minimum required contribution, the actuarial value of the
Fund's assets as projected over at least 30 years' time, and
the actuarial value of the Fund's liabilities as projected
over the same period of time; and (2) the minimum required
employer contribution, as determined under Section 9-169.2,
for the second year immediately following the year ending on
the valuation date upon which the annual actuarial report is
based.
The annual actuarial report may be prepared as part of the
annual audit required under Section 9-195. The annual
actuarial report shall be reviewed and formally adopted by the
retirement board and shall be included in the annual report
that is required to be submitted to the county in July of each
year under Section 9-199.
In this Section, "valuation date" means the date that the
value of the assets and liabilities of the Fund is based on in
the annual actuarial report.
(40 ILCS 5/9-169.2 new)
Sec. 9-169.2. Minimum required employer contribution. The
minimum required employer contribution for a specified year,
as set forth in the annual actuarial report required under
Section 9-169.1, shall be the amount determined by the Fund's
actuary to be equal to the sum of: (i) the projected normal
cost for pensions for that fiscal year based on the entry age
actuarial cost method, plus (ii) a projected unfunded
actuarial accrued liability amortization payment for pensions
for the fiscal year, plus (iii) projected expenses for that
fiscal year, plus (iv) interest to adjust for payment pattern
during the fiscal year, less (v) projected employee
contributions for that fiscal year.
The minimum required employer contribution for the next
year shall be submitted annually by the county on or before
June 14 of each year unless another time frame is agreed upon
by the county and the Fund.
For the purposes of this Section:
"5-Year smoothed actuarial value of assets" means the
value of assets as determined by a method that spreads the
effect of each year's investment return in excess of or below
the expected return.
"Entry age actuarial cost method" means a method of
determining the normal cost and is determined as a level
percentage of pay that, if paid from entry age to the assumed
retirement age, assuming all the actuarial assumptions are
exactly met by experience and no changes in assumptions or
benefit provisions, would accumulate to a fund sufficient to
pay all benefits provided by the Fund.
"Layered amortization" means a technique that separately
layers the different components of the unfunded actuarial
accrued liabilities to be amortized over a fixed period not to
exceed 30 years.
"Projected expenses" means the projected administrative
expenses for the cost of administrating the Fund.
"Projected normal costs for pensions" means the cost of
the benefits that accrue during the year for active members
under the entry age actuarial cost method.
"Unfunded actuarial accrued liability amortization
payment" means the annual contribution equal to the difference
between the values of assets and the accrued liabilities of
the plan, calculated by an actuary, needed to amortize the
Fund's liabilities over a period of 30 years starting in 2017,
with layered amortization of the Fund's unexpected unfunded
actuarial accrued liability amortization payment following
2017 in periods of 30 years, with amortization payments
increasing 2% per year, and reflecting a discount rate for all
liabilities consistent with the assumed investment rate of
return on fund assets and a 5-year smoothed actuarial value of
assets.
(40 ILCS 5/9-179.1) (from Ch. 108 1/2, par. 9-179.1)
Sec. 9-179.1. Military service. A contributing employee as
of January 1, 1993 with at least 25 years of service credit may
apply for creditable service for up to 2 years of military
service whether or not the military service followed service
as a county employee. The military service need not have been
served in wartime, but the employee must not have been
dishonorably discharged. To establish this creditable service
the applicant must pay to the Fund, while in the service of the
county, an amount determined by the Fund to represent the
employee contributions for the creditable service established,
based on the employee's rate of compensation on his or her last
day as a contributor before the military service, or on his or
her first day as a contributor after the military service,
whichever is greater, plus interest at the effective rate from
the date of discharge to the date of payment. If a person who
has established any credit under this Section applies for or
receives any early retirement incentive under Section 9-134.2,
the credit under this Section shall be forfeited and the
amount paid to the Fund under this Section shall be refunded.
(Source: P.A. 87-1265.)
(40 ILCS 5/9-184) (from Ch. 108 1/2, par. 9-184)
Sec. 9-184. Estimates of sums required for certain
annuities and benefits. The board shall estimate and itemize
the amounts required each year to pay for all annuities, each
benefit category, and benefits and administrative expenses
associated with this Article, by way of a written report and
request to the County Board of Commissioners. The amounts
shall be paid into the fund annually by the county as provided
in Section 9-169 from the prescribed tax levy.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
Sec. 9-185. Board created.
(a) A board of 9 members shall constitute the board of
trustees authorized to carry out the provisions of this
Article. The board of trustees shall be known as "The
Retirement Board of the County Employees' Annuity and Benefit
Fund of .... County". The board shall consist of 2 members
appointed and 7 members elected as hereinafter prescribed.
(b) The appointed members shall be appointed as follows:
One member shall be appointed by the comptroller of such
county, who may be the comptroller or some person chosen by the
comptroller him from among employees of the county, who are
versed in the affairs of the comptroller's office; and one
member shall be appointed by the treasurer of such county, who
may be the treasurer or some person chosen by the treasurer him
from among employees of the County who are versed in the
affairs of the treasurer's office.
The member appointed by the comptroller shall hold office
for a term ending on December 1st of the first year following
the year of appointment. The member appointed by the county
treasurer shall hold office for a term ending on December 1st
of the second year following the year of appointment.
Thereafter, each appointed member shall be appointed by
the officer that appointed the his predecessor for a term of 2
years.
(c) Three county employee members of the board shall be
elected as follows: within 30 days from and after the date upon
which this Article comes into effect in the county, the clerk
of the county shall arrange for and hold an election. One
employee shall be elected for a term ending on the first day in
the month of December of the first year next following the
effective date; one for a term ending on December 1st of the
following year; and one for a term ending December 1st of the
second following year.
(d) Beginning December 1, 1988, and every 3 years
thereafter, an annuitant member of the board shall be elected
as follows: the board shall arrange for and hold an election in
which only those participants who are currently receiving
retirement benefits under this Article shall be eligible to
vote and be elected. Each such member shall be elected to a
term ending on the first day in the month of December of the
third following year.
(d-1) Beginning December 1, 2001, and every 3 years
thereafter, an annuitant member of the board shall be elected
as follows: the board shall arrange for and hold an election in
which only those participants who are currently receiving
retirement benefits under this Article shall be eligible to
vote and be elected. Each such member shall be elected to a
term ending on the first day in the month of December of the
third following year. Until December 1, 2001, the position
created under this subsection (d-1) may be filled by the board
as in the case of a vacancy.
(e) Beginning December 1, 1988, if a Forest Preserve
District Employees' Annuity and Benefit Fund shall be in force
in such county and the board of this fund is charged with
administering the affairs of such annuity and benefit fund for
employees of such forest preserve district, a forest preserve
district member of the board shall be elected as of December 1,
1988, and every 3 years thereafter as follows: the board shall
arrange for and hold an election in which only those employees
of such forest preserve district who are contributors to the
annuity and benefit fund for employees of such forest preserve
district shall be eligible to vote and be elected. Each such
member shall be elected to a term ending on the first day in
the month of December of the third following year.
(f) Beginning December 1, 2001, and every 3 years
thereafter, if a Forest Preserve District Employees' Annuity
and Benefit Fund is in force in the county and the board of
this Fund is charged with administering the affairs of that
annuity and benefit fund for employees of the forest preserve
district, a forest preserve district annuitant member of the
board shall be elected as follows: the board shall arrange for
and hold an election in which only those participants who are
currently receiving retirement benefits under Article 10 shall
be eligible to vote and be elected. Each such member shall be
elected to a term ending on the first day in the month of
December of the third following year. Until December 1, 2001,
the position created under this subsection (f) may be filled
by the board as in the case of a vacancy.
(Source: P.A. 92-66, eff. 7-12-01.)
(40 ILCS 5/9-195) (from Ch. 108 1/2, par. 9-195)
Sec. 9-195. To have an audit. To have an audit of the
accounts of the fund made at least once each year by certified
public accountants. The audit may include the preparation of
the annual actuarial report required under Section 9-169.1.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-199) (from Ch. 108 1/2, par. 9-199)
Sec. 9-199. To submit an annual report. To submit a report
in July of each year to the county board of the county as of
the close of business on December 31st of the preceding year.
The report shall contain a detailed statement of the affairs
of the fund, its income and expenditures, and assets and
liabilities, and it shall include the annual actuarial report
required under Section 9-169.1. The county board shall have
power to require and compel the retirement board to prepare
and submit such reports.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/9-240 new)
Sec. 9-240. Group health benefit funding. Beginning on the
effective date of this amendatory Act of the 103rd General
Assembly, the county shall be notified by June 14 of each year
of the proposed costs of any such payments allocated by the
Fund for all or any portion of the total health premium paid by
the Fund pursuant to Section 9-239.
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.