Illinois 2023-2024 Regular Session

Illinois House Bill HB2589 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2589 Introduced , by Rep. Travis Weaver SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to implement a Tier 3 plan by July 1, 2024 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a person who becomes a participant of a System on or after July 1, 2024 shall participate in the Tier 3 plan instead of the defined benefit plan. Authorizes a Tier 1 or Tier 2 participant to elect to participate in the Tier 3 plan instead of the defined benefit plan and to also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately. LRB103 30272 RPS 56700 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2589 Introduced , by Rep. Travis Weaver SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to implement a Tier 3 plan by July 1, 2024 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a person who becomes a participant of a System on or after July 1, 2024 shall participate in the Tier 3 plan instead of the defined benefit plan. Authorizes a Tier 1 or Tier 2 participant to elect to participate in the Tier 3 plan instead of the defined benefit plan and to also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately. LRB103 30272 RPS 56700 b LRB103 30272 RPS 56700 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2589 Introduced , by Rep. Travis Weaver SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to implement a Tier 3 plan by July 1, 2024 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a person who becomes a participant of a System on or after July 1, 2024 shall participate in the Tier 3 plan instead of the defined benefit plan. Authorizes a Tier 1 or Tier 2 participant to elect to participate in the Tier 3 plan instead of the defined benefit plan and to also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately.
6	6	LRB103 30272 RPS 56700 b LRB103 30272 RPS 56700 b
7	7	LRB103 30272 RPS 56700 b
8	8	A BILL FOR
9	9	HB2589LRB103 30272 RPS 56700 b HB2589 LRB103 30272 RPS 56700 b
10	10	HB2589 LRB103 30272 RPS 56700 b
11	11	1 AN ACT concerning public employee benefits.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The State Employees Group Insurance Act of 1971
15	15	5 is amended by changing Sections 3 and 10 as follows:
16	16	6 (5 ILCS 375/3) (from Ch. 127, par. 523)
17	17	7 Sec. 3. Definitions. Unless the context otherwise
18	18	8 requires, the following words and phrases as used in this Act
19	19	9 shall have the following meanings. The Department may define
20	20	10 these and other words and phrases separately for the purpose
21	21	11 of implementing specific programs providing benefits under
22	22	12 this Act.
23	23	13 (a) "Administrative service organization" means any
24	24	14 person, firm or corporation experienced in the handling of
25	25	15 claims which is fully qualified, financially sound and capable
26	26	16 of meeting the service requirements of a contract of
27	27	17 administration executed with the Department.
28	28	18 (b) "Annuitant" means (1) an employee who retires, or has
29	29	19 retired, on or after January 1, 1966 on an immediate annuity
30	30	20 under the provisions of Article Articles 2 (including an
31	31	21 employee who, in lieu of receiving an annuity under that
32	32	22 Article, has retired under the Tier 3 plan established under
33	33	23 Section 2-165.5 of that Article), 14 (including an employee
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2589 Introduced , by Rep. Travis Weaver SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to implement a Tier 3 plan by July 1, 2024 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a person who becomes a participant of a System on or after July 1, 2024 shall participate in the Tier 3 plan instead of the defined benefit plan. Authorizes a Tier 1 or Tier 2 participant to elect to participate in the Tier 3 plan instead of the defined benefit plan and to also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately.
41	41	LRB103 30272 RPS 56700 b LRB103 30272 RPS 56700 b
42	42	LRB103 30272 RPS 56700 b
43	43	A BILL FOR
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49	49	See Index
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68	68	1 who has elected to receive an alternative retirement
69	69	2 cancellation payment under Section 14-108.5 of the Illinois
70	70	3 Pension Code in lieu of an annuity; an employee who, in lieu of
71	71	4 receiving an annuity under that Article, has retired under the
72	72	5 Tier 3 plan established under Section 14-155.5 of that
73	73	6 Article; or an employee who meets the criteria for retirement,
74	74	7 but in lieu of receiving an annuity under that Article has
75	75	8 elected to receive an accelerated pension benefit payment
76	76	9 under Section 14-147.5 of that Article), or 15 (including an
77	77	10 employee who has retired under the optional retirement program
78	78	11 established under Section 15-158.2 or the Tier 3 plan
79	79	12 established under Section 15-200.5 of the Illinois Pension
80	80	13 Code or who meets the criteria for retirement but in lieu of
81	81	14 receiving an annuity under that Article has elected to receive
82	82	15 an accelerated pension benefit payment under Section 15-185.5
83	83	16 of the Article), paragraph (2), (3), or (5) of Section 16-106
84	84	17 (including an employee who meets the criteria for retirement,
85	85	18 but in lieu of receiving an annuity under that Article has
86	86	19 elected to receive an accelerated pension benefit payment
87	87	20 under Section 16-190.5 of the Illinois Pension Code or an
88	88	21 employee who, in lieu of receiving an annuity under that
89	89	22 Article, has retired under the Tier 3 plan established under
90	90	23 Section 16-205.5 of the Illinois Pension Code), or Article 18
91	91	24 (including an employee who, in lieu of receiving an annuity
92	92	25 under that Article, has retired under the Tier 3 plan
93	93	26 established under Section 18-121.5 of that Article) of the
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104	104	1 Illinois Pension Code; (2) any person who was receiving group
105	105	2 insurance coverage under this Act as of March 31, 1978 by
106	106	3 reason of his status as an annuitant, even though the annuity
107	107	4 in relation to which such coverage was provided is a
108	108	5 proportional annuity based on less than the minimum period of
109	109	6 service required for a retirement annuity in the system
110	110	7 involved; (3) any person not otherwise covered by this Act who
111	111	8 has retired as a participating member under Article 2 of the
112	112	9 Illinois Pension Code but is ineligible for the retirement
113	113	10 annuity under Section 2-119 of the Illinois Pension Code; (4)
114	114	11 the spouse of any person who is receiving a retirement annuity
115	115	12 under Article 18 of the Illinois Pension Code and who is
116	116	13 covered under a group health insurance program sponsored by a
117	117	14 governmental employer other than the State of Illinois and who
118	118	15 has irrevocably elected to waive his or her coverage under
119	119	16 this Act and to have his or her spouse considered as the
120	120	17 "annuitant" under this Act and not as a "dependent"; or (5) an
121	121	18 employee who retires, or has retired, from a qualified
122	122	19 position, as determined according to rules promulgated by the
123	123	20 Director, under a qualified local government, a qualified
124	124	21 rehabilitation facility, a qualified domestic violence shelter
125	125	22 or service, or a qualified child advocacy center. (For
126	126	23 definition of "retired employee", see (p) post).
127	127	24 (b-5) (Blank).
128	128	25 (b-6) (Blank).
129	129	26 (b-7) (Blank).
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140	140	1 (c) "Carrier" means (1) an insurance company, a
141	141	2 corporation organized under the Limited Health Service
142	142	3 Organization Act or the Voluntary Health Services Plans Act, a
143	143	4 partnership, or other nongovernmental organization, which is
144	144	5 authorized to do group life or group health insurance business
145	145	6 in Illinois, or (2) the State of Illinois as a self-insurer.
146	146	7 (d) "Compensation" means salary or wages payable on a
147	147	8 regular payroll by the State Treasurer on a warrant of the
148	148	9 State Comptroller out of any State, trust or federal fund, or
149	149	10 by the Governor of the State through a disbursing officer of
150	150	11 the State out of a trust or out of federal funds, or by any
151	151	12 Department out of State, trust, federal or other funds held by
152	152	13 the State Treasurer or the Department, to any person for
153	153	14 personal services currently performed, and ordinary or
154	154	15 accidental disability benefits under Articles 2, 14, or 15
155	155	16 (including ordinary or accidental disability benefits under
156	156	17 the optional retirement program established under Section
157	157	18 15-158.2), paragraph (2), (3), or (5) of Section 16-106, or
158	158	19 Article 18 of the Illinois Pension Code, for disability
159	159	20 incurred after January 1, 1966, or benefits payable under the
160	160	21 Workers' Compensation or Occupational Diseases Act or benefits
161	161	22 payable under a sick pay plan established in accordance with
162	162	23 Section 36 of the State Finance Act. "Compensation" also means
163	163	24 salary or wages paid to an employee of any qualified local
164	164	25 government, qualified rehabilitation facility, qualified
165	165	26 domestic violence shelter or service, or qualified child
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176	176	1 advocacy center.
177	177	2 (e) "Commission" means the State Employees Group Insurance
178	178	3 Advisory Commission authorized by this Act. Commencing July 1,
179	179	4 1984, "Commission" as used in this Act means the Commission on
180	180	5 Government Forecasting and Accountability as established by
181	181	6 the Legislative Commission Reorganization Act of 1984.
182	182	7 (f) "Contributory", when referred to as contributory
183	183	8 coverage, shall mean optional coverages or benefits elected by
184	184	9 the member toward the cost of which such member makes
185	185	10 contribution, or which are funded in whole or in part through
186	186	11 the acceptance of a reduction in earnings or the foregoing of
187	187	12 an increase in earnings by an employee, as distinguished from
188	188	13 noncontributory coverage or benefits which are paid entirely
189	189	14 by the State of Illinois without reduction of the member's
190	190	15 salary.
191	191	16 (g) "Department" means any department, institution, board,
192	192	17 commission, officer, court or any agency of the State
193	193	18 government receiving appropriations and having power to
194	194	19 certify payrolls to the Comptroller authorizing payments of
195	195	20 salary and wages against such appropriations as are made by
196	196	21 the General Assembly from any State fund, or against trust
197	197	22 funds held by the State Treasurer and includes boards of
198	198	23 trustees of the retirement systems created by Articles 2, 14,
199	199	24 15, 16, and 18 of the Illinois Pension Code. "Department" also
200	200	25 includes the Illinois Comprehensive Health Insurance Board,
201	201	26 the Board of Examiners established under the Illinois Public
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212	212	1 Accounting Act, and the Illinois Finance Authority.
213	213	2 (h) "Dependent", when the term is used in the context of
214	214	3 the health and life plan, means a member's spouse and any child
215	215	4 (1) from birth to age 26 including an adopted child, a child
216	216	5 who lives with the member from the time of the placement for
217	217	6 adoption until entry of an order of adoption, a stepchild or
218	218	7 adjudicated child, or a child who lives with the member if such
219	219	8 member is a court appointed guardian of the child or (2) age 19
220	220	9 or over who has a mental or physical disability from a cause
221	221	10 originating prior to the age of 19 (age 26 if enrolled as an
222	222	11 adult child dependent). For the health plan only, the term
223	223	12 "dependent" also includes (1) any person enrolled prior to the
224	224	13 effective date of this Section who is dependent upon the
225	225	14 member to the extent that the member may claim such person as a
226	226	15 dependent for income tax deduction purposes and (2) any person
227	227	16 who has received after June 30, 2000 an organ transplant and
228	228	17 who is financially dependent upon the member and eligible to
229	229	18 be claimed as a dependent for income tax purposes. A member
230	230	19 requesting to cover any dependent must provide documentation
231	231	20 as requested by the Department of Central Management Services
232	232	21 and file with the Department any and all forms required by the
233	233	22 Department.
234	234	23 (i) "Director" means the Director of the Illinois
235	235	24 Department of Central Management Services.
236	236	25 (j) "Eligibility period" means the period of time a member
237	237	26 has to elect enrollment in programs or to select benefits
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248	248	1 without regard to age, sex or health.
249	249	2 (k) "Employee" means and includes each officer or employee
250	250	3 in the service of a department who (1) receives his
251	251	4 compensation for service rendered to the department on a
252	252	5 warrant issued pursuant to a payroll certified by a department
253	253	6 or on a warrant or check issued and drawn by a department upon
254	254	7 a trust, federal or other fund or on a warrant issued pursuant
255	255	8 to a payroll certified by an elected or duly appointed officer
256	256	9 of the State or who receives payment of the performance of
257	257	10 personal services on a warrant issued pursuant to a payroll
258	258	11 certified by a Department and drawn by the Comptroller upon
259	259	12 the State Treasurer against appropriations made by the General
260	260	13 Assembly from any fund or against trust funds held by the State
261	261	14 Treasurer, and (2) is employed full-time or part-time in a
262	262	15 position normally requiring actual performance of duty during
263	263	16 not less than 1/2 of a normal work period, as established by
264	264	17 the Director in cooperation with each department, except that
265	265	18 persons elected by popular vote will be considered employees
266	266	19 during the entire term for which they are elected regardless
267	267	20 of hours devoted to the service of the State, and (3) except
268	268	21 that "employee" does not include any person who is not
269	269	22 eligible by reason of such person's employment to participate
270	270	23 in one of the State retirement systems under Articles 2, 14, 15
271	271	24 (either the regular Article 15 system or the optional
272	272	25 retirement program established under Section 15-158.2), or 18,
273	273	26 or under paragraph (2), (3), or (5) of Section 16-106, of the
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284	284	1 Illinois Pension Code, but such term does include persons who
285	285	2 are employed during the 6-month qualifying period under
286	286	3 Article 14 of the Illinois Pension Code. Such term also
287	287	4 includes any person who (1) after January 1, 1966, is
288	288	5 receiving ordinary or accidental disability benefits under
289	289	6 Articles 2, 14, 15 (including ordinary or accidental
290	290	7 disability benefits under the optional retirement program
291	291	8 established under Section 15-158.2), paragraph (2), (3), or
292	292	9 (5) of Section 16-106, or Article 18 of the Illinois Pension
293	293	10 Code, for disability incurred after January 1, 1966, (2)
294	294	11 receives total permanent or total temporary disability under
295	295	12 the Workers' Compensation Act or Occupational Disease Act as a
296	296	13 result of injuries sustained or illness contracted in the
297	297	14 course of employment with the State of Illinois, or (3) is not
298	298	15 otherwise covered under this Act and has retired as a
299	299	16 participating member under Article 2 of the Illinois Pension
300	300	17 Code but is ineligible for the retirement annuity under
301	301	18 Section 2-119 of the Illinois Pension Code. However, a person
302	302	19 who satisfies the criteria of the foregoing definition of
303	303	20 "employee" except that such person is made ineligible to
304	304	21 participate in the State Universities Retirement System by
305	305	22 clause (4) of subsection (a) of Section 15-107 of the Illinois
306	306	23 Pension Code is also an "employee" for the purposes of this
307	307	24 Act. "Employee" also includes any person receiving or eligible
308	308	25 for benefits under a sick pay plan established in accordance
309	309	26 with Section 36 of the State Finance Act. "Employee" also
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320	320	1 includes (i) each officer or employee in the service of a
321	321	2 qualified local government, including persons appointed as
322	322	3 trustees of sanitary districts regardless of hours devoted to
323	323	4 the service of the sanitary district, (ii) each employee in
324	324	5 the service of a qualified rehabilitation facility, (iii) each
325	325	6 full-time employee in the service of a qualified domestic
326	326	7 violence shelter or service, and (iv) each full-time employee
327	327	8 in the service of a qualified child advocacy center, as
328	328	9 determined according to rules promulgated by the Director.
329	329	10 (l) "Member" means an employee, annuitant, retired
330	330	11 employee, or survivor. In the case of an annuitant or retired
331	331	12 employee who first becomes an annuitant or retired employee on
332	332	13 or after January 13, 2012 (the effective date of Public Act
333	333	14 97-668), the individual must meet the minimum vesting
334	334	15 requirements of the applicable retirement system in order to
335	335	16 be eligible for group insurance benefits under that system. In
336	336	17 the case of a survivor who is not entitled to occupational
337	337	18 death benefits pursuant to an applicable retirement system or
338	338	19 death benefits pursuant to the Illinois Workers' Compensation
339	339	20 Act, and who first becomes a survivor on or after January 13,
340	340	21 2012 (the effective date of Public Act 97-668), the deceased
341	341	22 employee, annuitant, or retired employee upon whom the annuity
342	342	23 is based must have been eligible to participate in the group
343	343	24 insurance system under the applicable retirement system in
344	344	25 order for the survivor to be eligible for group insurance
345	345	26 benefits under that system.
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356	356	1 In the case of a survivor who is entitled to occupational
357	357	2 death benefits pursuant to the deceased employee's applicable
358	358	3 retirement system or death benefits pursuant to the Illinois
359	359	4 Workers' Compensation Act, and first becomes a survivor on or
360	360	5 after January 1, 2022, the survivor is eligible for group
361	361	6 health insurance benefits regardless of the deceased
362	362	7 employee's minimum vesting requirements under the applicable
363	363	8 retirement system, with a State contribution rate of 100%,
364	364	9 until an unmarried child dependent reaches the age of 18, or
365	365	10 the age of 22 if the dependent child is a full-time student, or
366	366	11 until the adult survivor becomes eligible for benefits under
367	367	12 the federal Medicare health insurance program (Title XVIII of
368	368	13 the Social Security Act, as added by Public Law 89-97). In the
369	369	14 case of a survivor currently receiving occupational death
370	370	15 benefits pursuant to the deceased employee's applicable
371	371	16 retirement system or has received death benefits pursuant to
372	372	17 the Illinois Workers' Compensation Act, who first became a
373	373	18 survivor prior to January 1, 2022, the survivor is eligible
374	374	19 for group health insurance benefits regardless of the deceased
375	375	20 employee's minimum vesting requirements under the applicable
376	376	21 retirement system, with a State contribution rate of 100%,
377	377	22 until an unmarried child dependent reaches the age of 18, or
378	378	23 the age of 22 if the dependent child is a full-time student, or
379	379	24 until the adult survivor becomes eligible for benefits under
380	380	25 the federal Medicare health insurance program (Title XVIII of
381	381	26 the Social Security Act, as added by Public Law 89-97). The
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392	392	1 changes made by this amendatory Act of the 102nd General
393	393	2 Assembly with respect to survivors who first became survivors
394	394	3 prior to January 1, 2022 shall apply upon request of the
395	395	4 survivor on or after the effective date of this amendatory Act
396	396	5 of the 102nd General Assembly.
397	397	6 (m) "Optional coverages or benefits" means those coverages
398	398	7 or benefits available to the member on his or her voluntary
399	399	8 election, and at his or her own expense.
400	400	9 (n) "Program" means the group life insurance, health
401	401	10 benefits and other employee benefits designed and contracted
402	402	11 for by the Director under this Act.
403	403	12 (o) "Health plan" means a health benefits program offered
404	404	13 by the State of Illinois for persons eligible for the plan.
405	405	14 (p) "Retired employee" means any person who would be an
406	406	15 annuitant as that term is defined herein but for the fact that
407	407	16 such person retired prior to January 1, 1966. Such term also
408	408	17 includes any person formerly employed by the University of
409	409	18 Illinois in the Cooperative Extension Service who would be an
410	410	19 annuitant but for the fact that such person was made
411	411	20 ineligible to participate in the State Universities Retirement
412	412	21 System by clause (4) of subsection (a) of Section 15-107 of the
413	413	22 Illinois Pension Code.
414	414	23 (q) "Survivor" means a person receiving an annuity as a
415	415	24 survivor of an employee or of an annuitant. "Survivor" also
416	416	25 includes: (1) the surviving dependent of a person who
417	417	26 satisfies the definition of "employee" except that such person
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428	428	1 is made ineligible to participate in the State Universities
429	429	2 Retirement System by clause (4) of subsection (a) of Section
430	430	3 15-107 of the Illinois Pension Code; (2) the surviving
431	431	4 dependent of any person formerly employed by the University of
432	432	5 Illinois in the Cooperative Extension Service who would be an
433	433	6 annuitant except for the fact that such person was made
434	434	7 ineligible to participate in the State Universities Retirement
435	435	8 System by clause (4) of subsection (a) of Section 15-107 of the
436	436	9 Illinois Pension Code; (3) the surviving dependent of a person
437	437	10 who was an annuitant under this Act by virtue of receiving an
438	438	11 alternative retirement cancellation payment under Section
439	439	12 14-108.5 of the Illinois Pension Code; and (4) a person who
440	440	13 would be receiving an annuity as a survivor of an annuitant
441	441	14 except that the annuitant elected on or after June 4, 2018 to
442	442	15 receive an accelerated pension benefit payment under Section
443	443	16 14-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
444	444	17 in lieu of receiving an annuity.
445	445	18 (q-2) "SERS" means the State Employees' Retirement System
446	446	19 of Illinois, created under Article 14 of the Illinois Pension
447	447	20 Code.
448	448	21 (q-3) "SURS" means the State Universities Retirement
449	449	22 System, created under Article 15 of the Illinois Pension Code.
450	450	23 (q-4) "TRS" means the Teachers' Retirement System of the
451	451	24 State of Illinois, created under Article 16 of the Illinois
452	452	25 Pension Code.
453	453	26 (q-5) (Blank).
454	454
455	455
456	456
457	457
458	458
459	459	HB2589 - 12 - LRB103 30272 RPS 56700 b
460	460
461	461
462	462	HB2589- 13 -LRB103 30272 RPS 56700 b HB2589 - 13 - LRB103 30272 RPS 56700 b
463	463	HB2589 - 13 - LRB103 30272 RPS 56700 b
464	464	1 (q-6) (Blank).
465	465	2 (q-7) (Blank).
466	466	3 (r) "Medical services" means the services provided within
467	467	4 the scope of their licenses by practitioners in all categories
468	468	5 licensed under the Medical Practice Act of 1987.
469	469	6 (s) "Unit of local government" means any county,
470	470	7 municipality, township, school district (including a
471	471	8 combination of school districts under the Intergovernmental
472	472	9 Cooperation Act), special district or other unit, designated
473	473	10 as a unit of local government by law, which exercises limited
474	474	11 governmental powers or powers in respect to limited
475	475	12 governmental subjects, any not-for-profit association with a
476	476	13 membership that primarily includes townships and township
477	477	14 officials, that has duties that include provision of research
478	478	15 service, dissemination of information, and other acts for the
479	479	16 purpose of improving township government, and that is funded
480	480	17 wholly or partly in accordance with Section 85-15 of the
481	481	18 Township Code; any not-for-profit corporation or association,
482	482	19 with a membership consisting primarily of municipalities, that
483	483	20 operates its own utility system, and provides research,
484	484	21 training, dissemination of information, or other acts to
485	485	22 promote cooperation between and among municipalities that
486	486	23 provide utility services and for the advancement of the goals
487	487	24 and purposes of its membership; the Southern Illinois
488	488	25 Collegiate Common Market, which is a consortium of higher
489	489	26 education institutions in Southern Illinois; the Illinois
490	490
491	491
492	492
493	493
494	494
495	495	HB2589 - 13 - LRB103 30272 RPS 56700 b
496	496
497	497
498	498	HB2589- 14 -LRB103 30272 RPS 56700 b HB2589 - 14 - LRB103 30272 RPS 56700 b
499	499	HB2589 - 14 - LRB103 30272 RPS 56700 b
500	500	1 Association of Park Districts; and any hospital provider that
501	501	2 is owned by a county that has 100 or fewer hospital beds and
502	502	3 has not already joined the program. "Qualified local
503	503	4 government" means a unit of local government approved by the
504	504	5 Director and participating in a program created under
505	505	6 subsection (i) of Section 10 of this Act.
506	506	7 (t) "Qualified rehabilitation facility" means any
507	507	8 not-for-profit organization that is accredited by the
508	508	9 Commission on Accreditation of Rehabilitation Facilities or
509	509	10 certified by the Department of Human Services (as successor to
510	510	11 the Department of Mental Health and Developmental
511	511	12 Disabilities) to provide services to persons with disabilities
512	512	13 and which receives funds from the State of Illinois for
513	513	14 providing those services, approved by the Director and
514	514	15 participating in a program created under subsection (j) of
515	515	16 Section 10 of this Act.
516	516	17 (u) "Qualified domestic violence shelter or service" means
517	517	18 any Illinois domestic violence shelter or service and its
518	518	19 administrative offices funded by the Department of Human
519	519	20 Services (as successor to the Illinois Department of Public
520	520	21 Aid), approved by the Director and participating in a program
521	521	22 created under subsection (k) of Section 10.
522	522	23 (v) "TRS benefit recipient" means a person who:
523	523	24 (1) is not a "member" as defined in this Section; and
524	524	25 (2) is receiving a monthly benefit or retirement
525	525	26 annuity under Article 16 of the Illinois Pension Code or
526	526
527	527
528	528
529	529
530	530
531	531	HB2589 - 14 - LRB103 30272 RPS 56700 b
532	532
533	533
534	534	HB2589- 15 -LRB103 30272 RPS 56700 b HB2589 - 15 - LRB103 30272 RPS 56700 b
535	535	HB2589 - 15 - LRB103 30272 RPS 56700 b
536	536	1 would be receiving such monthly benefit or retirement
537	537	2 annuity except that the benefit recipient elected on or
538	538	3 after June 4, 2018 to receive an accelerated pension
539	539	4 benefit payment under Section 16-190.5 of the Illinois
540	540	5 Pension Code in lieu of receiving an annuity; and
541	541	6 (3) either (i) has at least 8 years of creditable
542	542	7 service under Article 16 of the Illinois Pension Code, or
543	543	8 (ii) was enrolled in the health insurance program offered
544	544	9 under that Article on January 1, 1996, or (iii) is the
545	545	10 survivor of a benefit recipient who had at least 8 years of
546	546	11 creditable service under Article 16 of the Illinois
547	547	12 Pension Code or was enrolled in the health insurance
548	548	13 program offered under that Article on June 21, 1995 (the
549	549	14 effective date of Public Act 89-25), or (iv) is a
550	550	15 recipient or survivor of a recipient of a disability
551	551	16 benefit under Article 16 of the Illinois Pension Code.
552	552	17 (w) "TRS dependent beneficiary" means a person who:
553	553	18 (1) is not a "member" or "dependent" as defined in
554	554	19 this Section; and
555	555	20 (2) is a TRS benefit recipient's: (A) spouse, (B)
556	556	21 dependent parent who is receiving at least half of his or
557	557	22 her support from the TRS benefit recipient, or (C)
558	558	23 natural, step, adjudicated, or adopted child who is (i)
559	559	24 under age 26, (ii) was, on January 1, 1996, participating
560	560	25 as a dependent beneficiary in the health insurance program
561	561	26 offered under Article 16 of the Illinois Pension Code, or
562	562
563	563
564	564
565	565
566	566
567	567	HB2589 - 15 - LRB103 30272 RPS 56700 b
568	568
569	569
570	570	HB2589- 16 -LRB103 30272 RPS 56700 b HB2589 - 16 - LRB103 30272 RPS 56700 b
571	571	HB2589 - 16 - LRB103 30272 RPS 56700 b
572	572	1 (iii) age 19 or over who has a mental or physical
573	573	2 disability from a cause originating prior to the age of 19
574	574	3 (age 26 if enrolled as an adult child).
575	575	4 "TRS dependent beneficiary" does not include, as indicated
576	576	5 under paragraph (2) of this subsection (w), a dependent of the
577	577	6 survivor of a TRS benefit recipient who first becomes a
578	578	7 dependent of a survivor of a TRS benefit recipient on or after
579	579	8 January 13, 2012 (the effective date of Public Act 97-668)
580	580	9 unless that dependent would have been eligible for coverage as
581	581	10 a dependent of the deceased TRS benefit recipient upon whom
582	582	11 the survivor benefit is based.
583	583	12 (x) "Military leave" refers to individuals in basic
584	584	13 training for reserves, special/advanced training, annual
585	585	14 training, emergency call up, activation by the President of
586	586	15 the United States, or any other training or duty in service to
587	587	16 the United States Armed Forces.
588	588	17 (y) (Blank).
589	589	18 (z) "Community college benefit recipient" means a person
590	590	19 who:
591	591	20 (1) is not a "member" as defined in this Section; and
592	592	21 (2) is receiving a monthly survivor's annuity or
593	593	22 retirement annuity under Article 15 of the Illinois
594	594	23 Pension Code or would be receiving such monthly survivor's
595	595	24 annuity or retirement annuity except that the benefit
596	596	25 recipient elected on or after June 4, 2018 to receive an
597	597	26 accelerated pension benefit payment under Section 15-185.5
598	598
599	599
600	600
601	601
602	602
603	603	HB2589 - 16 - LRB103 30272 RPS 56700 b
604	604
605	605
606	606	HB2589- 17 -LRB103 30272 RPS 56700 b HB2589 - 17 - LRB103 30272 RPS 56700 b
607	607	HB2589 - 17 - LRB103 30272 RPS 56700 b
608	608	1 of the Illinois Pension Code in lieu of receiving an
609	609	2 annuity; and
610	610	3 (3) either (i) was a full-time employee of a community
611	611	4 college district or an association of community college
612	612	5 boards created under the Public Community College Act
613	613	6 (other than an employee whose last employer under Article
614	614	7 15 of the Illinois Pension Code was a community college
615	615	8 district subject to Article VII of the Public Community
616	616	9 College Act) and was eligible to participate in a group
617	617	10 health benefit plan as an employee during the time of
618	618	11 employment with a community college district (other than a
619	619	12 community college district subject to Article VII of the
620	620	13 Public Community College Act) or an association of
621	621	14 community college boards, or (ii) is the survivor of a
622	622	15 person described in item (i).
623	623	16 (aa) "Community college dependent beneficiary" means a
624	624	17 person who:
625	625	18 (1) is not a "member" or "dependent" as defined in
626	626	19 this Section; and
627	627	20 (2) is a community college benefit recipient's: (A)
628	628	21 spouse, (B) dependent parent who is receiving at least
629	629	22 half of his or her support from the community college
630	630	23 benefit recipient, or (C) natural, step, adjudicated, or
631	631	24 adopted child who is (i) under age 26, or (ii) age 19 or
632	632	25 over and has a mental or physical disability from a cause
633	633	26 originating prior to the age of 19 (age 26 if enrolled as
634	634
635	635
636	636
637	637
638	638
639	639	HB2589 - 17 - LRB103 30272 RPS 56700 b
640	640
641	641
642	642	HB2589- 18 -LRB103 30272 RPS 56700 b HB2589 - 18 - LRB103 30272 RPS 56700 b
643	643	HB2589 - 18 - LRB103 30272 RPS 56700 b
644	644	1 an adult child).
645	645	2 "Community college dependent beneficiary" does not
646	646	3 include, as indicated under paragraph (2) of this subsection
647	647	4 (aa), a dependent of the survivor of a community college
648	648	5 benefit recipient who first becomes a dependent of a survivor
649	649	6 of a community college benefit recipient on or after January
650	650	7 13, 2012 (the effective date of Public Act 97-668) unless that
651	651	8 dependent would have been eligible for coverage as a dependent
652	652	9 of the deceased community college benefit recipient upon whom
653	653	10 the survivor annuity is based.
654	654	11 (bb) "Qualified child advocacy center" means any Illinois
655	655	12 child advocacy center and its administrative offices funded by
656	656	13 the Department of Children and Family Services, as defined by
657	657	14 the Children's Advocacy Center Act (55 ILCS 80/), approved by
658	658	15 the Director and participating in a program created under
659	659	16 subsection (n) of Section 10.
660	660	17 (cc) "Placement for adoption" means the assumption and
661	661	18 retention by a member of a legal obligation for total or
662	662	19 partial support of a child in anticipation of adoption of the
663	663	20 child. The child's placement with the member terminates upon
664	664	21 the termination of such legal obligation.
665	665	22 (Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21;
666	666	23 102-714, eff. 4-29-22; 102-813, eff 5-13-22.)
667	667	24 (5 ILCS 375/10) (from Ch. 127, par. 530)
668	668	25 Sec. 10. Contributions by the State and members.
669	669
670	670
671	671
672	672
673	673
674	674	HB2589 - 18 - LRB103 30272 RPS 56700 b
675	675
676	676
677	677	HB2589- 19 -LRB103 30272 RPS 56700 b HB2589 - 19 - LRB103 30272 RPS 56700 b
678	678	HB2589 - 19 - LRB103 30272 RPS 56700 b
679	679	1 (a) The State shall pay the cost of basic non-contributory
680	680	2 group life insurance and, subject to member paid contributions
681	681	3 set by the Department or required by this Section and except as
682	682	4 provided in this Section, the basic program of group health
683	683	5 benefits on each eligible member, except a member, not
684	684	6 otherwise covered by this Act, who has retired as a
685	685	7 participating member under Article 2 of the Illinois Pension
686	686	8 Code but is ineligible for the retirement annuity under
687	687	9 Section 2-119 of the Illinois Pension Code, and part of each
688	688	10 eligible member's and retired member's premiums for health
689	689	11 insurance coverage for enrolled dependents as provided by
690	690	12 Section 9. The State shall pay the cost of the basic program of
691	691	13 group health benefits only after benefits are reduced by the
692	692	14 amount of benefits covered by Medicare for all members and
693	693	15 dependents who are eligible for benefits under Social Security
694	694	16 or the Railroad Retirement system or who had sufficient
695	695	17 Medicare-covered government employment, except that such
696	696	18 reduction in benefits shall apply only to those members and
697	697	19 dependents who (1) first become eligible for such Medicare
698	698	20 coverage on or after July 1, 1992; or (2) are
699	699	21 Medicare-eligible members or dependents of a local government
700	700	22 unit which began participation in the program on or after July
701	701	23 1, 1992; or (3) remain eligible for, but no longer receive
702	702	24 Medicare coverage which they had been receiving on or after
703	703	25 July 1, 1992. The Department may determine the aggregate level
704	704	26 of the State's contribution on the basis of actual cost of
705	705
706	706
707	707
708	708
709	709
710	710	HB2589 - 19 - LRB103 30272 RPS 56700 b
711	711
712	712
713	713	HB2589- 20 -LRB103 30272 RPS 56700 b HB2589 - 20 - LRB103 30272 RPS 56700 b
714	714	HB2589 - 20 - LRB103 30272 RPS 56700 b
715	715	1 medical services adjusted for age, sex or geographic or other
716	716	2 demographic characteristics which affect the costs of such
717	717	3 programs.
718	718	4 The cost of participation in the basic program of group
719	719	5 health benefits for the dependent or survivor of a living or
720	720	6 deceased retired employee who was formerly employed by the
721	721	7 University of Illinois in the Cooperative Extension Service
722	722	8 and would be an annuitant but for the fact that he or she was
723	723	9 made ineligible to participate in the State Universities
724	724	10 Retirement System by clause (4) of subsection (a) of Section
725	725	11 15-107 of the Illinois Pension Code shall not be greater than
726	726	12 the cost of participation that would otherwise apply to that
727	727	13 dependent or survivor if he or she were the dependent or
728	728	14 survivor of an annuitant under the State Universities
729	729	15 Retirement System.
730	730	16 (a-1) (Blank).
731	731	17 (a-2) (Blank).
732	732	18 (a-3) (Blank).
733	733	19 (a-4) (Blank).
734	734	20 (a-5) (Blank).
735	735	21 (a-6) (Blank).
736	736	22 (a-7) (Blank).
737	737	23 (a-8) Any annuitant, survivor, or retired employee may
738	738	24 waive or terminate coverage in the program of group health
739	739	25 benefits. Any such annuitant, survivor, or retired employee
740	740	26 who has waived or terminated coverage may enroll or re-enroll
741	741
742	742
743	743
744	744
745	745
746	746	HB2589 - 20 - LRB103 30272 RPS 56700 b
747	747
748	748
749	749	HB2589- 21 -LRB103 30272 RPS 56700 b HB2589 - 21 - LRB103 30272 RPS 56700 b
750	750	HB2589 - 21 - LRB103 30272 RPS 56700 b
751	751	1 in the program of group health benefits only during the annual
752	752	2 benefit choice period, as determined by the Director; except
753	753	3 that in the event of termination of coverage due to nonpayment
754	754	4 of premiums, the annuitant, survivor, or retired employee may
755	755	5 not re-enroll in the program.
756	756	6 (a-8.5) Beginning on the effective date of this amendatory
757	757	7 Act of the 97th General Assembly, the Director of Central
758	758	8 Management Services shall, on an annual basis, determine the
759	759	9 amount that the State shall contribute toward the basic
760	760	10 program of group health benefits on behalf of annuitants
761	761	11 (including individuals who (i) participated in the General
762	762	12 Assembly Retirement System, the State Employees' Retirement
763	763	13 System of Illinois, the State Universities Retirement System,
764	764	14 the Teachers' Retirement System of the State of Illinois, or
765	765	15 the Judges Retirement System of Illinois and (ii) qualify as
766	766	16 annuitants under subsection (b) of Section 3 of this Act),
767	767	17 survivors (including individuals who (i) receive an annuity as
768	768	18 a survivor of an individual who participated in the General
769	769	19 Assembly Retirement System, the State Employees' Retirement
770	770	20 System of Illinois, the State Universities Retirement System,
771	771	21 the Teachers' Retirement System of the State of Illinois, or
772	772	22 the Judges Retirement System of Illinois and (ii) qualify as
773	773	23 survivors under subsection (q) of Section 3 of this Act), and
774	774	24 retired employees (as defined in subsection (p) of Section 3
775	775	25 of this Act). The remainder of the cost of coverage for each
776	776	26 annuitant, survivor, or retired employee, as determined by the
777	777
778	778
779	779
780	780
781	781
782	782	HB2589 - 21 - LRB103 30272 RPS 56700 b
783	783
784	784
785	785	HB2589- 22 -LRB103 30272 RPS 56700 b HB2589 - 22 - LRB103 30272 RPS 56700 b
786	786	HB2589 - 22 - LRB103 30272 RPS 56700 b
787	787	1 Director of Central Management Services, shall be the
788	788	2 responsibility of that annuitant, survivor, or retired
789	789	3 employee.
790	790	4 Contributions required of annuitants, survivors, and
791	791	5 retired employees shall be the same for all retirement systems
792	792	6 and shall also be based on whether an individual has made an
793	793	7 election under Section 15-135.1 of the Illinois Pension Code.
794	794	8 Contributions may be based on annuitants', survivors', or
795	795	9 retired employees' Medicare eligibility, but may not be based
796	796	10 on Social Security eligibility.
797	797	11 (a-9) No later than May 1 of each calendar year, the
798	798	12 Director of Central Management Services shall certify in
799	799	13 writing to the Executive Secretary of the State Employees'
800	800	14 Retirement System of Illinois the amounts of the Medicare
801	801	15 supplement health care premiums and the amounts of the health
802	802	16 care premiums for all other retirees who are not Medicare
803	803	17 eligible.
804	804	18 A separate calculation of the premiums based upon the
805	805	19 actual cost of each health care plan shall be so certified.
806	806	20 The Director of Central Management Services shall provide
807	807	21 to the Executive Secretary of the State Employees' Retirement
808	808	22 System of Illinois such information, statistics, and other
809	809	23 data as he or she may require to review the premium amounts
810	810	24 certified by the Director of Central Management Services.
811	811	25 The Department of Central Management Services, or any
812	812	26 successor agency designated to procure healthcare contracts
813	813
814	814
815	815
816	816
817	817
818	818	HB2589 - 22 - LRB103 30272 RPS 56700 b
819	819
820	820
821	821	HB2589- 23 -LRB103 30272 RPS 56700 b HB2589 - 23 - LRB103 30272 RPS 56700 b
822	822	HB2589 - 23 - LRB103 30272 RPS 56700 b
823	823	1 pursuant to this Act, is authorized to establish funds,
824	824	2 separate accounts provided by any bank or banks as defined by
825	825	3 the Illinois Banking Act, or separate accounts provided by any
826	826	4 savings and loan association or associations as defined by the
827	827	5 Illinois Savings and Loan Act of 1985 to be held by the
828	828	6 Director, outside the State treasury, for the purpose of
829	829	7 receiving the transfer of moneys from the Local Government
830	830	8 Health Insurance Reserve Fund. The Department may promulgate
831	831	9 rules further defining the methodology for the transfers. Any
832	832	10 interest earned by moneys in the funds or accounts shall inure
833	833	11 to the Local Government Health Insurance Reserve Fund. The
834	834	12 transferred moneys, and interest accrued thereon, shall be
835	835	13 used exclusively for transfers to administrative service
836	836	14 organizations or their financial institutions for payments of
837	837	15 claims to claimants and providers under the self-insurance
838	838	16 health plan. The transferred moneys, and interest accrued
839	839	17 thereon, shall not be used for any other purpose including,
840	840	18 but not limited to, reimbursement of administration fees due
841	841	19 the administrative service organization pursuant to its
842	842	20 contract or contracts with the Department.
843	843	21 (a-10) To the extent that participation, benefits, or
844	844	22 premiums under this Act are based on a person's service credit
845	845	23 under an Article of the Illinois Pension Code, service credit
846	846	24 terminated in exchange for an accelerated pension benefit
847	847	25 payment under Section 14-147.5, 15-185.5, or 16-190.5 of that
848	848	26 Code shall be included in determining a person's service
849	849
850	850
851	851
852	852
853	853
854	854	HB2589 - 23 - LRB103 30272 RPS 56700 b
855	855
856	856
857	857	HB2589- 24 -LRB103 30272 RPS 56700 b HB2589 - 24 - LRB103 30272 RPS 56700 b
858	858	HB2589 - 24 - LRB103 30272 RPS 56700 b
859	859	1 credit for the purposes of this Act.
860	860	2 (a-15) For purposes of determining State contributions
861	861	3 under this Section, service established under a Tier 3 plan
862	862	4 under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code
863	863	5 shall be included in determining an employee's creditable
864	864	6 service. Any credit terminated as part of a transfer of
865	865	7 contributions to a Tier 3 plan under Article 2, 14, 15, 16, or
866	866	8 18 of the Illinois Pension Code shall also be included in
867	867	9 determining an employee's creditable service.
868	868	10 (b) State employees who become eligible for this program
869	869	11 on or after January 1, 1980 in positions normally requiring
870	870	12 actual performance of duty not less than 1/2 of a normal work
871	871	13 period but not equal to that of a normal work period, shall be
872	872	14 given the option of participating in the available program. If
873	873	15 the employee elects coverage, the State shall contribute on
874	874	16 behalf of such employee to the cost of the employee's benefit
875	875	17 and any applicable dependent supplement, that sum which bears
876	876	18 the same percentage as that percentage of time the employee
877	877	19 regularly works when compared to normal work period.
878	878	20 (c) The basic non-contributory coverage from the basic
879	879	21 program of group health benefits shall be continued for each
880	880	22 employee not in pay status or on active service by reason of
881	881	23 (1) leave of absence due to illness or injury, (2) authorized
882	882	24 educational leave of absence or sabbatical leave, or (3)
883	883	25 military leave. This coverage shall continue until expiration
884	884	26 of authorized leave and return to active service, but not to
885	885
886	886
887	887
888	888
889	889
890	890	HB2589 - 24 - LRB103 30272 RPS 56700 b
891	891
892	892
893	893	HB2589- 25 -LRB103 30272 RPS 56700 b HB2589 - 25 - LRB103 30272 RPS 56700 b
894	894	HB2589 - 25 - LRB103 30272 RPS 56700 b
895	895	1 exceed 24 months for leaves under item (1) or (2). This
896	896	2 24-month limitation and the requirement of returning to active
897	897	3 service shall not apply to persons receiving ordinary or
898	898	4 accidental disability benefits or retirement benefits through
899	899	5 the appropriate State retirement system or benefits under the
900	900	6 Workers' Compensation or Occupational Disease Act.
901	901	7 (d) The basic group life insurance coverage shall
902	902	8 continue, with full State contribution, where such person is
903	903	9 (1) absent from active service by reason of disability arising
904	904	10 from any cause other than self-inflicted, (2) on authorized
905	905	11 educational leave of absence or sabbatical leave, or (3) on
906	906	12 military leave.
907	907	13 (e) Where the person is in non-pay status for a period in
908	908	14 excess of 30 days or on leave of absence, other than by reason
909	909	15 of disability, educational or sabbatical leave, or military
910	910	16 leave, such person may continue coverage only by making
911	911	17 personal payment equal to the amount normally contributed by
912	912	18 the State on such person's behalf. Such payments and coverage
913	913	19 may be continued: (1) until such time as the person returns to
914	914	20 a status eligible for coverage at State expense, but not to
915	915	21 exceed 24 months or (2) until such person's employment or
916	916	22 annuitant status with the State is terminated (exclusive of
917	917	23 any additional service imposed pursuant to law).
918	918	24 (f) The Department shall establish by rule the extent to
919	919	25 which other employee benefits will continue for persons in
920	920	26 non-pay status or who are not in active service.
921	921
922	922
923	923
924	924
925	925
926	926	HB2589 - 25 - LRB103 30272 RPS 56700 b
927	927
928	928
929	929	HB2589- 26 -LRB103 30272 RPS 56700 b HB2589 - 26 - LRB103 30272 RPS 56700 b
930	930	HB2589 - 26 - LRB103 30272 RPS 56700 b
931	931	1 (g) The State shall not pay the cost of the basic
932	932	2 non-contributory group life insurance, program of health
933	933	3 benefits and other employee benefits for members who are
934	934	4 survivors as defined by paragraphs (1) and (2) of subsection
935	935	5 (q) of Section 3 of this Act. The costs of benefits for these
936	936	6 survivors shall be paid by the survivors or by the University
937	937	7 of Illinois Cooperative Extension Service, or any combination
938	938	8 thereof. However, the State shall pay the amount of the
939	939	9 reduction in the cost of participation, if any, resulting from
940	940	10 the amendment to subsection (a) made by this amendatory Act of
941	941	11 the 91st General Assembly.
942	942	12 (h) Those persons occupying positions with any department
943	943	13 as a result of emergency appointments pursuant to Section 8b.8
944	944	14 of the Personnel Code who are not considered employees under
945	945	15 this Act shall be given the option of participating in the
946	946	16 programs of group life insurance, health benefits and other
947	947	17 employee benefits. Such persons electing coverage may
948	948	18 participate only by making payment equal to the amount
949	949	19 normally contributed by the State for similarly situated
950	950	20 employees. Such amounts shall be determined by the Director.
951	951	21 Such payments and coverage may be continued until such time as
952	952	22 the person becomes an employee pursuant to this Act or such
953	953	23 person's appointment is terminated.
954	954	24 (i) Any unit of local government within the State of
955	955	25 Illinois may apply to the Director to have its employees,
956	956	26 annuitants, and their dependents provided group health
957	957
958	958
959	959
960	960
961	961
962	962	HB2589 - 26 - LRB103 30272 RPS 56700 b
963	963
964	964
965	965	HB2589- 27 -LRB103 30272 RPS 56700 b HB2589 - 27 - LRB103 30272 RPS 56700 b
966	966	HB2589 - 27 - LRB103 30272 RPS 56700 b
967	967	1 coverage under this Act on a non-insured basis. To
968	968	2 participate, a unit of local government must agree to enroll
969	969	3 all of its employees, who may select coverage under any group
970	970	4 health benefits plan made available by the Department under
971	971	5 the health benefits program established under this Section or
972	972	6 a health maintenance organization that has contracted with the
973	973	7 State to be available as a health care provider for employees
974	974	8 as defined in this Act. A unit of local government must remit
975	975	9 the entire cost of providing coverage under the health
976	976	10 benefits program established under this Section or, for
977	977	11 coverage under a health maintenance organization, an amount
978	978	12 determined by the Director based on an analysis of the sex,
979	979	13 age, geographic location, or other relevant demographic
980	980	14 variables for its employees, except that the unit of local
981	981	15 government shall not be required to enroll those of its
982	982	16 employees who are covered spouses or dependents under the
983	983	17 State group health benefits plan or another group policy or
984	984	18 plan providing health benefits as long as (1) an appropriate
985	985	19 official from the unit of local government attests that each
986	986	20 employee not enrolled is a covered spouse or dependent under
987	987	21 this plan or another group policy or plan, and (2) at least 50%
988	988	22 of the employees are enrolled and the unit of local government
989	989	23 remits the entire cost of providing coverage to those
990	990	24 employees, except that a participating school district must
991	991	25 have enrolled at least 50% of its full-time employees who have
992	992	26 not waived coverage under the district's group health plan by
993	993
994	994
995	995
996	996
997	997
998	998	HB2589 - 27 - LRB103 30272 RPS 56700 b
999	999
1000	1000
1001	1001	HB2589- 28 -LRB103 30272 RPS 56700 b HB2589 - 28 - LRB103 30272 RPS 56700 b
1002	1002	HB2589 - 28 - LRB103 30272 RPS 56700 b
1003	1003	1 participating in a component of the district's cafeteria plan.
1004	1004	2 A participating school district is not required to enroll a
1005	1005	3 full-time employee who has waived coverage under the
1006	1006	4 district's health plan, provided that an appropriate official
1007	1007	5 from the participating school district attests that the
1008	1008	6 full-time employee has waived coverage by participating in a
1009	1009	7 component of the district's cafeteria plan. For the purposes
1010	1010	8 of this subsection, "participating school district" includes a
1011	1011	9 unit of local government whose primary purpose is education as
1012	1012	10 defined by the Department's rules.
1013	1013	11 Employees of a participating unit of local government who
1014	1014	12 are not enrolled due to coverage under another group health
1015	1015	13 policy or plan may enroll in the event of a qualifying change
1016	1016	14 in status, special enrollment, special circumstance as defined
1017	1017	15 by the Director, or during the annual Benefit Choice Period. A
1018	1018	16 participating unit of local government may also elect to cover
1019	1019	17 its annuitants. Dependent coverage shall be offered on an
1020	1020	18 optional basis, with the costs paid by the unit of local
1021	1021	19 government, its employees, or some combination of the two as
1022	1022	20 determined by the unit of local government. The unit of local
1023	1023	21 government shall be responsible for timely collection and
1024	1024	22 transmission of dependent premiums.
1025	1025	23 The Director shall annually determine monthly rates of
1026	1026	24 payment, subject to the following constraints:
1027	1027	25 (1) In the first year of coverage, the rates shall be
1028	1028	26 equal to the amount normally charged to State employees
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034	HB2589 - 28 - LRB103 30272 RPS 56700 b
1035	1035
1036	1036
1037	1037	HB2589- 29 -LRB103 30272 RPS 56700 b HB2589 - 29 - LRB103 30272 RPS 56700 b
1038	1038	HB2589 - 29 - LRB103 30272 RPS 56700 b
1039	1039	1 for elected optional coverages or for enrolled dependents
1040	1040	2 coverages or other contributory coverages, or contributed
1041	1041	3 by the State for basic insurance coverages on behalf of
1042	1042	4 its employees, adjusted for differences between State
1043	1043	5 employees and employees of the local government in age,
1044	1044	6 sex, geographic location or other relevant demographic
1045	1045	7 variables, plus an amount sufficient to pay for the
1046	1046	8 additional administrative costs of providing coverage to
1047	1047	9 employees of the unit of local government and their
1048	1048	10 dependents.
1049	1049	11 (2) In subsequent years, a further adjustment shall be
1050	1050	12 made to reflect the actual prior years' claims experience
1051	1051	13 of the employees of the unit of local government.
1052	1052	14 In the case of coverage of local government employees
1053	1053	15 under a health maintenance organization, the Director shall
1054	1054	16 annually determine for each participating unit of local
1055	1055	17 government the maximum monthly amount the unit may contribute
1056	1056	18 toward that coverage, based on an analysis of (i) the age, sex,
1057	1057	19 geographic location, and other relevant demographic variables
1058	1058	20 of the unit's employees and (ii) the cost to cover those
1059	1059	21 employees under the State group health benefits plan. The
1060	1060	22 Director may similarly determine the maximum monthly amount
1061	1061	23 each unit of local government may contribute toward coverage
1062	1062	24 of its employees' dependents under a health maintenance
1063	1063	25 organization.
1064	1064	26 Monthly payments by the unit of local government or its
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070	HB2589 - 29 - LRB103 30272 RPS 56700 b
1071	1071
1072	1072
1073	1073	HB2589- 30 -LRB103 30272 RPS 56700 b HB2589 - 30 - LRB103 30272 RPS 56700 b
1074	1074	HB2589 - 30 - LRB103 30272 RPS 56700 b
1075	1075	1 employees for group health benefits plan or health maintenance
1076	1076	2 organization coverage shall be deposited in the Local
1077	1077	3 Government Health Insurance Reserve Fund.
1078	1078	4 The Local Government Health Insurance Reserve Fund is
1079	1079	5 hereby created as a nonappropriated trust fund to be held
1080	1080	6 outside the State Treasury, with the State Treasurer as
1081	1081	7 custodian. The Local Government Health Insurance Reserve Fund
1082	1082	8 shall be a continuing fund not subject to fiscal year
1083	1083	9 limitations. The Local Government Health Insurance Reserve
1084	1084	10 Fund is not subject to administrative charges or charge-backs,
1085	1085	11 including but not limited to those authorized under Section 8h
1086	1086	12 of the State Finance Act. All revenues arising from the
1087	1087	13 administration of the health benefits program established
1088	1088	14 under this Section shall be deposited into the Local
1089	1089	15 Government Health Insurance Reserve Fund. Any interest earned
1090	1090	16 on moneys in the Local Government Health Insurance Reserve
1091	1091	17 Fund shall be deposited into the Fund. All expenditures from
1092	1092	18 this Fund shall be used for payments for health care benefits
1093	1093	19 for local government and rehabilitation facility employees,
1094	1094	20 annuitants, and dependents, and to reimburse the Department or
1095	1095	21 its administrative service organization for all expenses
1096	1096	22 incurred in the administration of benefits. No other State
1097	1097	23 funds may be used for these purposes.
1098	1098	24 A local government employer's participation or desire to
1099	1099	25 participate in a program created under this subsection shall
1100	1100	26 not limit that employer's duty to bargain with the
1101	1101
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106	HB2589 - 30 - LRB103 30272 RPS 56700 b
1107	1107
1108	1108
1109	1109	HB2589- 31 -LRB103 30272 RPS 56700 b HB2589 - 31 - LRB103 30272 RPS 56700 b
1110	1110	HB2589 - 31 - LRB103 30272 RPS 56700 b
1111	1111	1 representative of any collective bargaining unit of its
1112	1112	2 employees.
1113	1113	3 (j) Any rehabilitation facility within the State of
1114	1114	4 Illinois may apply to the Director to have its employees,
1115	1115	5 annuitants, and their eligible dependents provided group
1116	1116	6 health coverage under this Act on a non-insured basis. To
1117	1117	7 participate, a rehabilitation facility must agree to enroll
1118	1118	8 all of its employees and remit the entire cost of providing
1119	1119	9 such coverage for its employees, except that the
1120	1120	10 rehabilitation facility shall not be required to enroll those
1121	1121	11 of its employees who are covered spouses or dependents under
1122	1122	12 this plan or another group policy or plan providing health
1123	1123	13 benefits as long as (1) an appropriate official from the
1124	1124	14 rehabilitation facility attests that each employee not
1125	1125	15 enrolled is a covered spouse or dependent under this plan or
1126	1126	16 another group policy or plan, and (2) at least 50% of the
1127	1127	17 employees are enrolled and the rehabilitation facility remits
1128	1128	18 the entire cost of providing coverage to those employees.
1129	1129	19 Employees of a participating rehabilitation facility who are
1130	1130	20 not enrolled due to coverage under another group health policy
1131	1131	21 or plan may enroll in the event of a qualifying change in
1132	1132	22 status, special enrollment, special circumstance as defined by
1133	1133	23 the Director, or during the annual Benefit Choice Period. A
1134	1134	24 participating rehabilitation facility may also elect to cover
1135	1135	25 its annuitants. Dependent coverage shall be offered on an
1136	1136	26 optional basis, with the costs paid by the rehabilitation
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142	HB2589 - 31 - LRB103 30272 RPS 56700 b
1143	1143
1144	1144
1145	1145	HB2589- 32 -LRB103 30272 RPS 56700 b HB2589 - 32 - LRB103 30272 RPS 56700 b
1146	1146	HB2589 - 32 - LRB103 30272 RPS 56700 b
1147	1147	1 facility, its employees, or some combination of the 2 as
1148	1148	2 determined by the rehabilitation facility. The rehabilitation
1149	1149	3 facility shall be responsible for timely collection and
1150	1150	4 transmission of dependent premiums.
1151	1151	5 The Director shall annually determine quarterly rates of
1152	1152	6 payment, subject to the following constraints:
1153	1153	7 (1) In the first year of coverage, the rates shall be
1154	1154	8 equal to the amount normally charged to State employees
1155	1155	9 for elected optional coverages or for enrolled dependents
1156	1156	10 coverages or other contributory coverages on behalf of its
1157	1157	11 employees, adjusted for differences between State
1158	1158	12 employees and employees of the rehabilitation facility in
1159	1159	13 age, sex, geographic location or other relevant
1160	1160	14 demographic variables, plus an amount sufficient to pay
1161	1161	15 for the additional administrative costs of providing
1162	1162	16 coverage to employees of the rehabilitation facility and
1163	1163	17 their dependents.
1164	1164	18 (2) In subsequent years, a further adjustment shall be
1165	1165	19 made to reflect the actual prior years' claims experience
1166	1166	20 of the employees of the rehabilitation facility.
1167	1167	21 Monthly payments by the rehabilitation facility or its
1168	1168	22 employees for group health benefits shall be deposited in the
1169	1169	23 Local Government Health Insurance Reserve Fund.
1170	1170	24 (k) Any domestic violence shelter or service within the
1171	1171	25 State of Illinois may apply to the Director to have its
1172	1172	26 employees, annuitants, and their dependents provided group
1173	1173
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178	HB2589 - 32 - LRB103 30272 RPS 56700 b
1179	1179
1180	1180
1181	1181	HB2589- 33 -LRB103 30272 RPS 56700 b HB2589 - 33 - LRB103 30272 RPS 56700 b
1182	1182	HB2589 - 33 - LRB103 30272 RPS 56700 b
1183	1183	1 health coverage under this Act on a non-insured basis. To
1184	1184	2 participate, a domestic violence shelter or service must agree
1185	1185	3 to enroll all of its employees and pay the entire cost of
1186	1186	4 providing such coverage for its employees. The domestic
1187	1187	5 violence shelter shall not be required to enroll those of its
1188	1188	6 employees who are covered spouses or dependents under this
1189	1189	7 plan or another group policy or plan providing health benefits
1190	1190	8 as long as (1) an appropriate official from the domestic
1191	1191	9 violence shelter attests that each employee not enrolled is a
1192	1192	10 covered spouse or dependent under this plan or another group
1193	1193	11 policy or plan and (2) at least 50% of the employees are
1194	1194	12 enrolled and the domestic violence shelter remits the entire
1195	1195	13 cost of providing coverage to those employees. Employees of a
1196	1196	14 participating domestic violence shelter who are not enrolled
1197	1197	15 due to coverage under another group health policy or plan may
1198	1198	16 enroll in the event of a qualifying change in status, special
1199	1199	17 enrollment, or special circumstance as defined by the Director
1200	1200	18 or during the annual Benefit Choice Period. A participating
1201	1201	19 domestic violence shelter may also elect to cover its
1202	1202	20 annuitants. Dependent coverage shall be offered on an optional
1203	1203	21 basis, with employees, or some combination of the 2 as
1204	1204	22 determined by the domestic violence shelter or service. The
1205	1205	23 domestic violence shelter or service shall be responsible for
1206	1206	24 timely collection and transmission of dependent premiums.
1207	1207	25 The Director shall annually determine rates of payment,
1208	1208	26 subject to the following constraints:
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214	HB2589 - 33 - LRB103 30272 RPS 56700 b
1215	1215
1216	1216
1217	1217	HB2589- 34 -LRB103 30272 RPS 56700 b HB2589 - 34 - LRB103 30272 RPS 56700 b
1218	1218	HB2589 - 34 - LRB103 30272 RPS 56700 b
1219	1219	1 (1) In the first year of coverage, the rates shall be
1220	1220	2 equal to the amount normally charged to State employees
1221	1221	3 for elected optional coverages or for enrolled dependents
1222	1222	4 coverages or other contributory coverages on behalf of its
1223	1223	5 employees, adjusted for differences between State
1224	1224	6 employees and employees of the domestic violence shelter
1225	1225	7 or service in age, sex, geographic location or other
1226	1226	8 relevant demographic variables, plus an amount sufficient
1227	1227	9 to pay for the additional administrative costs of
1228	1228	10 providing coverage to employees of the domestic violence
1229	1229	11 shelter or service and their dependents.
1230	1230	12 (2) In subsequent years, a further adjustment shall be
1231	1231	13 made to reflect the actual prior years' claims experience
1232	1232	14 of the employees of the domestic violence shelter or
1233	1233	15 service.
1234	1234	16 Monthly payments by the domestic violence shelter or
1235	1235	17 service or its employees for group health insurance shall be
1236	1236	18 deposited in the Local Government Health Insurance Reserve
1237	1237	19 Fund.
1238	1238	20 (l) A public community college or entity organized
1239	1239	21 pursuant to the Public Community College Act may apply to the
1240	1240	22 Director initially to have only annuitants not covered prior
1241	1241	23 to July 1, 1992 by the district's health plan provided health
1242	1242	24 coverage under this Act on a non-insured basis. The community
1243	1243	25 college must execute a 2-year contract to participate in the
1244	1244	26 Local Government Health Plan. Any annuitant may enroll in the
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250	HB2589 - 34 - LRB103 30272 RPS 56700 b
1251	1251
1252	1252
1253	1253	HB2589- 35 -LRB103 30272 RPS 56700 b HB2589 - 35 - LRB103 30272 RPS 56700 b
1254	1254	HB2589 - 35 - LRB103 30272 RPS 56700 b
1255	1255	1 event of a qualifying change in status, special enrollment,
1256	1256	2 special circumstance as defined by the Director, or during the
1257	1257	3 annual Benefit Choice Period.
1258	1258	4 The Director shall annually determine monthly rates of
1259	1259	5 payment subject to the following constraints: for those
1260	1260	6 community colleges with annuitants only enrolled, first year
1261	1261	7 rates shall be equal to the average cost to cover claims for a
1262	1262	8 State member adjusted for demographics, Medicare
1263	1263	9 participation, and other factors; and in the second year, a
1264	1264	10 further adjustment of rates shall be made to reflect the
1265	1265	11 actual first year's claims experience of the covered
1266	1266	12 annuitants.
1267	1267	13 (l-5) The provisions of subsection (l) become inoperative
1268	1268	14 on July 1, 1999.
1269	1269	15 (m) The Director shall adopt any rules deemed necessary
1270	1270	16 for implementation of this amendatory Act of 1989 (Public Act
1271	1271	17 86-978).
1272	1272	18 (n) Any child advocacy center within the State of Illinois
1273	1273	19 may apply to the Director to have its employees, annuitants,
1274	1274	20 and their dependents provided group health coverage under this
1275	1275	21 Act on a non-insured basis. To participate, a child advocacy
1276	1276	22 center must agree to enroll all of its employees and pay the
1277	1277	23 entire cost of providing coverage for its employees. The child
1278	1278	24 advocacy center shall not be required to enroll those of its
1279	1279	25 employees who are covered spouses or dependents under this
1280	1280	26 plan or another group policy or plan providing health benefits
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286	HB2589 - 35 - LRB103 30272 RPS 56700 b
1287	1287
1288	1288
1289	1289	HB2589- 36 -LRB103 30272 RPS 56700 b HB2589 - 36 - LRB103 30272 RPS 56700 b
1290	1290	HB2589 - 36 - LRB103 30272 RPS 56700 b
1291	1291	1 as long as (1) an appropriate official from the child advocacy
1292	1292	2 center attests that each employee not enrolled is a covered
1293	1293	3 spouse or dependent under this plan or another group policy or
1294	1294	4 plan and (2) at least 50% of the employees are enrolled and the
1295	1295	5 child advocacy center remits the entire cost of providing
1296	1296	6 coverage to those employees. Employees of a participating
1297	1297	7 child advocacy center who are not enrolled due to coverage
1298	1298	8 under another group health policy or plan may enroll in the
1299	1299	9 event of a qualifying change in status, special enrollment, or
1300	1300	10 special circumstance as defined by the Director or during the
1301	1301	11 annual Benefit Choice Period. A participating child advocacy
1302	1302	12 center may also elect to cover its annuitants. Dependent
1303	1303	13 coverage shall be offered on an optional basis, with the costs
1304	1304	14 paid by the child advocacy center, its employees, or some
1305	1305	15 combination of the 2 as determined by the child advocacy
1306	1306	16 center. The child advocacy center shall be responsible for
1307	1307	17 timely collection and transmission of dependent premiums.
1308	1308	18 The Director shall annually determine rates of payment,
1309	1309	19 subject to the following constraints:
1310	1310	20 (1) In the first year of coverage, the rates shall be
1311	1311	21 equal to the amount normally charged to State employees
1312	1312	22 for elected optional coverages or for enrolled dependents
1313	1313	23 coverages or other contributory coverages on behalf of its
1314	1314	24 employees, adjusted for differences between State
1315	1315	25 employees and employees of the child advocacy center in
1316	1316	26 age, sex, geographic location, or other relevant
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322	HB2589 - 36 - LRB103 30272 RPS 56700 b
1323	1323
1324	1324
1325	1325	HB2589- 37 -LRB103 30272 RPS 56700 b HB2589 - 37 - LRB103 30272 RPS 56700 b
1326	1326	HB2589 - 37 - LRB103 30272 RPS 56700 b
1327	1327	1 demographic variables, plus an amount sufficient to pay
1328	1328	2 for the additional administrative costs of providing
1329	1329	3 coverage to employees of the child advocacy center and
1330	1330	4 their dependents.
1331	1331	5 (2) In subsequent years, a further adjustment shall be
1332	1332	6 made to reflect the actual prior years' claims experience
1333	1333	7 of the employees of the child advocacy center.
1334	1334	8 Monthly payments by the child advocacy center or its
1335	1335	9 employees for group health insurance shall be deposited into
1336	1336	10 the Local Government Health Insurance Reserve Fund.
1337	1337	11 (Source: P.A. 102-19, eff. 7-1-21.)
1338	1338	12 Section 10. The Illinois Pension Code is amended by
1339	1339	13 changing Sections 1-160, 1-161, 2-162, 14-103.41, 14-152.1,
1340	1340	14 15-108.1, 15-108.2, 15-198, 16-106.41, 16-203, 18-124, 18-125,
1341	1341	15 18-125.1, 18-127, 18-128.01, 18-133, 18-169, 20-121, 20-123,
1342	1342	16 20-124, and 20-125 and by adding Sections 2-105.3, 2-165.5,
1343	1343	17 14-103.44, 14-103.45, 14-155.5, 15-108.3, 15-200.5, 16-106.42,
1344	1344	18 16-106.43, 16-205.5, 18-110.1, 18-110.2, 18-110.3, and
1345	1345	19 18-121.5 as follows:
1346	1346	20 (40 ILCS 5/1-160)
1347	1347	21 (Text of Section from P.A. 102-719)
1348	1348	22 Sec. 1-160. Provisions applicable to new hires.
1349	1349	23 (a) The provisions of this Section apply to a person who,
1350	1350	24 on or after January 1, 2011, first becomes a member or a
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355
1356	1356	HB2589 - 37 - LRB103 30272 RPS 56700 b
1357	1357
1358	1358
1359	1359	HB2589- 38 -LRB103 30272 RPS 56700 b HB2589 - 38 - LRB103 30272 RPS 56700 b
1360	1360	HB2589 - 38 - LRB103 30272 RPS 56700 b
1361	1361	1 participant under any reciprocal retirement system or pension
1362	1362	2 fund established under this Code, other than a retirement
1363	1363	3 system or pension fund established under Article 2, 3, 4, 5, 6,
1364	1364	4 7, 15, or 18 of this Code, notwithstanding any other provision
1365	1365	5 of this Code to the contrary, but do not apply to any
1366	1366	6 self-managed plan established under this Code or to any
1367	1367	7 participant of the retirement plan established under Section
1368	1368	8 22-101; except that this Section applies to a person who
1369	1369	9 elected to establish alternative credits by electing in
1370	1370	10 writing after January 1, 2011, but before August 8, 2011,
1371	1371	11 under Section 7-145.1 of this Code. Notwithstanding anything
1372	1372	12 to the contrary in this Section, for purposes of this Section,
1373	1373	13 a person who is a Tier 1 regular employee as defined in Section
1374	1374	14 7-109.4 of this Code or who participated in a retirement
1375	1375	15 system under Article 15 prior to January 1, 2011 shall be
1376	1376	16 deemed a person who first became a member or participant prior
1377	1377	17 to January 1, 2011 under any retirement system or pension fund
1378	1378	18 subject to this Section. The changes made to this Section by
1379	1379	19 Public Act 98-596 are a clarification of existing law and are
1380	1380	20 intended to be retroactive to January 1, 2011 (the effective
1381	1381	21 date of Public Act 96-889), notwithstanding the provisions of
1382	1382	22 Section 1-103.1 of this Code.
1383	1383	23 The provisions of this Section do not apply to service
1384	1384	24 under a Tier 3 plan established under Article 14, 15, or 16 of
1385	1385	25 this Code.
1386	1386	26 This Section does not apply to a person who first becomes a
1387	1387
1388	1388
1389	1389
1390	1390
1391	1391
1392	1392	HB2589 - 38 - LRB103 30272 RPS 56700 b
1393	1393
1394	1394
1395	1395	HB2589- 39 -LRB103 30272 RPS 56700 b HB2589 - 39 - LRB103 30272 RPS 56700 b
1396	1396	HB2589 - 39 - LRB103 30272 RPS 56700 b
1397	1397	1 noncovered employee under Article 14 on or after the
1398	1398	2 implementation date of the plan created under Section 1-161
1399	1399	3 for that Article, unless that person elects under subsection
1400	1400	4 (b) of Section 1-161 to instead receive the benefits provided
1401	1401	5 under this Section and the applicable provisions of that
1402	1402	6 Article.
1403	1403	7 This Section does not apply to a person who first becomes a
1404	1404	8 member or participant under Article 16 on or after the
1405	1405	9 implementation date of the plan created under Section 1-161
1406	1406	10 for that Article, unless that person elects under subsection
1407	1407	11 (b) of Section 1-161 to instead receive the benefits provided
1408	1408	12 under this Section and the applicable provisions of that
1409	1409	13 Article.
1410	1410	14 This Section does not apply to a person who elects under
1411	1411	15 subsection (c-5) of Section 1-161 to receive the benefits
1412	1412	16 under Section 1-161.
1413	1413	17 This Section does not apply to a person who first becomes a
1414	1414	18 member or participant of an affected pension fund on or after 6
1415	1415	19 months after the resolution or ordinance date, as defined in
1416	1416	20 Section 1-162, unless that person elects under subsection (c)
1417	1417	21 of Section 1-162 to receive the benefits provided under this
1418	1418	22 Section and the applicable provisions of the Article under
1419	1419	23 which he or she is a member or participant.
1420	1420	24 (b) "Final average salary" means, except as otherwise
1421	1421	25 provided in this subsection, the average monthly (or annual)
1422	1422	26 salary obtained by dividing the total salary or earnings
1423	1423
1424	1424
1425	1425
1426	1426
1427	1427
1428	1428	HB2589 - 39 - LRB103 30272 RPS 56700 b
1429	1429
1430	1430
1431	1431	HB2589- 40 -LRB103 30272 RPS 56700 b HB2589 - 40 - LRB103 30272 RPS 56700 b
1432	1432	HB2589 - 40 - LRB103 30272 RPS 56700 b
1433	1433	1 calculated under the Article applicable to the member or
1434	1434	2 participant during the 96 consecutive months (or 8 consecutive
1435	1435	3 years) of service within the last 120 months (or 10 years) of
1436	1436	4 service in which the total salary or earnings calculated under
1437	1437	5 the applicable Article was the highest by the number of months
1438	1438	6 (or years) of service in that period. For the purposes of a
1439	1439	7 person who first becomes a member or participant of any
1440	1440	8 retirement system or pension fund to which this Section
1441	1441	9 applies on or after January 1, 2011, in this Code, "final
1442	1442	10 average salary" shall be substituted for the following:
1443	1443	11 (1) (Blank).
1444	1444	12 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1445	1445	13 annual salary for any 4 consecutive years within the last
1446	1446	14 10 years of service immediately preceding the date of
1447	1447	15 withdrawal".
1448	1448	16 (3) In Article 13, "average final salary".
1449	1449	17 (4) In Article 14, "final average compensation".
1450	1450	18 (5) In Article 17, "average salary".
1451	1451	19 (6) In Section 22-207, "wages or salary received by
1452	1452	20 him at the date of retirement or discharge".
1453	1453	21 A member of the Teachers' Retirement System of the State
1454	1454	22 of Illinois who retires on or after June 1, 2021 and for whom
1455	1455	23 the 2020-2021 school year is used in the calculation of the
1456	1456	24 member's final average salary shall use the higher of the
1457	1457	25 following for the purpose of determining the member's final
1458	1458	26 average salary:
1459	1459
1460	1460
1461	1461
1462	1462
1463	1463
1464	1464	HB2589 - 40 - LRB103 30272 RPS 56700 b
1465	1465
1466	1466
1467	1467	HB2589- 41 -LRB103 30272 RPS 56700 b HB2589 - 41 - LRB103 30272 RPS 56700 b
1468	1468	HB2589 - 41 - LRB103 30272 RPS 56700 b
1469	1469	1 (A) the amount otherwise calculated under the first
1470	1470	2 paragraph of this subsection; or
1471	1471	3 (B) an amount calculated by the Teachers' Retirement
1472	1472	4 System of the State of Illinois using the average of the
1473	1473	5 monthly (or annual) salary obtained by dividing the total
1474	1474	6 salary or earnings calculated under Article 16 applicable
1475	1475	7 to the member or participant during the 96 months (or 8
1476	1476	8 years) of service within the last 120 months (or 10 years)
1477	1477	9 of service in which the total salary or earnings
1478	1478	10 calculated under the Article was the highest by the number
1479	1479	11 of months (or years) of service in that period.
1480	1480	12 (b-5) Beginning on January 1, 2011, for all purposes under
1481	1481	13 this Code (including without limitation the calculation of
1482	1482	14 benefits and employee contributions), the annual earnings,
1483	1483	15 salary, or wages (based on the plan year) of a member or
1484	1484	16 participant to whom this Section applies shall not exceed
1485	1485	17 $106,800; however, that amount shall annually thereafter be
1486	1486	18 increased by the lesser of (i) 3% of that amount, including all
1487	1487	19 previous adjustments, or (ii) one-half the annual unadjusted
1488	1488	20 percentage increase (but not less than zero) in the consumer
1489	1489	21 price index-u for the 12 months ending with the September
1490	1490	22 preceding each November 1, including all previous adjustments.
1491	1491	23 For the purposes of this Section, "consumer price index-u"
1492	1492	24 means the index published by the Bureau of Labor Statistics of
1493	1493	25 the United States Department of Labor that measures the
1494	1494	26 average change in prices of goods and services purchased by
1495	1495
1496	1496
1497	1497
1498	1498
1499	1499
1500	1500	HB2589 - 41 - LRB103 30272 RPS 56700 b
1501	1501
1502	1502
1503	1503	HB2589- 42 -LRB103 30272 RPS 56700 b HB2589 - 42 - LRB103 30272 RPS 56700 b
1504	1504	HB2589 - 42 - LRB103 30272 RPS 56700 b
1505	1505	1 all urban consumers, United States city average, all items,
1506	1506	2 1982-84 = 100. The new amount resulting from each annual
1507	1507	3 adjustment shall be determined by the Public Pension Division
1508	1508	4 of the Department of Insurance and made available to the
1509	1509	5 boards of the retirement systems and pension funds by November
1510	1510	6 1 of each year.
1511	1511	7 (c) A member or participant is entitled to a retirement
1512	1512	8 annuity upon written application if he or she has attained age
1513	1513	9 67 (age 65, with respect to service under Article 12 that is
1514	1514	10 subject to this Section, for a member or participant under
1515	1515	11 Article 12 who first becomes a member or participant under
1516	1516	12 Article 12 on or after January 1, 2022 or who makes the
1517	1517	13 election under item (i) of subsection (d-15) of this Section)
1518	1518	14 and has at least 10 years of service credit and is otherwise
1519	1519	15 eligible under the requirements of the applicable Article.
1520	1520	16 A member or participant who has attained age 62 (age 60,
1521	1521	17 with respect to service under Article 12 that is subject to
1522	1522	18 this Section, for a member or participant under Article 12 who
1523	1523	19 first becomes a member or participant under Article 12 on or
1524	1524	20 after January 1, 2022 or who makes the election under item (i)
1525	1525	21 of subsection (d-15) of this Section) and has at least 10 years
1526	1526	22 of service credit and is otherwise eligible under the
1527	1527	23 requirements of the applicable Article may elect to receive
1528	1528	24 the lower retirement annuity provided in subsection (d) of
1529	1529	25 this Section.
1530	1530	26 (c-5) A person who first becomes a member or a participant
1531	1531
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536	HB2589 - 42 - LRB103 30272 RPS 56700 b
1537	1537
1538	1538
1539	1539	HB2589- 43 -LRB103 30272 RPS 56700 b HB2589 - 43 - LRB103 30272 RPS 56700 b
1540	1540	HB2589 - 43 - LRB103 30272 RPS 56700 b
1541	1541	1 subject to this Section on or after July 6, 2017 (the effective
1542	1542	2 date of Public Act 100-23), notwithstanding any other
1543	1543	3 provision of this Code to the contrary, is entitled to a
1544	1544	4 retirement annuity under Article 8 or Article 11 upon written
1545	1545	5 application if he or she has attained age 65 and has at least
1546	1546	6 10 years of service credit and is otherwise eligible under the
1547	1547	7 requirements of Article 8 or Article 11 of this Code,
1548	1548	8 whichever is applicable.
1549	1549	9 (d) The retirement annuity of a member or participant who
1550	1550	10 is retiring after attaining age 62 (age 60, with respect to
1551	1551	11 service under Article 12 that is subject to this Section, for a
1552	1552	12 member or participant under Article 12 who first becomes a
1553	1553	13 member or participant under Article 12 on or after January 1,
1554	1554	14 2022 or who makes the election under item (i) of subsection
1555	1555	15 (d-15) of this Section) with at least 10 years of service
1556	1556	16 credit shall be reduced by one-half of 1% for each full month
1557	1557	17 that the member's age is under age 67 (age 65, with respect to
1558	1558	18 service under Article 12 that is subject to this Section, for a
1559	1559	19 member or participant under Article 12 who first becomes a
1560	1560	20 member or participant under Article 12 on or after January 1,
1561	1561	21 2022 or who makes the election under item (i) of subsection
1562	1562	22 (d-15) of this Section).
1563	1563	23 (d-5) The retirement annuity payable under Article 8 or
1564	1564	24 Article 11 to an eligible person subject to subsection (c-5)
1565	1565	25 of this Section who is retiring at age 60 with at least 10
1566	1566	26 years of service credit shall be reduced by one-half of 1% for
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572	HB2589 - 43 - LRB103 30272 RPS 56700 b
1573	1573
1574	1574
1575	1575	HB2589- 44 -LRB103 30272 RPS 56700 b HB2589 - 44 - LRB103 30272 RPS 56700 b
1576	1576	HB2589 - 44 - LRB103 30272 RPS 56700 b
1577	1577	1 each full month that the member's age is under age 65.
1578	1578	2 (d-10) Each person who first became a member or
1579	1579	3 participant under Article 8 or Article 11 of this Code on or
1580	1580	4 after January 1, 2011 and prior to July 6, 2017 (the effective
1581	1581	5 date of Public Act 100-23) shall make an irrevocable election
1582	1582	6 either:
1583	1583	7 (i) to be eligible for the reduced retirement age
1584	1584	8 provided in subsections (c-5) and (d-5) of this Section,
1585	1585	9 the eligibility for which is conditioned upon the member
1586	1586	10 or participant agreeing to the increases in employee
1587	1587	11 contributions for age and service annuities provided in
1588	1588	12 subsection (a-5) of Section 8-174 of this Code (for
1589	1589	13 service under Article 8) or subsection (a-5) of Section
1590	1590	14 11-170 of this Code (for service under Article 11); or
1591	1591	15 (ii) to not agree to item (i) of this subsection
1592	1592	16 (d-10), in which case the member or participant shall
1593	1593	17 continue to be subject to the retirement age provisions in
1594	1594	18 subsections (c) and (d) of this Section and the employee
1595	1595	19 contributions for age and service annuity as provided in
1596	1596	20 subsection (a) of Section 8-174 of this Code (for service
1597	1597	21 under Article 8) or subsection (a) of Section 11-170 of
1598	1598	22 this Code (for service under Article 11).
1599	1599	23 The election provided for in this subsection shall be made
1600	1600	24 between October 1, 2017 and November 15, 2017. A person
1601	1601	25 subject to this subsection who makes the required election
1602	1602	26 shall remain bound by that election. A person subject to this
1603	1603
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608	HB2589 - 44 - LRB103 30272 RPS 56700 b
1609	1609
1610	1610
1611	1611	HB2589- 45 -LRB103 30272 RPS 56700 b HB2589 - 45 - LRB103 30272 RPS 56700 b
1612	1612	HB2589 - 45 - LRB103 30272 RPS 56700 b
1613	1613	1 subsection who fails for any reason to make the required
1614	1614	2 election within the time specified in this subsection shall be
1615	1615	3 deemed to have made the election under item (ii).
1616	1616	4 (d-15) Each person who first becomes a member or
1617	1617	5 participant under Article 12 on or after January 1, 2011 and
1618	1618	6 prior to January 1, 2022 shall make an irrevocable election
1619	1619	7 either:
1620	1620	8 (i) to be eligible for the reduced retirement age
1621	1621	9 specified in subsections (c) and (d) of this Section, the
1622	1622	10 eligibility for which is conditioned upon the member or
1623	1623	11 participant agreeing to the increase in employee
1624	1624	12 contributions for service annuities specified in
1625	1625	13 subsection (b) of Section 12-150; or
1626	1626	14 (ii) to not agree to item (i) of this subsection
1627	1627	15 (d-15), in which case the member or participant shall not
1628	1628	16 be eligible for the reduced retirement age specified in
1629	1629	17 subsections (c) and (d) of this Section and shall not be
1630	1630	18 subject to the increase in employee contributions for
1631	1631	19 service annuities specified in subsection (b) of Section
1632	1632	20 12-150.
1633	1633	21 The election provided for in this subsection shall be made
1634	1634	22 between January 1, 2022 and April 1, 2022. A person subject to
1635	1635	23 this subsection who makes the required election shall remain
1636	1636	24 bound by that election. A person subject to this subsection
1637	1637	25 who fails for any reason to make the required election within
1638	1638	26 the time specified in this subsection shall be deemed to have
1639	1639
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644	HB2589 - 45 - LRB103 30272 RPS 56700 b
1645	1645
1646	1646
1647	1647	HB2589- 46 -LRB103 30272 RPS 56700 b HB2589 - 46 - LRB103 30272 RPS 56700 b
1648	1648	HB2589 - 46 - LRB103 30272 RPS 56700 b
1649	1649	1 made the election under item (ii).
1650	1650	2 (e) Any retirement annuity or supplemental annuity shall
1651	1651	3 be subject to annual increases on the January 1 occurring
1652	1652	4 either on or after the attainment of age 67 (age 65, with
1653	1653	5 respect to service under Article 12 that is subject to this
1654	1654	6 Section, for a member or participant under Article 12 who
1655	1655	7 first becomes a member or participant under Article 12 on or
1656	1656	8 after January 1, 2022 or who makes the election under item (i)
1657	1657	9 of subsection (d-15); and beginning on July 6, 2017 (the
1658	1658	10 effective date of Public Act 100-23), age 65 with respect to
1659	1659	11 service under Article 8 or Article 11 for eligible persons
1660	1660	12 who: (i) are subject to subsection (c-5) of this Section; or
1661	1661	13 (ii) made the election under item (i) of subsection (d-10) of
1662	1662	14 this Section) or the first anniversary of the annuity start
1663	1663	15 date, whichever is later. Each annual increase shall be
1664	1664	16 calculated at 3% or one-half the annual unadjusted percentage
1665	1665	17 increase (but not less than zero) in the consumer price
1666	1666	18 index-u for the 12 months ending with the September preceding
1667	1667	19 each November 1, whichever is less, of the originally granted
1668	1668	20 retirement annuity. If the annual unadjusted percentage change
1669	1669	21 in the consumer price index-u for the 12 months ending with the
1670	1670	22 September preceding each November 1 is zero or there is a
1671	1671	23 decrease, then the annuity shall not be increased.
1672	1672	24 For the purposes of Section 1-103.1 of this Code, the
1673	1673	25 changes made to this Section by Public Act 102-263 are
1674	1674	26 applicable without regard to whether the employee was in
1675	1675
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680	HB2589 - 46 - LRB103 30272 RPS 56700 b
1681	1681
1682	1682
1683	1683	HB2589- 47 -LRB103 30272 RPS 56700 b HB2589 - 47 - LRB103 30272 RPS 56700 b
1684	1684	HB2589 - 47 - LRB103 30272 RPS 56700 b
1685	1685	1 active service on or after August 6, 2021 (the effective date
1686	1686	2 of Public Act 102-263).
1687	1687	3 For the purposes of Section 1-103.1 of this Code, the
1688	1688	4 changes made to this Section by Public Act 100-23 are
1689	1689	5 applicable without regard to whether the employee was in
1690	1690	6 active service on or after July 6, 2017 (the effective date of
1691	1691	7 Public Act 100-23).
1692	1692	8 (f) The initial survivor's or widow's annuity of an
1693	1693	9 otherwise eligible survivor or widow of a retired member or
1694	1694	10 participant who first became a member or participant on or
1695	1695	11 after January 1, 2011 shall be in the amount of 66 2/3% of the
1696	1696	12 retired member's or participant's retirement annuity at the
1697	1697	13 date of death. In the case of the death of a member or
1698	1698	14 participant who has not retired and who first became a member
1699	1699	15 or participant on or after January 1, 2011, eligibility for a
1700	1700	16 survivor's or widow's annuity shall be determined by the
1701	1701	17 applicable Article of this Code. The initial benefit shall be
1702	1702	18 66 2/3% of the earned annuity without a reduction due to age. A
1703	1703	19 child's annuity of an otherwise eligible child shall be in the
1704	1704	20 amount prescribed under each Article if applicable. Any
1705	1705	21 survivor's or widow's annuity shall be increased (1) on each
1706	1706	22 January 1 occurring on or after the commencement of the
1707	1707	23 annuity if the deceased member died while receiving a
1708	1708	24 retirement annuity or (2) in other cases, on each January 1
1709	1709	25 occurring after the first anniversary of the commencement of
1710	1710	26 the annuity. Each annual increase shall be calculated at 3% or
1711	1711
1712	1712
1713	1713
1714	1714
1715	1715
1716	1716	HB2589 - 47 - LRB103 30272 RPS 56700 b
1717	1717
1718	1718
1719	1719	HB2589- 48 -LRB103 30272 RPS 56700 b HB2589 - 48 - LRB103 30272 RPS 56700 b
1720	1720	HB2589 - 48 - LRB103 30272 RPS 56700 b
1721	1721	1 one-half the annual unadjusted percentage increase (but not
1722	1722	2 less than zero) in the consumer price index-u for the 12 months
1723	1723	3 ending with the September preceding each November 1, whichever
1724	1724	4 is less, of the originally granted survivor's annuity. If the
1725	1725	5 annual unadjusted percentage change in the consumer price
1726	1726	6 index-u for the 12 months ending with the September preceding
1727	1727	7 each November 1 is zero or there is a decrease, then the
1728	1728	8 annuity shall not be increased.
1729	1729	9 (g) The benefits in Section 14-110 apply if the person is a
1730	1730	10 fire fighter in the fire protection service of a department, a
1731	1731	11 security employee of the Department of Corrections or the
1732	1732	12 Department of Juvenile Justice, or a security employee of the
1733	1733	13 Department of Innovation and Technology, as those terms are
1734	1734	14 defined in subsection (b) and subsection (c) of Section
1735	1735	15 14-110. A person who meets the requirements of this Section is
1736	1736	16 entitled to an annuity calculated under the provisions of
1737	1737	17 Section 14-110, in lieu of the regular or minimum retirement
1738	1738	18 annuity, only if the person has withdrawn from service with
1739	1739	19 not less than 20 years of eligible creditable service and has
1740	1740	20 attained age 60, regardless of whether the attainment of age
1741	1741	21 60 occurs while the person is still in service.
1742	1742	22 (g-5) The benefits in Section 14-110 apply if the person
1743	1743	23 is a State policeman, investigator for the Secretary of State,
1744	1744	24 conservation police officer, investigator for the Department
1745	1745	25 of Revenue or the Illinois Gaming Board, investigator for the
1746	1746	26 Office of the Attorney General, Commerce Commission police
1747	1747
1748	1748
1749	1749
1750	1750
1751	1751
1752	1752	HB2589 - 48 - LRB103 30272 RPS 56700 b
1753	1753
1754	1754
1755	1755	HB2589- 49 -LRB103 30272 RPS 56700 b HB2589 - 49 - LRB103 30272 RPS 56700 b
1756	1756	HB2589 - 49 - LRB103 30272 RPS 56700 b
1757	1757	1 officer, or arson investigator, as those terms are defined in
1758	1758	2 subsection (b) and subsection (c) of Section 14-110. A person
1759	1759	3 who meets the requirements of this Section is entitled to an
1760	1760	4 annuity calculated under the provisions of Section 14-110, in
1761	1761	5 lieu of the regular or minimum retirement annuity, only if the
1762	1762	6 person has withdrawn from service with not less than 20 years
1763	1763	7 of eligible creditable service and has attained age 55,
1764	1764	8 regardless of whether the attainment of age 55 occurs while
1765	1765	9 the person is still in service.
1766	1766	10 (h) If a person who first becomes a member or a participant
1767	1767	11 of a retirement system or pension fund subject to this Section
1768	1768	12 on or after January 1, 2011 is receiving a retirement annuity
1769	1769	13 or retirement pension under that system or fund and becomes a
1770	1770	14 member or participant under any other system or fund created
1771	1771	15 by this Code and is employed on a full-time basis, except for
1772	1772	16 those members or participants exempted from the provisions of
1773	1773	17 this Section under subsection (a) of this Section, then the
1774	1774	18 person's retirement annuity or retirement pension under that
1775	1775	19 system or fund shall be suspended during that employment. Upon
1776	1776	20 termination of that employment, the person's retirement
1777	1777	21 annuity or retirement pension payments shall resume and be
1778	1778	22 recalculated if recalculation is provided for under the
1779	1779	23 applicable Article of this Code.
1780	1780	24 If a person who first becomes a member of a retirement
1781	1781	25 system or pension fund subject to this Section on or after
1782	1782	26 January 1, 2012 and is receiving a retirement annuity or
1783	1783
1784	1784
1785	1785
1786	1786
1787	1787
1788	1788	HB2589 - 49 - LRB103 30272 RPS 56700 b
1789	1789
1790	1790
1791	1791	HB2589- 50 -LRB103 30272 RPS 56700 b HB2589 - 50 - LRB103 30272 RPS 56700 b
1792	1792	HB2589 - 50 - LRB103 30272 RPS 56700 b
1793	1793	1 retirement pension under that system or fund and accepts on a
1794	1794	2 contractual basis a position to provide services to a
1795	1795	3 governmental entity from which he or she has retired, then
1796	1796	4 that person's annuity or retirement pension earned as an
1797	1797	5 active employee of the employer shall be suspended during that
1798	1798	6 contractual service. A person receiving an annuity or
1799	1799	7 retirement pension under this Code shall notify the pension
1800	1800	8 fund or retirement system from which he or she is receiving an
1801	1801	9 annuity or retirement pension, as well as his or her
1802	1802	10 contractual employer, of his or her retirement status before
1803	1803	11 accepting contractual employment. A person who fails to submit
1804	1804	12 such notification shall be guilty of a Class A misdemeanor and
1805	1805	13 required to pay a fine of $1,000. Upon termination of that
1806	1806	14 contractual employment, the person's retirement annuity or
1807	1807	15 retirement pension payments shall resume and, if appropriate,
1808	1808	16 be recalculated under the applicable provisions of this Code.
1809	1809	17 (i) (Blank).
1810	1810	18 (j) In the case of a conflict between the provisions of
1811	1811	19 this Section and any other provision of this Code, the
1812	1812	20 provisions of this Section shall control.
1813	1813	21 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1814	1814	22 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
1815	1815	23 5-6-22.)
1816	1816	24 (Text of Section from P.A. 102-813)
1817	1817	25 Sec. 1-160. Provisions applicable to new hires.
1818	1818
1819	1819
1820	1820
1821	1821
1822	1822
1823	1823	HB2589 - 50 - LRB103 30272 RPS 56700 b
1824	1824
1825	1825
1826	1826	HB2589- 51 -LRB103 30272 RPS 56700 b HB2589 - 51 - LRB103 30272 RPS 56700 b
1827	1827	HB2589 - 51 - LRB103 30272 RPS 56700 b
1828	1828	1 (a) The provisions of this Section apply to a person who,
1829	1829	2 on or after January 1, 2011, first becomes a member or a
1830	1830	3 participant under any reciprocal retirement system or pension
1831	1831	4 fund established under this Code, other than a retirement
1832	1832	5 system or pension fund established under Article 2, 3, 4, 5, 6,
1833	1833	6 7, 15, or 18 of this Code, notwithstanding any other provision
1834	1834	7 of this Code to the contrary, but do not apply to any
1835	1835	8 self-managed plan established under this Code or to any
1836	1836	9 participant of the retirement plan established under Section
1837	1837	10 22-101; except that this Section applies to a person who
1838	1838	11 elected to establish alternative credits by electing in
1839	1839	12 writing after January 1, 2011, but before August 8, 2011,
1840	1840	13 under Section 7-145.1 of this Code. Notwithstanding anything
1841	1841	14 to the contrary in this Section, for purposes of this Section,
1842	1842	15 a person who is a Tier 1 regular employee as defined in Section
1843	1843	16 7-109.4 of this Code or who participated in a retirement
1844	1844	17 system under Article 15 prior to January 1, 2011 shall be
1845	1845	18 deemed a person who first became a member or participant prior
1846	1846	19 to January 1, 2011 under any retirement system or pension fund
1847	1847	20 subject to this Section. The changes made to this Section by
1848	1848	21 Public Act 98-596 are a clarification of existing law and are
1849	1849	22 intended to be retroactive to January 1, 2011 (the effective
1850	1850	23 date of Public Act 96-889), notwithstanding the provisions of
1851	1851	24 Section 1-103.1 of this Code.
1852	1852	25 The provisions of this Section do not apply to service
1853	1853	26 under a Tier 3 plan established under Article 14, 15, or 16 of
1854	1854
1855	1855
1856	1856
1857	1857
1858	1858
1859	1859	HB2589 - 51 - LRB103 30272 RPS 56700 b
1860	1860
1861	1861
1862	1862	HB2589- 52 -LRB103 30272 RPS 56700 b HB2589 - 52 - LRB103 30272 RPS 56700 b
1863	1863	HB2589 - 52 - LRB103 30272 RPS 56700 b
1864	1864	1 this Code.
1865	1865	2 This Section does not apply to a person who first becomes a
1866	1866	3 noncovered employee under Article 14 on or after the
1867	1867	4 implementation date of the plan created under Section 1-161
1868	1868	5 for that Article, unless that person elects under subsection
1869	1869	6 (b) of Section 1-161 to instead receive the benefits provided
1870	1870	7 under this Section and the applicable provisions of that
1871	1871	8 Article.
1872	1872	9 This Section does not apply to a person who first becomes a
1873	1873	10 member or participant under Article 16 on or after the
1874	1874	11 implementation date of the plan created under Section 1-161
1875	1875	12 for that Article, unless that person elects under subsection
1876	1876	13 (b) of Section 1-161 to instead receive the benefits provided
1877	1877	14 under this Section and the applicable provisions of that
1878	1878	15 Article.
1879	1879	16 This Section does not apply to a person who elects under
1880	1880	17 subsection (c-5) of Section 1-161 to receive the benefits
1881	1881	18 under Section 1-161.
1882	1882	19 This Section does not apply to a person who first becomes a
1883	1883	20 member or participant of an affected pension fund on or after 6
1884	1884	21 months after the resolution or ordinance date, as defined in
1885	1885	22 Section 1-162, unless that person elects under subsection (c)
1886	1886	23 of Section 1-162 to receive the benefits provided under this
1887	1887	24 Section and the applicable provisions of the Article under
1888	1888	25 which he or she is a member or participant.
1889	1889	26 (b) "Final average salary" means, except as otherwise
1890	1890
1891	1891
1892	1892
1893	1893
1894	1894
1895	1895	HB2589 - 52 - LRB103 30272 RPS 56700 b
1896	1896
1897	1897
1898	1898	HB2589- 53 -LRB103 30272 RPS 56700 b HB2589 - 53 - LRB103 30272 RPS 56700 b
1899	1899	HB2589 - 53 - LRB103 30272 RPS 56700 b
1900	1900	1 provided in this subsection, the average monthly (or annual)
1901	1901	2 salary obtained by dividing the total salary or earnings
1902	1902	3 calculated under the Article applicable to the member or
1903	1903	4 participant during the 96 consecutive months (or 8 consecutive
1904	1904	5 years) of service within the last 120 months (or 10 years) of
1905	1905	6 service in which the total salary or earnings calculated under
1906	1906	7 the applicable Article was the highest by the number of months
1907	1907	8 (or years) of service in that period. For the purposes of a
1908	1908	9 person who first becomes a member or participant of any
1909	1909	10 retirement system or pension fund to which this Section
1910	1910	11 applies on or after January 1, 2011, in this Code, "final
1911	1911	12 average salary" shall be substituted for the following:
1912	1912	13 (1) (Blank).
1913	1913	14 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1914	1914	15 annual salary for any 4 consecutive years within the last
1915	1915	16 10 years of service immediately preceding the date of
1916	1916	17 withdrawal".
1917	1917	18 (3) In Article 13, "average final salary".
1918	1918	19 (4) In Article 14, "final average compensation".
1919	1919	20 (5) In Article 17, "average salary".
1920	1920	21 (6) In Section 22-207, "wages or salary received by
1921	1921	22 him at the date of retirement or discharge".
1922	1922	23 A member of the Teachers' Retirement System of the State
1923	1923	24 of Illinois who retires on or after June 1, 2021 and for whom
1924	1924	25 the 2020-2021 school year is used in the calculation of the
1925	1925	26 member's final average salary shall use the higher of the
1926	1926
1927	1927
1928	1928
1929	1929
1930	1930
1931	1931	HB2589 - 53 - LRB103 30272 RPS 56700 b
1932	1932
1933	1933
1934	1934	HB2589- 54 -LRB103 30272 RPS 56700 b HB2589 - 54 - LRB103 30272 RPS 56700 b
1935	1935	HB2589 - 54 - LRB103 30272 RPS 56700 b
1936	1936	1 following for the purpose of determining the member's final
1937	1937	2 average salary:
1938	1938	3 (A) the amount otherwise calculated under the first
1939	1939	4 paragraph of this subsection; or
1940	1940	5 (B) an amount calculated by the Teachers' Retirement
1941	1941	6 System of the State of Illinois using the average of the
1942	1942	7 monthly (or annual) salary obtained by dividing the total
1943	1943	8 salary or earnings calculated under Article 16 applicable
1944	1944	9 to the member or participant during the 96 months (or 8
1945	1945	10 years) of service within the last 120 months (or 10 years)
1946	1946	11 of service in which the total salary or earnings
1947	1947	12 calculated under the Article was the highest by the number
1948	1948	13 of months (or years) of service in that period.
1949	1949	14 (b-5) Beginning on January 1, 2011, for all purposes under
1950	1950	15 this Code (including without limitation the calculation of
1951	1951	16 benefits and employee contributions), the annual earnings,
1952	1952	17 salary, or wages (based on the plan year) of a member or
1953	1953	18 participant to whom this Section applies shall not exceed
1954	1954	19 $106,800; however, that amount shall annually thereafter be
1955	1955	20 increased by the lesser of (i) 3% of that amount, including all
1956	1956	21 previous adjustments, or (ii) one-half the annual unadjusted
1957	1957	22 percentage increase (but not less than zero) in the consumer
1958	1958	23 price index-u for the 12 months ending with the September
1959	1959	24 preceding each November 1, including all previous adjustments.
1960	1960	25 For the purposes of this Section, "consumer price index-u"
1961	1961	26 means the index published by the Bureau of Labor Statistics of
1962	1962
1963	1963
1964	1964
1965	1965
1966	1966
1967	1967	HB2589 - 54 - LRB103 30272 RPS 56700 b
1968	1968
1969	1969
1970	1970	HB2589- 55 -LRB103 30272 RPS 56700 b HB2589 - 55 - LRB103 30272 RPS 56700 b
1971	1971	HB2589 - 55 - LRB103 30272 RPS 56700 b
1972	1972	1 the United States Department of Labor that measures the
1973	1973	2 average change in prices of goods and services purchased by
1974	1974	3 all urban consumers, United States city average, all items,
1975	1975	4 1982-84 = 100. The new amount resulting from each annual
1976	1976	5 adjustment shall be determined by the Public Pension Division
1977	1977	6 of the Department of Insurance and made available to the
1978	1978	7 boards of the retirement systems and pension funds by November
1979	1979	8 1 of each year.
1980	1980	9 (c) A member or participant is entitled to a retirement
1981	1981	10 annuity upon written application if he or she has attained age
1982	1982	11 67 (age 65, with respect to service under Article 12 that is
1983	1983	12 subject to this Section, for a member or participant under
1984	1984	13 Article 12 who first becomes a member or participant under
1985	1985	14 Article 12 on or after January 1, 2022 or who makes the
1986	1986	15 election under item (i) of subsection (d-15) of this Section)
1987	1987	16 and has at least 10 years of service credit and is otherwise
1988	1988	17 eligible under the requirements of the applicable Article.
1989	1989	18 A member or participant who has attained age 62 (age 60,
1990	1990	19 with respect to service under Article 12 that is subject to
1991	1991	20 this Section, for a member or participant under Article 12 who
1992	1992	21 first becomes a member or participant under Article 12 on or
1993	1993	22 after January 1, 2022 or who makes the election under item (i)
1994	1994	23 of subsection (d-15) of this Section) and has at least 10 years
1995	1995	24 of service credit and is otherwise eligible under the
1996	1996	25 requirements of the applicable Article may elect to receive
1997	1997	26 the lower retirement annuity provided in subsection (d) of
1998	1998
1999	1999
2000	2000
2001	2001
2002	2002
2003	2003	HB2589 - 55 - LRB103 30272 RPS 56700 b
2004	2004
2005	2005
2006	2006	HB2589- 56 -LRB103 30272 RPS 56700 b HB2589 - 56 - LRB103 30272 RPS 56700 b
2007	2007	HB2589 - 56 - LRB103 30272 RPS 56700 b
2008	2008	1 this Section.
2009	2009	2 (c-5) A person who first becomes a member or a participant
2010	2010	3 subject to this Section on or after July 6, 2017 (the effective
2011	2011	4 date of Public Act 100-23), notwithstanding any other
2012	2012	5 provision of this Code to the contrary, is entitled to a
2013	2013	6 retirement annuity under Article 8 or Article 11 upon written
2014	2014	7 application if he or she has attained age 65 and has at least
2015	2015	8 10 years of service credit and is otherwise eligible under the
2016	2016	9 requirements of Article 8 or Article 11 of this Code,
2017	2017	10 whichever is applicable.
2018	2018	11 (d) The retirement annuity of a member or participant who
2019	2019	12 is retiring after attaining age 62 (age 60, with respect to
2020	2020	13 service under Article 12 that is subject to this Section, for a
2021	2021	14 member or participant under Article 12 who first becomes a
2022	2022	15 member or participant under Article 12 on or after January 1,
2023	2023	16 2022 or who makes the election under item (i) of subsection
2024	2024	17 (d-15) of this Section) with at least 10 years of service
2025	2025	18 credit shall be reduced by one-half of 1% for each full month
2026	2026	19 that the member's age is under age 67 (age 65, with respect to
2027	2027	20 service under Article 12 that is subject to this Section, for a
2028	2028	21 member or participant under Article 12 who first becomes a
2029	2029	22 member or participant under Article 12 on or after January 1,
2030	2030	23 2022 or who makes the election under item (i) of subsection
2031	2031	24 (d-15) of this Section).
2032	2032	25 (d-5) The retirement annuity payable under Article 8 or
2033	2033	26 Article 11 to an eligible person subject to subsection (c-5)
2034	2034
2035	2035
2036	2036
2037	2037
2038	2038
2039	2039	HB2589 - 56 - LRB103 30272 RPS 56700 b
2040	2040
2041	2041
2042	2042	HB2589- 57 -LRB103 30272 RPS 56700 b HB2589 - 57 - LRB103 30272 RPS 56700 b
2043	2043	HB2589 - 57 - LRB103 30272 RPS 56700 b
2044	2044	1 of this Section who is retiring at age 60 with at least 10
2045	2045	2 years of service credit shall be reduced by one-half of 1% for
2046	2046	3 each full month that the member's age is under age 65.
2047	2047	4 (d-10) Each person who first became a member or
2048	2048	5 participant under Article 8 or Article 11 of this Code on or
2049	2049	6 after January 1, 2011 and prior to July 6, 2017 (the effective
2050	2050	7 date of Public Act 100-23) shall make an irrevocable election
2051	2051	8 either:
2052	2052	9 (i) to be eligible for the reduced retirement age
2053	2053	10 provided in subsections (c-5) and (d-5) of this Section,
2054	2054	11 the eligibility for which is conditioned upon the member
2055	2055	12 or participant agreeing to the increases in employee
2056	2056	13 contributions for age and service annuities provided in
2057	2057	14 subsection (a-5) of Section 8-174 of this Code (for
2058	2058	15 service under Article 8) or subsection (a-5) of Section
2059	2059	16 11-170 of this Code (for service under Article 11); or
2060	2060	17 (ii) to not agree to item (i) of this subsection
2061	2061	18 (d-10), in which case the member or participant shall
2062	2062	19 continue to be subject to the retirement age provisions in
2063	2063	20 subsections (c) and (d) of this Section and the employee
2064	2064	21 contributions for age and service annuity as provided in
2065	2065	22 subsection (a) of Section 8-174 of this Code (for service
2066	2066	23 under Article 8) or subsection (a) of Section 11-170 of
2067	2067	24 this Code (for service under Article 11).
2068	2068	25 The election provided for in this subsection shall be made
2069	2069	26 between October 1, 2017 and November 15, 2017. A person
2070	2070
2071	2071
2072	2072
2073	2073
2074	2074
2075	2075	HB2589 - 57 - LRB103 30272 RPS 56700 b
2076	2076
2077	2077
2078	2078	HB2589- 58 -LRB103 30272 RPS 56700 b HB2589 - 58 - LRB103 30272 RPS 56700 b
2079	2079	HB2589 - 58 - LRB103 30272 RPS 56700 b
2080	2080	1 subject to this subsection who makes the required election
2081	2081	2 shall remain bound by that election. A person subject to this
2082	2082	3 subsection who fails for any reason to make the required
2083	2083	4 election within the time specified in this subsection shall be
2084	2084	5 deemed to have made the election under item (ii).
2085	2085	6 (d-15) Each person who first becomes a member or
2086	2086	7 participant under Article 12 on or after January 1, 2011 and
2087	2087	8 prior to January 1, 2022 shall make an irrevocable election
2088	2088	9 either:
2089	2089	10 (i) to be eligible for the reduced retirement age
2090	2090	11 specified in subsections (c) and (d) of this Section, the
2091	2091	12 eligibility for which is conditioned upon the member or
2092	2092	13 participant agreeing to the increase in employee
2093	2093	14 contributions for service annuities specified in
2094	2094	15 subsection (b) of Section 12-150; or
2095	2095	16 (ii) to not agree to item (i) of this subsection
2096	2096	17 (d-15), in which case the member or participant shall not
2097	2097	18 be eligible for the reduced retirement age specified in
2098	2098	19 subsections (c) and (d) of this Section and shall not be
2099	2099	20 subject to the increase in employee contributions for
2100	2100	21 service annuities specified in subsection (b) of Section
2101	2101	22 12-150.
2102	2102	23 The election provided for in this subsection shall be made
2103	2103	24 between January 1, 2022 and April 1, 2022. A person subject to
2104	2104	25 this subsection who makes the required election shall remain
2105	2105	26 bound by that election. A person subject to this subsection
2106	2106
2107	2107
2108	2108
2109	2109
2110	2110
2111	2111	HB2589 - 58 - LRB103 30272 RPS 56700 b
2112	2112
2113	2113
2114	2114	HB2589- 59 -LRB103 30272 RPS 56700 b HB2589 - 59 - LRB103 30272 RPS 56700 b
2115	2115	HB2589 - 59 - LRB103 30272 RPS 56700 b
2116	2116	1 who fails for any reason to make the required election within
2117	2117	2 the time specified in this subsection shall be deemed to have
2118	2118	3 made the election under item (ii).
2119	2119	4 (e) Any retirement annuity or supplemental annuity shall
2120	2120	5 be subject to annual increases on the January 1 occurring
2121	2121	6 either on or after the attainment of age 67 (age 65, with
2122	2122	7 respect to service under Article 12 that is subject to this
2123	2123	8 Section, for a member or participant under Article 12 who
2124	2124	9 first becomes a member or participant under Article 12 on or
2125	2125	10 after January 1, 2022 or who makes the election under item (i)
2126	2126	11 of subsection (d-15); and beginning on July 6, 2017 (the
2127	2127	12 effective date of Public Act 100-23), age 65 with respect to
2128	2128	13 service under Article 8 or Article 11 for eligible persons
2129	2129	14 who: (i) are subject to subsection (c-5) of this Section; or
2130	2130	15 (ii) made the election under item (i) of subsection (d-10) of
2131	2131	16 this Section) or the first anniversary of the annuity start
2132	2132	17 date, whichever is later. Each annual increase shall be
2133	2133	18 calculated at 3% or one-half the annual unadjusted percentage
2134	2134	19 increase (but not less than zero) in the consumer price
2135	2135	20 index-u for the 12 months ending with the September preceding
2136	2136	21 each November 1, whichever is less, of the originally granted
2137	2137	22 retirement annuity. If the annual unadjusted percentage change
2138	2138	23 in the consumer price index-u for the 12 months ending with the
2139	2139	24 September preceding each November 1 is zero or there is a
2140	2140	25 decrease, then the annuity shall not be increased.
2141	2141	26 For the purposes of Section 1-103.1 of this Code, the
2142	2142
2143	2143
2144	2144
2145	2145
2146	2146
2147	2147	HB2589 - 59 - LRB103 30272 RPS 56700 b
2148	2148
2149	2149
2150	2150	HB2589- 60 -LRB103 30272 RPS 56700 b HB2589 - 60 - LRB103 30272 RPS 56700 b
2151	2151	HB2589 - 60 - LRB103 30272 RPS 56700 b
2152	2152	1 changes made to this Section by Public Act 102-263 are
2153	2153	2 applicable without regard to whether the employee was in
2154	2154	3 active service on or after August 6, 2021 (the effective date
2155	2155	4 of Public Act 102-263).
2156	2156	5 For the purposes of Section 1-103.1 of this Code, the
2157	2157	6 changes made to this Section by Public Act 100-23 are
2158	2158	7 applicable without regard to whether the employee was in
2159	2159	8 active service on or after July 6, 2017 (the effective date of
2160	2160	9 Public Act 100-23).
2161	2161	10 (f) The initial survivor's or widow's annuity of an
2162	2162	11 otherwise eligible survivor or widow of a retired member or
2163	2163	12 participant who first became a member or participant on or
2164	2164	13 after January 1, 2011 shall be in the amount of 66 2/3% of the
2165	2165	14 retired member's or participant's retirement annuity at the
2166	2166	15 date of death. In the case of the death of a member or
2167	2167	16 participant who has not retired and who first became a member
2168	2168	17 or participant on or after January 1, 2011, eligibility for a
2169	2169	18 survivor's or widow's annuity shall be determined by the
2170	2170	19 applicable Article of this Code. The initial benefit shall be
2171	2171	20 66 2/3% of the earned annuity without a reduction due to age. A
2172	2172	21 child's annuity of an otherwise eligible child shall be in the
2173	2173	22 amount prescribed under each Article if applicable. Any
2174	2174	23 survivor's or widow's annuity shall be increased (1) on each
2175	2175	24 January 1 occurring on or after the commencement of the
2176	2176	25 annuity if the deceased member died while receiving a
2177	2177	26 retirement annuity or (2) in other cases, on each January 1
2178	2178
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183	HB2589 - 60 - LRB103 30272 RPS 56700 b
2184	2184
2185	2185
2186	2186	HB2589- 61 -LRB103 30272 RPS 56700 b HB2589 - 61 - LRB103 30272 RPS 56700 b
2187	2187	HB2589 - 61 - LRB103 30272 RPS 56700 b
2188	2188	1 occurring after the first anniversary of the commencement of
2189	2189	2 the annuity. Each annual increase shall be calculated at 3% or
2190	2190	3 one-half the annual unadjusted percentage increase (but not
2191	2191	4 less than zero) in the consumer price index-u for the 12 months
2192	2192	5 ending with the September preceding each November 1, whichever
2193	2193	6 is less, of the originally granted survivor's annuity. If the
2194	2194	7 annual unadjusted percentage change in the consumer price
2195	2195	8 index-u for the 12 months ending with the September preceding
2196	2196	9 each November 1 is zero or there is a decrease, then the
2197	2197	10 annuity shall not be increased.
2198	2198	11 (g) The benefits in Section 14-110 apply only if the
2199	2199	12 person is a State policeman, a fire fighter in the fire
2200	2200	13 protection service of a department, a conservation police
2201	2201	14 officer, an investigator for the Secretary of State, an arson
2202	2202	15 investigator, a Commerce Commission police officer,
2203	2203	16 investigator for the Department of Revenue or the Illinois
2204	2204	17 Gaming Board, a security employee of the Department of
2205	2205	18 Corrections or the Department of Juvenile Justice, or a
2206	2206	19 security employee of the Department of Innovation and
2207	2207	20 Technology, as those terms are defined in subsection (b) and
2208	2208	21 subsection (c) of Section 14-110. A person who meets the
2209	2209	22 requirements of this Section is entitled to an annuity
2210	2210	23 calculated under the provisions of Section 14-110, in lieu of
2211	2211	24 the regular or minimum retirement annuity, only if the person
2212	2212	25 has withdrawn from service with not less than 20 years of
2213	2213	26 eligible creditable service and has attained age 60,
2214	2214
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219	HB2589 - 61 - LRB103 30272 RPS 56700 b
2220	2220
2221	2221
2222	2222	HB2589- 62 -LRB103 30272 RPS 56700 b HB2589 - 62 - LRB103 30272 RPS 56700 b
2223	2223	HB2589 - 62 - LRB103 30272 RPS 56700 b
2224	2224	1 regardless of whether the attainment of age 60 occurs while
2225	2225	2 the person is still in service.
2226	2226	3 (h) If a person who first becomes a member or a participant
2227	2227	4 of a retirement system or pension fund subject to this Section
2228	2228	5 on or after January 1, 2011 is receiving a retirement annuity
2229	2229	6 or retirement pension under that system or fund and becomes a
2230	2230	7 member or participant under any other system or fund created
2231	2231	8 by this Code and is employed on a full-time basis, except for
2232	2232	9 those members or participants exempted from the provisions of
2233	2233	10 this Section under subsection (a) of this Section, then the
2234	2234	11 person's retirement annuity or retirement pension under that
2235	2235	12 system or fund shall be suspended during that employment. Upon
2236	2236	13 termination of that employment, the person's retirement
2237	2237	14 annuity or retirement pension payments shall resume and be
2238	2238	15 recalculated if recalculation is provided for under the
2239	2239	16 applicable Article of this Code.
2240	2240	17 If a person who first becomes a member of a retirement
2241	2241	18 system or pension fund subject to this Section on or after
2242	2242	19 January 1, 2012 and is receiving a retirement annuity or
2243	2243	20 retirement pension under that system or fund and accepts on a
2244	2244	21 contractual basis a position to provide services to a
2245	2245	22 governmental entity from which he or she has retired, then
2246	2246	23 that person's annuity or retirement pension earned as an
2247	2247	24 active employee of the employer shall be suspended during that
2248	2248	25 contractual service. A person receiving an annuity or
2249	2249	26 retirement pension under this Code shall notify the pension
2250	2250
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255	HB2589 - 62 - LRB103 30272 RPS 56700 b
2256	2256
2257	2257
2258	2258	HB2589- 63 -LRB103 30272 RPS 56700 b HB2589 - 63 - LRB103 30272 RPS 56700 b
2259	2259	HB2589 - 63 - LRB103 30272 RPS 56700 b
2260	2260	1 fund or retirement system from which he or she is receiving an
2261	2261	2 annuity or retirement pension, as well as his or her
2262	2262	3 contractual employer, of his or her retirement status before
2263	2263	4 accepting contractual employment. A person who fails to submit
2264	2264	5 such notification shall be guilty of a Class A misdemeanor and
2265	2265	6 required to pay a fine of $1,000. Upon termination of that
2266	2266	7 contractual employment, the person's retirement annuity or
2267	2267	8 retirement pension payments shall resume and, if appropriate,
2268	2268	9 be recalculated under the applicable provisions of this Code.
2269	2269	10 (i) (Blank).
2270	2270	11 (j) In the case of a conflict between the provisions of
2271	2271	12 this Section and any other provision of this Code, the
2272	2272	13 provisions of this Section shall control.
2273	2273	14 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
2274	2274	15 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
2275	2275	16 5-13-22.)
2276	2276	17 (Text of Section from P.A. 102-956)
2277	2277	18 Sec. 1-160. Provisions applicable to new hires.
2278	2278	19 (a) The provisions of this Section apply to a person who,
2279	2279	20 on or after January 1, 2011, first becomes a member or a
2280	2280	21 participant under any reciprocal retirement system or pension
2281	2281	22 fund established under this Code, other than a retirement
2282	2282	23 system or pension fund established under Article 2, 3, 4, 5, 6,
2283	2283	24 7, 15, or 18 of this Code, notwithstanding any other provision
2284	2284	25 of this Code to the contrary, but do not apply to any
2285	2285
2286	2286
2287	2287
2288	2288
2289	2289
2290	2290	HB2589 - 63 - LRB103 30272 RPS 56700 b
2291	2291
2292	2292
2293	2293	HB2589- 64 -LRB103 30272 RPS 56700 b HB2589 - 64 - LRB103 30272 RPS 56700 b
2294	2294	HB2589 - 64 - LRB103 30272 RPS 56700 b
2295	2295	1 self-managed plan established under this Code or to any
2296	2296	2 participant of the retirement plan established under Section
2297	2297	3 22-101; except that this Section applies to a person who
2298	2298	4 elected to establish alternative credits by electing in
2299	2299	5 writing after January 1, 2011, but before August 8, 2011,
2300	2300	6 under Section 7-145.1 of this Code. Notwithstanding anything
2301	2301	7 to the contrary in this Section, for purposes of this Section,
2302	2302	8 a person who is a Tier 1 regular employee as defined in Section
2303	2303	9 7-109.4 of this Code or who participated in a retirement
2304	2304	10 system under Article 15 prior to January 1, 2011 shall be
2305	2305	11 deemed a person who first became a member or participant prior
2306	2306	12 to January 1, 2011 under any retirement system or pension fund
2307	2307	13 subject to this Section. The changes made to this Section by
2308	2308	14 Public Act 98-596 are a clarification of existing law and are
2309	2309	15 intended to be retroactive to January 1, 2011 (the effective
2310	2310	16 date of Public Act 96-889), notwithstanding the provisions of
2311	2311	17 Section 1-103.1 of this Code.
2312	2312	18 The provisions of this Section do not apply to service
2313	2313	19 under a Tier 3 plan established under Article 14, 15, or 16 of
2314	2314	20 this Code.
2315	2315	21 This Section does not apply to a person who first becomes a
2316	2316	22 noncovered employee under Article 14 on or after the
2317	2317	23 implementation date of the plan created under Section 1-161
2318	2318	24 for that Article, unless that person elects under subsection
2319	2319	25 (b) of Section 1-161 to instead receive the benefits provided
2320	2320	26 under this Section and the applicable provisions of that
2321	2321
2322	2322
2323	2323
2324	2324
2325	2325
2326	2326	HB2589 - 64 - LRB103 30272 RPS 56700 b
2327	2327
2328	2328
2329	2329	HB2589- 65 -LRB103 30272 RPS 56700 b HB2589 - 65 - LRB103 30272 RPS 56700 b
2330	2330	HB2589 - 65 - LRB103 30272 RPS 56700 b
2331	2331	1 Article.
2332	2332	2 This Section does not apply to a person who first becomes a
2333	2333	3 member or participant under Article 16 on or after the
2334	2334	4 implementation date of the plan created under Section 1-161
2335	2335	5 for that Article, unless that person elects under subsection
2336	2336	6 (b) of Section 1-161 to instead receive the benefits provided
2337	2337	7 under this Section and the applicable provisions of that
2338	2338	8 Article.
2339	2339	9 This Section does not apply to a person who elects under
2340	2340	10 subsection (c-5) of Section 1-161 to receive the benefits
2341	2341	11 under Section 1-161.
2342	2342	12 This Section does not apply to a person who first becomes a
2343	2343	13 member or participant of an affected pension fund on or after 6
2344	2344	14 months after the resolution or ordinance date, as defined in
2345	2345	15 Section 1-162, unless that person elects under subsection (c)
2346	2346	16 of Section 1-162 to receive the benefits provided under this
2347	2347	17 Section and the applicable provisions of the Article under
2348	2348	18 which he or she is a member or participant.
2349	2349	19 (b) "Final average salary" means, except as otherwise
2350	2350	20 provided in this subsection, the average monthly (or annual)
2351	2351	21 salary obtained by dividing the total salary or earnings
2352	2352	22 calculated under the Article applicable to the member or
2353	2353	23 participant during the 96 consecutive months (or 8 consecutive
2354	2354	24 years) of service within the last 120 months (or 10 years) of
2355	2355	25 service in which the total salary or earnings calculated under
2356	2356	26 the applicable Article was the highest by the number of months
2357	2357
2358	2358
2359	2359
2360	2360
2361	2361
2362	2362	HB2589 - 65 - LRB103 30272 RPS 56700 b
2363	2363
2364	2364
2365	2365	HB2589- 66 -LRB103 30272 RPS 56700 b HB2589 - 66 - LRB103 30272 RPS 56700 b
2366	2366	HB2589 - 66 - LRB103 30272 RPS 56700 b
2367	2367	1 (or years) of service in that period. For the purposes of a
2368	2368	2 person who first becomes a member or participant of any
2369	2369	3 retirement system or pension fund to which this Section
2370	2370	4 applies on or after January 1, 2011, in this Code, "final
2371	2371	5 average salary" shall be substituted for the following:
2372	2372	6 (1) (Blank).
2373	2373	7 (2) In Articles 8, 9, 10, 11, and 12, "highest average
2374	2374	8 annual salary for any 4 consecutive years within the last
2375	2375	9 10 years of service immediately preceding the date of
2376	2376	10 withdrawal".
2377	2377	11 (3) In Article 13, "average final salary".
2378	2378	12 (4) In Article 14, "final average compensation".
2379	2379	13 (5) In Article 17, "average salary".
2380	2380	14 (6) In Section 22-207, "wages or salary received by
2381	2381	15 him at the date of retirement or discharge".
2382	2382	16 A member of the Teachers' Retirement System of the State
2383	2383	17 of Illinois who retires on or after June 1, 2021 and for whom
2384	2384	18 the 2020-2021 school year is used in the calculation of the
2385	2385	19 member's final average salary shall use the higher of the
2386	2386	20 following for the purpose of determining the member's final
2387	2387	21 average salary:
2388	2388	22 (A) the amount otherwise calculated under the first
2389	2389	23 paragraph of this subsection; or
2390	2390	24 (B) an amount calculated by the Teachers' Retirement
2391	2391	25 System of the State of Illinois using the average of the
2392	2392	26 monthly (or annual) salary obtained by dividing the total
2393	2393
2394	2394
2395	2395
2396	2396
2397	2397
2398	2398	HB2589 - 66 - LRB103 30272 RPS 56700 b
2399	2399
2400	2400
2401	2401	HB2589- 67 -LRB103 30272 RPS 56700 b HB2589 - 67 - LRB103 30272 RPS 56700 b
2402	2402	HB2589 - 67 - LRB103 30272 RPS 56700 b
2403	2403	1 salary or earnings calculated under Article 16 applicable
2404	2404	2 to the member or participant during the 96 months (or 8
2405	2405	3 years) of service within the last 120 months (or 10 years)
2406	2406	4 of service in which the total salary or earnings
2407	2407	5 calculated under the Article was the highest by the number
2408	2408	6 of months (or years) of service in that period.
2409	2409	7 (b-5) Beginning on January 1, 2011, for all purposes under
2410	2410	8 this Code (including without limitation the calculation of
2411	2411	9 benefits and employee contributions), the annual earnings,
2412	2412	10 salary, or wages (based on the plan year) of a member or
2413	2413	11 participant to whom this Section applies shall not exceed
2414	2414	12 $106,800; however, that amount shall annually thereafter be
2415	2415	13 increased by the lesser of (i) 3% of that amount, including all
2416	2416	14 previous adjustments, or (ii) one-half the annual unadjusted
2417	2417	15 percentage increase (but not less than zero) in the consumer
2418	2418	16 price index-u for the 12 months ending with the September
2419	2419	17 preceding each November 1, including all previous adjustments.
2420	2420	18 For the purposes of this Section, "consumer price index-u"
2421	2421	19 means the index published by the Bureau of Labor Statistics of
2422	2422	20 the United States Department of Labor that measures the
2423	2423	21 average change in prices of goods and services purchased by
2424	2424	22 all urban consumers, United States city average, all items,
2425	2425	23 1982-84 = 100. The new amount resulting from each annual
2426	2426	24 adjustment shall be determined by the Public Pension Division
2427	2427	25 of the Department of Insurance and made available to the
2428	2428	26 boards of the retirement systems and pension funds by November
2429	2429
2430	2430
2431	2431
2432	2432
2433	2433
2434	2434	HB2589 - 67 - LRB103 30272 RPS 56700 b
2435	2435
2436	2436
2437	2437	HB2589- 68 -LRB103 30272 RPS 56700 b HB2589 - 68 - LRB103 30272 RPS 56700 b
2438	2438	HB2589 - 68 - LRB103 30272 RPS 56700 b
2439	2439	1 1 of each year.
2440	2440	2 (c) A member or participant is entitled to a retirement
2441	2441	3 annuity upon written application if he or she has attained age
2442	2442	4 67 (age 65, with respect to service under Article 12 that is
2443	2443	5 subject to this Section, for a member or participant under
2444	2444	6 Article 12 who first becomes a member or participant under
2445	2445	7 Article 12 on or after January 1, 2022 or who makes the
2446	2446	8 election under item (i) of subsection (d-15) of this Section)
2447	2447	9 and has at least 10 years of service credit and is otherwise
2448	2448	10 eligible under the requirements of the applicable Article.
2449	2449	11 A member or participant who has attained age 62 (age 60,
2450	2450	12 with respect to service under Article 12 that is subject to
2451	2451	13 this Section, for a member or participant under Article 12 who
2452	2452	14 first becomes a member or participant under Article 12 on or
2453	2453	15 after January 1, 2022 or who makes the election under item (i)
2454	2454	16 of subsection (d-15) of this Section) and has at least 10 years
2455	2455	17 of service credit and is otherwise eligible under the
2456	2456	18 requirements of the applicable Article may elect to receive
2457	2457	19 the lower retirement annuity provided in subsection (d) of
2458	2458	20 this Section.
2459	2459	21 (c-5) A person who first becomes a member or a participant
2460	2460	22 subject to this Section on or after July 6, 2017 (the effective
2461	2461	23 date of Public Act 100-23), notwithstanding any other
2462	2462	24 provision of this Code to the contrary, is entitled to a
2463	2463	25 retirement annuity under Article 8 or Article 11 upon written
2464	2464	26 application if he or she has attained age 65 and has at least
2465	2465
2466	2466
2467	2467
2468	2468
2469	2469
2470	2470	HB2589 - 68 - LRB103 30272 RPS 56700 b
2471	2471
2472	2472
2473	2473	HB2589- 69 -LRB103 30272 RPS 56700 b HB2589 - 69 - LRB103 30272 RPS 56700 b
2474	2474	HB2589 - 69 - LRB103 30272 RPS 56700 b
2475	2475	1 10 years of service credit and is otherwise eligible under the
2476	2476	2 requirements of Article 8 or Article 11 of this Code,
2477	2477	3 whichever is applicable.
2478	2478	4 (d) The retirement annuity of a member or participant who
2479	2479	5 is retiring after attaining age 62 (age 60, with respect to
2480	2480	6 service under Article 12 that is subject to this Section, for a
2481	2481	7 member or participant under Article 12 who first becomes a
2482	2482	8 member or participant under Article 12 on or after January 1,
2483	2483	9 2022 or who makes the election under item (i) of subsection
2484	2484	10 (d-15) of this Section) with at least 10 years of service
2485	2485	11 credit shall be reduced by one-half of 1% for each full month
2486	2486	12 that the member's age is under age 67 (age 65, with respect to
2487	2487	13 service under Article 12 that is subject to this Section, for a
2488	2488	14 member or participant under Article 12 who first becomes a
2489	2489	15 member or participant under Article 12 on or after January 1,
2490	2490	16 2022 or who makes the election under item (i) of subsection
2491	2491	17 (d-15) of this Section).
2492	2492	18 (d-5) The retirement annuity payable under Article 8 or
2493	2493	19 Article 11 to an eligible person subject to subsection (c-5)
2494	2494	20 of this Section who is retiring at age 60 with at least 10
2495	2495	21 years of service credit shall be reduced by one-half of 1% for
2496	2496	22 each full month that the member's age is under age 65.
2497	2497	23 (d-10) Each person who first became a member or
2498	2498	24 participant under Article 8 or Article 11 of this Code on or
2499	2499	25 after January 1, 2011 and prior to July 6, 2017 (the effective
2500	2500	26 date of Public Act 100-23) shall make an irrevocable election
2501	2501
2502	2502
2503	2503
2504	2504
2505	2505
2506	2506	HB2589 - 69 - LRB103 30272 RPS 56700 b
2507	2507
2508	2508
2509	2509	HB2589- 70 -LRB103 30272 RPS 56700 b HB2589 - 70 - LRB103 30272 RPS 56700 b
2510	2510	HB2589 - 70 - LRB103 30272 RPS 56700 b
2511	2511	1 either:
2512	2512	2 (i) to be eligible for the reduced retirement age
2513	2513	3 provided in subsections (c-5) and (d-5) of this Section,
2514	2514	4 the eligibility for which is conditioned upon the member
2515	2515	5 or participant agreeing to the increases in employee
2516	2516	6 contributions for age and service annuities provided in
2517	2517	7 subsection (a-5) of Section 8-174 of this Code (for
2518	2518	8 service under Article 8) or subsection (a-5) of Section
2519	2519	9 11-170 of this Code (for service under Article 11); or
2520	2520	10 (ii) to not agree to item (i) of this subsection
2521	2521	11 (d-10), in which case the member or participant shall
2522	2522	12 continue to be subject to the retirement age provisions in
2523	2523	13 subsections (c) and (d) of this Section and the employee
2524	2524	14 contributions for age and service annuity as provided in
2525	2525	15 subsection (a) of Section 8-174 of this Code (for service
2526	2526	16 under Article 8) or subsection (a) of Section 11-170 of
2527	2527	17 this Code (for service under Article 11).
2528	2528	18 The election provided for in this subsection shall be made
2529	2529	19 between October 1, 2017 and November 15, 2017. A person
2530	2530	20 subject to this subsection who makes the required election
2531	2531	21 shall remain bound by that election. A person subject to this
2532	2532	22 subsection who fails for any reason to make the required
2533	2533	23 election within the time specified in this subsection shall be
2534	2534	24 deemed to have made the election under item (ii).
2535	2535	25 (d-15) Each person who first becomes a member or
2536	2536	26 participant under Article 12 on or after January 1, 2011 and
2537	2537
2538	2538
2539	2539
2540	2540
2541	2541
2542	2542	HB2589 - 70 - LRB103 30272 RPS 56700 b
2543	2543
2544	2544
2545	2545	HB2589- 71 -LRB103 30272 RPS 56700 b HB2589 - 71 - LRB103 30272 RPS 56700 b
2546	2546	HB2589 - 71 - LRB103 30272 RPS 56700 b
2547	2547	1 prior to January 1, 2022 shall make an irrevocable election
2548	2548	2 either:
2549	2549	3 (i) to be eligible for the reduced retirement age
2550	2550	4 specified in subsections (c) and (d) of this Section, the
2551	2551	5 eligibility for which is conditioned upon the member or
2552	2552	6 participant agreeing to the increase in employee
2553	2553	7 contributions for service annuities specified in
2554	2554	8 subsection (b) of Section 12-150; or
2555	2555	9 (ii) to not agree to item (i) of this subsection
2556	2556	10 (d-15), in which case the member or participant shall not
2557	2557	11 be eligible for the reduced retirement age specified in
2558	2558	12 subsections (c) and (d) of this Section and shall not be
2559	2559	13 subject to the increase in employee contributions for
2560	2560	14 service annuities specified in subsection (b) of Section
2561	2561	15 12-150.
2562	2562	16 The election provided for in this subsection shall be made
2563	2563	17 between January 1, 2022 and April 1, 2022. A person subject to
2564	2564	18 this subsection who makes the required election shall remain
2565	2565	19 bound by that election. A person subject to this subsection
2566	2566	20 who fails for any reason to make the required election within
2567	2567	21 the time specified in this subsection shall be deemed to have
2568	2568	22 made the election under item (ii).
2569	2569	23 (e) Any retirement annuity or supplemental annuity shall
2570	2570	24 be subject to annual increases on the January 1 occurring
2571	2571	25 either on or after the attainment of age 67 (age 65, with
2572	2572	26 respect to service under Article 12 that is subject to this
2573	2573
2574	2574
2575	2575
2576	2576
2577	2577
2578	2578	HB2589 - 71 - LRB103 30272 RPS 56700 b
2579	2579
2580	2580
2581	2581	HB2589- 72 -LRB103 30272 RPS 56700 b HB2589 - 72 - LRB103 30272 RPS 56700 b
2582	2582	HB2589 - 72 - LRB103 30272 RPS 56700 b
2583	2583	1 Section, for a member or participant under Article 12 who
2584	2584	2 first becomes a member or participant under Article 12 on or
2585	2585	3 after January 1, 2022 or who makes the election under item (i)
2586	2586	4 of subsection (d-15); and beginning on July 6, 2017 (the
2587	2587	5 effective date of Public Act 100-23), age 65 with respect to
2588	2588	6 service under Article 8 or Article 11 for eligible persons
2589	2589	7 who: (i) are subject to subsection (c-5) of this Section; or
2590	2590	8 (ii) made the election under item (i) of subsection (d-10) of
2591	2591	9 this Section) or the first anniversary of the annuity start
2592	2592	10 date, whichever is later. Each annual increase shall be
2593	2593	11 calculated at 3% or one-half the annual unadjusted percentage
2594	2594	12 increase (but not less than zero) in the consumer price
2595	2595	13 index-u for the 12 months ending with the September preceding
2596	2596	14 each November 1, whichever is less, of the originally granted
2597	2597	15 retirement annuity. If the annual unadjusted percentage change
2598	2598	16 in the consumer price index-u for the 12 months ending with the
2599	2599	17 September preceding each November 1 is zero or there is a
2600	2600	18 decrease, then the annuity shall not be increased.
2601	2601	19 For the purposes of Section 1-103.1 of this Code, the
2602	2602	20 changes made to this Section by Public Act 102-263 are
2603	2603	21 applicable without regard to whether the employee was in
2604	2604	22 active service on or after August 6, 2021 (the effective date
2605	2605	23 of Public Act 102-263).
2606	2606	24 For the purposes of Section 1-103.1 of this Code, the
2607	2607	25 changes made to this Section by Public Act 100-23 are
2608	2608	26 applicable without regard to whether the employee was in
2609	2609
2610	2610
2611	2611
2612	2612
2613	2613
2614	2614	HB2589 - 72 - LRB103 30272 RPS 56700 b
2615	2615
2616	2616
2617	2617	HB2589- 73 -LRB103 30272 RPS 56700 b HB2589 - 73 - LRB103 30272 RPS 56700 b
2618	2618	HB2589 - 73 - LRB103 30272 RPS 56700 b
2619	2619	1 active service on or after July 6, 2017 (the effective date of
2620	2620	2 Public Act 100-23).
2621	2621	3 (f) The initial survivor's or widow's annuity of an
2622	2622	4 otherwise eligible survivor or widow of a retired member or
2623	2623	5 participant who first became a member or participant on or
2624	2624	6 after January 1, 2011 shall be in the amount of 66 2/3% of the
2625	2625	7 retired member's or participant's retirement annuity at the
2626	2626	8 date of death. In the case of the death of a member or
2627	2627	9 participant who has not retired and who first became a member
2628	2628	10 or participant on or after January 1, 2011, eligibility for a
2629	2629	11 survivor's or widow's annuity shall be determined by the
2630	2630	12 applicable Article of this Code. The initial benefit shall be
2631	2631	13 66 2/3% of the earned annuity without a reduction due to age. A
2632	2632	14 child's annuity of an otherwise eligible child shall be in the
2633	2633	15 amount prescribed under each Article if applicable. Any
2634	2634	16 survivor's or widow's annuity shall be increased (1) on each
2635	2635	17 January 1 occurring on or after the commencement of the
2636	2636	18 annuity if the deceased member died while receiving a
2637	2637	19 retirement annuity or (2) in other cases, on each January 1
2638	2638	20 occurring after the first anniversary of the commencement of
2639	2639	21 the annuity. Each annual increase shall be calculated at 3% or
2640	2640	22 one-half the annual unadjusted percentage increase (but not
2641	2641	23 less than zero) in the consumer price index-u for the 12 months
2642	2642	24 ending with the September preceding each November 1, whichever
2643	2643	25 is less, of the originally granted survivor's annuity. If the
2644	2644	26 annual unadjusted percentage change in the consumer price
2645	2645
2646	2646
2647	2647
2648	2648
2649	2649
2650	2650	HB2589 - 73 - LRB103 30272 RPS 56700 b
2651	2651
2652	2652
2653	2653	HB2589- 74 -LRB103 30272 RPS 56700 b HB2589 - 74 - LRB103 30272 RPS 56700 b
2654	2654	HB2589 - 74 - LRB103 30272 RPS 56700 b
2655	2655	1 index-u for the 12 months ending with the September preceding
2656	2656	2 each November 1 is zero or there is a decrease, then the
2657	2657	3 annuity shall not be increased.
2658	2658	4 (g) The benefits in Section 14-110 apply only if the
2659	2659	5 person is a State policeman, a fire fighter in the fire
2660	2660	6 protection service of a department, a conservation police
2661	2661	7 officer, an investigator for the Secretary of State, an
2662	2662	8 investigator for the Office of the Attorney General, an arson
2663	2663	9 investigator, a Commerce Commission police officer,
2664	2664	10 investigator for the Department of Revenue or the Illinois
2665	2665	11 Gaming Board, a security employee of the Department of
2666	2666	12 Corrections or the Department of Juvenile Justice, or a
2667	2667	13 security employee of the Department of Innovation and
2668	2668	14 Technology, as those terms are defined in subsection (b) and
2669	2669	15 subsection (c) of Section 14-110. A person who meets the
2670	2670	16 requirements of this Section is entitled to an annuity
2671	2671	17 calculated under the provisions of Section 14-110, in lieu of
2672	2672	18 the regular or minimum retirement annuity, only if the person
2673	2673	19 has withdrawn from service with not less than 20 years of
2674	2674	20 eligible creditable service and has attained age 60,
2675	2675	21 regardless of whether the attainment of age 60 occurs while
2676	2676	22 the person is still in service.
2677	2677	23 (h) If a person who first becomes a member or a participant
2678	2678	24 of a retirement system or pension fund subject to this Section
2679	2679	25 on or after January 1, 2011 is receiving a retirement annuity
2680	2680	26 or retirement pension under that system or fund and becomes a
2681	2681
2682	2682
2683	2683
2684	2684
2685	2685
2686	2686	HB2589 - 74 - LRB103 30272 RPS 56700 b
2687	2687
2688	2688
2689	2689	HB2589- 75 -LRB103 30272 RPS 56700 b HB2589 - 75 - LRB103 30272 RPS 56700 b
2690	2690	HB2589 - 75 - LRB103 30272 RPS 56700 b
2691	2691	1 member or participant under any other system or fund created
2692	2692	2 by this Code and is employed on a full-time basis, except for
2693	2693	3 those members or participants exempted from the provisions of
2694	2694	4 this Section under subsection (a) of this Section, then the
2695	2695	5 person's retirement annuity or retirement pension under that
2696	2696	6 system or fund shall be suspended during that employment. Upon
2697	2697	7 termination of that employment, the person's retirement
2698	2698	8 annuity or retirement pension payments shall resume and be
2699	2699	9 recalculated if recalculation is provided for under the
2700	2700	10 applicable Article of this Code.
2701	2701	11 If a person who first becomes a member of a retirement
2702	2702	12 system or pension fund subject to this Section on or after
2703	2703	13 January 1, 2012 and is receiving a retirement annuity or
2704	2704	14 retirement pension under that system or fund and accepts on a
2705	2705	15 contractual basis a position to provide services to a
2706	2706	16 governmental entity from which he or she has retired, then
2707	2707	17 that person's annuity or retirement pension earned as an
2708	2708	18 active employee of the employer shall be suspended during that
2709	2709	19 contractual service. A person receiving an annuity or
2710	2710	20 retirement pension under this Code shall notify the pension
2711	2711	21 fund or retirement system from which he or she is receiving an
2712	2712	22 annuity or retirement pension, as well as his or her
2713	2713	23 contractual employer, of his or her retirement status before
2714	2714	24 accepting contractual employment. A person who fails to submit
2715	2715	25 such notification shall be guilty of a Class A misdemeanor and
2716	2716	26 required to pay a fine of $1,000. Upon termination of that
2717	2717
2718	2718
2719	2719
2720	2720
2721	2721
2722	2722	HB2589 - 75 - LRB103 30272 RPS 56700 b
2723	2723
2724	2724
2725	2725	HB2589- 76 -LRB103 30272 RPS 56700 b HB2589 - 76 - LRB103 30272 RPS 56700 b
2726	2726	HB2589 - 76 - LRB103 30272 RPS 56700 b
2727	2727	1 contractual employment, the person's retirement annuity or
2728	2728	2 retirement pension payments shall resume and, if appropriate,
2729	2729	3 be recalculated under the applicable provisions of this Code.
2730	2730	4 (i) (Blank).
2731	2731	5 (j) In the case of a conflict between the provisions of
2732	2732	6 this Section and any other provision of this Code, the
2733	2733	7 provisions of this Section shall control.
2734	2734	8 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
2735	2735	9 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
2736	2736	10 5-27-22.)
2737	2737	11 (40 ILCS 5/1-161)
2738	2738	12 Sec. 1-161. Optional benefits for certain Tier 2 members
2739	2739	13 under Articles 14, 15, and 16.
2740	2740	14 (a) Notwithstanding any other provision of this Code to
2741	2741	15 the contrary, the provisions of this Section apply to a person
2742	2742	16 who first becomes a member or a participant under Article 14,
2743	2743	17 15, or 16 on or after the implementation date under this
2744	2744	18 Section for the applicable Article and who does not make the
2745	2745	19 election under subsection (b) or (c), whichever applies. The
2746	2746	20 provisions of this Section also apply to a person who makes the
2747	2747	21 election under subsection (c-5). However, the provisions of
2748	2748	22 this Section do not apply to any participant in a self-managed
2749	2749	23 plan, nor to a covered employee under Article 14. The
2750	2750	24 provisions of this Section do not apply to service under a Tier
2751	2751	25 3 plan established under Article 14, 15, or 16 of this Code.
2752	2752
2753	2753
2754	2754
2755	2755
2756	2756
2757	2757	HB2589 - 76 - LRB103 30272 RPS 56700 b
2758	2758
2759	2759
2760	2760	HB2589- 77 -LRB103 30272 RPS 56700 b HB2589 - 77 - LRB103 30272 RPS 56700 b
2761	2761	HB2589 - 77 - LRB103 30272 RPS 56700 b
2762	2762	1 As used in this Section and Section 1-160, the
2763	2763	2 "implementation date" under this Section means the earliest
2764	2764	3 date upon which the board of a retirement system authorizes
2765	2765	4 members of that system to begin participating in accordance
2766	2766	5 with this Section, as determined by the board of that
2767	2767	6 retirement system. Each of the retirement systems subject to
2768	2768	7 this Section shall endeavor to make such participation
2769	2769	8 available as soon as possible after the effective date of this
2770	2770	9 Section and shall establish an implementation date by board
2771	2771	10 resolution.
2772	2772	11 (b) In lieu of the benefits provided under this Section, a
2773	2773	12 member or participant, except for a participant under Article
2774	2774	13 15, may irrevocably elect the benefits under Section 1-160 and
2775	2775	14 the benefits otherwise applicable to that member or
2776	2776	15 participant. The election must be made within 30 days after
2777	2777	16 becoming a member or participant. Each retirement system shall
2778	2778	17 establish procedures for making this election.
2779	2779	18 (c) A participant under Article 15 may irrevocably elect
2780	2780	19 the benefits otherwise provided to a Tier 2 member under
2781	2781	20 Article 15. The election must be made within 30 days after
2782	2782	21 becoming a member. The retirement system under Article 15
2783	2783	22 shall establish procedures for making this election.
2784	2784	23 (c-5) A non-covered participant under Article 14 to whom
2785	2785	24 Section 1-160 applies, a Tier 2 member under Article 15, or a
2786	2786	25 participant under Article 16 to whom Section 1-160 applies may
2787	2787	26 irrevocably elect to receive the benefits under this Section
2788	2788
2789	2789
2790	2790
2791	2791
2792	2792
2793	2793	HB2589 - 77 - LRB103 30272 RPS 56700 b
2794	2794
2795	2795
2796	2796	HB2589- 78 -LRB103 30272 RPS 56700 b HB2589 - 78 - LRB103 30272 RPS 56700 b
2797	2797	HB2589 - 78 - LRB103 30272 RPS 56700 b
2798	2798	1 in lieu of the benefits under Section 1-160 or the benefits
2799	2799	2 otherwise available to a Tier 2 member under Article 15,
2800	2800	3 whichever is applicable. Each retirement System shall
2801	2801	4 establish procedures for making this election.
2802	2802	5 (d) "Final average salary" means the average monthly (or
2803	2803	6 annual) salary obtained by dividing the total salary or
2804	2804	7 earnings calculated under the Article applicable to the member
2805	2805	8 or participant during the last 120 months (or 10 years) of
2806	2806	9 service in which the total salary or earnings calculated under
2807	2807	10 the applicable Article was the highest by the number of months
2808	2808	11 (or years) of service in that period. For the purposes of a
2809	2809	12 person to whom this Section applies, in this Code, "final
2810	2810	13 average salary" shall be substituted for "final average
2811	2811	14 compensation" in Article 14.
2812	2812	15 (e) Beginning on the implementation date, for all purposes
2813	2813	16 under this Code (including without limitation the calculation
2814	2814	17 of benefits and employee contributions), the annual earnings,
2815	2815	18 salary, compensation, or wages (based on the plan year) of a
2816	2816	19 member or participant to whom this Section applies shall not
2817	2817	20 at any time exceed the federal Social Security Wage Base then
2818	2818	21 in effect.
2819	2819	22 (f) A member or participant is entitled to a retirement
2820	2820	23 annuity upon written application if he or she has attained the
2821	2821	24 normal retirement age determined by the Social Security
2822	2822	25 Administration for that member or participant's year of birth,
2823	2823	26 but no earlier than 67 years of age, and has at least 10 years
2824	2824
2825	2825
2826	2826
2827	2827
2828	2828
2829	2829	HB2589 - 78 - LRB103 30272 RPS 56700 b
2830	2830
2831	2831
2832	2832	HB2589- 79 -LRB103 30272 RPS 56700 b HB2589 - 79 - LRB103 30272 RPS 56700 b
2833	2833	HB2589 - 79 - LRB103 30272 RPS 56700 b
2834	2834	1 of service credit and is otherwise eligible under the
2835	2835	2 requirements of the applicable Article.
2836	2836	3 (g) The amount of the retirement annuity to which a member
2837	2837	4 or participant is entitled shall be computed by multiplying
2838	2838	5 1.25% for each year of service credit by his or her final
2839	2839	6 average salary.
2840	2840	7 (h) Any retirement annuity or supplemental annuity shall
2841	2841	8 be subject to annual increases on the first anniversary of the
2842	2842	9 annuity start date. Each annual increase shall be one-half the
2843	2843	10 annual unadjusted percentage increase (but not less than zero)
2844	2844	11 in the consumer price index-w for the 12 months ending with the
2845	2845	12 September preceding each November 1 of the originally granted
2846	2846	13 retirement annuity. If the annual unadjusted percentage change
2847	2847	14 in the consumer price index-w for the 12 months ending with the
2848	2848	15 September preceding each November 1 is zero or there is a
2849	2849	16 decrease, then the annuity shall not be increased.
2850	2850	17 For the purposes of this Section, "consumer price index-w"
2851	2851	18 means the index published by the Bureau of Labor Statistics of
2852	2852	19 the United States Department of Labor that measures the
2853	2853	20 average change in prices of goods and services purchased by
2854	2854	21 Urban Wage Earners and Clerical Workers, United States city
2855	2855	22 average, all items, 1982-84 = 100. The new amount resulting
2856	2856	23 from each annual adjustment shall be determined by the Public
2857	2857	24 Pension Division of the Department of Insurance and made
2858	2858	25 available to the boards of the retirement systems and pension
2859	2859	26 funds by November 1 of each year.
2860	2860
2861	2861
2862	2862
2863	2863
2864	2864
2865	2865	HB2589 - 79 - LRB103 30272 RPS 56700 b
2866	2866
2867	2867
2868	2868	HB2589- 80 -LRB103 30272 RPS 56700 b HB2589 - 80 - LRB103 30272 RPS 56700 b
2869	2869	HB2589 - 80 - LRB103 30272 RPS 56700 b
2870	2870	1 (i) The initial survivor's or widow's annuity of an
2871	2871	2 otherwise eligible survivor or widow of a retired member or
2872	2872	3 participant to whom this Section applies shall be in the
2873	2873	4 amount of 66 2/3% of the retired member's or participant's
2874	2874	5 retirement annuity at the date of death. In the case of the
2875	2875	6 death of a member or participant who has not retired and to
2876	2876	7 whom this Section applies, eligibility for a survivor's or
2877	2877	8 widow's annuity shall be determined by the applicable Article
2878	2878	9 of this Code. The benefit shall be 66 2/3% of the earned
2879	2879	10 annuity without a reduction due to age. A child's annuity of an
2880	2880	11 otherwise eligible child shall be in the amount prescribed
2881	2881	12 under each Article if applicable.
2882	2882	13 (j) In lieu of any other employee contributions, except
2883	2883	14 for the contribution to the defined contribution plan under
2884	2884	15 subsection (k) of this Section, each employee shall contribute
2885	2885	16 6.2% of his her or salary to the retirement system. However,
2886	2886	17 the employee contribution under this subsection shall not
2887	2887	18 exceed the amount of the total normal cost of the benefits for
2888	2888	19 all members making contributions under this Section (except
2889	2889	20 for the defined contribution plan under subsection (k) of this
2890	2890	21 Section), expressed as a percentage of payroll and certified
2891	2891	22 on or before January 15 of each year by the board of trustees
2892	2892	23 of the retirement system. If the board of trustees of the
2893	2893	24 retirement system certifies that the 6.2% employee
2894	2894	25 contribution rate exceeds the normal cost of the benefits
2895	2895	26 under this Section (except for the defined contribution plan
2896	2896
2897	2897
2898	2898
2899	2899
2900	2900
2901	2901	HB2589 - 80 - LRB103 30272 RPS 56700 b
2902	2902
2903	2903
2904	2904	HB2589- 81 -LRB103 30272 RPS 56700 b HB2589 - 81 - LRB103 30272 RPS 56700 b
2905	2905	HB2589 - 81 - LRB103 30272 RPS 56700 b
2906	2906	1 under subsection (k) of this Section), then on or before
2907	2907	2 December 1 of that year, the board of trustees shall certify
2908	2908	3 the amount of the normal cost of the benefits under this
2909	2909	4 Section (except for the defined contribution plan under
2910	2910	5 subsection (k) of this Section), expressed as a percentage of
2911	2911	6 payroll, to the State Actuary and the Commission on Government
2912	2912	7 Forecasting and Accountability, and the employee contribution
2913	2913	8 under this subsection shall be reduced to that amount
2914	2914	9 beginning July 1 of that year. Thereafter, if the normal cost
2915	2915	10 of the benefits under this Section (except for the defined
2916	2916	11 contribution plan under subsection (k) of this Section),
2917	2917	12 expressed as a percentage of payroll and certified on or
2918	2918	13 before January 1 of each year by the board of trustees of the
2919	2919	14 retirement system, exceeds 6.2% of salary, then on or before
2920	2920	15 January 15 of that year, the board of trustees shall certify
2921	2921	16 the normal cost to the State Actuary and the Commission on
2922	2922	17 Government Forecasting and Accountability, and the employee
2923	2923	18 contributions shall revert back to 6.2% of salary beginning
2924	2924	19 January 1 of the following year.
2925	2925	20 (k) In accordance with each retirement system's
2926	2926	21 implementation date, each retirement system under Article 14,
2927	2927	22 15, or 16 shall prepare and implement a defined contribution
2928	2928	23 plan for members or participants who are subject to this
2929	2929	24 Section. The defined contribution plan developed under this
2930	2930	25 subsection shall be a plan that aggregates employer and
2931	2931	26 employee contributions in individual participant accounts
2932	2932
2933	2933
2934	2934
2935	2935
2936	2936
2937	2937	HB2589 - 81 - LRB103 30272 RPS 56700 b
2938	2938
2939	2939
2940	2940	HB2589- 82 -LRB103 30272 RPS 56700 b HB2589 - 82 - LRB103 30272 RPS 56700 b
2941	2941	HB2589 - 82 - LRB103 30272 RPS 56700 b
2942	2942	1 which, after meeting any other requirements, are used for
2943	2943	2 payouts after retirement in accordance with this subsection
2944	2944	3 and any other applicable laws.
2945	2945	4 (1) Each member or participant shall contribute a
2946	2946	5 minimum of 4% of his or her salary to the defined
2947	2947	6 contribution plan.
2948	2948	7 (2) For each participant in the defined contribution
2949	2949	8 plan who has been employed with the same employer for at
2950	2950	9 least one year, employer contributions shall be paid into
2951	2951	10 that participant's accounts at a rate expressed as a
2952	2952	11 percentage of salary. This rate may be set for individual
2953	2953	12 employees, but shall be no higher than 6% of salary and
2954	2954	13 shall be no lower than 2% of salary.
2955	2955	14 (3) Employer contributions shall vest when those
2956	2956	15 contributions are paid into a member's or participant's
2957	2957	16 account.
2958	2958	17 (4) The defined contribution plan shall provide a
2959	2959	18 variety of options for investments. These options shall
2960	2960	19 include investments handled by the Illinois State Board of
2961	2961	20 Investment as well as private sector investment options.
2962	2962	21 (5) The defined contribution plan shall provide a
2963	2963	22 variety of options for payouts to retirees and their
2964	2964	23 survivors.
2965	2965	24 (6) To the extent authorized under federal law and as
2966	2966	25 authorized by the retirement system, the defined
2967	2967	26 contribution plan shall allow former participants in the
2968	2968
2969	2969
2970	2970
2971	2971
2972	2972
2973	2973	HB2589 - 82 - LRB103 30272 RPS 56700 b
2974	2974
2975	2975
2976	2976	HB2589- 83 -LRB103 30272 RPS 56700 b HB2589 - 83 - LRB103 30272 RPS 56700 b
2977	2977	HB2589 - 83 - LRB103 30272 RPS 56700 b
2978	2978	1 plan to transfer or roll over employee and employer
2979	2979	2 contributions, and the earnings thereon, into other
2980	2980	3 qualified retirement plans.
2981	2981	4 (7) Each retirement system shall reduce the employee
2982	2982	5 contributions credited to the member's defined
2983	2983	6 contribution plan account by an amount determined by that
2984	2984	7 retirement system to cover the cost of offering the
2985	2985	8 benefits under this subsection and any applicable
2986	2986	9 administrative fees.
2987	2987	10 (8) No person shall begin participating in the defined
2988	2988	11 contribution plan until it has attained qualified plan
2989	2989	12 status and received all necessary approvals from the U.S.
2990	2990	13 Internal Revenue Service.
2991	2991	14 (l) In the case of a conflict between the provisions of
2992	2992	15 this Section and any other provision of this Code, the
2993	2993	16 provisions of this Section shall control.
2994	2994	17 (Source: P.A. 100-23, eff. 7-6-17.)
2995	2995	18 (40 ILCS 5/2-105.3 new)
2996	2996	19 Sec. 2-105.3. Tier 1 participant; Tier 2 participant; Tier
2997	2997	20 3 participant.
2998	2998	21 "Tier 1 participant": A participant who first became a
2999	2999	22 participant before January 1, 2011.
3000	3000	23 In the case of a Tier 1 participant who elects to
3001	3001	24 participate in the Tier 3 plan under Section 2-165.5 of this
3002	3002	25 Code, that participant shall be deemed a Tier 1 participant
3003	3003
3004	3004
3005	3005
3006	3006
3007	3007
3008	3008	HB2589 - 83 - LRB103 30272 RPS 56700 b
3009	3009
3010	3010
3011	3011	HB2589- 84 -LRB103 30272 RPS 56700 b HB2589 - 84 - LRB103 30272 RPS 56700 b
3012	3012	HB2589 - 84 - LRB103 30272 RPS 56700 b
3013	3013	1 only with respect to service performed or established before
3014	3014	2 the effective date of that election.
3015	3015	3 "Tier 2 participant": A participant who first became a
3016	3016	4 participant on or after January 1, 2011.
3017	3017	5 In the case of a Tier 2 participant who elects to
3018	3018	6 participate in the Tier 3 plan under Section 2-165.5 of this
3019	3019	7 Code, that Tier 2 member shall be deemed a Tier 2 member only
3020	3020	8 with respect to service performed or established before the
3021	3021	9 effective date of that election.
3022	3022	10 "Tier 3 participant": A participant who first becomes a
3023	3023	11 participant on or after July 1, 2024 or a Tier 1 or Tier 2
3024	3024	12 participant who elects to participate in the Tier 3 plan under
3025	3025	13 Section 2-165.5 of this Code, but only with respect to service
3026	3026	14 performed on or after the effective date of that election.
3027	3027	15 (40 ILCS 5/2-162)
3028	3028	16 (Text of Section WITHOUT the changes made by P.A. 98-599,
3029	3029	17 which has been held unconstitutional)
3030	3030	18 Sec. 2-162. Application and expiration of new benefit
3031	3031	19 increases.
3032	3032	20 (a) As used in this Section, "new benefit increase" means
3033	3033	21 an increase in the amount of any benefit provided under this
3034	3034	22 Article, or an expansion of the conditions of eligibility for
3035	3035	23 any benefit under this Article, that results from an amendment
3036	3036	24 to this Code that takes effect after the effective date of this
3037	3037	25 amendatory Act of the 94th General Assembly. "New benefit
3038	3038
3039	3039
3040	3040
3041	3041
3042	3042
3043	3043	HB2589 - 84 - LRB103 30272 RPS 56700 b
3044	3044
3045	3045
3046	3046	HB2589- 85 -LRB103 30272 RPS 56700 b HB2589 - 85 - LRB103 30272 RPS 56700 b
3047	3047	HB2589 - 85 - LRB103 30272 RPS 56700 b
3048	3048	1 increase", however, does not include any benefit increase
3049	3049	2 resulting from the changes made to this Article by this
3050	3050	3 amendatory Act of the 103rd General Assembly.
3051	3051	4 (b) Notwithstanding any other provision of this Code or
3052	3052	5 any subsequent amendment to this Code, every new benefit
3053	3053	6 increase is subject to this Section and shall be deemed to be
3054	3054	7 granted only in conformance with and contingent upon
3055	3055	8 compliance with the provisions of this Section.
3056	3056	9 (c) The Public Act enacting a new benefit increase must
3057	3057	10 identify and provide for payment to the System of additional
3058	3058	11 funding at least sufficient to fund the resulting annual
3059	3059	12 increase in cost to the System as it accrues.
3060	3060	13 Every new benefit increase is contingent upon the General
3061	3061	14 Assembly providing the additional funding required under this
3062	3062	15 subsection. The Commission on Government Forecasting and
3063	3063	16 Accountability shall analyze whether adequate additional
3064	3064	17 funding has been provided for the new benefit increase and
3065	3065	18 shall report its analysis to the Public Pension Division of
3066	3066	19 the Department of Financial and Professional Regulation. A new
3067	3067	20 benefit increase created by a Public Act that does not include
3068	3068	21 the additional funding required under this subsection is null
3069	3069	22 and void. If the Public Pension Division determines that the
3070	3070	23 additional funding provided for a new benefit increase under
3071	3071	24 this subsection is or has become inadequate, it may so certify
3072	3072	25 to the Governor and the State Comptroller and, in the absence
3073	3073	26 of corrective action by the General Assembly, the new benefit
3074	3074
3075	3075
3076	3076
3077	3077
3078	3078
3079	3079	HB2589 - 85 - LRB103 30272 RPS 56700 b
3080	3080
3081	3081
3082	3082	HB2589- 86 -LRB103 30272 RPS 56700 b HB2589 - 86 - LRB103 30272 RPS 56700 b
3083	3083	HB2589 - 86 - LRB103 30272 RPS 56700 b
3084	3084	1 increase shall expire at the end of the fiscal year in which
3085	3085	2 the certification is made.
3086	3086	3 (d) Every new benefit increase shall expire 5 years after
3087	3087	4 its effective date or on such earlier date as may be specified
3088	3088	5 in the language enacting the new benefit increase or provided
3089	3089	6 under subsection (c). This does not prevent the General
3090	3090	7 Assembly from extending or re-creating a new benefit increase
3091	3091	8 by law.
3092	3092	9 (e) Except as otherwise provided in the language creating
3093	3093	10 the new benefit increase, a new benefit increase that expires
3094	3094	11 under this Section continues to apply to persons who applied
3095	3095	12 and qualified for the affected benefit while the new benefit
3096	3096	13 increase was in effect and to the affected beneficiaries and
3097	3097	14 alternate payees of such persons, but does not apply to any
3098	3098	15 other person, including without limitation a person who
3099	3099	16 continues in service after the expiration date and did not
3100	3100	17 apply and qualify for the affected benefit while the new
3101	3101	18 benefit increase was in effect.
3102	3102	19 (Source: P.A. 94-4, eff. 6-1-05.)
3103	3103	20 (40 ILCS 5/2-165.5 new)
3104	3104	21 Sec. 2-165.5. Tier 3 plan.
3105	3105	22 (a) By July 1, 2024, the System shall prepare and
3106	3106	23 implement a Tier 3 plan. The Tier 3 plan developed under this
3107	3107	24 Section shall be a plan that aggregates State and employee
3108	3108	25 contributions in individual participant accounts that, after
3109	3109
3110	3110
3111	3111
3112	3112
3113	3113
3114	3114	HB2589 - 86 - LRB103 30272 RPS 56700 b
3115	3115
3116	3116
3117	3117	HB2589- 87 -LRB103 30272 RPS 56700 b HB2589 - 87 - LRB103 30272 RPS 56700 b
3118	3118	HB2589 - 87 - LRB103 30272 RPS 56700 b
3119	3119	1 meeting any other requirements, are used for payouts after
3120	3120	2 retirement in accordance with this Section and any other
3121	3121	3 applicable laws. In developing, preparing, and implementing
3122	3122	4 the Tier 3 plan and adopting rules concerning the Tier 3 plan,
3123	3123	5 the System shall utilize the framework of the self-managed
3124	3124	6 plan offered under Article 15 and shall endeavor to adapt the
3125	3125	7 benefits and structure of the self-managed plan. The System
3126	3126	8 shall consult with the State Universities Retirement System in
3127	3127	9 developing the Tier 3 plan.
3128	3128	10 As used in this Section, "defined benefit plan" means the
3129	3129	11 retirement plan available under this Article to Tier 1 or Tier
3130	3130	12 2 participants who have not made the election authorized under
3131	3131	13 this Section.
3132	3132	14 (1) All persons who begin to participate in this
3133	3133	15 System on or after July 1, 2024 shall participate in the
3134	3134	16 Tier 3 plan rather than the defined benefit plan.
3135	3135	17 (2) A participant in the Tier 3 plan shall pay
3136	3136	18 employee contributions at a rate of 8% of salary.
3137	3137	19 (3) State contributions shall be paid into the
3138	3138	20 accounts of all participants in the Tier 3 plan at a rate
3139	3139	21 of 7.6% of salary.
3140	3140	22 (4) The Tier 3 plan shall require 5 years of
3141	3141	23 participation in the Tier 3 plan before vesting in State
3142	3142	24 contributions. If the participant fails to vest in them,
3143	3143	25 the State contributions, and the earnings thereon, shall
3144	3144	26 be forfeited.
3145	3145
3146	3146
3147	3147
3148	3148
3149	3149
3150	3150	HB2589 - 87 - LRB103 30272 RPS 56700 b
3151	3151
3152	3152
3153	3153	HB2589- 88 -LRB103 30272 RPS 56700 b HB2589 - 88 - LRB103 30272 RPS 56700 b
3154	3154	HB2589 - 88 - LRB103 30272 RPS 56700 b
3155	3155	1 (5) The Tier 3 plan shall provide a variety of options
3156	3156	2 for investments. These options shall include investments
3157	3157	3 handled by the Illinois State Board of Investment as well
3158	3158	4 as private sector investment options.
3159	3159	5 (6) The Tier 3 plan shall provide a variety of options
3160	3160	6 for payouts to participants in the Tier 3 plan who are no
3161	3161	7 longer active in the System and their survivors.
3162	3162	8 (7) To the extent authorized under federal law and as
3163	3163	9 authorized by the System, the plan shall allow former
3164	3164	10 participants in the plan to transfer or roll over employee
3165	3165	11 and vested State contributions, and the earnings thereon,
3166	3166	12 from the Tier 3 plan into other qualified retirement
3167	3167	13 plans.
3168	3168	14 (8) The System shall reduce the employee contributions
3169	3169	15 credited to the participant's Tier 3 plan account by an
3170	3170	16 amount determined by the System to cover the cost of
3171	3171	17 offering these benefits and any applicable administrative
3172	3172	18 fees.
3173	3173	19 (b) Under the Tier 3 plan, an active Tier 1 or Tier 2
3174	3174	20 participant of this System may elect, in writing, to cease
3175	3175	21 accruing benefits in the defined benefit plan and begin
3176	3176	22 accruing benefits for future service in the Tier 3 plan. The
3177	3177	23 election to participate in the Tier 3 plan is voluntary and
3178	3178	24 irrevocable.
3179	3179	25 (1) Service credit under the Tier 3 plan may be used
3180	3180	26 for determining retirement eligibility under the defined
3181	3181
3182	3182
3183	3183
3184	3184
3185	3185
3186	3186	HB2589 - 88 - LRB103 30272 RPS 56700 b
3187	3187
3188	3188
3189	3189	HB2589- 89 -LRB103 30272 RPS 56700 b HB2589 - 89 - LRB103 30272 RPS 56700 b
3190	3190	HB2589 - 89 - LRB103 30272 RPS 56700 b
3191	3191	1 benefit plan.
3192	3192	2 (2) The System shall make a good faith effort to
3193	3193	3 contact all active Tier 1 and Tier 2 participants who are
3194	3194	4 eligible to participate in the Tier 3 plan. The System
3195	3195	5 shall mail information describing the option to join the
3196	3196	6 Tier 3 plan to each of these employees to his or her last
3197	3197	7 known address on file with the System. If the employee is
3198	3198	8 not responsive to other means of contact, it is sufficient
3199	3199	9 for the System to publish the details of the option on its
3200	3200	10 website.
3201	3201	11 (3) Upon request for further information describing
3202	3202	12 the option, the System shall provide employees with
3203	3203	13 information from the System before exercising the option
3204	3204	14 to join the plan, including information on the impact to
3205	3205	15 their benefits and service. The individual consultation
3206	3206	16 shall include projections of the participant's defined
3207	3207	17 benefits at retirement or earlier termination of service
3208	3208	18 and the value of the participant's account at retirement
3209	3209	19 or earlier termination of service. The System shall not
3210	3210	20 provide advice or counseling with respect to whether the
3211	3211	21 employee should exercise the option. The System shall
3212	3212	22 inform Tier 1 and Tier 2 participants who are eligible to
3213	3213	23 participate in the Tier 3 plan that they may also wish to
3214	3214	24 obtain information and counsel relating to their option
3215	3215	25 from any other available source, including, but not
3216	3216	26 limited to, private counsel and financial advisors.
3217	3217
3218	3218
3219	3219
3220	3220
3221	3221
3222	3222	HB2589 - 89 - LRB103 30272 RPS 56700 b
3223	3223
3224	3224
3225	3225	HB2589- 90 -LRB103 30272 RPS 56700 b HB2589 - 90 - LRB103 30272 RPS 56700 b
3226	3226	HB2589 - 90 - LRB103 30272 RPS 56700 b
3227	3227	1 (b-5) A Tier 1 or Tier 2 participant who elects to
3228	3228	2 participate in the Tier 3 plan may irrevocably elect to
3229	3229	3 terminate all participation in the defined benefit plan. Upon
3230	3230	4 that election, the System shall transfer to the participant's
3231	3231	5 individual account an amount equal to the amount of
3232	3232	6 contribution refund that the participant would be eligible to
3233	3233	7 receive if the member terminated employment on that date and
3234	3234	8 elected a refund of contributions, including the prescribed
3235	3235	9 rate of interest for the respective years. The System shall
3236	3236	10 make the transfer as a tax-free transfer in accordance with
3237	3237	11 Internal Revenue Service guidelines, for purposes of funding
3238	3238	12 the amount credited to the participant's individual account.
3239	3239	13 (c) In no event shall the System, its staff, its
3240	3240	14 authorized representatives, or the Board be liable for any
3241	3241	15 information given to an employee under this Section. The
3242	3242	16 System may coordinate with the Illinois Department of Central
3243	3243	17 Management Services and other retirement systems administering
3244	3244	18 a Tier 3 plan in accordance with this amendatory Act of the
3245	3245	19 103rd General Assembly to provide information concerning the
3246	3246	20 impact of the Tier 3 plan set forth in this Section.
3247	3247	21 (c-5) The System shall solicit proposals to provide
3248	3248	22 administrative services and funding vehicles for the Tier 3
3249	3249	23 plan from insurance and annuity companies and mutual fund
3250	3250	24 companies, banks, trust companies, or other financial
3251	3251	25 institutions authorized to do business in this State. In
3252	3252	26 reviewing the proposals received and approving and contracting
3253	3253
3254	3254
3255	3255
3256	3256
3257	3257
3258	3258	HB2589 - 90 - LRB103 30272 RPS 56700 b
3259	3259
3260	3260
3261	3261	HB2589- 91 -LRB103 30272 RPS 56700 b HB2589 - 91 - LRB103 30272 RPS 56700 b
3262	3262	HB2589 - 91 - LRB103 30272 RPS 56700 b
3263	3263	1 with no fewer than 2 and no more than 7 companies, the Board of
3264	3264	2 Trustees of the System shall consider, among other things, the
3265	3265	3 following criteria:
3266	3266	4 (1) the nature and extent of the benefits that would
3267	3267	5 be provided to the participants;
3268	3268	6 (2) the reasonableness of the benefits in relation to
3269	3269	7 the premium charged;
3270	3270	8 (3) the suitability of the benefits to the needs and
3271	3271	9 interests of the participating employees and the employer;
3272	3272	10 (4) the ability of the company to provide benefits
3273	3273	11 under the contract and the financial stability of the
3274	3274	12 company; and
3275	3275	13 (5) the efficacy of the contract in the recruitment
3276	3276	14 and retention of employees.
3277	3277	15 The System shall periodically review each approved
3278	3278	16 company. A company may continue to provide administrative
3279	3279	17 services and funding vehicles for the Tier 3 plan only so long
3280	3280	18 as it continues to be an approved company under contract with
3281	3281	19 the Board.
3282	3282	20 (d) Notwithstanding any other provision of this Section,
3283	3283	21 no person shall begin participating in the Tier 3 plan until it
3284	3284	22 has attained qualified plan status and received all necessary
3285	3285	23 approvals from the U.S. Internal Revenue Service.
3286	3286	24 (e) The System shall report on its progress under this
3287	3287	25 Section, including the available details of the Tier 3 plan
3288	3288	26 and the System's plans for informing eligible Tier 1 and Tier 2
3289	3289
3290	3290
3291	3291
3292	3292
3293	3293
3294	3294	HB2589 - 91 - LRB103 30272 RPS 56700 b
3295	3295
3296	3296
3297	3297	HB2589- 92 -LRB103 30272 RPS 56700 b HB2589 - 92 - LRB103 30272 RPS 56700 b
3298	3298	HB2589 - 92 - LRB103 30272 RPS 56700 b
3299	3299	1 participants about the plan, to the Governor and the General
3300	3300	2 Assembly on or before January 15, 2024.
3301	3301	3 (f) The Illinois State Board of Investment shall be the
3302	3302	4 plan sponsor for the Tier 3 plan established under this
3303	3303	5 Section.
3304	3304	6 (40 ILCS 5/14-103.41)
3305	3305	7 Sec. 14-103.41. Tier 1 member. "Tier 1 member": A member
3306	3306	8 of this System who first became a member or participant before
3307	3307	9 January 1, 2011 under any reciprocal retirement system or
3308	3308	10 pension fund established under this Code other than a
3309	3309	11 retirement system or pension fund established under Article 2,
3310	3310	12 3, 4, 5, 6, or 18 of this Code.
3311	3311	13 In the case of a Tier 1 member who elects to participate in
3312	3312	14 the Tier 3 plan under Section 14-155.5 of this Code, that Tier
3313	3313	15 1 member shall be deemed a Tier 1 member only with respect to
3314	3314	16 service performed or established before the effective date of
3315	3315	17 that election.
3316	3316	18 (Source: P.A. 100-587, eff. 6-4-18.)
3317	3317	19 (40 ILCS 5/14-103.44 new)
3318	3318	20 Sec. 14-103.44. Tier 2 member. "Tier 2 member": A member
3319	3319	21 of this System who first becomes a member under this Article on
3320	3320	22 or after January 1, 2011 and who is not a Tier 1 member.
3321	3321	23 In the case of a Tier 2 member who elects to participate in
3322	3322	24 the Tier 3 plan under Section 14-155.5 of this Code, that Tier
3323	3323
3324	3324
3325	3325
3326	3326
3327	3327
3328	3328	HB2589 - 92 - LRB103 30272 RPS 56700 b
3329	3329
3330	3330
3331	3331	HB2589- 93 -LRB103 30272 RPS 56700 b HB2589 - 93 - LRB103 30272 RPS 56700 b
3332	3332	HB2589 - 93 - LRB103 30272 RPS 56700 b
3333	3333	1 2 member shall be deemed a Tier 2 member only with respect to
3334	3334	2 service performed or established before the effective date of
3335	3335	3 that election.
3336	3336	4 (40 ILCS 5/14-103.45 new)
3337	3337	5 Sec. 14-103.45. Tier 3 member. "Tier 3 member": A member
3338	3338	6 of this System who first becomes a member on or after July 1,
3339	3339	7 2024 or a Tier 1 or Tier 2 member who elects to participate in
3340	3340	8 the Tier 3 plan under Section 14-155.5 of this Code, but only
3341	3341	9 with respect to service performed on or after the effective
3342	3342	10 date of that election.
3343	3343	11 (40 ILCS 5/14-152.1)
3344	3344	12 Sec. 14-152.1. Application and expiration of new benefit
3345	3345	13 increases.
3346	3346	14 (a) As used in this Section, "new benefit increase" means
3347	3347	15 an increase in the amount of any benefit provided under this
3348	3348	16 Article, or an expansion of the conditions of eligibility for
3349	3349	17 any benefit under this Article, that results from an amendment
3350	3350	18 to this Code that takes effect after June 1, 2005 (the
3351	3351	19 effective date of Public Act 94-4). "New benefit increase",
3352	3352	20 however, does not include any benefit increase resulting from
3353	3353	21 the changes made to Article 1 or this Article by Public Act
3354	3354	22 96-37, Public Act 100-23, Public Act 100-587, Public Act
3355	3355	23 100-611, Public Act 101-10, Public Act 101-610, Public Act
3356	3356	24 102-210, Public Act 102-856, Public Act 102-956, or this
3357	3357
3358	3358
3359	3359
3360	3360
3361	3361
3362	3362	HB2589 - 93 - LRB103 30272 RPS 56700 b
3363	3363
3364	3364
3365	3365	HB2589- 94 -LRB103 30272 RPS 56700 b HB2589 - 94 - LRB103 30272 RPS 56700 b
3366	3366	HB2589 - 94 - LRB103 30272 RPS 56700 b
3367	3367	1 amendatory Act of the 103rd General Assembly this amendatory
3368	3368	2 Act of the 102nd General Assembly.
3369	3369	3 (b) Notwithstanding any other provision of this Code or
3370	3370	4 any subsequent amendment to this Code, every new benefit
3371	3371	5 increase is subject to this Section and shall be deemed to be
3372	3372	6 granted only in conformance with and contingent upon
3373	3373	7 compliance with the provisions of this Section.
3374	3374	8 (c) The Public Act enacting a new benefit increase must
3375	3375	9 identify and provide for payment to the System of additional
3376	3376	10 funding at least sufficient to fund the resulting annual
3377	3377	11 increase in cost to the System as it accrues.
3378	3378	12 Every new benefit increase is contingent upon the General
3379	3379	13 Assembly providing the additional funding required under this
3380	3380	14 subsection. The Commission on Government Forecasting and
3381	3381	15 Accountability shall analyze whether adequate additional
3382	3382	16 funding has been provided for the new benefit increase and
3383	3383	17 shall report its analysis to the Public Pension Division of
3384	3384	18 the Department of Insurance. A new benefit increase created by
3385	3385	19 a Public Act that does not include the additional funding
3386	3386	20 required under this subsection is null and void. If the Public
3387	3387	21 Pension Division determines that the additional funding
3388	3388	22 provided for a new benefit increase under this subsection is
3389	3389	23 or has become inadequate, it may so certify to the Governor and
3390	3390	24 the State Comptroller and, in the absence of corrective action
3391	3391	25 by the General Assembly, the new benefit increase shall expire
3392	3392	26 at the end of the fiscal year in which the certification is
3393	3393
3394	3394
3395	3395
3396	3396
3397	3397
3398	3398	HB2589 - 94 - LRB103 30272 RPS 56700 b
3399	3399
3400	3400
3401	3401	HB2589- 95 -LRB103 30272 RPS 56700 b HB2589 - 95 - LRB103 30272 RPS 56700 b
3402	3402	HB2589 - 95 - LRB103 30272 RPS 56700 b
3403	3403	1 made.
3404	3404	2 (d) Every new benefit increase shall expire 5 years after
3405	3405	3 its effective date or on such earlier date as may be specified
3406	3406	4 in the language enacting the new benefit increase or provided
3407	3407	5 under subsection (c). This does not prevent the General
3408	3408	6 Assembly from extending or re-creating a new benefit increase
3409	3409	7 by law.
3410	3410	8 (e) Except as otherwise provided in the language creating
3411	3411	9 the new benefit increase, a new benefit increase that expires
3412	3412	10 under this Section continues to apply to persons who applied
3413	3413	11 and qualified for the affected benefit while the new benefit
3414	3414	12 increase was in effect and to the affected beneficiaries and
3415	3415	13 alternate payees of such persons, but does not apply to any
3416	3416	14 other person, including, without limitation, a person who
3417	3417	15 continues in service after the expiration date and did not
3418	3418	16 apply and qualify for the affected benefit while the new
3419	3419	17 benefit increase was in effect.
3420	3420	18 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
3421	3421	19 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
3422	3422	20 1-1-23; 102-956, eff. 5-27-22.)
3423	3423	21 (40 ILCS 5/14-155.5 new)
3424	3424	22 Sec. 14-155.5. Tier 3 plan.
3425	3425	23 (a) By July 1, 2024, the System shall prepare and
3426	3426	24 implement a Tier 3 plan. The Tier 3 plan developed under this
3427	3427	25 Section shall be a plan that aggregates State and employee
3428	3428
3429	3429
3430	3430
3431	3431
3432	3432
3433	3433	HB2589 - 95 - LRB103 30272 RPS 56700 b
3434	3434
3435	3435
3436	3436	HB2589- 96 -LRB103 30272 RPS 56700 b HB2589 - 96 - LRB103 30272 RPS 56700 b
3437	3437	HB2589 - 96 - LRB103 30272 RPS 56700 b
3438	3438	1 contributions in individual participant accounts that, after
3439	3439	2 meeting any other requirements, are used for payouts after
3440	3440	3 retirement in accordance with this Section and any other
3441	3441	4 applicable laws. In developing, preparing, and implementing
3442	3442	5 the Tier 3 plan and adopting rules concerning the Tier 3 plan,
3443	3443	6 the System shall utilize the framework of the self-managed
3444	3444	7 plan offered under Article 15 and shall endeavor to adapt the
3445	3445	8 benefits and structure of the self-managed plan. The System
3446	3446	9 shall consult with the State Universities Retirement System in
3447	3447	10 developing the Tier 3 plan.
3448	3448	11 As used in this Section, "defined benefit plan" means the
3449	3449	12 retirement plan available under this Article to Tier 1 or Tier
3450	3450	13 2 members who have not made the election authorized under this
3451	3451	14 Section.
3452	3452	15 (1) All persons who begin to participate in this
3453	3453	16 System on or after July 1, 2024 shall participate in the
3454	3454	17 Tier 3 plan rather than the defined benefit plan.
3455	3455	18 (2) A non-covered employee who participates in the
3456	3456	19 Tier 3 plan shall pay employee contributions at a rate of
3457	3457	20 8% of compensation. A covered employee who participates in
3458	3458	21 the Tier 3 plan shall pay employee contributions at a rate
3459	3459	22 of 3% of compensation.
3460	3460	23 (3) State contributions shall be paid into the
3461	3461	24 accounts of non-covered employees who participate in the
3462	3462	25 Tier 3 plan at a rate of 7.6% of compensation, less the
3463	3463	26 amount determined annually by the Board to cover the cost
3464	3464
3465	3465
3466	3466
3467	3467
3468	3468
3469	3469	HB2589 - 96 - LRB103 30272 RPS 56700 b
3470	3470
3471	3471
3472	3472	HB2589- 97 -LRB103 30272 RPS 56700 b HB2589 - 97 - LRB103 30272 RPS 56700 b
3473	3473	HB2589 - 97 - LRB103 30272 RPS 56700 b
3474	3474	1 of offering the defined disability benefits available to
3475	3475	2 other participants under this Article if the Tier 3 plan
3476	3476	3 offers such benefits. State contributions shall be paid
3477	3477	4 into the accounts of covered employees who participate in
3478	3478	5 the Tier 3 plan at a rate of 3% of compensation.
3479	3479	6 (4) The Tier 3 plan shall require 5 years of
3480	3480	7 participation in the Tier 3 plan before vesting in State
3481	3481	8 contributions. If the participant fails to vest in them,
3482	3482	9 the State contributions, and the earnings thereon, shall
3483	3483	10 be forfeited.
3484	3484	11 (5) The Tier 3 plan may provide for participants in
3485	3485	12 the plan to be eligible for the defined disability
3486	3486	13 benefits available to other participants under this
3487	3487	14 Article. If it does, for non-covered employees, the System
3488	3488	15 shall reduce the State contributions credited to the
3489	3489	16 member's Tier 3 plan account by an amount, not to exceed 1%
3490	3490	17 of compensation, determined annually by the Board to cover
3491	3491	18 the cost of offering such benefits. For covered employees,
3492	3492	19 the State shall contribute an amount, not to exceed 1% of
3493	3493	20 compensation, determined annually by the Board to cover
3494	3494	21 the cost of offering such benefits, which is in addition
3495	3495	22 to the 3% State contribution credited to the member's Tier
3496	3496	23 3 plan account.
3497	3497	24 (6) The Tier 3 plan shall provide a variety of options
3498	3498	25 for investments. These options shall include investments
3499	3499	26 handled by the Illinois State Board of Investment as well
3500	3500
3501	3501
3502	3502
3503	3503
3504	3504
3505	3505	HB2589 - 97 - LRB103 30272 RPS 56700 b
3506	3506
3507	3507
3508	3508	HB2589- 98 -LRB103 30272 RPS 56700 b HB2589 - 98 - LRB103 30272 RPS 56700 b
3509	3509	HB2589 - 98 - LRB103 30272 RPS 56700 b
3510	3510	1 as private sector investment options.
3511	3511	2 (7) The Tier 3 plan shall provide a variety of options
3512	3512	3 for payouts to participants in the Tier 3 plan who are no
3513	3513	4 longer active in the System and their survivors.
3514	3514	5 (8) To the extent authorized under federal law and as
3515	3515	6 authorized by the System, the plan shall allow former
3516	3516	7 participants in the plan to transfer or roll over employee
3517	3517	8 and vested State contributions, and the earnings thereon,
3518	3518	9 from the Tier 3 plan into other qualified retirement
3519	3519	10 plans.
3520	3520	11 (9) The System shall reduce the employee contributions
3521	3521	12 credited to the member's Tier 3 plan account by an amount
3522	3522	13 determined by the System to cover the cost of offering
3523	3523	14 these benefits and any applicable administrative fees.
3524	3524	15 (b) Under the Tier 3 plan, an active Tier 1 or Tier 2
3525	3525	16 member of this System may elect, in writing, to cease accruing
3526	3526	17 benefits in the defined benefit plan and begin accruing
3527	3527	18 benefits for future service in the Tier 3 plan. The election to
3528	3528	19 participate in the Tier 3 plan is voluntary and irrevocable.
3529	3529	20 (1) Service credit under the Tier 3 plan may be used
3530	3530	21 for determining retirement eligibility under the defined
3531	3531	22 benefit plan.
3532	3532	23 (2) The System shall make a good faith effort to
3533	3533	24 contact all active Tier 1 and Tier 2 members who are
3534	3534	25 eligible to participate in the Tier 3 plan. The System
3535	3535	26 shall mail information describing the option to join the
3536	3536
3537	3537
3538	3538
3539	3539
3540	3540
3541	3541	HB2589 - 98 - LRB103 30272 RPS 56700 b
3542	3542
3543	3543
3544	3544	HB2589- 99 -LRB103 30272 RPS 56700 b HB2589 - 99 - LRB103 30272 RPS 56700 b
3545	3545	HB2589 - 99 - LRB103 30272 RPS 56700 b
3546	3546	1 Tier 3 plan to each of these employees to his or her last
3547	3547	2 known address on file with the System. If the employee is
3548	3548	3 not responsive to other means of contact, it is sufficient
3549	3549	4 for the System to publish the details of the option on its
3550	3550	5 website.
3551	3551	6 (3) Upon request for further information describing
3552	3552	7 the option, the System shall provide employees with
3553	3553	8 information from the System before exercising the option
3554	3554	9 to join the plan, including information on the impact to
3555	3555	10 their benefits and service. The individual consultation
3556	3556	11 shall include projections of the member's defined benefits
3557	3557	12 at retirement or earlier termination of service and the
3558	3558	13 value of the member's account at retirement or earlier
3559	3559	14 termination of service. The System shall not provide
3560	3560	15 advice or counseling with respect to whether the employee
3561	3561	16 should exercise the option. The System shall inform Tier 1
3562	3562	17 and Tier 2 members who are eligible to participate in the
3563	3563	18 Tier 3 plan that they may also wish to obtain information
3564	3564	19 and counsel relating to their option from any other
3565	3565	20 available source, including, but not limited to, labor
3566	3566	21 organizations, private counsel, and financial advisors.
3567	3567	22 (b-5) A Tier 1 or Tier 2 member who elects to participate
3568	3568	23 in the Tier 3 plan may irrevocably elect to terminate all
3569	3569	24 participation in the defined benefit plan. Upon that election,
3570	3570	25 the System shall transfer to the member's individual account
3571	3571	26 an amount equal to the amount of contribution refund that the
3572	3572
3573	3573
3574	3574
3575	3575
3576	3576
3577	3577	HB2589 - 99 - LRB103 30272 RPS 56700 b
3578	3578
3579	3579
3580	3580	HB2589- 100 -LRB103 30272 RPS 56700 b HB2589 - 100 - LRB103 30272 RPS 56700 b
3581	3581	HB2589 - 100 - LRB103 30272 RPS 56700 b
3582	3582	1 member would be eligible to receive if the member terminated
3583	3583	2 employment on that date and elected a refund of contributions,
3584	3584	3 including regular interest for the respective years. The
3585	3585	4 System shall make the transfer as a tax-free transfer in
3586	3586	5 accordance with Internal Revenue Service guidelines, for
3587	3587	6 purposes of funding the amount credited to the member's
3588	3588	7 individual account.
3589	3589	8 (c) In no event shall the System, its staff, its
3590	3590	9 authorized representatives, or the Board be liable for any
3591	3591	10 information given to an employee under this Section. The
3592	3592	11 System may coordinate with the Illinois Department of Central
3593	3593	12 Management Services and other retirement systems administering
3594	3594	13 a Tier 3 plan in accordance with this amendatory Act of the
3595	3595	14 103rd General Assembly to provide information concerning the
3596	3596	15 impact of the Tier 3 plan set forth in this Section.
3597	3597	16 (c-5) The System shall solicit proposals to provide
3598	3598	17 administrative services and funding vehicles for the Tier 3
3599	3599	18 plan from insurance and annuity companies and mutual fund
3600	3600	19 companies, banks, trust companies, or other financial
3601	3601	20 institutions authorized to do business in this State. In
3602	3602	21 reviewing the proposals received and approving and contracting
3603	3603	22 with no fewer than 2 and no more than 7 companies, the Board of
3604	3604	23 Trustees of the System shall consider, among other things, the
3605	3605	24 following criteria:
3606	3606	25 (1) the nature and extent of the benefits that would
3607	3607	26 be provided to the participants;
3608	3608
3609	3609
3610	3610
3611	3611
3612	3612
3613	3613	HB2589 - 100 - LRB103 30272 RPS 56700 b
3614	3614
3615	3615
3616	3616	HB2589- 101 -LRB103 30272 RPS 56700 b HB2589 - 101 - LRB103 30272 RPS 56700 b
3617	3617	HB2589 - 101 - LRB103 30272 RPS 56700 b
3618	3618	1 (2) the reasonableness of the benefits in relation to
3619	3619	2 the premium charged;
3620	3620	3 (3) the suitability of the benefits to the needs and
3621	3621	4 interests of the participating employees and the employer;
3622	3622	5 (4) the ability of the company to provide benefits
3623	3623	6 under the contract and the financial stability of the
3624	3624	7 company; and
3625	3625	8 (5) the efficacy of the contract in the recruitment
3626	3626	9 and retention of employees.
3627	3627	10 The System shall periodically review each approved
3628	3628	11 company. A company may continue to provide administrative
3629	3629	12 services and funding vehicles for the Tier 3 plan only so long
3630	3630	13 as it continues to be an approved company under contract with
3631	3631	14 the Board.
3632	3632	15 (d) Notwithstanding any other provision of this Section,
3633	3633	16 no person shall begin participating in the Tier 3 plan until it
3634	3634	17 has attained qualified plan status and received all necessary
3635	3635	18 approvals from the U.S. Internal Revenue Service.
3636	3636	19 (e) The System shall report on its progress under this
3637	3637	20 Section, including the available details of the Tier 3 plan
3638	3638	21 and the System's plans for informing eligible Tier 1 and Tier 2
3639	3639	22 members about the plan, to the Governor and the General
3640	3640	23 Assembly on or before January 15, 2024.
3641	3641	24 (f) The Illinois State Board of Investment shall be the
3642	3642	25 plan sponsor for the Tier 3 plan established under this
3643	3643	26 Section.
3644	3644
3645	3645
3646	3646
3647	3647
3648	3648
3649	3649	HB2589 - 101 - LRB103 30272 RPS 56700 b
3650	3650
3651	3651
3652	3652	HB2589- 102 -LRB103 30272 RPS 56700 b HB2589 - 102 - LRB103 30272 RPS 56700 b
3653	3653	HB2589 - 102 - LRB103 30272 RPS 56700 b
3654	3654	1 (40 ILCS 5/15-108.1)
3655	3655	2 Sec. 15-108.1. Tier 1 member. "Tier 1 member": A
3656	3656	3 participant or an annuitant of a retirement annuity under this
3657	3657	4 Article, other than a participant in the self-managed plan
3658	3658	5 under Section 15-158.2, who first became a participant or
3659	3659	6 member before January 1, 2011 under any reciprocal retirement
3660	3660	7 system or pension fund established under this Code, other than
3661	3661	8 a retirement system or pension fund established under Articles
3662	3662	9 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a
3663	3663	10 person who first became a participant under this System before
3664	3664	11 January 1, 2011 and who accepts a refund and is subsequently
3665	3665	12 reemployed by an employer on or after January 1, 2011.
3666	3666	13 In the case of a Tier 1 member who elects to participate in
3667	3667	14 the Tier 3 plan under Section 15-200.5 of this Code, that Tier
3668	3668	15 1 member shall be deemed a Tier 1 member only with respect to
3669	3669	16 service performed or established before the effective date of
3670	3670	17 that election.
3671	3671	18 (Source: P.A. 98-92, eff. 7-16-13.)
3672	3672	19 (40 ILCS 5/15-108.2)
3673	3673	20 Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person
3674	3674	21 who first becomes a participant under this Article on or after
3675	3675	22 January 1, 2011 and before the implementation date, as defined
3676	3676	23 under subsection (a) of Section 1-161, determined by the
3677	3677	24 Board, other than a person in the self-managed plan
3678	3678
3679	3679
3680	3680
3681	3681
3682	3682
3683	3683	HB2589 - 102 - LRB103 30272 RPS 56700 b
3684	3684
3685	3685
3686	3686	HB2589- 103 -LRB103 30272 RPS 56700 b HB2589 - 103 - LRB103 30272 RPS 56700 b
3687	3687	HB2589 - 103 - LRB103 30272 RPS 56700 b
3688	3688	1 established under Section 15-158.2 or a person who makes the
3689	3689	2 election under subsection (c) of Section 1-161, unless the
3690	3690	3 person is otherwise a Tier 1 member. The changes made to this
3691	3691	4 Section by this amendatory Act of the 98th General Assembly
3692	3692	5 are a correction of existing law and are intended to be
3693	3693	6 retroactive to the effective date of Public Act 96-889,
3694	3694	7 notwithstanding the provisions of Section 1-103.1 of this
3695	3695	8 Code.
3696	3696	9 In the case of a Tier 2 member who elects to participate in
3697	3697	10 the Tier 3 plan under Section 15-200.5 of this Code, that Tier
3698	3698	11 2 member shall be deemed a Tier 2 member only with respect to
3699	3699	12 service performed or established before the effective date of
3700	3700	13 that election.
3701	3701	14 (Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)
3702	3702	15 (40 ILCS 5/15-108.3 new)
3703	3703	16 Sec. 15-108.3. Tier 3 member. "Tier 3 member": A person
3704	3704	17 who first becomes a participant under this Article on or after
3705	3705	18 July 1, 2024 or a Tier 1 or Tier 2 member who elects to
3706	3706	19 participate in the Tier 3 plan under Section 15-200.5 of this
3707	3707	20 Code, but only with respect to service performed on or after
3708	3708	21 the effective date of that election.
3709	3709	22 (40 ILCS 5/15-198)
3710	3710	23 Sec. 15-198. Application and expiration of new benefit
3711	3711	24 increases.
3712	3712
3713	3713
3714	3714
3715	3715
3716	3716
3717	3717	HB2589 - 103 - LRB103 30272 RPS 56700 b
3718	3718
3719	3719
3720	3720	HB2589- 104 -LRB103 30272 RPS 56700 b HB2589 - 104 - LRB103 30272 RPS 56700 b
3721	3721	HB2589 - 104 - LRB103 30272 RPS 56700 b
3722	3722	1 (a) As used in this Section, "new benefit increase" means
3723	3723	2 an increase in the amount of any benefit provided under this
3724	3724	3 Article, or an expansion of the conditions of eligibility for
3725	3725	4 any benefit under this Article, that results from an amendment
3726	3726	5 to this Code that takes effect after June 1, 2005 (the
3727	3727	6 effective date of Public Act 94-4). "New benefit increase",
3728	3728	7 however, does not include any benefit increase resulting from
3729	3729	8 the changes made to Article 1 or this Article by Public Act
3730	3730	9 100-23, Public Act 100-587, Public Act 100-769, Public Act
3731	3731	10 101-10, Public Act 101-610, Public Act 102-16, or this
3732	3732	11 amendatory Act of the 103rd General Assembly or this
3733	3733	12 amendatory Act of the 102nd General Assembly.
3734	3734	13 (b) Notwithstanding any other provision of this Code or
3735	3735	14 any subsequent amendment to this Code, every new benefit
3736	3736	15 increase is subject to this Section and shall be deemed to be
3737	3737	16 granted only in conformance with and contingent upon
3738	3738	17 compliance with the provisions of this Section.
3739	3739	18 (c) The Public Act enacting a new benefit increase must
3740	3740	19 identify and provide for payment to the System of additional
3741	3741	20 funding at least sufficient to fund the resulting annual
3742	3742	21 increase in cost to the System as it accrues.
3743	3743	22 Every new benefit increase is contingent upon the General
3744	3744	23 Assembly providing the additional funding required under this
3745	3745	24 subsection. The Commission on Government Forecasting and
3746	3746	25 Accountability shall analyze whether adequate additional
3747	3747	26 funding has been provided for the new benefit increase and
3748	3748
3749	3749
3750	3750
3751	3751
3752	3752
3753	3753	HB2589 - 104 - LRB103 30272 RPS 56700 b
3754	3754
3755	3755
3756	3756	HB2589- 105 -LRB103 30272 RPS 56700 b HB2589 - 105 - LRB103 30272 RPS 56700 b
3757	3757	HB2589 - 105 - LRB103 30272 RPS 56700 b
3758	3758	1 shall report its analysis to the Public Pension Division of
3759	3759	2 the Department of Insurance. A new benefit increase created by
3760	3760	3 a Public Act that does not include the additional funding
3761	3761	4 required under this subsection is null and void. If the Public
3762	3762	5 Pension Division determines that the additional funding
3763	3763	6 provided for a new benefit increase under this subsection is
3764	3764	7 or has become inadequate, it may so certify to the Governor and
3765	3765	8 the State Comptroller and, in the absence of corrective action
3766	3766	9 by the General Assembly, the new benefit increase shall expire
3767	3767	10 at the end of the fiscal year in which the certification is
3768	3768	11 made.
3769	3769	12 (d) Every new benefit increase shall expire 5 years after
3770	3770	13 its effective date or on such earlier date as may be specified
3771	3771	14 in the language enacting the new benefit increase or provided
3772	3772	15 under subsection (c). This does not prevent the General
3773	3773	16 Assembly from extending or re-creating a new benefit increase
3774	3774	17 by law.
3775	3775	18 (e) Except as otherwise provided in the language creating
3776	3776	19 the new benefit increase, a new benefit increase that expires
3777	3777	20 under this Section continues to apply to persons who applied
3778	3778	21 and qualified for the affected benefit while the new benefit
3779	3779	22 increase was in effect and to the affected beneficiaries and
3780	3780	23 alternate payees of such persons, but does not apply to any
3781	3781	24 other person, including, without limitation, a person who
3782	3782	25 continues in service after the expiration date and did not
3783	3783	26 apply and qualify for the affected benefit while the new
3784	3784
3785	3785
3786	3786
3787	3787
3788	3788
3789	3789	HB2589 - 105 - LRB103 30272 RPS 56700 b
3790	3790
3791	3791
3792	3792	HB2589- 106 -LRB103 30272 RPS 56700 b HB2589 - 106 - LRB103 30272 RPS 56700 b
3793	3793	HB2589 - 106 - LRB103 30272 RPS 56700 b
3794	3794	1 benefit increase was in effect.
3795	3795	2 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
3796	3796	3 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
3797	3797	4 (40 ILCS 5/15-200.5 new)
3798	3798	5 Sec. 15-200.5. Tier 3 plan.
3799	3799	6 (a) By July 1, 2024, the System shall prepare and
3800	3800	7 implement a Tier 3 plan. The Tier 3 plan developed under this
3801	3801	8 Section shall be a plan that aggregates State and employee
3802	3802	9 contributions in individual participant accounts that, after
3803	3803	10 meeting any other requirements, are used for payouts after
3804	3804	11 retirement in accordance with this Section and any other
3805	3805	12 applicable laws. In developing, preparing, and implementing
3806	3806	13 the Tier 3 plan and adopting rules concerning the Tier 3 plan,
3807	3807	14 the System shall utilize the framework of the self-managed
3808	3808	15 plan and shall endeavor to adapt the benefits and structure of
3809	3809	16 the self-managed plan.
3810	3810	17 As used in this Section, "defined benefit plan" means the
3811	3811	18 traditional benefit package or the portable benefit package
3812	3812	19 available under this Article to Tier 1 or Tier 2 members who
3813	3813	20 have not made the election authorized under this Section and
3814	3814	21 do not participate in the self-managed plan under Section
3815	3815	22 15-158.2.
3816	3816	23 (1) All persons who begin to participate in this
3817	3817	24 System on or after July 1, 2024 shall participate in the
3818	3818	25 Tier 3 plan rather than the defined benefit plan or the
3819	3819
3820	3820
3821	3821
3822	3822
3823	3823
3824	3824	HB2589 - 106 - LRB103 30272 RPS 56700 b
3825	3825
3826	3826
3827	3827	HB2589- 107 -LRB103 30272 RPS 56700 b HB2589 - 107 - LRB103 30272 RPS 56700 b
3828	3828	HB2589 - 107 - LRB103 30272 RPS 56700 b
3829	3829	1 self-managed plan under Section 15-158.2.
3830	3830	2 (2) A participant in the Tier 3 plan shall pay
3831	3831	3 employee contributions at a rate of 8% of earnings.
3832	3832	4 (3) State contributions shall be paid into the
3833	3833	5 accounts of all participants in the Tier 3 plan at a rate
3834	3834	6 of 7.6% of earnings, less the amount determined annually
3835	3835	7 by the Board to cover the cost of offering the defined
3836	3836	8 disability benefits available to other participants under
3837	3837	9 this Article if the Tier 3 plan offers such benefits.
3838	3838	10 (4) The Tier 3 plan shall require 5 years of
3839	3839	11 participation in the Tier 3 plan before vesting in State
3840	3840	12 contributions. If the participant fails to vest in them,
3841	3841	13 the State contributions, and the earnings thereon, shall
3842	3842	14 be forfeited.
3843	3843	15 (5) The Tier 3 plan may provide for participants in
3844	3844	16 the plan to be eligible for the defined disability
3845	3845	17 benefits available to other participants under this
3846	3846	18 Article. If it does, the System shall reduce the employee
3847	3847	19 contributions credited to the member's Tier 3 plan account
3848	3848	20 by an amount, not to exceed 1% of earnings, determined
3849	3849	21 annually by the Board to cover the cost of offering such
3850	3850	22 benefits.
3851	3851	23 (6) The Tier 3 plan shall provide a variety of options
3852	3852	24 for investments. These options shall include investments
3853	3853	25 handled by the System as well as private sector investment
3854	3854	26 options.
3855	3855
3856	3856
3857	3857
3858	3858
3859	3859
3860	3860	HB2589 - 107 - LRB103 30272 RPS 56700 b
3861	3861
3862	3862
3863	3863	HB2589- 108 -LRB103 30272 RPS 56700 b HB2589 - 108 - LRB103 30272 RPS 56700 b
3864	3864	HB2589 - 108 - LRB103 30272 RPS 56700 b
3865	3865	1 (7) The Tier 3 plan shall provide a variety of options
3866	3866	2 for payouts to participants in the Tier 3 plan who are no
3867	3867	3 longer active in the System and their survivors.
3868	3868	4 (8) To the extent authorized under federal law and as
3869	3869	5 authorized by the System, the plan shall allow former
3870	3870	6 participants in the plan to transfer or roll over employee
3871	3871	7 and vested State contributions, and the earnings thereon,
3872	3872	8 from the Tier 3 plan into other qualified retirement
3873	3873	9 plans.
3874	3874	10 (9) The System shall reduce the employee contributions
3875	3875	11 credited to the member's Tier 3 plan account by an amount
3876	3876	12 determined by the System to cover the cost of offering
3877	3877	13 these benefits and any applicable administrative fees.
3878	3878	14 (b) Under the Tier 3 plan, an active Tier 1 or Tier 2
3879	3879	15 member of this System may elect, in writing, to cease accruing
3880	3880	16 benefits in the defined benefit plan and begin accruing
3881	3881	17 benefits for future service in the Tier 3 plan. An active Tier
3882	3882	18 1 or Tier 2 member who elects to cease accruing benefits in his
3883	3883	19 or her defined benefit plan shall be prohibited from
3884	3884	20 purchasing service credit on or after the date of his or her
3885	3885	21 election. A Tier 1 or Tier 2 member who elects to participate
3886	3886	22 in the Tier 3 plan shall not receive interest accruals to his
3887	3887	23 or her Rule 2 benefit on or after the date of his or her
3888	3888	24 election. The election to participate in the Tier 3 plan is
3889	3889	25 voluntary and irrevocable.
3890	3890	26 (1) Service credit under the Tier 3 plan may be used
3891	3891
3892	3892
3893	3893
3894	3894
3895	3895
3896	3896	HB2589 - 108 - LRB103 30272 RPS 56700 b
3897	3897
3898	3898
3899	3899	HB2589- 109 -LRB103 30272 RPS 56700 b HB2589 - 109 - LRB103 30272 RPS 56700 b
3900	3900	HB2589 - 109 - LRB103 30272 RPS 56700 b
3901	3901	1 for determining retirement eligibility under the defined
3902	3902	2 benefit plan.
3903	3903	3 (2) The System shall make a good faith effort to
3904	3904	4 contact all active Tier 1 and Tier 2 members who are
3905	3905	5 eligible to participate in the Tier 3 plan. The System
3906	3906	6 shall mail information describing the option to join the
3907	3907	7 Tier 3 plan to each of these employees to his or her last
3908	3908	8 known address on file with the System. If the employee is
3909	3909	9 not responsive to other means of contact, it is sufficient
3910	3910	10 for the System to publish the details of the option on its
3911	3911	11 website.
3912	3912	12 (3) Upon request for further information describing
3913	3913	13 the option, the System shall provide employees with
3914	3914	14 information from the System before exercising the option
3915	3915	15 to join the plan, including information on the impact to
3916	3916	16 their benefits and service. The individual consultation
3917	3917	17 shall include projections of the member's defined benefits
3918	3918	18 at retirement or earlier termination of service and the
3919	3919	19 value of the member's account at retirement or earlier
3920	3920	20 termination of service. The System shall not provide
3921	3921	21 advice or counseling with respect to whether the employee
3922	3922	22 should exercise the option. The System shall inform Tier 1
3923	3923	23 and Tier 2 members who are eligible to participate in the
3924	3924	24 Tier 3 plan that they may also wish to obtain information
3925	3925	25 and counsel relating to their option from any other
3926	3926	26 available source, including, but not limited to, labor
3927	3927
3928	3928
3929	3929
3930	3930
3931	3931
3932	3932	HB2589 - 109 - LRB103 30272 RPS 56700 b
3933	3933
3934	3934
3935	3935	HB2589- 110 -LRB103 30272 RPS 56700 b HB2589 - 110 - LRB103 30272 RPS 56700 b
3936	3936	HB2589 - 110 - LRB103 30272 RPS 56700 b
3937	3937	1 organizations, private counsel, and financial advisors.
3938	3938	2 (b-5) A Tier 1 or Tier 2 member who elects to participate
3939	3939	3 in the Tier 3 plan may irrevocably elect to terminate all
3940	3940	4 participation in the defined benefit plan. Upon that election,
3941	3941	5 the System shall transfer to the member's individual account
3942	3942	6 an amount equal to the amount of contribution refund that the
3943	3943	7 member would be eligible to receive if the member terminated
3944	3944	8 employment on that date and elected a refund of contributions,
3945	3945	9 including interest at the effective rate for the respective
3946	3946	10 years. The System shall make the transfer as a tax-free
3947	3947	11 transfer in accordance with Internal Revenue Service
3948	3948	12 guidelines, for purposes of funding the amount credited to the
3949	3949	13 member's individual account.
3950	3950	14 (c) In no event shall the System, its staff, its
3951	3951	15 authorized representatives, or the Board be liable for any
3952	3952	16 information given to an employee under this Section. The
3953	3953	17 System may coordinate with the Illinois Department of Central
3954	3954	18 Management Services and other retirement systems administering
3955	3955	19 a Tier 3 plan in accordance with this amendatory Act of the
3956	3956	20 103rd General Assembly to provide information concerning the
3957	3957	21 impact of the Tier 3 plan set forth in this Section.
3958	3958	22 (c-5) The System, in consultation with the employers,
3959	3959	23 shall solicit proposals to provide administrative services and
3960	3960	24 funding vehicles for the Tier 3 plan from insurance and
3961	3961	25 annuity companies and mutual fund companies, banks, trust
3962	3962	26 companies, or other financial institutions authorized to do
3963	3963
3964	3964
3965	3965
3966	3966
3967	3967
3968	3968	HB2589 - 110 - LRB103 30272 RPS 56700 b
3969	3969
3970	3970
3971	3971	HB2589- 111 -LRB103 30272 RPS 56700 b HB2589 - 111 - LRB103 30272 RPS 56700 b
3972	3972	HB2589 - 111 - LRB103 30272 RPS 56700 b
3973	3973	1 business in this State. In reviewing the proposals received
3974	3974	2 and approving and contracting with no fewer than 2 and no more
3975	3975	3 than 7 companies, the Board of Trustees of the System shall
3976	3976	4 consider, among other things, the following criteria:
3977	3977	5 (1) the nature and extent of the benefits that would
3978	3978	6 be provided to the participants;
3979	3979	7 (2) the reasonableness of the benefits in relation to
3980	3980	8 the premium charged;
3981	3981	9 (3) the suitability of the benefits to the needs and
3982	3982	10 interests of the participating employees and the employer;
3983	3983	11 (4) the ability of the company to provide benefits
3984	3984	12 under the contract and the financial stability of the
3985	3985	13 company; and
3986	3986	14 (5) the efficacy of the contract in the recruitment
3987	3987	15 and retention of employees.
3988	3988	16 The System, in consultation with the employers, shall
3989	3989	17 periodically review each approved company. A company may
3990	3990	18 continue to provide administrative services and funding
3991	3991	19 vehicles for the Tier 3 plan only so long as it continues to be
3992	3992	20 an approved company under contract with the Board.
3993	3993	21 (d) Notwithstanding any other provision of this Section,
3994	3994	22 no person shall begin participating in the Tier 3 plan until it
3995	3995	23 has attained qualified plan status and received all necessary
3996	3996	24 approvals from the U.S. Internal Revenue Service.
3997	3997	25 (e) The System shall report on its progress under this
3998	3998	26 Section, including the available details of the Tier 3 plan
3999	3999
4000	4000
4001	4001
4002	4002
4003	4003
4004	4004	HB2589 - 111 - LRB103 30272 RPS 56700 b
4005	4005
4006	4006
4007	4007	HB2589- 112 -LRB103 30272 RPS 56700 b HB2589 - 112 - LRB103 30272 RPS 56700 b
4008	4008	HB2589 - 112 - LRB103 30272 RPS 56700 b
4009	4009	1 and the System's plans for informing eligible Tier 1 and Tier 2
4010	4010	2 members about the plan, to the Governor and the General
4011	4011	3 Assembly on or before January 15, 2024.
4012	4012	4 (40 ILCS 5/16-106.41)
4013	4013	5 Sec. 16-106.41. Tier 1 member. "Tier 1 member": A member
4014	4014	6 under this Article who first became a member or participant
4015	4015	7 before January 1, 2011 under any reciprocal retirement system
4016	4016	8 or pension fund established under this Code other than a
4017	4017	9 retirement system or pension fund established under Article 2,
4018	4018	10 3, 4, 5, 6, or 18 of this Code.
4019	4019	11 In the case of a Tier 1 member who elects to participate in
4020	4020	12 the Tier 3 plan under Section 16-205.5 of this Code, that Tier
4021	4021	13 1 member shall be deemed a Tier 1 member only with respect to
4022	4022	14 service performed or established before the effective date of
4023	4023	15 that election.
4024	4024	16 (Source: P.A. 100-587, eff. 6-4-18.)
4025	4025	17 (40 ILCS 5/16-106.42 new)
4026	4026	18 Sec. 16-106.42. Tier 2 member. "Tier 2 member": A member
4027	4027	19 of the System who first becomes a member under this Article on
4028	4028	20 or after January 1, 2011 and who is not a Tier 1 member.
4029	4029	21 In the case of a Tier 2 member who elects to participate in
4030	4030	22 the Tier 3 plan under Section 16-205.5 of this Code, the Tier 2
4031	4031	23 member shall be deemed a Tier 2 member only with respect to
4032	4032	24 service performed or established before the effective date of
4033	4033
4034	4034
4035	4035
4036	4036
4037	4037
4038	4038	HB2589 - 112 - LRB103 30272 RPS 56700 b
4039	4039
4040	4040
4041	4041	HB2589- 113 -LRB103 30272 RPS 56700 b HB2589 - 113 - LRB103 30272 RPS 56700 b
4042	4042	HB2589 - 113 - LRB103 30272 RPS 56700 b
4043	4043	1 that election.
4044	4044	2 (40 ILCS 5/16-106.43 new)
4045	4045	3 Sec. 16-106.43. Tier 3 member. "Tier 3 member": A member
4046	4046	4 of the System who first becomes a member under this Article on
4047	4047	5 or after July 1, 2024 or a Tier 1 or Tier 2 member who elects
4048	4048	6 to participate in the Tier 3 plan under Section 16-205.5 of
4049	4049	7 this Code, but only with respect to service performed on or
4050	4050	8 after the effective date of that election.
4051	4051	9 (40 ILCS 5/16-203)
4052	4052	10 Sec. 16-203. Application and expiration of new benefit
4053	4053	11 increases.
4054	4054	12 (a) As used in this Section, "new benefit increase" means
4055	4055	13 an increase in the amount of any benefit provided under this
4056	4056	14 Article, or an expansion of the conditions of eligibility for
4057	4057	15 any benefit under this Article, that results from an amendment
4058	4058	16 to this Code that takes effect after June 1, 2005 (the
4059	4059	17 effective date of Public Act 94-4). "New benefit increase",
4060	4060	18 however, does not include any benefit increase resulting from
4061	4061	19 the changes made to Article 1 or this Article by Public Act
4062	4062	20 95-910, Public Act 100-23, Public Act 100-587, Public Act
4063	4063	21 100-743, Public Act 100-769, Public Act 101-10, Public Act
4064	4064	22 101-49, Public Act 102-16, Public Act 102-871, or this
4065	4065	23 amendatory Act of the 103rd General Assembly Public Act 102-16
4066	4066	24 this amendatory Act of the 102nd General Assembly.
4067	4067
4068	4068
4069	4069
4070	4070
4071	4071
4072	4072	HB2589 - 113 - LRB103 30272 RPS 56700 b
4073	4073
4074	4074
4075	4075	HB2589- 114 -LRB103 30272 RPS 56700 b HB2589 - 114 - LRB103 30272 RPS 56700 b
4076	4076	HB2589 - 114 - LRB103 30272 RPS 56700 b
4077	4077	1 (b) Notwithstanding any other provision of this Code or
4078	4078	2 any subsequent amendment to this Code, every new benefit
4079	4079	3 increase is subject to this Section and shall be deemed to be
4080	4080	4 granted only in conformance with and contingent upon
4081	4081	5 compliance with the provisions of this Section.
4082	4082	6 (c) The Public Act enacting a new benefit increase must
4083	4083	7 identify and provide for payment to the System of additional
4084	4084	8 funding at least sufficient to fund the resulting annual
4085	4085	9 increase in cost to the System as it accrues.
4086	4086	10 Every new benefit increase is contingent upon the General
4087	4087	11 Assembly providing the additional funding required under this
4088	4088	12 subsection. The Commission on Government Forecasting and
4089	4089	13 Accountability shall analyze whether adequate additional
4090	4090	14 funding has been provided for the new benefit increase and
4091	4091	15 shall report its analysis to the Public Pension Division of
4092	4092	16 the Department of Insurance. A new benefit increase created by
4093	4093	17 a Public Act that does not include the additional funding
4094	4094	18 required under this subsection is null and void. If the Public
4095	4095	19 Pension Division determines that the additional funding
4096	4096	20 provided for a new benefit increase under this subsection is
4097	4097	21 or has become inadequate, it may so certify to the Governor and
4098	4098	22 the State Comptroller and, in the absence of corrective action
4099	4099	23 by the General Assembly, the new benefit increase shall expire
4100	4100	24 at the end of the fiscal year in which the certification is
4101	4101	25 made.
4102	4102	26 (d) Every new benefit increase shall expire 5 years after
4103	4103
4104	4104
4105	4105
4106	4106
4107	4107
4108	4108	HB2589 - 114 - LRB103 30272 RPS 56700 b
4109	4109
4110	4110
4111	4111	HB2589- 115 -LRB103 30272 RPS 56700 b HB2589 - 115 - LRB103 30272 RPS 56700 b
4112	4112	HB2589 - 115 - LRB103 30272 RPS 56700 b
4113	4113	1 its effective date or on such earlier date as may be specified
4114	4114	2 in the language enacting the new benefit increase or provided
4115	4115	3 under subsection (c). This does not prevent the General
4116	4116	4 Assembly from extending or re-creating a new benefit increase
4117	4117	5 by law.
4118	4118	6 (e) Except as otherwise provided in the language creating
4119	4119	7 the new benefit increase, a new benefit increase that expires
4120	4120	8 under this Section continues to apply to persons who applied
4121	4121	9 and qualified for the affected benefit while the new benefit
4122	4122	10 increase was in effect and to the affected beneficiaries and
4123	4123	11 alternate payees of such persons, but does not apply to any
4124	4124	12 other person, including, without limitation, a person who
4125	4125	13 continues in service after the expiration date and did not
4126	4126	14 apply and qualify for the affected benefit while the new
4127	4127	15 benefit increase was in effect.
4128	4128	16 (Source: P.A. 101-10, eff. 6-5-19; 101-49, eff. 7-12-19;
4129	4129	17 101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff.
4130	4130	18 8-20-21; 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; revised
4131	4131	19 7-26-22.)
4132	4132	20 (40 ILCS 5/16-205.5 new)
4133	4133	21 Sec. 16-205.5. Tier 3 plan.
4134	4134	22 (a) By July 1, 2024, the System shall prepare and
4135	4135	23 implement a Tier 3 plan. The Tier 3 plan developed under this
4136	4136	24 Section shall be a plan that aggregates State and employee
4137	4137	25 contributions in individual participant accounts that, after
4138	4138
4139	4139
4140	4140
4141	4141
4142	4142
4143	4143	HB2589 - 115 - LRB103 30272 RPS 56700 b
4144	4144
4145	4145
4146	4146	HB2589- 116 -LRB103 30272 RPS 56700 b HB2589 - 116 - LRB103 30272 RPS 56700 b
4147	4147	HB2589 - 116 - LRB103 30272 RPS 56700 b
4148	4148	1 meeting any other requirements, are used for payouts after
4149	4149	2 retirement in accordance with this Section and any other
4150	4150	3 applicable laws. In developing, preparing, and implementing
4151	4151	4 the Tier 3 plan and adopting rules concerning the Tier 3 plan,
4152	4152	5 the System shall utilize the framework of the self-managed
4153	4153	6 plan offered under Article 15 and shall endeavor to adapt the
4154	4154	7 benefits and structure of the self-managed plan. The System
4155	4155	8 shall consult with the State Universities Retirement System in
4156	4156	9 developing the Tier 3 plan.
4157	4157	10 As used in this Section, "defined benefit plan" means the
4158	4158	11 retirement plan available under this Article to Tier 1 or Tier
4159	4159	12 2 members who have not made the election authorized under this
4160	4160	13 Section.
4161	4161	14 (1) All persons who begin to participate in this
4162	4162	15 System on or after July 1, 2024 shall participate in the
4163	4163	16 Tier 3 plan rather than the defined benefit plan.
4164	4164	17 (2) A participant in the Tier 3 plan shall pay
4165	4165	18 employee contributions at a rate of 8% of salary.
4166	4166	19 (3) State contributions shall be paid into the
4167	4167	20 accounts of all participants in the Tier 3 plan at a rate
4168	4168	21 of 7.6% of salary, less the amount determined annually by
4169	4169	22 the Board to cover the cost of offering the defined
4170	4170	23 disability benefits available to other participants under
4171	4171	24 this Article if the Tier 3 plan offers such benefits.
4172	4172	25 (4) The Tier 3 plan shall require 5 years of
4173	4173	26 participation in the Tier 3 plan before vesting in State
4174	4174
4175	4175
4176	4176
4177	4177
4178	4178
4179	4179	HB2589 - 116 - LRB103 30272 RPS 56700 b
4180	4180
4181	4181
4182	4182	HB2589- 117 -LRB103 30272 RPS 56700 b HB2589 - 117 - LRB103 30272 RPS 56700 b
4183	4183	HB2589 - 117 - LRB103 30272 RPS 56700 b
4184	4184	1 contributions. If the participant fails to vest in them,
4185	4185	2 the State contributions, and the earnings thereon, shall
4186	4186	3 be forfeited.
4187	4187	4 (5) The Tier 3 plan may provide for participants in
4188	4188	5 the plan to be eligible for the defined disability
4189	4189	6 benefits available to other participants under this
4190	4190	7 Article. If it does, the System shall reduce the employee
4191	4191	8 contributions credited to the member's Tier 3 plan account
4192	4192	9 by an amount, not to exceed 1% of salary, determined
4193	4193	10 annually by the Board to cover the cost of offering such
4194	4194	11 benefits.
4195	4195	12 (6) The Tier 3 plan shall provide a variety of options
4196	4196	13 for investments. These options shall include investments
4197	4197	14 in a fund created by the System and managed in accordance
4198	4198	15 with legal and fiduciary standards, as well as investment
4199	4199	16 options otherwise available.
4200	4200	17 (7) The Tier 3 plan shall provide a variety of options
4201	4201	18 for payouts to participants in the Tier 3 plan who are no
4202	4202	19 longer active in the System and their survivors.
4203	4203	20 (8) To the extent authorized under federal law and as
4204	4204	21 authorized by the System, the plan shall allow former
4205	4205	22 participants in the plan to transfer or roll over employee
4206	4206	23 and vested State contributions, and the earnings thereon,
4207	4207	24 from the Tier 3 plan into other qualified retirement
4208	4208	25 plans.
4209	4209	26 (9) The System shall reduce the employee contributions
4210	4210
4211	4211
4212	4212
4213	4213
4214	4214
4215	4215	HB2589 - 117 - LRB103 30272 RPS 56700 b
4216	4216
4217	4217
4218	4218	HB2589- 118 -LRB103 30272 RPS 56700 b HB2589 - 118 - LRB103 30272 RPS 56700 b
4219	4219	HB2589 - 118 - LRB103 30272 RPS 56700 b
4220	4220	1 credited to the member's Tier 3 plan account by an amount
4221	4221	2 determined by the System to cover the cost of offering
4222	4222	3 these benefits and any applicable administrative fees.
4223	4223	4 (b) Under the Tier 3 plan, an active Tier 1 or Tier 2
4224	4224	5 member of this System may elect, in writing, to cease accruing
4225	4225	6 benefits in the defined benefit plan and begin accruing
4226	4226	7 benefits for future service in the Tier 3 plan. An active Tier
4227	4227	8 1 or Tier 2 member who elects to cease accruing benefits in his
4228	4228	9 or her defined benefit plan shall be prohibited from
4229	4229	10 purchasing service credit on or after the date of his or her
4230	4230	11 election. A Tier 1 or Tier 2 member making the irrevocable
4231	4231	12 election provided under this subsection shall not receive
4232	4232	13 interest accruals to his or her benefit under paragraph (A) of
4233	4233	14 subsection (a) of Section 16-133 of this Code on or after the
4234	4234	15 date of his or her election. The election to participate in the
4235	4235	16 Tier 3 plan is voluntary and irrevocable.
4236	4236	17 (1) Service credit under the Tier 3 plan may be used
4237	4237	18 for determining retirement eligibility under the defined
4238	4238	19 benefit plan.
4239	4239	20 (2) The System shall make a good faith effort to
4240	4240	21 contact all active Tier 1 and Tier 2 members who are
4241	4241	22 eligible to participate in the Tier 3 plan. The System
4242	4242	23 shall mail information describing the option to join the
4243	4243	24 Tier 3 plan to each of these employees to his or her last
4244	4244	25 known address on file with the System. If the employee is
4245	4245	26 not responsive to other means of contact, it is sufficient
4246	4246
4247	4247
4248	4248
4249	4249
4250	4250
4251	4251	HB2589 - 118 - LRB103 30272 RPS 56700 b
4252	4252
4253	4253
4254	4254	HB2589- 119 -LRB103 30272 RPS 56700 b HB2589 - 119 - LRB103 30272 RPS 56700 b
4255	4255	HB2589 - 119 - LRB103 30272 RPS 56700 b
4256	4256	1 for the System to publish the details of the option on its
4257	4257	2 website.
4258	4258	3 (3) Upon request for further information describing
4259	4259	4 the option, the System shall provide employees with
4260	4260	5 information from the System before exercising the option
4261	4261	6 to join the plan, including information on the impact to
4262	4262	7 their benefits and service. The individual consultation
4263	4263	8 shall include projections of the member's defined benefits
4264	4264	9 at retirement or earlier termination of service and the
4265	4265	10 value of the member's account at retirement or earlier
4266	4266	11 termination of service. The System shall not provide
4267	4267	12 advice or counseling with respect to whether the employee
4268	4268	13 should exercise the option. The System shall inform Tier 1
4269	4269	14 and Tier 2 members who are eligible to participate in the
4270	4270	15 Tier 3 plan that they may also wish to obtain information
4271	4271	16 and counsel relating to their option from any other
4272	4272	17 available source, including, but not limited to, labor
4273	4273	18 organizations, private counsel, and financial advisors.
4274	4274	19 (b-5) A Tier 1 or Tier 2 member who elects to participate
4275	4275	20 in the Tier 3 plan may irrevocably elect to terminate all
4276	4276	21 participation in the defined benefit plan. Upon that election,
4277	4277	22 the System shall transfer to the member's individual account
4278	4278	23 an amount equal to the amount of contribution refund that the
4279	4279	24 member would be eligible to receive if the member terminated
4280	4280	25 employment on that date and elected a refund of contributions,
4281	4281	26 including regular interest for the respective years. The
4282	4282
4283	4283
4284	4284
4285	4285
4286	4286
4287	4287	HB2589 - 119 - LRB103 30272 RPS 56700 b
4288	4288
4289	4289
4290	4290	HB2589- 120 -LRB103 30272 RPS 56700 b HB2589 - 120 - LRB103 30272 RPS 56700 b
4291	4291	HB2589 - 120 - LRB103 30272 RPS 56700 b
4292	4292	1 System shall make the transfer as a tax-free transfer in
4293	4293	2 accordance with Internal Revenue Service guidelines, for
4294	4294	3 purposes of funding the amount credited to the member's
4295	4295	4 individual account.
4296	4296	5 (c) In no event shall the System, its staff, its
4297	4297	6 authorized representatives, or the Board be liable for any
4298	4298	7 information given to an employee under this Section. The
4299	4299	8 System may coordinate with the Illinois Department of Central
4300	4300	9 Management Services and other retirement systems administering
4301	4301	10 a Tier 3 plan in accordance with this amendatory Act of the
4302	4302	11 103rd General Assembly to provide information concerning the
4303	4303	12 impact of the Tier 3 plan set forth in this Section.
4304	4304	13 (c-5) The System, in consultation with the employers,
4305	4305	14 shall solicit proposals to provide administrative services and
4306	4306	15 funding vehicles for the Tier 3 plan from insurance and
4307	4307	16 annuity companies and mutual fund companies, banks, trust
4308	4308	17 companies, or other financial institutions authorized to do
4309	4309	18 business in this State. In reviewing the proposals received
4310	4310	19 and approving and contracting with no fewer than 2 and no more
4311	4311	20 than 7 companies, the Board of Trustees of the System shall
4312	4312	21 consider, among other things, the following criteria:
4313	4313	22 (1) the nature and extent of the benefits that would
4314	4314	23 be provided to the participants;
4315	4315	24 (2) the reasonableness of the benefits in relation to
4316	4316	25 the premium charged;
4317	4317	26 (3) the suitability of the benefits to the needs and
4318	4318
4319	4319
4320	4320
4321	4321
4322	4322
4323	4323	HB2589 - 120 - LRB103 30272 RPS 56700 b
4324	4324
4325	4325
4326	4326	HB2589- 121 -LRB103 30272 RPS 56700 b HB2589 - 121 - LRB103 30272 RPS 56700 b
4327	4327	HB2589 - 121 - LRB103 30272 RPS 56700 b
4328	4328	1 interests of the participating employees and the employer;
4329	4329	2 (4) the ability of the company to provide benefits
4330	4330	3 under the contract and the financial stability of the
4331	4331	4 company; and
4332	4332	5 (5) the efficacy of the contract in the recruitment
4333	4333	6 and retention of employees.
4334	4334	7 The System, in consultation with the employers, shall
4335	4335	8 periodically review each approved company. A company may
4336	4336	9 continue to provide administrative services and funding
4337	4337	10 vehicles for the Tier 3 plan only so long as it continues to be
4338	4338	11 an approved company under contract with the Board.
4339	4339	12 (d) Notwithstanding any other provision of this Section,
4340	4340	13 no person shall begin participating in the Tier 3 plan until it
4341	4341	14 has attained qualified plan status and received all necessary
4342	4342	15 approvals from the U.S. Internal Revenue Service.
4343	4343	16 (e) The System shall report on its progress under this
4344	4344	17 Section, including the available details of the Tier 3 plan
4345	4345	18 and the System's plans for informing eligible Tier 1 and Tier 2
4346	4346	19 members about the plan, to the Governor and the General
4347	4347	20 Assembly on or before January 15, 2024.
4348	4348	21 (40 ILCS 5/18-110.1 new)
4349	4349	22 Sec. 18-110.1. Tier 1 participant. "Tier 1 participant":
4350	4350	23 A participant who first became a participant of this System
4351	4351	24 before January 1, 2011.
4352	4352	25 In the case of a Tier 1 participant who elects to
4353	4353
4354	4354
4355	4355
4356	4356
4357	4357
4358	4358	HB2589 - 121 - LRB103 30272 RPS 56700 b
4359	4359
4360	4360
4361	4361	HB2589- 122 -LRB103 30272 RPS 56700 b HB2589 - 122 - LRB103 30272 RPS 56700 b
4362	4362	HB2589 - 122 - LRB103 30272 RPS 56700 b
4363	4363	1 participate in the Tier 3 plan under Section 18-121.5 of this
4364	4364	2 Code, that Tier 1 participant shall be deemed a Tier 1
4365	4365	3 participant only with respect to service performed or
4366	4366	4 established before the effective date of that election.
4367	4367	5 (40 ILCS 5/18-110.2 new)
4368	4368	6 Sec. 18-110.2. Tier 2 participant. "Tier 2 participant":
4369	4369	7 A participant who first becomes a participant of this System
4370	4370	8 on or after January 1, 2011.
4371	4371	9 In the case of a Tier 2 participant who elects to
4372	4372	10 participate in the Tier 3 plan under Section 18-121.5 of this
4373	4373	11 Code, that Tier 2 participant shall be deemed a Tier 2
4374	4374	12 participant only with respect to service performed or
4375	4375	13 established before the effective date of that election.
4376	4376	14 (40 ILCS 5/18-110.3 new)
4377	4377	15 Sec. 18-110.3. Tier 3 participant. "Tier 3 participant": A
4378	4378	16 participant who first becomes a participant of this System on
4379	4379	17 or after July 1, 2024 or a Tier 1 or Tier 2 participant who
4380	4380	18 elects to participate in the Tier 3 plan under Section
4381	4381	19 18-121.5 of this Code, but only with respect to service
4382	4382	20 performed on or after the effective date of that election.
4383	4383	21 (40 ILCS 5/18-121.5 new)
4384	4384	22 Sec. 18-121.5. Tier 3 plan.
4385	4385	23 (a) By July 1, 2024, the System shall prepare and
4386	4386
4387	4387
4388	4388
4389	4389
4390	4390
4391	4391	HB2589 - 122 - LRB103 30272 RPS 56700 b
4392	4392
4393	4393
4394	4394	HB2589- 123 -LRB103 30272 RPS 56700 b HB2589 - 123 - LRB103 30272 RPS 56700 b
4395	4395	HB2589 - 123 - LRB103 30272 RPS 56700 b
4396	4396	1 implement a Tier 3 plan. The Tier 3 plan developed under this
4397	4397	2 Section shall be a plan that aggregates State and employee
4398	4398	3 contributions in individual participant accounts that, after
4399	4399	4 meeting any other requirements, are used for payouts after
4400	4400	5 retirement in accordance with this Section and any other
4401	4401	6 applicable laws. In developing, preparing, and implementing
4402	4402	7 the Tier 3 plan and adopting rules concerning the Tier 3 plan,
4403	4403	8 the System shall utilize the framework of the self-managed
4404	4404	9 plan offered under Article 15 and shall endeavor to adapt the
4405	4405	10 benefits and structure of the self-managed plan. The System
4406	4406	11 shall consult with the State Universities Retirement System in
4407	4407	12 developing the Tier 3 plan.
4408	4408	13 As used in this Section, "defined benefit plan" means the
4409	4409	14 retirement plan available under this Article to Tier 1 or Tier
4410	4410	15 2 participants who have not made the election authorized under
4411	4411	16 this Section.
4412	4412	17 (1) All persons who begin to participate in this
4413	4413	18 System on or after July 1, 2024 shall participate in the
4414	4414	19 Tier 3 plan rather than the defined benefit plan.
4415	4415	20 (2) A participant in the Tier 3 plan shall pay
4416	4416	21 employee contributions at a rate of 8% of salary.
4417	4417	22 (3) State contributions shall be paid into the
4418	4418	23 accounts of all participants in the Tier 3 plan at a rate
4419	4419	24 of 7.6% of salary, less the amount determined annually by
4420	4420	25 the Board to cover the cost of offering the defined
4421	4421	26 disability benefits available to other participants under
4422	4422
4423	4423
4424	4424
4425	4425
4426	4426
4427	4427	HB2589 - 123 - LRB103 30272 RPS 56700 b
4428	4428
4429	4429
4430	4430	HB2589- 124 -LRB103 30272 RPS 56700 b HB2589 - 124 - LRB103 30272 RPS 56700 b
4431	4431	HB2589 - 124 - LRB103 30272 RPS 56700 b
4432	4432	1 this Article if the Tier 3 plan offers such benefits.
4433	4433	2 (4) The Tier 3 plan shall require 5 years of
4434	4434	3 participation in the Tier 3 plan before vesting in State
4435	4435	4 contributions. If the participant fails to vest in them,
4436	4436	5 the State contributions, and the earnings thereon, shall
4437	4437	6 be forfeited.
4438	4438	7 (5) The Tier 3 plan may provide for participants in
4439	4439	8 the plan to be eligible for the defined disability
4440	4440	9 benefits available to other participants under this
4441	4441	10 Article. If it does, the System shall reduce the employee
4442	4442	11 contributions credited to the member's Tier 3 plan account
4443	4443	12 by an amount, not to exceed 1% of salary, determined
4444	4444	13 annually by the Board to cover the cost of offering such
4445	4445	14 benefits.
4446	4446	15 (6) The Tier 3 plan shall provide a variety of options
4447	4447	16 for investments. These options shall include investments
4448	4448	17 handled by the Illinois State Board of Investment as well
4449	4449	18 as private sector investment options.
4450	4450	19 (7) The Tier 3 plan shall provide a variety of options
4451	4451	20 for payouts to participants in the Tier 3 plan who are no
4452	4452	21 longer active in the System and their survivors.
4453	4453	22 (8) To the extent authorized under federal law and as
4454	4454	23 authorized by the System, the plan shall allow former
4455	4455	24 participants in the plan to transfer or roll over employee
4456	4456	25 and vested State contributions, and the earnings thereon,
4457	4457	26 into other qualified retirement plans.
4458	4458
4459	4459
4460	4460
4461	4461
4462	4462
4463	4463	HB2589 - 124 - LRB103 30272 RPS 56700 b
4464	4464
4465	4465
4466	4466	HB2589- 125 -LRB103 30272 RPS 56700 b HB2589 - 125 - LRB103 30272 RPS 56700 b
4467	4467	HB2589 - 125 - LRB103 30272 RPS 56700 b
4468	4468	1 (9) The System shall reduce the employee contributions
4469	4469	2 credited to the participant's Tier 3 plan account by an
4470	4470	3 amount determined by the System to cover the cost of
4471	4471	4 offering these benefits and any applicable administrative
4472	4472	5 fees.
4473	4473	6 (b) Under the Tier 3 plan, an active Tier 1 or Tier 2
4474	4474	7 participant of this System may elect, in writing, to cease
4475	4475	8 accruing benefits in the defined benefit plan and begin
4476	4476	9 accruing benefits for future service in the Tier 3 plan. The
4477	4477	10 election to participate in the Tier 3 plan is voluntary and
4478	4478	11 irrevocable.
4479	4479	12 (1) Service credit under the Tier 3 plan may be used
4480	4480	13 for determining retirement eligibility under the defined
4481	4481	14 benefit plan.
4482	4482	15 (2) The System shall make a good faith effort to
4483	4483	16 contact all active Tier 1 and Tier 2 participants who are
4484	4484	17 eligible to participate in the Tier 3 plan. The System
4485	4485	18 shall mail information describing the option to join the
4486	4486	19 Tier 3 plan to each of these employees to his or her last
4487	4487	20 known address on file with the System. If the employee is
4488	4488	21 not responsive to other means of contact, it is sufficient
4489	4489	22 for the System to publish the details of the option on its
4490	4490	23 website.
4491	4491	24 (3) Upon request for further information describing
4492	4492	25 the option, the System shall provide employees with
4493	4493	26 information from the System before exercising the option
4494	4494
4495	4495
4496	4496
4497	4497
4498	4498
4499	4499	HB2589 - 125 - LRB103 30272 RPS 56700 b
4500	4500
4501	4501
4502	4502	HB2589- 126 -LRB103 30272 RPS 56700 b HB2589 - 126 - LRB103 30272 RPS 56700 b
4503	4503	HB2589 - 126 - LRB103 30272 RPS 56700 b
4504	4504	1 to join the plan, including information on the impact to
4505	4505	2 their benefits and service. The individual consultation
4506	4506	3 shall include projections of the participant's defined
4507	4507	4 benefits at retirement or earlier termination of service
4508	4508	5 and the value of the participant's account at retirement
4509	4509	6 or earlier termination of service. The System shall not
4510	4510	7 provide advice or counseling with respect to whether the
4511	4511	8 employee should exercise the option. The System shall
4512	4512	9 inform Tier 1 and Tier 2 participants who are eligible to
4513	4513	10 participate in the Tier 3 plan that they may also wish to
4514	4514	11 obtain information and counsel relating to their option
4515	4515	12 from any other available source, including, but not
4516	4516	13 limited to, private counsel and financial advisors.
4517	4517	14 (b-5) A Tier 1 or Tier 2 participant who elects to
4518	4518	15 participate in the Tier 3 plan may irrevocably elect to
4519	4519	16 terminate all participation in the defined benefit plan. Upon
4520	4520	17 that election, the System shall transfer to the participant's
4521	4521	18 individual account an amount equal to the amount of
4522	4522	19 contribution refund that the participant would be eligible to
4523	4523	20 receive if the participant terminated employment on that date
4524	4524	21 and elected a refund of contributions, including interest at
4525	4525	22 the prescribed rate of interest for the respective years. The
4526	4526	23 System shall make the transfer as a tax-free transfer in
4527	4527	24 accordance with Internal Revenue Service guidelines, for
4528	4528	25 purposes of funding the amount credited to the participant's
4529	4529	26 individual account.
4530	4530
4531	4531
4532	4532
4533	4533
4534	4534
4535	4535	HB2589 - 126 - LRB103 30272 RPS 56700 b
4536	4536
4537	4537
4538	4538	HB2589- 127 -LRB103 30272 RPS 56700 b HB2589 - 127 - LRB103 30272 RPS 56700 b
4539	4539	HB2589 - 127 - LRB103 30272 RPS 56700 b
4540	4540	1 (c) In no event shall the System, its staff, its
4541	4541	2 authorized representatives, or the Board be liable for any
4542	4542	3 information given to an employee under this Section. The
4543	4543	4 System may coordinate with the Illinois Department of Central
4544	4544	5 Management Services and other retirement systems administering
4545	4545	6 a Tier 3 plan in accordance with this amendatory Act of the
4546	4546	7 103rd General Assembly to provide information concerning the
4547	4547	8 impact of the Tier 3 plan set forth in this Section.
4548	4548	9 (c-5) The System shall solicit proposals to provide
4549	4549	10 administrative services and funding vehicles for the Tier 3
4550	4550	11 plan from insurance and annuity companies and mutual fund
4551	4551	12 companies, banks, trust companies, or other financial
4552	4552	13 institutions authorized to do business in this State. In
4553	4553	14 reviewing the proposals received and approving and contracting
4554	4554	15 with no fewer than 2 and no more than 7 companies, the Board of
4555	4555	16 Trustees of the System shall consider, among other things, the
4556	4556	17 following criteria:
4557	4557	18 (1) the nature and extent of the benefits that would
4558	4558	19 be provided to the participants;
4559	4559	20 (2) the reasonableness of the benefits in relation to
4560	4560	21 the premium charged;
4561	4561	22 (3) the suitability of the benefits to the needs and
4562	4562	23 interests of the participating employees and the employer;
4563	4563	24 (4) the ability of the company to provide benefits
4564	4564	25 under the contract and the financial stability of the
4565	4565	26 company; and
4566	4566
4567	4567
4568	4568
4569	4569
4570	4570
4571	4571	HB2589 - 127 - LRB103 30272 RPS 56700 b
4572	4572
4573	4573
4574	4574	HB2589- 128 -LRB103 30272 RPS 56700 b HB2589 - 128 - LRB103 30272 RPS 56700 b
4575	4575	HB2589 - 128 - LRB103 30272 RPS 56700 b
4576	4576	1 (5) the efficacy of the contract in the recruitment
4577	4577	2 and retention of employees.
4578	4578	3 The System shall periodically review each approved
4579	4579	4 company. A company may continue to provide administrative
4580	4580	5 services and funding vehicles for the Tier 3 plan only so long
4581	4581	6 as it continues to be an approved company under contract with
4582	4582	7 the Board.
4583	4583	8 (d) Notwithstanding any other provision of this Section,
4584	4584	9 no person shall begin participating in the Tier 3 plan until it
4585	4585	10 has attained qualified plan status and received all necessary
4586	4586	11 approvals from the U.S. Internal Revenue Service.
4587	4587	12 (e) The System shall report on its progress under this
4588	4588	13 Section, including the available details of the Tier 3 plan
4589	4589	14 and the System's plans for informing eligible Tier 1 and Tier 2
4590	4590	15 participants about the plan, to the Governor and the General
4591	4591	16 Assembly on or before January 15, 2024.
4592	4592	17 (f) The Illinois State Board of Investment shall be the
4593	4593	18 plan sponsor for the Tier 3 plan established under this
4594	4594	19 Section.
4595	4595	20 (40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
4596	4596	21 Sec. 18-124. Retirement annuities - conditions for
4597	4597	22 eligibility.
4598	4598	23 (a) This subsection (a) applies to a Tier 1 participant
4599	4599	24 who first serves as a judge before the effective date of this
4600	4600	25 amendatory Act of the 96th General Assembly.
4601	4601
4602	4602
4603	4603
4604	4604
4605	4605
4606	4606	HB2589 - 128 - LRB103 30272 RPS 56700 b
4607	4607
4608	4608
4609	4609	HB2589- 129 -LRB103 30272 RPS 56700 b HB2589 - 129 - LRB103 30272 RPS 56700 b
4610	4610	HB2589 - 129 - LRB103 30272 RPS 56700 b
4611	4611	1 A participant whose employment as a judge is terminated,
4612	4612	2 regardless of age or cause is entitled to a retirement annuity
4613	4613	3 beginning on the date specified in a written application
4614	4614	4 subject to the following:
4615	4615	5 (1) the date the annuity begins is subsequent to the
4616	4616	6 date of final termination of employment, or the date 30
4617	4617	7 days prior to the receipt of the application by the board
4618	4618	8 for annuities based on disability, or one year before the
4619	4619	9 receipt of the application by the board for annuities
4620	4620	10 based on attained age;
4621	4621	11 (2) the participant is at least age 55, or has become
4622	4622	12 permanently disabled and as a consequence is unable to
4623	4623	13 perform the duties of his or her office;
4624	4624	14 (3) the participant has at least 10 years of service
4625	4625	15 credit except that a participant terminating service after
4626	4626	16 June 30 1975, with at least 6 years of service credit,
4627	4627	17 shall be entitled to a retirement annuity at age 62 or
4628	4628	18 over;
4629	4629	19 (4) the participant is not receiving or entitled to
4630	4630	20 receive, at the date of retirement, any salary from an
4631	4631	21 employer for service currently performed.
4632	4632	22 (b) This subsection (b) applies to a Tier 2 participant
4633	4633	23 who first serves as a judge on or after the effective date of
4634	4634	24 this amendatory Act of the 96th General Assembly.
4635	4635	25 A participant who has at least 8 years of creditable
4636	4636	26 service is entitled to a retirement annuity when he or she has
4637	4637
4638	4638
4639	4639
4640	4640
4641	4641
4642	4642	HB2589 - 129 - LRB103 30272 RPS 56700 b
4643	4643
4644	4644
4645	4645	HB2589- 130 -LRB103 30272 RPS 56700 b HB2589 - 130 - LRB103 30272 RPS 56700 b
4646	4646	HB2589 - 130 - LRB103 30272 RPS 56700 b
4647	4647	1 attained age 67.
4648	4648	2 A member who has attained age 62 and has at least 8 years
4649	4649	3 of service credit may elect to receive the lower retirement
4650	4650	4 annuity provided in subsection (d) of Section 18-125 of this
4651	4651	5 Code.
4652	4652	6 (Source: P.A. 96-889, eff. 1-1-11.)
4653	4653	7 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
4654	4654	8 Sec. 18-125. Retirement annuity amount.
4655	4655	9 (a) The annual retirement annuity for a participant who
4656	4656	10 terminated service as a judge prior to July 1, 1971 shall be
4657	4657	11 based on the law in effect at the time of termination of
4658	4658	12 service.
4659	4659	13 (b) Except as provided in subsection (b-5), effective July
4660	4660	14 1, 1971, the retirement annuity for any participant in service
4661	4661	15 on or after such date shall be 3 1/2% of final average salary,
4662	4662	16 as defined in this Section, for each of the first 10 years of
4663	4663	17 service, and 5% of such final average salary for each year of
4664	4664	18 service in excess of 10.
4665	4665	19 For purposes of this Section, final average salary for a
4666	4666	20 Tier 1 participant who first serves as a judge before August
4667	4667	21 10, 2009 (the effective date of Public Act 96-207) shall be:
4668	4668	22 (1) the average salary for the last 4 years of
4669	4669	23 credited service as a judge for a participant who
4670	4670	24 terminates service before July 1, 1975.
4671	4671	25 (2) for a participant who terminates service after
4672	4672
4673	4673
4674	4674
4675	4675
4676	4676
4677	4677	HB2589 - 130 - LRB103 30272 RPS 56700 b
4678	4678
4679	4679
4680	4680	HB2589- 131 -LRB103 30272 RPS 56700 b HB2589 - 131 - LRB103 30272 RPS 56700 b
4681	4681	HB2589 - 131 - LRB103 30272 RPS 56700 b
4682	4682	1 June 30, 1975 and before July 1, 1982, the salary on the
4683	4683	2 last day of employment as a judge.
4684	4684	3 (3) for any participant who terminates service after
4685	4685	4 June 30, 1982 and before January 1, 1990, the average
4686	4686	5 salary for the final year of service as a judge.
4687	4687	6 (4) for a participant who terminates service on or
4688	4688	7 after January 1, 1990 but before July 14, 1995 (the
4689	4689	8 effective date of Public Act 89-136), the salary on the
4690	4690	9 last day of employment as a judge.
4691	4691	10 (5) for a participant who terminates service on or
4692	4692	11 after July 14, 1995 (the effective date of Public Act
4693	4693	12 89-136), the salary on the last day of employment as a
4694	4694	13 judge, or the highest salary received by the participant
4695	4695	14 for employment as a judge in a position held by the
4696	4696	15 participant for at least 4 consecutive years, whichever is
4697	4697	16 greater.
4698	4698	17 However, in the case of a participant who elects to
4699	4699	18 discontinue contributions as provided in subdivision (a)(2) of
4700	4700	19 Section 18-133, the time of such election shall be considered
4701	4701	20 the last day of employment in the determination of final
4702	4702	21 average salary under this subsection.
4703	4703	22 For a Tier 1 participant who first serves as a judge on or
4704	4704	23 after August 10, 2009 (the effective date of Public Act
4705	4705	24 96-207) and before January 1, 2011 (the effective date of
4706	4706	25 Public Act 96-889), final average salary shall be the average
4707	4707	26 monthly salary obtained by dividing the total salary of the
4708	4708
4709	4709
4710	4710
4711	4711
4712	4712
4713	4713	HB2589 - 131 - LRB103 30272 RPS 56700 b
4714	4714
4715	4715
4716	4716	HB2589- 132 -LRB103 30272 RPS 56700 b HB2589 - 132 - LRB103 30272 RPS 56700 b
4717	4717	HB2589 - 132 - LRB103 30272 RPS 56700 b
4718	4718	1 participant during the period of: (1) the 48 consecutive
4719	4719	2 months of service within the last 120 months of service in
4720	4720	3 which the total compensation was the highest, or (2) the total
4721	4721	4 period of service, if less than 48 months, by the number of
4722	4722	5 months of service in that period.
4723	4723	6 The maximum retirement annuity for any participant shall
4724	4724	7 be 85% of final average salary.
4725	4725	8 (b-5) Notwithstanding any other provision of this Article,
4726	4726	9 for a Tier 2 participant who first serves as a judge on or
4727	4727	10 after January 1, 2011 (the effective date of Public Act
4728	4728	11 96-889), the annual retirement annuity is 3% of the
4729	4729	12 participant's final average salary for each year of service.
4730	4730	13 The maximum retirement annuity payable shall be 60% of the
4731	4731	14 participant's final average salary.
4732	4732	15 For a Tier 2 participant who first serves as a judge on or
4733	4733	16 after January 1, 2011 (the effective date of Public Act
4734	4734	17 96-889), final average salary shall be the average monthly
4735	4735	18 salary obtained by dividing the total salary of the judge
4736	4736	19 during the 96 consecutive months of service within the last
4737	4737	20 120 months of service in which the total salary was the highest
4738	4738	21 by the number of months of service in that period; however,
4739	4739	22 beginning January 1, 2011, the annual salary may not exceed
4740	4740	23 $106,800, except that that amount shall annually thereafter be
4741	4741	24 increased by the lesser of (i) 3% of that amount, including all
4742	4742	25 previous adjustments, or (ii) the annual unadjusted percentage
4743	4743	26 increase (but not less than zero) in the consumer price
4744	4744
4745	4745
4746	4746
4747	4747
4748	4748
4749	4749	HB2589 - 132 - LRB103 30272 RPS 56700 b
4750	4750
4751	4751
4752	4752	HB2589- 133 -LRB103 30272 RPS 56700 b HB2589 - 133 - LRB103 30272 RPS 56700 b
4753	4753	HB2589 - 133 - LRB103 30272 RPS 56700 b
4754	4754	1 index-u for the 12 months ending with the September preceding
4755	4755	2 each November 1. "Consumer price index-u" means the index
4756	4756	3 published by the Bureau of Labor Statistics of the United
4757	4757	4 States Department of Labor that measures the average change in
4758	4758	5 prices of goods and services purchased by all urban consumers,
4759	4759	6 United States city average, all items, 1982-84 = 100. The new
4760	4760	7 amount resulting from each annual adjustment shall be
4761	4761	8 determined by the Public Pension Division of the Department of
4762	4762	9 Insurance and made available to the Board by November 1st of
4763	4763	10 each year.
4764	4764	11 (c) The retirement annuity for a participant who retires
4765	4765	12 prior to age 60 with less than 28 years of service in the
4766	4766	13 System shall be reduced 1/2 of 1% for each month that the
4767	4767	14 participant's age is under 60 years at the time the annuity
4768	4768	15 commences. However, for a participant who retires on or after
4769	4769	16 December 10, 1999 (the effective date of Public Act 91-653),
4770	4770	17 the percentage reduction in retirement annuity imposed under
4771	4771	18 this subsection shall be reduced by 5/12 of 1% for every month
4772	4772	19 of service in this System in excess of 20 years, and therefore
4773	4773	20 a participant with at least 26 years of service in this System
4774	4774	21 may retire at age 55 without any reduction in annuity.
4775	4775	22 The reduction in retirement annuity imposed by this
4776	4776	23 subsection shall not apply in the case of retirement on
4777	4777	24 account of disability.
4778	4778	25 (d) Notwithstanding any other provision of this Article,
4779	4779	26 for a Tier 2 participant who first serves as a judge on or
4780	4780
4781	4781
4782	4782
4783	4783
4784	4784
4785	4785	HB2589 - 133 - LRB103 30272 RPS 56700 b
4786	4786
4787	4787
4788	4788	HB2589- 134 -LRB103 30272 RPS 56700 b HB2589 - 134 - LRB103 30272 RPS 56700 b
4789	4789	HB2589 - 134 - LRB103 30272 RPS 56700 b
4790	4790	1 after January 1, 2011 (the effective date of Public Act
4791	4791	2 96-889) and who is retiring after attaining age 62, the
4792	4792	3 retirement annuity shall be reduced by 1/2 of 1% for each month
4793	4793	4 that the participant's age is under age 67 at the time the
4794	4794	5 annuity commences.
4795	4795	6 (Source: P.A. 100-201, eff. 8-18-17.)
4796	4796	7 (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
4797	4797	8 Sec. 18-125.1. Automatic increase in retirement annuity. A
4798	4798	9 participant who retires from service after June 30, 1969,
4799	4799	10 shall, in January of the year next following the year in which
4800	4800	11 the first anniversary of retirement occurs, and in January of
4801	4801	12 each year thereafter, have the amount of his or her originally
4802	4802	13 granted retirement annuity increased as follows: for each year
4803	4803	14 up to and including 1971, 1 1/2%; for each year from 1972
4804	4804	15 through 1979 inclusive, 2%; and for 1980 and each year
4805	4805	16 thereafter, 3%.
4806	4806	17 Notwithstanding any other provision of this Article, a
4807	4807	18 retirement annuity for a Tier 2 participant who first serves
4808	4808	19 as a judge on or after January 1, 2011 (the effective date of
4809	4809	20 Public Act 96-889) shall be increased in January of the year
4810	4810	21 next following the year in which the first anniversary of
4811	4811	22 retirement occurs, but in no event prior to age 67, and in
4812	4812	23 January of each year thereafter, by an amount equal to 3% or
4813	4813	24 the annual percentage increase in the consumer price index-u
4814	4814	25 as determined by the Public Pension Division of the Department
4815	4815
4816	4816
4817	4817
4818	4818
4819	4819
4820	4820	HB2589 - 134 - LRB103 30272 RPS 56700 b
4821	4821
4822	4822
4823	4823	HB2589- 135 -LRB103 30272 RPS 56700 b HB2589 - 135 - LRB103 30272 RPS 56700 b
4824	4824	HB2589 - 135 - LRB103 30272 RPS 56700 b
4825	4825	1 of Insurance under subsection (b-5) of Section 18-125,
4826	4826	2 whichever is less, of the retirement annuity then being paid.
4827	4827	3 This Section is not applicable to a participant who
4828	4828	4 retires before he or she has made contributions at the rate
4829	4829	5 prescribed in Section 18-133 for automatic increases for not
4830	4830	6 less than the equivalent of one full year, unless such a
4831	4831	7 participant arranges to pay the system the amount required to
4832	4832	8 bring the total contributions for the automatic increase to
4833	4833	9 the equivalent of one year's contribution based upon his or
4834	4834	10 her last year's salary.
4835	4835	11 This Section is applicable to all participants (other than
4836	4836	12 Tier 3 participants who do not have any service credit as a
4837	4837	13 Tier 1 or Tier 2 participant) in service after June 30, 1969
4838	4838	14 unless a participant has elected, prior to September 1, 1969,
4839	4839	15 in a written direction filed with the board not to be subject
4840	4840	16 to the provisions of this Section. Any participant in service
4841	4841	17 on or after July 1, 1992 shall have the option of electing
4842	4842	18 prior to April 1, 1993, in a written direction filed with the
4843	4843	19 board, to be covered by the provisions of the 1969 amendatory
4844	4844	20 Act. Such participant shall be required to make the aforesaid
4845	4845	21 additional contributions with compound interest at 4% per
4846	4846	22 annum.
4847	4847	23 Any participant who has become eligible to receive the
4848	4848	24 maximum rate of annuity and who resumes service as a judge
4849	4849	25 after receiving a retirement annuity under this Article shall
4850	4850	26 have the amount of his or her retirement annuity increased by
4851	4851
4852	4852
4853	4853
4854	4854
4855	4855
4856	4856	HB2589 - 135 - LRB103 30272 RPS 56700 b
4857	4857
4858	4858
4859	4859	HB2589- 136 -LRB103 30272 RPS 56700 b HB2589 - 136 - LRB103 30272 RPS 56700 b
4860	4860	HB2589 - 136 - LRB103 30272 RPS 56700 b
4861	4861	1 3% of the originally granted annuity amount for each year of
4862	4862	2 such resumed service, beginning in January of the year next
4863	4863	3 following the date of such resumed service, upon subsequent
4864	4864	4 termination of such resumed service.
4865	4865	5 Beginning January 1, 1990, all automatic annual increases
4866	4866	6 payable under this Section shall be calculated as a percentage
4867	4867	7 of the total annuity payable at the time of the increase,
4868	4868	8 including previous increases granted under this Article.
4869	4869	9 (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
4870	4870	10 (40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
4871	4871	11 Sec. 18-127. Retirement annuity - suspension on
4872	4872	12 reemployment.
4873	4873	13 (a) A participant receiving a retirement annuity who is
4874	4874	14 regularly employed for compensation by an employer other than
4875	4875	15 a county, in any capacity, shall have his or her retirement
4876	4876	16 annuity payments suspended during such employment. Upon
4877	4877	17 termination of such employment, retirement annuity payments at
4878	4878	18 the previous rate shall be resumed.
4879	4879	19 If such a participant resumes service as a judge, he or she
4880	4880	20 shall receive credit for any additional service. Upon
4881	4881	21 subsequent retirement, his or her retirement annuity shall be
4882	4882	22 the amount previously granted, plus the amount earned by the
4883	4883	23 additional judicial service under the provisions in effect
4884	4884	24 during the period of such additional service. However, if the
4885	4885	25 participant was receiving the maximum rate of annuity at the
4886	4886
4887	4887
4888	4888
4889	4889
4890	4890
4891	4891	HB2589 - 136 - LRB103 30272 RPS 56700 b
4892	4892
4893	4893
4894	4894	HB2589- 137 -LRB103 30272 RPS 56700 b HB2589 - 137 - LRB103 30272 RPS 56700 b
4895	4895	HB2589 - 137 - LRB103 30272 RPS 56700 b
4896	4896	1 time of re-employment, he or she may elect, in a written
4897	4897	2 direction filed with the board, not to receive any additional
4898	4898	3 service credit during the period of re-employment. In such
4899	4899	4 case, contributions shall not be required during the period of
4900	4900	5 re-employment. Any such election shall be irrevocable.
4901	4901	6 (b) Beginning January 1, 1991, any participant receiving a
4902	4902	7 retirement annuity who accepts temporary employment from an
4903	4903	8 employer other than a county for a period not exceeding 75
4904	4904	9 working days in any calendar year shall not be deemed to be
4905	4905	10 regularly employed for compensation or to have resumed service
4906	4906	11 as a judge for the purposes of this Article. A day shall be
4907	4907	12 considered a working day if the annuitant performs on it any of
4908	4908	13 his duties under the temporary employment agreement.
4909	4909	14 (c) Except as provided in subsection (a), beginning
4910	4910	15 January 1, 1993, retirement annuities shall not be subject to
4911	4911	16 suspension upon resumption of employment for an employer, and
4912	4912	17 any retirement annuity that is then so suspended shall be
4913	4913	18 reinstated on that date.
4914	4914	19 (d) The changes made in this Section by this amendatory
4915	4915	20 Act of 1993 shall apply to judges no longer in service on its
4916	4916	21 effective date, as well as to judges serving on or after that
4917	4917	22 date.
4918	4918	23 (e) A participant receiving a retirement annuity under
4919	4919	24 this Article who serves as a part-time employee in any of the
4920	4920	25 following positions: Legislative Inspector General, Special
4921	4921	26 Legislative Inspector General, employee of the Office of the
4922	4922
4923	4923
4924	4924
4925	4925
4926	4926
4927	4927	HB2589 - 137 - LRB103 30272 RPS 56700 b
4928	4928
4929	4929
4930	4930	HB2589- 138 -LRB103 30272 RPS 56700 b HB2589 - 138 - LRB103 30272 RPS 56700 b
4931	4931	HB2589 - 138 - LRB103 30272 RPS 56700 b
4932	4932	1 Legislative Inspector General, Executive Director of the
4933	4933	2 Legislative Ethics Commission, or staff of the Legislative
4934	4934	3 Ethics Commission, but has not elected to participate in the
4935	4935	4 Article 14 System with respect to that service, shall not be
4936	4936	5 deemed to be regularly employed for compensation by an
4937	4937	6 employer other than a county, nor to have resumed service as a
4938	4938	7 judge, on the basis of that service, and the retirement
4939	4939	8 annuity payments and other benefits of that person under this
4940	4940	9 Code shall not be suspended, diminished, or otherwise impaired
4941	4941	10 solely as a consequence of that service. This subsection (e)
4942	4942	11 applies without regard to whether the person is in service as a
4943	4943	12 judge under this Article on or after the effective date of this
4944	4944	13 amendatory Act of the 93rd General Assembly. In this
4945	4945	14 subsection, a "part-time employee" is a person who is not
4946	4946	15 required to work at least 35 hours per week.
4947	4947	16 (f) A participant receiving a retirement annuity under
4948	4948	17 this Article who has made an election under Section 1-123 and
4949	4949	18 who is serving either as legal counsel in the Office of the
4950	4950	19 Governor or as Chief Deputy Attorney General shall not be
4951	4951	20 deemed to be regularly employed for compensation by an
4952	4952	21 employer other than a county, nor to have resumed service as a
4953	4953	22 judge, on the basis of that service, and the retirement
4954	4954	23 annuity payments and other benefits of that person under this
4955	4955	24 Code shall not be suspended, diminished, or otherwise impaired
4956	4956	25 solely as a consequence of that service. This subsection (f)
4957	4957	26 applies without regard to whether the person is in service as a
4958	4958
4959	4959
4960	4960
4961	4961
4962	4962
4963	4963	HB2589 - 138 - LRB103 30272 RPS 56700 b
4964	4964
4965	4965
4966	4966	HB2589- 139 -LRB103 30272 RPS 56700 b HB2589 - 139 - LRB103 30272 RPS 56700 b
4967	4967	HB2589 - 139 - LRB103 30272 RPS 56700 b
4968	4968	1 judge under this Article on or after the effective date of this
4969	4969	2 amendatory Act of the 93rd General Assembly.
4970	4970	3 (g) Notwithstanding any other provision of this Article,
4971	4971	4 if a Tier 2 participant person who first becomes a participant
4972	4972	5 under this System on or after January 1, 2011 (the effective
4973	4973	6 date of this amendatory Act of the 96th General Assembly) is
4974	4974	7 receiving a retirement annuity under this Article and becomes
4975	4975	8 a member or participant under this Article or any other
4976	4976	9 Article of this Code and is employed on a full-time basis, then
4977	4977	10 the person's retirement annuity under this System shall be
4978	4978	11 suspended during that employment. Upon termination of that
4979	4979	12 employment, the person's retirement annuity shall resume and,
4980	4980	13 if appropriate, be recalculated under the applicable
4981	4981	14 provisions of this Article.
4982	4982	15 (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
4983	4983	16 (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
4984	4984	17 Sec. 18-128.01. Amount of survivor's annuity.
4985	4985	18 (a) Upon the death of an annuitant, his or her surviving
4986	4986	19 spouse shall be entitled to a survivor's annuity of 66 2/3% of
4987	4987	20 the annuity the annuitant was receiving immediately prior to
4988	4988	21 his or her death, inclusive of annual increases in the
4989	4989	22 retirement annuity to the date of death.
4990	4990	23 (b) Upon the death of an active participant, his or her
4991	4991	24 surviving spouse shall receive a survivor's annuity of 66 2/3%
4992	4992	25 of the annuity earned by the participant as of the date of his
4993	4993
4994	4994
4995	4995
4996	4996
4997	4997
4998	4998	HB2589 - 139 - LRB103 30272 RPS 56700 b
4999	4999
5000	5000
5001	5001	HB2589- 140 -LRB103 30272 RPS 56700 b HB2589 - 140 - LRB103 30272 RPS 56700 b
5002	5002	HB2589 - 140 - LRB103 30272 RPS 56700 b
5003	5003	1 or her death, determined without regard to whether the
5004	5004	2 participant had attained age 60 as of that time, or 7 1/2% of
5005	5005	3 the last salary of the decedent, whichever is greater.
5006	5006	4 (c) Upon the death of a participant who had terminated
5007	5007	5 service with at least 10 years of service, his or her surviving
5008	5008	6 spouse shall be entitled to a survivor's annuity of 66 2/3% of
5009	5009	7 the annuity earned by the deceased participant at the date of
5010	5010	8 death.
5011	5011	9 (d) Upon the death of an annuitant, active participant, or
5012	5012	10 participant who had terminated service with at least 10 years
5013	5013	11 of service, each surviving child under the age of 18 or
5014	5014	12 disabled as defined in Section 18-128 shall be entitled to a
5015	5015	13 child's annuity in an amount equal to 5% of the decedent's
5016	5016	14 final salary, not to exceed in total for all such children the
5017	5017	15 greater of 20% of the decedent's last salary or 66 2/3% of the
5018	5018	16 annuity received or earned by the decedent as provided under
5019	5019	17 subsections (a) and (b) of this Section. This child's annuity
5020	5020	18 shall be paid whether or not a survivor's annuity was elected
5021	5021	19 under Section 18-123.
5022	5022	20 (e) The changes made in the survivor's annuity provisions
5023	5023	21 by Public Act 82-306 shall apply to the survivors of a deceased
5024	5024	22 participant or annuitant whose death occurs on or after August
5025	5025	23 21, 1981.
5026	5026	24 (f) Beginning January 1, 1990, every survivor's annuity
5027	5027	25 shall be increased (1) on each January 1 occurring on or after
5028	5028	26 the commencement of the annuity if the deceased member died
5029	5029
5030	5030
5031	5031
5032	5032
5033	5033
5034	5034	HB2589 - 140 - LRB103 30272 RPS 56700 b
5035	5035
5036	5036
5037	5037	HB2589- 141 -LRB103 30272 RPS 56700 b HB2589 - 141 - LRB103 30272 RPS 56700 b
5038	5038	HB2589 - 141 - LRB103 30272 RPS 56700 b
5039	5039	1 while receiving a retirement annuity, or (2) in other cases,
5040	5040	2 on each January 1 occurring on or after the first anniversary
5041	5041	3 of the commencement of the annuity, by an amount equal to 3% of
5042	5042	4 the current amount of the annuity, including any previous
5043	5043	5 increases under this Article. Such increases shall apply
5044	5044	6 without regard to whether the deceased member was in service
5045	5045	7 on or after the effective date of this amendatory Act of 1991,
5046	5046	8 but shall not accrue for any period prior to January 1, 1990.
5047	5047	9 (g) Notwithstanding any other provision of this Article,
5048	5048	10 the initial survivor's annuity for a survivor of a Tier 2
5049	5049	11 participant who first serves as a judge after January 1, 2011
5050	5050	12 (the effective date of Public Act 96-889) shall be in the
5051	5051	13 amount of 66 2/3% of the annuity received or earned by the
5052	5052	14 decedent, and shall be increased (1) on each January 1
5053	5053	15 occurring on or after the commencement of the annuity if the
5054	5054	16 deceased participant died while receiving a retirement
5055	5055	17 annuity, or (2) in other cases, on each January 1 occurring on
5056	5056	18 or after the first anniversary of the commencement of the
5057	5057	19 annuity, but in no event prior to age 67, by an amount equal to
5058	5058	20 3% or the annual unadjusted percentage increase in the
5059	5059	21 consumer price index-u as determined by the Public Pension
5060	5060	22 Division of the Department of Insurance under subsection (b-5)
5061	5061	23 of Section 18-125, whichever is less, of the survivor's
5062	5062	24 annuity then being paid.
5063	5063	25 (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
5064	5064
5065	5065
5066	5066
5067	5067
5068	5068
5069	5069	HB2589 - 141 - LRB103 30272 RPS 56700 b
5070	5070
5071	5071
5072	5072	HB2589- 142 -LRB103 30272 RPS 56700 b HB2589 - 142 - LRB103 30272 RPS 56700 b
5073	5073	HB2589 - 142 - LRB103 30272 RPS 56700 b
5074	5074	1 (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
5075	5075	2 Sec. 18-133. Financing; employee contributions.
5076	5076	3 (a) Effective July 1, 1967, each participant is required
5077	5077	4 to contribute 7 1/2% of each payment of salary toward the
5078	5078	5 retirement annuity. Such contributions shall continue during
5079	5079	6 the entire time the participant is in service, with the
5080	5080	7 following exceptions:
5081	5081	8 (1) Contributions for the retirement annuity are not
5082	5082	9 required on salary received after 18 years of service by
5083	5083	10 persons who were participants before January 2, 1954.
5084	5084	11 (2) A participant who continues to serve as a judge
5085	5085	12 after becoming eligible to receive the maximum rate of
5086	5086	13 annuity may elect, through a written direction filed with
5087	5087	14 the Board, to discontinue contributing to the System. Any
5088	5088	15 such option elected by a judge shall be irrevocable unless
5089	5089	16 prior to January 1, 2000, and while continuing to serve as
5090	5090	17 judge, the judge (A) files with the Board a letter
5091	5091	18 cancelling the direction to discontinue contributing to
5092	5092	19 the System and requesting that such contributing resume,
5093	5093	20 and (B) pays into the System an amount equal to the total
5094	5094	21 of the discontinued contributions plus interest thereon at
5095	5095	22 5% per annum. Service credits earned in any other
5096	5096	23 "participating system" as defined in Article 20 of this
5097	5097	24 Code shall be considered for purposes of determining a
5098	5098	25 judge's eligibility to discontinue contributions under
5099	5099	26 this subdivision (a)(2).
5100	5100
5101	5101
5102	5102
5103	5103
5104	5104
5105	5105	HB2589 - 142 - LRB103 30272 RPS 56700 b
5106	5106
5107	5107
5108	5108	HB2589- 143 -LRB103 30272 RPS 56700 b HB2589 - 143 - LRB103 30272 RPS 56700 b
5109	5109	HB2589 - 143 - LRB103 30272 RPS 56700 b
5110	5110	1 (3) A participant who (i) has attained age 60, (ii)
5111	5111	2 continues to serve as a judge after becoming eligible to
5112	5112	3 receive the maximum rate of annuity, and (iii) has not
5113	5113	4 elected to discontinue contributing to the System under
5114	5114	5 subdivision (a)(2) of this Section (or has revoked any
5115	5115	6 such election) may elect, through a written direction
5116	5116	7 filed with the Board, to make contributions to the System
5117	5117	8 based only on the amount of the increases in salary
5118	5118	9 received by the judge on or after the date of the election,
5119	5119	10 rather than the total salary received. If a judge who is
5120	5120	11 making contributions to the System on the effective date
5121	5121	12 of this amendatory Act of the 91st General Assembly makes
5122	5122	13 an election to limit contributions under this subdivision
5123	5123	14 (a)(3) within 90 days after that effective date, the
5124	5124	15 election shall be deemed to become effective on that
5125	5125	16 effective date and the judge shall be entitled to receive
5126	5126	17 a refund of any excess contributions paid to the System
5127	5127	18 during that 90-day period; any other election under this
5128	5128	19 subdivision (a)(3) becomes effective on the first of the
5129	5129	20 month following the date of the election. An election to
5130	5130	21 limit contributions under this subdivision (a)(3) is
5131	5131	22 irrevocable. Service credits earned in any other
5132	5132	23 participating system as defined in Article 20 of this Code
5133	5133	24 shall be considered for purposes of determining a judge's
5134	5134	25 eligibility to make an election under this subdivision
5135	5135	26 (a)(3).
5136	5136
5137	5137
5138	5138
5139	5139
5140	5140
5141	5141	HB2589 - 143 - LRB103 30272 RPS 56700 b
5142	5142
5143	5143
5144	5144	HB2589- 144 -LRB103 30272 RPS 56700 b HB2589 - 144 - LRB103 30272 RPS 56700 b
5145	5145	HB2589 - 144 - LRB103 30272 RPS 56700 b
5146	5146	1 (b) Beginning July 1, 1969, each participant is required
5147	5147	2 to contribute 1% of each payment of salary towards the
5148	5148	3 automatic increase in annuity provided in Section 18-125.1.
5149	5149	4 However, such contributions need not be made by any
5150	5150	5 participant who has elected prior to September 15, 1969, not
5151	5151	6 to be subject to the automatic increase in annuity provisions.
5152	5152	7 (c) Effective July 13, 1953, each married participant
5153	5153	8 subject to the survivor's annuity provisions is required to
5154	5154	9 contribute 2 1/2% of each payment of salary, whether or not he
5155	5155	10 or she is required to make any other contributions under this
5156	5156	11 Section. Such contributions shall be made concurrently with
5157	5157	12 the contributions made for annuity purposes.
5158	5158	13 (d) Notwithstanding any other provision of this Article,
5159	5159	14 the required contributions for a Tier 2 participant who first
5160	5160	15 becomes a participant on or after January 1, 2011 shall not
5161	5161	16 exceed the contributions that would be due under this Article
5162	5162	17 if that participant's highest salary for annuity purposes were
5163	5163	18 $106,800, plus any increase in that amount under Section
5164	5164	19 18-125.
5165	5165	20 (Source: P.A. 96-1490, eff. 1-1-11.)
5166	5166	21 (40 ILCS 5/18-169)
5167	5167	22 Sec. 18-169. Application and expiration of new benefit
5168	5168	23 increases.
5169	5169	24 (a) As used in this Section, "new benefit increase" means
5170	5170	25 an increase in the amount of any benefit provided under this
5171	5171
5172	5172
5173	5173
5174	5174
5175	5175
5176	5176	HB2589 - 144 - LRB103 30272 RPS 56700 b
5177	5177
5178	5178
5179	5179	HB2589- 145 -LRB103 30272 RPS 56700 b HB2589 - 145 - LRB103 30272 RPS 56700 b
5180	5180	HB2589 - 145 - LRB103 30272 RPS 56700 b
5181	5181	1 Article, or an expansion of the conditions of eligibility for
5182	5182	2 any benefit under this Article, that results from an amendment
5183	5183	3 to this Code that takes effect after the effective date of this
5184	5184	4 amendatory Act of the 94th General Assembly. "New benefit
5185	5185	5 increase", however, does not include any benefit increase
5186	5186	6 resulting from the changes made by this amendatory Act of the
5187	5187	7 103rd General Assembly.
5188	5188	8 (b) Notwithstanding any other provision of this Code or
5189	5189	9 any subsequent amendment to this Code, every new benefit
5190	5190	10 increase is subject to this Section and shall be deemed to be
5191	5191	11 granted only in conformance with and contingent upon
5192	5192	12 compliance with the provisions of this Section.
5193	5193	13 (c) The Public Act enacting a new benefit increase must
5194	5194	14 identify and provide for payment to the System of additional
5195	5195	15 funding at least sufficient to fund the resulting annual
5196	5196	16 increase in cost to the System as it accrues.
5197	5197	17 Every new benefit increase is contingent upon the General
5198	5198	18 Assembly providing the additional funding required under this
5199	5199	19 subsection. The Commission on Government Forecasting and
5200	5200	20 Accountability shall analyze whether adequate additional
5201	5201	21 funding has been provided for the new benefit increase and
5202	5202	22 shall report its analysis to the Public Pension Division of
5203	5203	23 the Department of Financial and Professional Regulation. A new
5204	5204	24 benefit increase created by a Public Act that does not include
5205	5205	25 the additional funding required under this subsection is null
5206	5206	26 and void. If the Public Pension Division determines that the
5207	5207
5208	5208
5209	5209
5210	5210
5211	5211
5212	5212	HB2589 - 145 - LRB103 30272 RPS 56700 b
5213	5213
5214	5214
5215	5215	HB2589- 146 -LRB103 30272 RPS 56700 b HB2589 - 146 - LRB103 30272 RPS 56700 b
5216	5216	HB2589 - 146 - LRB103 30272 RPS 56700 b
5217	5217	1 additional funding provided for a new benefit increase under
5218	5218	2 this subsection is or has become inadequate, it may so certify
5219	5219	3 to the Governor and the State Comptroller and, in the absence
5220	5220	4 of corrective action by the General Assembly, the new benefit
5221	5221	5 increase shall expire at the end of the fiscal year in which
5222	5222	6 the certification is made.
5223	5223	7 (d) Every new benefit increase shall expire 5 years after
5224	5224	8 its effective date or on such earlier date as may be specified
5225	5225	9 in the language enacting the new benefit increase or provided
5226	5226	10 under subsection (c). This does not prevent the General
5227	5227	11 Assembly from extending or re-creating a new benefit increase
5228	5228	12 by law.
5229	5229	13 (e) Except as otherwise provided in the language creating
5230	5230	14 the new benefit increase, a new benefit increase that expires
5231	5231	15 under this Section continues to apply to persons who applied
5232	5232	16 and qualified for the affected benefit while the new benefit
5233	5233	17 increase was in effect and to the affected beneficiaries and
5234	5234	18 alternate payees of such persons, but does not apply to any
5235	5235	19 other person, including without limitation a person who
5236	5236	20 continues in service after the expiration date and did not
5237	5237	21 apply and qualify for the affected benefit while the new
5238	5238	22 benefit increase was in effect.
5239	5239	23 (Source: P.A. 94-4, eff. 6-1-05.)
5240	5240	24 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
5241	5241	25 (Text of Section WITHOUT the changes made by P.A. 98-599,
5242	5242
5243	5243
5244	5244
5245	5245
5246	5246
5247	5247	HB2589 - 146 - LRB103 30272 RPS 56700 b
5248	5248
5249	5249
5250	5250	HB2589- 147 -LRB103 30272 RPS 56700 b HB2589 - 147 - LRB103 30272 RPS 56700 b
5251	5251	HB2589 - 147 - LRB103 30272 RPS 56700 b
5252	5252	1 which has been held unconstitutional)
5253	5253	2 Sec. 20-121. Calculation of proportional retirement
5254	5254	3 annuities.
5255	5255	4 (a) Upon retirement of the employee, a proportional
5256	5256	5 retirement annuity shall be computed by each participating
5257	5257	6 system in which pension credit has been established on the
5258	5258	7 basis of pension credits under each system. The computation
5259	5259	8 shall be in accordance with the formula or method prescribed
5260	5260	9 by each participating system which is in effect at the date of
5261	5261	10 the employee's latest withdrawal from service covered by any
5262	5262	11 of the systems in which he has pension credits which he elects
5263	5263	12 to have considered under this Article. However, the amount of
5264	5264	13 any retirement annuity payable under the self-managed plan
5265	5265	14 established under Section 15-158.2 of this Code depends solely
5266	5266	15 on the value of the participant's vested account balances and
5267	5267	16 is not subject to any proportional adjustment under this
5268	5268	17 Section.
5269	5269	18 (a-5) For persons who participate in a Tier 3 plan
5270	5270	19 established under Article 2, 14, 15, 16, or 18 of this Code to
5271	5271	20 whom the provisions of this Article apply, the pension credits
5272	5272	21 established under the Tier 3 plan may be considered in
5273	5273	22 determining eligibility for or the amount of the defined
5274	5274	23 benefit retirement annuity that is payable by any other
5275	5275	24 participating system.
5276	5276	25 (b) Combined pension credit under all retirement systems
5277	5277	26 subject to this Article shall be considered in determining
5278	5278
5279	5279
5280	5280
5281	5281
5282	5282
5283	5283	HB2589 - 147 - LRB103 30272 RPS 56700 b
5284	5284
5285	5285
5286	5286	HB2589- 148 -LRB103 30272 RPS 56700 b HB2589 - 148 - LRB103 30272 RPS 56700 b
5287	5287	HB2589 - 148 - LRB103 30272 RPS 56700 b
5288	5288	1 whether the minimum qualification has been met and the formula
5289	5289	2 or method of computation which shall be applied, except as may
5290	5290	3 be otherwise provided with respect to vesting in State or
5291	5291	4 employer contributions in a Tier 3 plan. If a system has a
5292	5292	5 step-rate formula for calculation of the retirement annuity,
5293	5293	6 pension credits covering previous service which have been
5294	5294	7 established under another system shall be considered in
5295	5295	8 determining which range or ranges of the step-rate formula are
5296	5296	9 to be applicable to the employee.
5297	5297	10 (c) Interest on pension credit shall continue to
5298	5298	11 accumulate in accordance with the provisions of the law
5299	5299	12 governing the retirement system in which the same has been
5300	5300	13 established during the time an employee is in the service of
5301	5301	14 another employer, on the assumption such employee, for
5302	5302	15 interest purposes for pension credit, is continuing in the
5303	5303	16 service covered by such retirement system.
5304	5304	17 (Source: P.A. 91-887, eff. 7-6-00.)
5305	5305	18 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
5306	5306	19 (Text of Section WITHOUT the changes made by P.A. 98-599,
5307	5307	20 which has been held unconstitutional)
5308	5308	21 Sec. 20-123. Survivor's annuity. The provisions governing
5309	5309	22 a retirement annuity shall be applicable to a survivor's
5310	5310	23 annuity. Appropriate credits shall be established for
5311	5311	24 survivor's annuity purposes in those participating systems
5312	5312	25 which provide survivor's annuities, according to the same
5313	5313
5314	5314
5315	5315
5316	5316
5317	5317
5318	5318	HB2589 - 148 - LRB103 30272 RPS 56700 b
5319	5319
5320	5320
5321	5321	HB2589- 149 -LRB103 30272 RPS 56700 b HB2589 - 149 - LRB103 30272 RPS 56700 b
5322	5322	HB2589 - 149 - LRB103 30272 RPS 56700 b
5323	5323	1 conditions and subject to the same limitations and
5324	5324	2 restrictions herein prescribed for a retirement annuity. If a
5325	5325	3 participating system has no survivor's annuity benefit, or if
5326	5326	4 the survivor's annuity benefit under that system is waived,
5327	5327	5 pension credit established in that system shall not be
5328	5328	6 considered in determining eligibility for or the amount of the
5329	5329	7 survivor's annuity which may be payable by any other
5330	5330	8 participating system.
5331	5331	9 For persons who participate in the self-managed plan
5332	5332	10 established under Section 15-158.2 or the portable benefit
5333	5333	11 package established under Section 15-136.4, pension credit
5334	5334	12 established under Article 15 may be considered in determining
5335	5335	13 eligibility for or the amount of the survivor's annuity that
5336	5336	14 is payable by any other participating system, but pension
5337	5337	15 credit established in any other system shall not result in any
5338	5338	16 right to a survivor's annuity under the Article 15 system.
5339	5339	17 For persons who participate in a Tier 3 plan established
5340	5340	18 under Article 2, 14, 15, 16, or 18 of this Code to whom the
5341	5341	19 provisions of this Article apply, the pension credits
5342	5342	20 established under the Tier 3 plan may be considered in
5343	5343	21 determining eligibility for or the amount of the defined
5344	5344	22 benefit survivor's annuity that is payable by any other
5345	5345	23 participating system, but pension credits established in any
5346	5346	24 other system shall not result in any right to or increase in
5347	5347	25 the value of a survivor's annuity under the Tier 3 plan, which
5348	5348	26 depends solely on the options chosen and the value of the
5349	5349
5350	5350
5351	5351
5352	5352
5353	5353
5354	5354	HB2589 - 149 - LRB103 30272 RPS 56700 b
5355	5355
5356	5356
5357	5357	HB2589- 150 -LRB103 30272 RPS 56700 b HB2589 - 150 - LRB103 30272 RPS 56700 b
5358	5358	HB2589 - 150 - LRB103 30272 RPS 56700 b
5359	5359	1 participant's vested account balances and is not subject to
5360	5360	2 any proportional adjustment under this Section.
5361	5361	3 (Source: P.A. 91-887, eff. 7-6-00.)
5362	5362	4 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
5363	5363	5 (Text of Section WITHOUT the changes made by P.A. 98-599,
5364	5364	6 which has been held unconstitutional)
5365	5365	7 Sec. 20-124. Maximum benefits.
5366	5366	8 (a) In no event shall the combined retirement or survivors
5367	5367	9 annuities exceed the highest annuity which would have been
5368	5368	10 payable by any participating system in which the employee has
5369	5369	11 pension credits, if all of his pension credits had been
5370	5370	12 validated in that system.
5371	5371	13 If the combined annuities should exceed the highest
5372	5372	14 maximum as determined in accordance with this Section, the
5373	5373	15 respective annuities shall be reduced proportionately
5374	5374	16 according to the ratio which the amount of each proportional
5375	5375	17 annuity bears to the aggregate of all such annuities.
5376	5376	18 (b) In the case of a participant in the self-managed plan
5377	5377	19 established under Section 15-158.2 of this Code to whom the
5378	5378	20 provisions of this Article apply:
5379	5379	21 (i) For purposes of calculating the combined
5380	5380	22 retirement annuity and the proportionate reduction, if
5381	5381	23 any, in a retirement annuity other than one payable under
5382	5382	24 the self-managed plan, the amount of the Article 15
5383	5383	25 retirement annuity shall be deemed to be the highest
5384	5384
5385	5385
5386	5386
5387	5387
5388	5388
5389	5389	HB2589 - 150 - LRB103 30272 RPS 56700 b
5390	5390
5391	5391
5392	5392	HB2589- 151 -LRB103 30272 RPS 56700 b HB2589 - 151 - LRB103 30272 RPS 56700 b
5393	5393	HB2589 - 151 - LRB103 30272 RPS 56700 b
5394	5394	1 annuity to which the annuitant would have been entitled if
5395	5395	2 he or she had participated in the traditional benefit
5396	5396	3 package as defined in Section 15-103.1 rather than the
5397	5397	4 self-managed plan.
5398	5398	5 (ii) For purposes of calculating the combined
5399	5399	6 survivor's annuity and the proportionate reduction, if
5400	5400	7 any, in a survivor's annuity other than one payable under
5401	5401	8 the self-managed plan, the amount of the Article 15
5402	5402	9 survivor's annuity shall be deemed to be the highest
5403	5403	10 survivor's annuity to which the survivor would have been
5404	5404	11 entitled if the deceased employee had participated in the
5405	5405	12 traditional benefit package as defined in Section 15-103.1
5406	5406	13 rather than the self-managed plan.
5407	5407	14 (iii) Benefits payable under the self-managed plan are
5408	5408	15 not subject to proportionate reduction under this Section.
5409	5409	16 (c) In the case of a participant in a Tier 3 plan
5410	5410	17 established under Article 2, 14, 15, 16, or 18 of this Code to
5411	5411	18 whom the provisions of this Article apply:
5412	5412	19 (i) For purposes of calculating the combined
5413	5413	20 retirement annuity and the proportionate reduction, if
5414	5414	21 any, in a defined benefit retirement annuity, any benefit
5415	5415	22 payable under the Tier 3 plan shall not be considered.
5416	5416	23 (ii) For purposes of calculating the combined
5417	5417	24 survivor's annuity and the proportionate reduction, if
5418	5418	25 any, in a defined benefit survivor's annuity, any benefit
5419	5419	26 payable under the Tier 3 plan shall not be considered.
5420	5420
5421	5421
5422	5422
5423	5423
5424	5424
5425	5425	HB2589 - 151 - LRB103 30272 RPS 56700 b
5426	5426
5427	5427
5428	5428	HB2589- 152 -LRB103 30272 RPS 56700 b HB2589 - 152 - LRB103 30272 RPS 56700 b
5429	5429	HB2589 - 152 - LRB103 30272 RPS 56700 b
5430	5430	1 (iii) Benefits payable under a Tier 3 plan established
5431	5431	2 under Article 2, 14, 15, 16, or 18 of this Code are not
5432	5432	3 subject to proportionate reduction under this Section.
5433	5433	4 (Source: P.A. 91-887, eff. 7-6-00.)
5434	5434	5 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
5435	5435	6 (Text of Section WITHOUT the changes made by P.A. 98-599,
5436	5436	7 which has been held unconstitutional)
5437	5437	8 Sec. 20-125. Return to employment - suspension of
5438	5438	9 benefits. If a retired employee returns to employment which is
5439	5439	10 covered by a system from which he is receiving a proportional
5440	5440	11 annuity under this Article, his proportional annuity from all
5441	5441	12 participating systems shall be suspended during the period of
5442	5442	13 re-employment, except that this suspension does not apply to
5443	5443	14 any distributions payable under the self-managed plan
5444	5444	15 established under Section 15-158.2 of this Code or under a
5445	5445	16 Tier 3 plan established under Article 2, 14, 15, 16, or 18 of
5446	5446	17 this Code.
5447	5447	18 The provisions of the Article under which such employment
5448	5448	19 would be covered shall govern the determination of whether the
5449	5449	20 employee has returned to employment, and if applicable the
5450	5450	21 exemption of temporary employment or employment not exceeding
5451	5451	22 a specified duration or frequency, for all participating
5452	5452	23 systems from which the retired employee is receiving a
5453	5453	24 proportional annuity under this Article, notwithstanding any
5454	5454	25 contrary provisions in the other Articles governing such
5455	5455
5456	5456
5457	5457
5458	5458
5459	5459
5460	5460	HB2589 - 152 - LRB103 30272 RPS 56700 b
5461	5461
5462	5462
5463	5463	HB2589- 153 -LRB103 30272 RPS 56700 b HB2589 - 153 - LRB103 30272 RPS 56700 b
5464	5464	HB2589 - 153 - LRB103 30272 RPS 56700 b
5465	5465	1 systems.
5466	5466	2 (Source: P.A. 91-887, eff. 7-6-00.)
5467	5467	3 Section 99. Effective date. This Act takes effect upon
5468	5468	4 becoming law.
5469	5469	HB2589- 154 -LRB103 30272 RPS 56700 b 1 INDEX 2 Statutes amended in order of appearance 3 5 ILCS 375/3from Ch. 127, par. 523 4 5 ILCS 375/10from Ch. 127, par. 530 5 40 ILCS 5/1-160 6 40 ILCS 5/1-1617 40 ILCS 5/2-105.3 new8 40 ILCS 5/2-1629 40 ILCS 5/2-165.5 new10 40 ILCS 5/14-103.4111 40 ILCS 5/14-103.44 new12 40 ILCS 5/14-103.45 new13 40 ILCS 5/14-152.114 40 ILCS 5/14-155.5 new15 40 ILCS 5/15-108.116 40 ILCS 5/15-108.217 40 ILCS 5/15-108.3 new18 40 ILCS 5/15-19819 40 ILCS 5/15-200.5 new20 40 ILCS 5/16-106.4121 40 ILCS 5/16-106.42 new22 40 ILCS 5/16-106.43 new23 40 ILCS 5/16-20324 40 ILCS 5/16-205.5 new25 40 ILCS 5/18-110.1 new HB2589- 155 -LRB103 30272 RPS 56700 b HB2589- 154 -LRB103 30272 RPS 56700 b HB2589 - 154 - LRB103 30272 RPS 56700 b 1 INDEX 2 Statutes amended in order of appearance 3 5 ILCS 375/3 from Ch. 127, par. 523 4 5 ILCS 375/10 from Ch. 127, par. 530 5 40 ILCS 5/1-160 6 40 ILCS 5/1-161 7 40 ILCS 5/2-105.3 new 8 40 ILCS 5/2-162 9 40 ILCS 5/2-165.5 new 10 40 ILCS 5/14-103.41 11 40 ILCS 5/14-103.44 new 12 40 ILCS 5/14-103.45 new 13 40 ILCS 5/14-152.1 14 40 ILCS 5/14-155.5 new 15 40 ILCS 5/15-108.1 16 40 ILCS 5/15-108.2 17 40 ILCS 5/15-108.3 new 18 40 ILCS 5/15-198 19 40 ILCS 5/15-200.5 new 20 40 ILCS 5/16-106.41 21 40 ILCS 5/16-106.42 new 22 40 ILCS 5/16-106.43 new 23 40 ILCS 5/16-203 24 40 ILCS 5/16-205.5 new 25 40 ILCS 5/18-110.1 new HB2589- 155 -LRB103 30272 RPS 56700 b HB2589 - 155 - LRB103 30272 RPS 56700 b
5470	5470	HB2589- 154 -LRB103 30272 RPS 56700 b HB2589 - 154 - LRB103 30272 RPS 56700 b
5471	5471	HB2589 - 154 - LRB103 30272 RPS 56700 b
5472	5472	1 INDEX
5473	5473	2 Statutes amended in order of appearance
5474	5474	3 5 ILCS 375/3 from Ch. 127, par. 523
5475	5475	4 5 ILCS 375/10 from Ch. 127, par. 530
5476	5476	5 40 ILCS 5/1-160
5477	5477	6 40 ILCS 5/1-161
5478	5478	7 40 ILCS 5/2-105.3 new
5479	5479	8 40 ILCS 5/2-162
5480	5480	9 40 ILCS 5/2-165.5 new
5481	5481	10 40 ILCS 5/14-103.41
5482	5482	11 40 ILCS 5/14-103.44 new
5483	5483	12 40 ILCS 5/14-103.45 new
5484	5484	13 40 ILCS 5/14-152.1
5485	5485	14 40 ILCS 5/14-155.5 new
5486	5486	15 40 ILCS 5/15-108.1
5487	5487	16 40 ILCS 5/15-108.2
5488	5488	17 40 ILCS 5/15-108.3 new
5489	5489	18 40 ILCS 5/15-198
5490	5490	19 40 ILCS 5/15-200.5 new
5491	5491	20 40 ILCS 5/16-106.41
5492	5492	21 40 ILCS 5/16-106.42 new
5493	5493	22 40 ILCS 5/16-106.43 new
5494	5494	23 40 ILCS 5/16-203
5495	5495	24 40 ILCS 5/16-205.5 new
5496	5496	25 40 ILCS 5/18-110.1 new
5497	5497	HB2589- 155 -LRB103 30272 RPS 56700 b HB2589 - 155 - LRB103 30272 RPS 56700 b
5498	5498	HB2589 - 155 - LRB103 30272 RPS 56700 b
5499	5499
5500	5500
5501	5501
5502	5502
5503	5503
5504	5504	HB2589 - 153 - LRB103 30272 RPS 56700 b
5505	5505
5506	5506
5507	5507
5508	5508	HB2589- 154 -LRB103 30272 RPS 56700 b HB2589 - 154 - LRB103 30272 RPS 56700 b
5509	5509	HB2589 - 154 - LRB103 30272 RPS 56700 b
5510	5510	1 INDEX
5511	5511	2 Statutes amended in order of appearance
5512	5512	3 5 ILCS 375/3 from Ch. 127, par. 523
5513	5513	4 5 ILCS 375/10 from Ch. 127, par. 530
5514	5514	5 40 ILCS 5/1-160
5515	5515	6 40 ILCS 5/1-161
5516	5516	7 40 ILCS 5/2-105.3 new
5517	5517	8 40 ILCS 5/2-162
5518	5518	9 40 ILCS 5/2-165.5 new
5519	5519	10 40 ILCS 5/14-103.41
5520	5520	11 40 ILCS 5/14-103.44 new
5521	5521	12 40 ILCS 5/14-103.45 new
5522	5522	13 40 ILCS 5/14-152.1
5523	5523	14 40 ILCS 5/14-155.5 new
5524	5524	15 40 ILCS 5/15-108.1
5525	5525	16 40 ILCS 5/15-108.2
5526	5526	17 40 ILCS 5/15-108.3 new
5527	5527	18 40 ILCS 5/15-198
5528	5528	19 40 ILCS 5/15-200.5 new
5529	5529	20 40 ILCS 5/16-106.41
5530	5530	21 40 ILCS 5/16-106.42 new
5531	5531	22 40 ILCS 5/16-106.43 new
5532	5532	23 40 ILCS 5/16-203
5533	5533	24 40 ILCS 5/16-205.5 new
5534	5534	25 40 ILCS 5/18-110.1 new
5535	5535
5536	5536
5537	5537
5538	5538
5539	5539
5540	5540	HB2589 - 154 - LRB103 30272 RPS 56700 b
5541	5541
5542	5542
5543	5543	HB2589- 155 -LRB103 30272 RPS 56700 b HB2589 - 155 - LRB103 30272 RPS 56700 b
5544	5544	HB2589 - 155 - LRB103 30272 RPS 56700 b
5545	5545
5546	5546
5547	5547
5548	5548
5549	5549
5550	5550	HB2589 - 155 - LRB103 30272 RPS 56700 b