Illinois 2023-2024 Regular Session

Illinois House Bill HB2853 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2853 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-160 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-203 Amends the General Provisions and Downstate Teacher Articles of the Illinois Pension Code. Provides that a teacher may establish one additional day of service credit for each day of service credit that was earned between March 16, 2020 and June 30, 2021 in which the teacher provided in-person instruction if he or she pays certain contributions and supplies satisfactory evidence. For a Tier 1 member, provides that the System shall waive the reduction in retirement annuity for persons who retire before age 60 if the member has attained age 59 and earned service credit in the 2020-2021 school. For a Tier 2 member, provides that the reduction in retirement annuity for persons who retire before age 67 shall be waived if the member has attained age 66 and earned service credit in the 2020-2021 school year. For a Tier 1 member who earned service credit in the 2020-2021 school year and has not attained age 59 or a Tier 2 member who earned service credit in the 2020-2021 school year and has not attained age 66, provides that the member shall be deemed to be one year older than his or her actual age for purposes of provisions concerning a reduction in retirement annuity due to a member's age. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately. LRB103 28267 RPS 54646 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2853 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-160 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-203 40 ILCS 5/1-160 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-203 Amends the General Provisions and Downstate Teacher Articles of the Illinois Pension Code. Provides that a teacher may establish one additional day of service credit for each day of service credit that was earned between March 16, 2020 and June 30, 2021 in which the teacher provided in-person instruction if he or she pays certain contributions and supplies satisfactory evidence. For a Tier 1 member, provides that the System shall waive the reduction in retirement annuity for persons who retire before age 60 if the member has attained age 59 and earned service credit in the 2020-2021 school. For a Tier 2 member, provides that the reduction in retirement annuity for persons who retire before age 67 shall be waived if the member has attained age 66 and earned service credit in the 2020-2021 school year. For a Tier 1 member who earned service credit in the 2020-2021 school year and has not attained age 59 or a Tier 2 member who earned service credit in the 2020-2021 school year and has not attained age 66, provides that the member shall be deemed to be one year older than his or her actual age for purposes of provisions concerning a reduction in retirement annuity due to a member's age. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately. LRB103 28267 RPS 54646 b LRB103 28267 RPS 54646 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2853 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/1-160 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-203 40 ILCS 5/1-160 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-203
4	4	40 ILCS 5/1-160
5	5	40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
6	6	40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
7	7	40 ILCS 5/16-203
8	8	Amends the General Provisions and Downstate Teacher Articles of the Illinois Pension Code. Provides that a teacher may establish one additional day of service credit for each day of service credit that was earned between March 16, 2020 and June 30, 2021 in which the teacher provided in-person instruction if he or she pays certain contributions and supplies satisfactory evidence. For a Tier 1 member, provides that the System shall waive the reduction in retirement annuity for persons who retire before age 60 if the member has attained age 59 and earned service credit in the 2020-2021 school. For a Tier 2 member, provides that the reduction in retirement annuity for persons who retire before age 67 shall be waived if the member has attained age 66 and earned service credit in the 2020-2021 school year. For a Tier 1 member who earned service credit in the 2020-2021 school year and has not attained age 59 or a Tier 2 member who earned service credit in the 2020-2021 school year and has not attained age 66, provides that the member shall be deemed to be one year older than his or her actual age for purposes of provisions concerning a reduction in retirement annuity due to a member's age. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
9	9	LRB103 28267 RPS 54646 b LRB103 28267 RPS 54646 b
10	10	LRB103 28267 RPS 54646 b
11	11	A BILL FOR
12	12	HB2853LRB103 28267 RPS 54646 b HB2853 LRB103 28267 RPS 54646 b
13	13	HB2853 LRB103 28267 RPS 54646 b
14	14	1 AN ACT concerning public employee benefits.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Illinois Pension Code is amended by
18	18	5 changing Sections 1-160, 16-127, 16-133, and 16-203 as
19	19	6 follows:
20	20	7 (40 ILCS 5/1-160)
21	21	8 (Text of Section from P.A. 102-719)
22	22	9 Sec. 1-160. Provisions applicable to new hires.
23	23	10 (a) The provisions of this Section apply to a person who,
24	24	11 on or after January 1, 2011, first becomes a member or a
25	25	12 participant under any reciprocal retirement system or pension
26	26	13 fund established under this Code, other than a retirement
27	27	14 system or pension fund established under Article 2, 3, 4, 5, 6,
28	28	15 7, 15, or 18 of this Code, notwithstanding any other provision
29	29	16 of this Code to the contrary, but do not apply to any
30	30	17 self-managed plan established under this Code or to any
31	31	18 participant of the retirement plan established under Section
32	32	19 22-101; except that this Section applies to a person who
33	33	20 elected to establish alternative credits by electing in
34	34	21 writing after January 1, 2011, but before August 8, 2011,
35	35	22 under Section 7-145.1 of this Code. Notwithstanding anything
36	36	23 to the contrary in this Section, for purposes of this Section,
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40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2853 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
41	41	40 ILCS 5/1-160 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-203 40 ILCS 5/1-160 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-203
42	42	40 ILCS 5/1-160
43	43	40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
44	44	40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
45	45	40 ILCS 5/16-203
46	46	Amends the General Provisions and Downstate Teacher Articles of the Illinois Pension Code. Provides that a teacher may establish one additional day of service credit for each day of service credit that was earned between March 16, 2020 and June 30, 2021 in which the teacher provided in-person instruction if he or she pays certain contributions and supplies satisfactory evidence. For a Tier 1 member, provides that the System shall waive the reduction in retirement annuity for persons who retire before age 60 if the member has attained age 59 and earned service credit in the 2020-2021 school. For a Tier 2 member, provides that the reduction in retirement annuity for persons who retire before age 67 shall be waived if the member has attained age 66 and earned service credit in the 2020-2021 school year. For a Tier 1 member who earned service credit in the 2020-2021 school year and has not attained age 59 or a Tier 2 member who earned service credit in the 2020-2021 school year and has not attained age 66, provides that the member shall be deemed to be one year older than his or her actual age for purposes of provisions concerning a reduction in retirement annuity due to a member's age. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
47	47	LRB103 28267 RPS 54646 b LRB103 28267 RPS 54646 b
48	48	LRB103 28267 RPS 54646 b
49	49	A BILL FOR
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55	55	40 ILCS 5/1-160
56	56	40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
57	57	40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
58	58	40 ILCS 5/16-203
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77	77	1 a person who is a Tier 1 regular employee as defined in Section
78	78	2 7-109.4 of this Code or who participated in a retirement
79	79	3 system under Article 15 prior to January 1, 2011 shall be
80	80	4 deemed a person who first became a member or participant prior
81	81	5 to January 1, 2011 under any retirement system or pension fund
82	82	6 subject to this Section. The changes made to this Section by
83	83	7 Public Act 98-596 are a clarification of existing law and are
84	84	8 intended to be retroactive to January 1, 2011 (the effective
85	85	9 date of Public Act 96-889), notwithstanding the provisions of
86	86	10 Section 1-103.1 of this Code.
87	87	11 This Section does not apply to a person who first becomes a
88	88	12 noncovered employee under Article 14 on or after the
89	89	13 implementation date of the plan created under Section 1-161
90	90	14 for that Article, unless that person elects under subsection
91	91	15 (b) of Section 1-161 to instead receive the benefits provided
92	92	16 under this Section and the applicable provisions of that
93	93	17 Article.
94	94	18 This Section does not apply to a person who first becomes a
95	95	19 member or participant under Article 16 on or after the
96	96	20 implementation date of the plan created under Section 1-161
97	97	21 for that Article, unless that person elects under subsection
98	98	22 (b) of Section 1-161 to instead receive the benefits provided
99	99	23 under this Section and the applicable provisions of that
100	100	24 Article.
101	101	25 This Section does not apply to a person who elects under
102	102	26 subsection (c-5) of Section 1-161 to receive the benefits
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113	113	1 under Section 1-161.
114	114	2 This Section does not apply to a person who first becomes a
115	115	3 member or participant of an affected pension fund on or after 6
116	116	4 months after the resolution or ordinance date, as defined in
117	117	5 Section 1-162, unless that person elects under subsection (c)
118	118	6 of Section 1-162 to receive the benefits provided under this
119	119	7 Section and the applicable provisions of the Article under
120	120	8 which he or she is a member or participant.
121	121	9 (b) "Final average salary" means, except as otherwise
122	122	10 provided in this subsection, the average monthly (or annual)
123	123	11 salary obtained by dividing the total salary or earnings
124	124	12 calculated under the Article applicable to the member or
125	125	13 participant during the 96 consecutive months (or 8 consecutive
126	126	14 years) of service within the last 120 months (or 10 years) of
127	127	15 service in which the total salary or earnings calculated under
128	128	16 the applicable Article was the highest by the number of months
129	129	17 (or years) of service in that period. For the purposes of a
130	130	18 person who first becomes a member or participant of any
131	131	19 retirement system or pension fund to which this Section
132	132	20 applies on or after January 1, 2011, in this Code, "final
133	133	21 average salary" shall be substituted for the following:
134	134	22 (1) (Blank).
135	135	23 (2) In Articles 8, 9, 10, 11, and 12, "highest average
136	136	24 annual salary for any 4 consecutive years within the last
137	137	25 10 years of service immediately preceding the date of
138	138	26 withdrawal".
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149	149	1 (3) In Article 13, "average final salary".
150	150	2 (4) In Article 14, "final average compensation".
151	151	3 (5) In Article 17, "average salary".
152	152	4 (6) In Section 22-207, "wages or salary received by
153	153	5 him at the date of retirement or discharge".
154	154	6 A member of the Teachers' Retirement System of the State
155	155	7 of Illinois who retires on or after June 1, 2021 and for whom
156	156	8 the 2020-2021 school year is used in the calculation of the
157	157	9 member's final average salary shall use the higher of the
158	158	10 following for the purpose of determining the member's final
159	159	11 average salary:
160	160	12 (A) the amount otherwise calculated under the first
161	161	13 paragraph of this subsection; or
162	162	14 (B) an amount calculated by the Teachers' Retirement
163	163	15 System of the State of Illinois using the average of the
164	164	16 monthly (or annual) salary obtained by dividing the total
165	165	17 salary or earnings calculated under Article 16 applicable
166	166	18 to the member or participant during the 96 months (or 8
167	167	19 years) of service within the last 120 months (or 10 years)
168	168	20 of service in which the total salary or earnings
169	169	21 calculated under the Article was the highest by the number
170	170	22 of months (or years) of service in that period.
171	171	23 (b-5) Beginning on January 1, 2011, for all purposes under
172	172	24 this Code (including without limitation the calculation of
173	173	25 benefits and employee contributions), the annual earnings,
174	174	26 salary, or wages (based on the plan year) of a member or
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185	185	1 participant to whom this Section applies shall not exceed
186	186	2 $106,800; however, that amount shall annually thereafter be
187	187	3 increased by the lesser of (i) 3% of that amount, including all
188	188	4 previous adjustments, or (ii) one-half the annual unadjusted
189	189	5 percentage increase (but not less than zero) in the consumer
190	190	6 price index-u for the 12 months ending with the September
191	191	7 preceding each November 1, including all previous adjustments.
192	192	8 For the purposes of this Section, "consumer price index-u"
193	193	9 means the index published by the Bureau of Labor Statistics of
194	194	10 the United States Department of Labor that measures the
195	195	11 average change in prices of goods and services purchased by
196	196	12 all urban consumers, United States city average, all items,
197	197	13 1982-84 = 100. The new amount resulting from each annual
198	198	14 adjustment shall be determined by the Public Pension Division
199	199	15 of the Department of Insurance and made available to the
200	200	16 boards of the retirement systems and pension funds by November
201	201	17 1 of each year.
202	202	18 (c) A member or participant is entitled to a retirement
203	203	19 annuity upon written application if he or she has attained age
204	204	20 67 (age 65, with respect to service under Article 12 that is
205	205	21 subject to this Section, for a member or participant under
206	206	22 Article 12 who first becomes a member or participant under
207	207	23 Article 12 on or after January 1, 2022 or who makes the
208	208	24 election under item (i) of subsection (d-15) of this Section)
209	209	25 and has at least 10 years of service credit and is otherwise
210	210	26 eligible under the requirements of the applicable Article.
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221	221	1 A member or participant who has attained age 62 (age 60,
222	222	2 with respect to service under Article 12 that is subject to
223	223	3 this Section, for a member or participant under Article 12 who
224	224	4 first becomes a member or participant under Article 12 on or
225	225	5 after January 1, 2022 or who makes the election under item (i)
226	226	6 of subsection (d-15) of this Section) and has at least 10 years
227	227	7 of service credit and is otherwise eligible under the
228	228	8 requirements of the applicable Article may elect to receive
229	229	9 the lower retirement annuity provided in subsection (d) of
230	230	10 this Section.
231	231	11 (c-5) A person who first becomes a member or a participant
232	232	12 subject to this Section on or after July 6, 2017 (the effective
233	233	13 date of Public Act 100-23), notwithstanding any other
234	234	14 provision of this Code to the contrary, is entitled to a
235	235	15 retirement annuity under Article 8 or Article 11 upon written
236	236	16 application if he or she has attained age 65 and has at least
237	237	17 10 years of service credit and is otherwise eligible under the
238	238	18 requirements of Article 8 or Article 11 of this Code,
239	239	19 whichever is applicable.
240	240	20 (d) The retirement annuity of a member or participant who
241	241	21 is retiring after attaining age 62 (age 60, with respect to
242	242	22 service under Article 12 that is subject to this Section, for a
243	243	23 member or participant under Article 12 who first becomes a
244	244	24 member or participant under Article 12 on or after January 1,
245	245	25 2022 or who makes the election under item (i) of subsection
246	246	26 (d-15) of this Section) with at least 10 years of service
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257	257	1 credit shall be reduced by one-half of 1% for each full month
258	258	2 that the member's age is under age 67 (age 65, with respect to
259	259	3 service under Article 12 that is subject to this Section, for a
260	260	4 member or participant under Article 12 who first becomes a
261	261	5 member or participant under Article 12 on or after January 1,
262	262	6 2022 or who makes the election under item (i) of subsection
263	263	7 (d-15) of this Section). However, this reduction shall be
264	264	8 waived for any member under Article 16 who has attained age 66
265	265	9 and has earned service credit under Article 16 for the
266	266	10 2020-2021 school year. For the purposes of this subsection,
267	267	11 any member under Article 16 who has not attained age 66 and has
268	268	12 earned service credit under Article 16 for the 2020-2021
269	269	13 school year shall be deemed to be one year older than his or
270	270	14 her actual age.
271	271	15 (d-5) The retirement annuity payable under Article 8 or
272	272	16 Article 11 to an eligible person subject to subsection (c-5)
273	273	17 of this Section who is retiring at age 60 with at least 10
274	274	18 years of service credit shall be reduced by one-half of 1% for
275	275	19 each full month that the member's age is under age 65.
276	276	20 (d-10) Each person who first became a member or
277	277	21 participant under Article 8 or Article 11 of this Code on or
278	278	22 after January 1, 2011 and prior to July 6, 2017 (the effective
279	279	23 date of Public Act 100-23) shall make an irrevocable election
280	280	24 either:
281	281	25 (i) to be eligible for the reduced retirement age
282	282	26 provided in subsections (c-5) and (d-5) of this Section,
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293	293	1 the eligibility for which is conditioned upon the member
294	294	2 or participant agreeing to the increases in employee
295	295	3 contributions for age and service annuities provided in
296	296	4 subsection (a-5) of Section 8-174 of this Code (for
297	297	5 service under Article 8) or subsection (a-5) of Section
298	298	6 11-170 of this Code (for service under Article 11); or
299	299	7 (ii) to not agree to item (i) of this subsection
300	300	8 (d-10), in which case the member or participant shall
301	301	9 continue to be subject to the retirement age provisions in
302	302	10 subsections (c) and (d) of this Section and the employee
303	303	11 contributions for age and service annuity as provided in
304	304	12 subsection (a) of Section 8-174 of this Code (for service
305	305	13 under Article 8) or subsection (a) of Section 11-170 of
306	306	14 this Code (for service under Article 11).
307	307	15 The election provided for in this subsection shall be made
308	308	16 between October 1, 2017 and November 15, 2017. A person
309	309	17 subject to this subsection who makes the required election
310	310	18 shall remain bound by that election. A person subject to this
311	311	19 subsection who fails for any reason to make the required
312	312	20 election within the time specified in this subsection shall be
313	313	21 deemed to have made the election under item (ii).
314	314	22 (d-15) Each person who first becomes a member or
315	315	23 participant under Article 12 on or after January 1, 2011 and
316	316	24 prior to January 1, 2022 shall make an irrevocable election
317	317	25 either:
318	318	26 (i) to be eligible for the reduced retirement age
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329	329	1 specified in subsections (c) and (d) of this Section, the
330	330	2 eligibility for which is conditioned upon the member or
331	331	3 participant agreeing to the increase in employee
332	332	4 contributions for service annuities specified in
333	333	5 subsection (b) of Section 12-150; or
334	334	6 (ii) to not agree to item (i) of this subsection
335	335	7 (d-15), in which case the member or participant shall not
336	336	8 be eligible for the reduced retirement age specified in
337	337	9 subsections (c) and (d) of this Section and shall not be
338	338	10 subject to the increase in employee contributions for
339	339	11 service annuities specified in subsection (b) of Section
340	340	12 12-150.
341	341	13 The election provided for in this subsection shall be made
342	342	14 between January 1, 2022 and April 1, 2022. A person subject to
343	343	15 this subsection who makes the required election shall remain
344	344	16 bound by that election. A person subject to this subsection
345	345	17 who fails for any reason to make the required election within
346	346	18 the time specified in this subsection shall be deemed to have
347	347	19 made the election under item (ii).
348	348	20 (e) Any retirement annuity or supplemental annuity shall
349	349	21 be subject to annual increases on the January 1 occurring
350	350	22 either on or after the attainment of age 67 (age 65, with
351	351	23 respect to service under Article 12 that is subject to this
352	352	24 Section, for a member or participant under Article 12 who
353	353	25 first becomes a member or participant under Article 12 on or
354	354	26 after January 1, 2022 or who makes the election under item (i)
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365	365	1 of subsection (d-15); and beginning on July 6, 2017 (the
366	366	2 effective date of Public Act 100-23), age 65 with respect to
367	367	3 service under Article 8 or Article 11 for eligible persons
368	368	4 who: (i) are subject to subsection (c-5) of this Section; or
369	369	5 (ii) made the election under item (i) of subsection (d-10) of
370	370	6 this Section) or the first anniversary of the annuity start
371	371	7 date, whichever is later. Each annual increase shall be
372	372	8 calculated at 3% or one-half the annual unadjusted percentage
373	373	9 increase (but not less than zero) in the consumer price
374	374	10 index-u for the 12 months ending with the September preceding
375	375	11 each November 1, whichever is less, of the originally granted
376	376	12 retirement annuity. If the annual unadjusted percentage change
377	377	13 in the consumer price index-u for the 12 months ending with the
378	378	14 September preceding each November 1 is zero or there is a
379	379	15 decrease, then the annuity shall not be increased.
380	380	16 For the purposes of Section 1-103.1 of this Code, the
381	381	17 changes made to this Section by Public Act 102-263 are
382	382	18 applicable without regard to whether the employee was in
383	383	19 active service on or after August 6, 2021 (the effective date
384	384	20 of Public Act 102-263).
385	385	21 For the purposes of Section 1-103.1 of this Code, the
386	386	22 changes made to this Section by Public Act 100-23 are
387	387	23 applicable without regard to whether the employee was in
388	388	24 active service on or after July 6, 2017 (the effective date of
389	389	25 Public Act 100-23).
390	390	26 (f) The initial survivor's or widow's annuity of an
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400	400	HB2853 - 11 - LRB103 28267 RPS 54646 b
401	401	1 otherwise eligible survivor or widow of a retired member or
402	402	2 participant who first became a member or participant on or
403	403	3 after January 1, 2011 shall be in the amount of 66 2/3% of the
404	404	4 retired member's or participant's retirement annuity at the
405	405	5 date of death. In the case of the death of a member or
406	406	6 participant who has not retired and who first became a member
407	407	7 or participant on or after January 1, 2011, eligibility for a
408	408	8 survivor's or widow's annuity shall be determined by the
409	409	9 applicable Article of this Code. The initial benefit shall be
410	410	10 66 2/3% of the earned annuity without a reduction due to age. A
411	411	11 child's annuity of an otherwise eligible child shall be in the
412	412	12 amount prescribed under each Article if applicable. Any
413	413	13 survivor's or widow's annuity shall be increased (1) on each
414	414	14 January 1 occurring on or after the commencement of the
415	415	15 annuity if the deceased member died while receiving a
416	416	16 retirement annuity or (2) in other cases, on each January 1
417	417	17 occurring after the first anniversary of the commencement of
418	418	18 the annuity. Each annual increase shall be calculated at 3% or
419	419	19 one-half the annual unadjusted percentage increase (but not
420	420	20 less than zero) in the consumer price index-u for the 12 months
421	421	21 ending with the September preceding each November 1, whichever
422	422	22 is less, of the originally granted survivor's annuity. If the
423	423	23 annual unadjusted percentage change in the consumer price
424	424	24 index-u for the 12 months ending with the September preceding
425	425	25 each November 1 is zero or there is a decrease, then the
426	426	26 annuity shall not be increased.
427	427
428	428
429	429
430	430
431	431
432	432	HB2853 - 11 - LRB103 28267 RPS 54646 b
433	433
434	434
435	435	HB2853- 12 -LRB103 28267 RPS 54646 b HB2853 - 12 - LRB103 28267 RPS 54646 b
436	436	HB2853 - 12 - LRB103 28267 RPS 54646 b
437	437	1 (g) The benefits in Section 14-110 apply if the person is a
438	438	2 fire fighter in the fire protection service of a department, a
439	439	3 security employee of the Department of Corrections or the
440	440	4 Department of Juvenile Justice, or a security employee of the
441	441	5 Department of Innovation and Technology, as those terms are
442	442	6 defined in subsection (b) and subsection (c) of Section
443	443	7 14-110. A person who meets the requirements of this Section is
444	444	8 entitled to an annuity calculated under the provisions of
445	445	9 Section 14-110, in lieu of the regular or minimum retirement
446	446	10 annuity, only if the person has withdrawn from service with
447	447	11 not less than 20 years of eligible creditable service and has
448	448	12 attained age 60, regardless of whether the attainment of age
449	449	13 60 occurs while the person is still in service.
450	450	14 (g-5) The benefits in Section 14-110 apply if the person
451	451	15 is a State policeman, investigator for the Secretary of State,
452	452	16 conservation police officer, investigator for the Department
453	453	17 of Revenue or the Illinois Gaming Board, investigator for the
454	454	18 Office of the Attorney General, Commerce Commission police
455	455	19 officer, or arson investigator, as those terms are defined in
456	456	20 subsection (b) and subsection (c) of Section 14-110. A person
457	457	21 who meets the requirements of this Section is entitled to an
458	458	22 annuity calculated under the provisions of Section 14-110, in
459	459	23 lieu of the regular or minimum retirement annuity, only if the
460	460	24 person has withdrawn from service with not less than 20 years
461	461	25 of eligible creditable service and has attained age 55,
462	462	26 regardless of whether the attainment of age 55 occurs while
463	463
464	464
465	465
466	466
467	467
468	468	HB2853 - 12 - LRB103 28267 RPS 54646 b
469	469
470	470
471	471	HB2853- 13 -LRB103 28267 RPS 54646 b HB2853 - 13 - LRB103 28267 RPS 54646 b
472	472	HB2853 - 13 - LRB103 28267 RPS 54646 b
473	473	1 the person is still in service.
474	474	2 (h) If a person who first becomes a member or a participant
475	475	3 of a retirement system or pension fund subject to this Section
476	476	4 on or after January 1, 2011 is receiving a retirement annuity
477	477	5 or retirement pension under that system or fund and becomes a
478	478	6 member or participant under any other system or fund created
479	479	7 by this Code and is employed on a full-time basis, except for
480	480	8 those members or participants exempted from the provisions of
481	481	9 this Section under subsection (a) of this Section, then the
482	482	10 person's retirement annuity or retirement pension under that
483	483	11 system or fund shall be suspended during that employment. Upon
484	484	12 termination of that employment, the person's retirement
485	485	13 annuity or retirement pension payments shall resume and be
486	486	14 recalculated if recalculation is provided for under the
487	487	15 applicable Article of this Code.
488	488	16 If a person who first becomes a member of a retirement
489	489	17 system or pension fund subject to this Section on or after
490	490	18 January 1, 2012 and is receiving a retirement annuity or
491	491	19 retirement pension under that system or fund and accepts on a
492	492	20 contractual basis a position to provide services to a
493	493	21 governmental entity from which he or she has retired, then
494	494	22 that person's annuity or retirement pension earned as an
495	495	23 active employee of the employer shall be suspended during that
496	496	24 contractual service. A person receiving an annuity or
497	497	25 retirement pension under this Code shall notify the pension
498	498	26 fund or retirement system from which he or she is receiving an
499	499
500	500
501	501
502	502
503	503
504	504	HB2853 - 13 - LRB103 28267 RPS 54646 b
505	505
506	506
507	507	HB2853- 14 -LRB103 28267 RPS 54646 b HB2853 - 14 - LRB103 28267 RPS 54646 b
508	508	HB2853 - 14 - LRB103 28267 RPS 54646 b
509	509	1 annuity or retirement pension, as well as his or her
510	510	2 contractual employer, of his or her retirement status before
511	511	3 accepting contractual employment. A person who fails to submit
512	512	4 such notification shall be guilty of a Class A misdemeanor and
513	513	5 required to pay a fine of $1,000. Upon termination of that
514	514	6 contractual employment, the person's retirement annuity or
515	515	7 retirement pension payments shall resume and, if appropriate,
516	516	8 be recalculated under the applicable provisions of this Code.
517	517	9 (i) (Blank).
518	518	10 (j) In the case of a conflict between the provisions of
519	519	11 this Section and any other provision of this Code, the
520	520	12 provisions of this Section shall control.
521	521	13 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
522	522	14 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
523	523	15 5-6-22.)
524	524	16 (Text of Section from P.A. 102-813)
525	525	17 Sec. 1-160. Provisions applicable to new hires.
526	526	18 (a) The provisions of this Section apply to a person who,
527	527	19 on or after January 1, 2011, first becomes a member or a
528	528	20 participant under any reciprocal retirement system or pension
529	529	21 fund established under this Code, other than a retirement
530	530	22 system or pension fund established under Article 2, 3, 4, 5, 6,
531	531	23 7, 15, or 18 of this Code, notwithstanding any other provision
532	532	24 of this Code to the contrary, but do not apply to any
533	533	25 self-managed plan established under this Code or to any
534	534
535	535
536	536
537	537
538	538
539	539	HB2853 - 14 - LRB103 28267 RPS 54646 b
540	540
541	541
542	542	HB2853- 15 -LRB103 28267 RPS 54646 b HB2853 - 15 - LRB103 28267 RPS 54646 b
543	543	HB2853 - 15 - LRB103 28267 RPS 54646 b
544	544	1 participant of the retirement plan established under Section
545	545	2 22-101; except that this Section applies to a person who
546	546	3 elected to establish alternative credits by electing in
547	547	4 writing after January 1, 2011, but before August 8, 2011,
548	548	5 under Section 7-145.1 of this Code. Notwithstanding anything
549	549	6 to the contrary in this Section, for purposes of this Section,
550	550	7 a person who is a Tier 1 regular employee as defined in Section
551	551	8 7-109.4 of this Code or who participated in a retirement
552	552	9 system under Article 15 prior to January 1, 2011 shall be
553	553	10 deemed a person who first became a member or participant prior
554	554	11 to January 1, 2011 under any retirement system or pension fund
555	555	12 subject to this Section. The changes made to this Section by
556	556	13 Public Act 98-596 are a clarification of existing law and are
557	557	14 intended to be retroactive to January 1, 2011 (the effective
558	558	15 date of Public Act 96-889), notwithstanding the provisions of
559	559	16 Section 1-103.1 of this Code.
560	560	17 This Section does not apply to a person who first becomes a
561	561	18 noncovered employee under Article 14 on or after the
562	562	19 implementation date of the plan created under Section 1-161
563	563	20 for that Article, unless that person elects under subsection
564	564	21 (b) of Section 1-161 to instead receive the benefits provided
565	565	22 under this Section and the applicable provisions of that
566	566	23 Article.
567	567	24 This Section does not apply to a person who first becomes a
568	568	25 member or participant under Article 16 on or after the
569	569	26 implementation date of the plan created under Section 1-161
570	570
571	571
572	572
573	573
574	574
575	575	HB2853 - 15 - LRB103 28267 RPS 54646 b
576	576
577	577
578	578	HB2853- 16 -LRB103 28267 RPS 54646 b HB2853 - 16 - LRB103 28267 RPS 54646 b
579	579	HB2853 - 16 - LRB103 28267 RPS 54646 b
580	580	1 for that Article, unless that person elects under subsection
581	581	2 (b) of Section 1-161 to instead receive the benefits provided
582	582	3 under this Section and the applicable provisions of that
583	583	4 Article.
584	584	5 This Section does not apply to a person who elects under
585	585	6 subsection (c-5) of Section 1-161 to receive the benefits
586	586	7 under Section 1-161.
587	587	8 This Section does not apply to a person who first becomes a
588	588	9 member or participant of an affected pension fund on or after 6
589	589	10 months after the resolution or ordinance date, as defined in
590	590	11 Section 1-162, unless that person elects under subsection (c)
591	591	12 of Section 1-162 to receive the benefits provided under this
592	592	13 Section and the applicable provisions of the Article under
593	593	14 which he or she is a member or participant.
594	594	15 (b) "Final average salary" means, except as otherwise
595	595	16 provided in this subsection, the average monthly (or annual)
596	596	17 salary obtained by dividing the total salary or earnings
597	597	18 calculated under the Article applicable to the member or
598	598	19 participant during the 96 consecutive months (or 8 consecutive
599	599	20 years) of service within the last 120 months (or 10 years) of
600	600	21 service in which the total salary or earnings calculated under
601	601	22 the applicable Article was the highest by the number of months
602	602	23 (or years) of service in that period. For the purposes of a
603	603	24 person who first becomes a member or participant of any
604	604	25 retirement system or pension fund to which this Section
605	605	26 applies on or after January 1, 2011, in this Code, "final
606	606
607	607
608	608
609	609
610	610
611	611	HB2853 - 16 - LRB103 28267 RPS 54646 b
612	612
613	613
614	614	HB2853- 17 -LRB103 28267 RPS 54646 b HB2853 - 17 - LRB103 28267 RPS 54646 b
615	615	HB2853 - 17 - LRB103 28267 RPS 54646 b
616	616	1 average salary" shall be substituted for the following:
617	617	2 (1) (Blank).
618	618	3 (2) In Articles 8, 9, 10, 11, and 12, "highest average
619	619	4 annual salary for any 4 consecutive years within the last
620	620	5 10 years of service immediately preceding the date of
621	621	6 withdrawal".
622	622	7 (3) In Article 13, "average final salary".
623	623	8 (4) In Article 14, "final average compensation".
624	624	9 (5) In Article 17, "average salary".
625	625	10 (6) In Section 22-207, "wages or salary received by
626	626	11 him at the date of retirement or discharge".
627	627	12 A member of the Teachers' Retirement System of the State
628	628	13 of Illinois who retires on or after June 1, 2021 and for whom
629	629	14 the 2020-2021 school year is used in the calculation of the
630	630	15 member's final average salary shall use the higher of the
631	631	16 following for the purpose of determining the member's final
632	632	17 average salary:
633	633	18 (A) the amount otherwise calculated under the first
634	634	19 paragraph of this subsection; or
635	635	20 (B) an amount calculated by the Teachers' Retirement
636	636	21 System of the State of Illinois using the average of the
637	637	22 monthly (or annual) salary obtained by dividing the total
638	638	23 salary or earnings calculated under Article 16 applicable
639	639	24 to the member or participant during the 96 months (or 8
640	640	25 years) of service within the last 120 months (or 10 years)
641	641	26 of service in which the total salary or earnings
642	642
643	643
644	644
645	645
646	646
647	647	HB2853 - 17 - LRB103 28267 RPS 54646 b
648	648
649	649
650	650	HB2853- 18 -LRB103 28267 RPS 54646 b HB2853 - 18 - LRB103 28267 RPS 54646 b
651	651	HB2853 - 18 - LRB103 28267 RPS 54646 b
652	652	1 calculated under the Article was the highest by the number
653	653	2 of months (or years) of service in that period.
654	654	3 (b-5) Beginning on January 1, 2011, for all purposes under
655	655	4 this Code (including without limitation the calculation of
656	656	5 benefits and employee contributions), the annual earnings,
657	657	6 salary, or wages (based on the plan year) of a member or
658	658	7 participant to whom this Section applies shall not exceed
659	659	8 $106,800; however, that amount shall annually thereafter be
660	660	9 increased by the lesser of (i) 3% of that amount, including all
661	661	10 previous adjustments, or (ii) one-half the annual unadjusted
662	662	11 percentage increase (but not less than zero) in the consumer
663	663	12 price index-u for the 12 months ending with the September
664	664	13 preceding each November 1, including all previous adjustments.
665	665	14 For the purposes of this Section, "consumer price index-u"
666	666	15 means the index published by the Bureau of Labor Statistics of
667	667	16 the United States Department of Labor that measures the
668	668	17 average change in prices of goods and services purchased by
669	669	18 all urban consumers, United States city average, all items,
670	670	19 1982-84 = 100. The new amount resulting from each annual
671	671	20 adjustment shall be determined by the Public Pension Division
672	672	21 of the Department of Insurance and made available to the
673	673	22 boards of the retirement systems and pension funds by November
674	674	23 1 of each year.
675	675	24 (c) A member or participant is entitled to a retirement
676	676	25 annuity upon written application if he or she has attained age
677	677	26 67 (age 65, with respect to service under Article 12 that is
678	678
679	679
680	680
681	681
682	682
683	683	HB2853 - 18 - LRB103 28267 RPS 54646 b
684	684
685	685
686	686	HB2853- 19 -LRB103 28267 RPS 54646 b HB2853 - 19 - LRB103 28267 RPS 54646 b
687	687	HB2853 - 19 - LRB103 28267 RPS 54646 b
688	688	1 subject to this Section, for a member or participant under
689	689	2 Article 12 who first becomes a member or participant under
690	690	3 Article 12 on or after January 1, 2022 or who makes the
691	691	4 election under item (i) of subsection (d-15) of this Section)
692	692	5 and has at least 10 years of service credit and is otherwise
693	693	6 eligible under the requirements of the applicable Article.
694	694	7 A member or participant who has attained age 62 (age 60,
695	695	8 with respect to service under Article 12 that is subject to
696	696	9 this Section, for a member or participant under Article 12 who
697	697	10 first becomes a member or participant under Article 12 on or
698	698	11 after January 1, 2022 or who makes the election under item (i)
699	699	12 of subsection (d-15) of this Section) and has at least 10 years
700	700	13 of service credit and is otherwise eligible under the
701	701	14 requirements of the applicable Article may elect to receive
702	702	15 the lower retirement annuity provided in subsection (d) of
703	703	16 this Section.
704	704	17 (c-5) A person who first becomes a member or a participant
705	705	18 subject to this Section on or after July 6, 2017 (the effective
706	706	19 date of Public Act 100-23), notwithstanding any other
707	707	20 provision of this Code to the contrary, is entitled to a
708	708	21 retirement annuity under Article 8 or Article 11 upon written
709	709	22 application if he or she has attained age 65 and has at least
710	710	23 10 years of service credit and is otherwise eligible under the
711	711	24 requirements of Article 8 or Article 11 of this Code,
712	712	25 whichever is applicable.
713	713	26 (d) The retirement annuity of a member or participant who
714	714
715	715
716	716
717	717
718	718
719	719	HB2853 - 19 - LRB103 28267 RPS 54646 b
720	720
721	721
722	722	HB2853- 20 -LRB103 28267 RPS 54646 b HB2853 - 20 - LRB103 28267 RPS 54646 b
723	723	HB2853 - 20 - LRB103 28267 RPS 54646 b
724	724	1 is retiring after attaining age 62 (age 60, with respect to
725	725	2 service under Article 12 that is subject to this Section, for a
726	726	3 member or participant under Article 12 who first becomes a
727	727	4 member or participant under Article 12 on or after January 1,
728	728	5 2022 or who makes the election under item (i) of subsection
729	729	6 (d-15) of this Section) with at least 10 years of service
730	730	7 credit shall be reduced by one-half of 1% for each full month
731	731	8 that the member's age is under age 67 (age 65, with respect to
732	732	9 service under Article 12 that is subject to this Section, for a
733	733	10 member or participant under Article 12 who first becomes a
734	734	11 member or participant under Article 12 on or after January 1,
735	735	12 2022 or who makes the election under item (i) of subsection
736	736	13 (d-15) of this Section). However, this reduction shall be
737	737	14 waived for any member under Article 16 who has attained age 66
738	738	15 and has earned service credit under Article 16 for the
739	739	16 2020-2021 school year. For the purposes of this subsection,
740	740	17 any member under Article 16 who has not attained age 66 and has
741	741	18 earned service credit under Article 16 for the 2020-2021
742	742	19 school year shall be deemed to be one year older than his or
743	743	20 her actual age.
744	744	21 (d-5) The retirement annuity payable under Article 8 or
745	745	22 Article 11 to an eligible person subject to subsection (c-5)
746	746	23 of this Section who is retiring at age 60 with at least 10
747	747	24 years of service credit shall be reduced by one-half of 1% for
748	748	25 each full month that the member's age is under age 65.
749	749	26 (d-10) Each person who first became a member or
750	750
751	751
752	752
753	753
754	754
755	755	HB2853 - 20 - LRB103 28267 RPS 54646 b
756	756
757	757
758	758	HB2853- 21 -LRB103 28267 RPS 54646 b HB2853 - 21 - LRB103 28267 RPS 54646 b
759	759	HB2853 - 21 - LRB103 28267 RPS 54646 b
760	760	1 participant under Article 8 or Article 11 of this Code on or
761	761	2 after January 1, 2011 and prior to July 6, 2017 (the effective
762	762	3 date of Public Act 100-23) shall make an irrevocable election
763	763	4 either:
764	764	5 (i) to be eligible for the reduced retirement age
765	765	6 provided in subsections (c-5) and (d-5) of this Section,
766	766	7 the eligibility for which is conditioned upon the member
767	767	8 or participant agreeing to the increases in employee
768	768	9 contributions for age and service annuities provided in
769	769	10 subsection (a-5) of Section 8-174 of this Code (for
770	770	11 service under Article 8) or subsection (a-5) of Section
771	771	12 11-170 of this Code (for service under Article 11); or
772	772	13 (ii) to not agree to item (i) of this subsection
773	773	14 (d-10), in which case the member or participant shall
774	774	15 continue to be subject to the retirement age provisions in
775	775	16 subsections (c) and (d) of this Section and the employee
776	776	17 contributions for age and service annuity as provided in
777	777	18 subsection (a) of Section 8-174 of this Code (for service
778	778	19 under Article 8) or subsection (a) of Section 11-170 of
779	779	20 this Code (for service under Article 11).
780	780	21 The election provided for in this subsection shall be made
781	781	22 between October 1, 2017 and November 15, 2017. A person
782	782	23 subject to this subsection who makes the required election
783	783	24 shall remain bound by that election. A person subject to this
784	784	25 subsection who fails for any reason to make the required
785	785	26 election within the time specified in this subsection shall be
786	786
787	787
788	788
789	789
790	790
791	791	HB2853 - 21 - LRB103 28267 RPS 54646 b
792	792
793	793
794	794	HB2853- 22 -LRB103 28267 RPS 54646 b HB2853 - 22 - LRB103 28267 RPS 54646 b
795	795	HB2853 - 22 - LRB103 28267 RPS 54646 b
796	796	1 deemed to have made the election under item (ii).
797	797	2 (d-15) Each person who first becomes a member or
798	798	3 participant under Article 12 on or after January 1, 2011 and
799	799	4 prior to January 1, 2022 shall make an irrevocable election
800	800	5 either:
801	801	6 (i) to be eligible for the reduced retirement age
802	802	7 specified in subsections (c) and (d) of this Section, the
803	803	8 eligibility for which is conditioned upon the member or
804	804	9 participant agreeing to the increase in employee
805	805	10 contributions for service annuities specified in
806	806	11 subsection (b) of Section 12-150; or
807	807	12 (ii) to not agree to item (i) of this subsection
808	808	13 (d-15), in which case the member or participant shall not
809	809	14 be eligible for the reduced retirement age specified in
810	810	15 subsections (c) and (d) of this Section and shall not be
811	811	16 subject to the increase in employee contributions for
812	812	17 service annuities specified in subsection (b) of Section
813	813	18 12-150.
814	814	19 The election provided for in this subsection shall be made
815	815	20 between January 1, 2022 and April 1, 2022. A person subject to
816	816	21 this subsection who makes the required election shall remain
817	817	22 bound by that election. A person subject to this subsection
818	818	23 who fails for any reason to make the required election within
819	819	24 the time specified in this subsection shall be deemed to have
820	820	25 made the election under item (ii).
821	821	26 (e) Any retirement annuity or supplemental annuity shall
822	822
823	823
824	824
825	825
826	826
827	827	HB2853 - 22 - LRB103 28267 RPS 54646 b
828	828
829	829
830	830	HB2853- 23 -LRB103 28267 RPS 54646 b HB2853 - 23 - LRB103 28267 RPS 54646 b
831	831	HB2853 - 23 - LRB103 28267 RPS 54646 b
832	832	1 be subject to annual increases on the January 1 occurring
833	833	2 either on or after the attainment of age 67 (age 65, with
834	834	3 respect to service under Article 12 that is subject to this
835	835	4 Section, for a member or participant under Article 12 who
836	836	5 first becomes a member or participant under Article 12 on or
837	837	6 after January 1, 2022 or who makes the election under item (i)
838	838	7 of subsection (d-15); and beginning on July 6, 2017 (the
839	839	8 effective date of Public Act 100-23), age 65 with respect to
840	840	9 service under Article 8 or Article 11 for eligible persons
841	841	10 who: (i) are subject to subsection (c-5) of this Section; or
842	842	11 (ii) made the election under item (i) of subsection (d-10) of
843	843	12 this Section) or the first anniversary of the annuity start
844	844	13 date, whichever is later. Each annual increase shall be
845	845	14 calculated at 3% or one-half the annual unadjusted percentage
846	846	15 increase (but not less than zero) in the consumer price
847	847	16 index-u for the 12 months ending with the September preceding
848	848	17 each November 1, whichever is less, of the originally granted
849	849	18 retirement annuity. If the annual unadjusted percentage change
850	850	19 in the consumer price index-u for the 12 months ending with the
851	851	20 September preceding each November 1 is zero or there is a
852	852	21 decrease, then the annuity shall not be increased.
853	853	22 For the purposes of Section 1-103.1 of this Code, the
854	854	23 changes made to this Section by Public Act 102-263 are
855	855	24 applicable without regard to whether the employee was in
856	856	25 active service on or after August 6, 2021 (the effective date
857	857	26 of Public Act 102-263).
858	858
859	859
860	860
861	861
862	862
863	863	HB2853 - 23 - LRB103 28267 RPS 54646 b
864	864
865	865
866	866	HB2853- 24 -LRB103 28267 RPS 54646 b HB2853 - 24 - LRB103 28267 RPS 54646 b
867	867	HB2853 - 24 - LRB103 28267 RPS 54646 b
868	868	1 For the purposes of Section 1-103.1 of this Code, the
869	869	2 changes made to this Section by Public Act 100-23 are
870	870	3 applicable without regard to whether the employee was in
871	871	4 active service on or after July 6, 2017 (the effective date of
872	872	5 Public Act 100-23).
873	873	6 (f) The initial survivor's or widow's annuity of an
874	874	7 otherwise eligible survivor or widow of a retired member or
875	875	8 participant who first became a member or participant on or
876	876	9 after January 1, 2011 shall be in the amount of 66 2/3% of the
877	877	10 retired member's or participant's retirement annuity at the
878	878	11 date of death. In the case of the death of a member or
879	879	12 participant who has not retired and who first became a member
880	880	13 or participant on or after January 1, 2011, eligibility for a
881	881	14 survivor's or widow's annuity shall be determined by the
882	882	15 applicable Article of this Code. The initial benefit shall be
883	883	16 66 2/3% of the earned annuity without a reduction due to age. A
884	884	17 child's annuity of an otherwise eligible child shall be in the
885	885	18 amount prescribed under each Article if applicable. Any
886	886	19 survivor's or widow's annuity shall be increased (1) on each
887	887	20 January 1 occurring on or after the commencement of the
888	888	21 annuity if the deceased member died while receiving a
889	889	22 retirement annuity or (2) in other cases, on each January 1
890	890	23 occurring after the first anniversary of the commencement of
891	891	24 the annuity. Each annual increase shall be calculated at 3% or
892	892	25 one-half the annual unadjusted percentage increase (but not
893	893	26 less than zero) in the consumer price index-u for the 12 months
894	894
895	895
896	896
897	897
898	898
899	899	HB2853 - 24 - LRB103 28267 RPS 54646 b
900	900
901	901
902	902	HB2853- 25 -LRB103 28267 RPS 54646 b HB2853 - 25 - LRB103 28267 RPS 54646 b
903	903	HB2853 - 25 - LRB103 28267 RPS 54646 b
904	904	1 ending with the September preceding each November 1, whichever
905	905	2 is less, of the originally granted survivor's annuity. If the
906	906	3 annual unadjusted percentage change in the consumer price
907	907	4 index-u for the 12 months ending with the September preceding
908	908	5 each November 1 is zero or there is a decrease, then the
909	909	6 annuity shall not be increased.
910	910	7 (g) The benefits in Section 14-110 apply only if the
911	911	8 person is a State policeman, a fire fighter in the fire
912	912	9 protection service of a department, a conservation police
913	913	10 officer, an investigator for the Secretary of State, an arson
914	914	11 investigator, a Commerce Commission police officer,
915	915	12 investigator for the Department of Revenue or the Illinois
916	916	13 Gaming Board, a security employee of the Department of
917	917	14 Corrections or the Department of Juvenile Justice, or a
918	918	15 security employee of the Department of Innovation and
919	919	16 Technology, as those terms are defined in subsection (b) and
920	920	17 subsection (c) of Section 14-110. A person who meets the
921	921	18 requirements of this Section is entitled to an annuity
922	922	19 calculated under the provisions of Section 14-110, in lieu of
923	923	20 the regular or minimum retirement annuity, only if the person
924	924	21 has withdrawn from service with not less than 20 years of
925	925	22 eligible creditable service and has attained age 60,
926	926	23 regardless of whether the attainment of age 60 occurs while
927	927	24 the person is still in service.
928	928	25 (h) If a person who first becomes a member or a participant
929	929	26 of a retirement system or pension fund subject to this Section
930	930
931	931
932	932
933	933
934	934
935	935	HB2853 - 25 - LRB103 28267 RPS 54646 b
936	936
937	937
938	938	HB2853- 26 -LRB103 28267 RPS 54646 b HB2853 - 26 - LRB103 28267 RPS 54646 b
939	939	HB2853 - 26 - LRB103 28267 RPS 54646 b
940	940	1 on or after January 1, 2011 is receiving a retirement annuity
941	941	2 or retirement pension under that system or fund and becomes a
942	942	3 member or participant under any other system or fund created
943	943	4 by this Code and is employed on a full-time basis, except for
944	944	5 those members or participants exempted from the provisions of
945	945	6 this Section under subsection (a) of this Section, then the
946	946	7 person's retirement annuity or retirement pension under that
947	947	8 system or fund shall be suspended during that employment. Upon
948	948	9 termination of that employment, the person's retirement
949	949	10 annuity or retirement pension payments shall resume and be
950	950	11 recalculated if recalculation is provided for under the
951	951	12 applicable Article of this Code.
952	952	13 If a person who first becomes a member of a retirement
953	953	14 system or pension fund subject to this Section on or after
954	954	15 January 1, 2012 and is receiving a retirement annuity or
955	955	16 retirement pension under that system or fund and accepts on a
956	956	17 contractual basis a position to provide services to a
957	957	18 governmental entity from which he or she has retired, then
958	958	19 that person's annuity or retirement pension earned as an
959	959	20 active employee of the employer shall be suspended during that
960	960	21 contractual service. A person receiving an annuity or
961	961	22 retirement pension under this Code shall notify the pension
962	962	23 fund or retirement system from which he or she is receiving an
963	963	24 annuity or retirement pension, as well as his or her
964	964	25 contractual employer, of his or her retirement status before
965	965	26 accepting contractual employment. A person who fails to submit
966	966
967	967
968	968
969	969
970	970
971	971	HB2853 - 26 - LRB103 28267 RPS 54646 b
972	972
973	973
974	974	HB2853- 27 -LRB103 28267 RPS 54646 b HB2853 - 27 - LRB103 28267 RPS 54646 b
975	975	HB2853 - 27 - LRB103 28267 RPS 54646 b
976	976	1 such notification shall be guilty of a Class A misdemeanor and
977	977	2 required to pay a fine of $1,000. Upon termination of that
978	978	3 contractual employment, the person's retirement annuity or
979	979	4 retirement pension payments shall resume and, if appropriate,
980	980	5 be recalculated under the applicable provisions of this Code.
981	981	6 (i) (Blank).
982	982	7 (j) In the case of a conflict between the provisions of
983	983	8 this Section and any other provision of this Code, the
984	984	9 provisions of this Section shall control.
985	985	10 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
986	986	11 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
987	987	12 5-13-22.)
988	988	13 (Text of Section from P.A. 102-956)
989	989	14 Sec. 1-160. Provisions applicable to new hires.
990	990	15 (a) The provisions of this Section apply to a person who,
991	991	16 on or after January 1, 2011, first becomes a member or a
992	992	17 participant under any reciprocal retirement system or pension
993	993	18 fund established under this Code, other than a retirement
994	994	19 system or pension fund established under Article 2, 3, 4, 5, 6,
995	995	20 7, 15, or 18 of this Code, notwithstanding any other provision
996	996	21 of this Code to the contrary, but do not apply to any
997	997	22 self-managed plan established under this Code or to any
998	998	23 participant of the retirement plan established under Section
999	999	24 22-101; except that this Section applies to a person who
1000	1000	25 elected to establish alternative credits by electing in
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	HB2853 - 27 - LRB103 28267 RPS 54646 b
1007	1007
1008	1008
1009	1009	HB2853- 28 -LRB103 28267 RPS 54646 b HB2853 - 28 - LRB103 28267 RPS 54646 b
1010	1010	HB2853 - 28 - LRB103 28267 RPS 54646 b
1011	1011	1 writing after January 1, 2011, but before August 8, 2011,
1012	1012	2 under Section 7-145.1 of this Code. Notwithstanding anything
1013	1013	3 to the contrary in this Section, for purposes of this Section,
1014	1014	4 a person who is a Tier 1 regular employee as defined in Section
1015	1015	5 7-109.4 of this Code or who participated in a retirement
1016	1016	6 system under Article 15 prior to January 1, 2011 shall be
1017	1017	7 deemed a person who first became a member or participant prior
1018	1018	8 to January 1, 2011 under any retirement system or pension fund
1019	1019	9 subject to this Section. The changes made to this Section by
1020	1020	10 Public Act 98-596 are a clarification of existing law and are
1021	1021	11 intended to be retroactive to January 1, 2011 (the effective
1022	1022	12 date of Public Act 96-889), notwithstanding the provisions of
1023	1023	13 Section 1-103.1 of this Code.
1024	1024	14 This Section does not apply to a person who first becomes a
1025	1025	15 noncovered employee under Article 14 on or after the
1026	1026	16 implementation date of the plan created under Section 1-161
1027	1027	17 for that Article, unless that person elects under subsection
1028	1028	18 (b) of Section 1-161 to instead receive the benefits provided
1029	1029	19 under this Section and the applicable provisions of that
1030	1030	20 Article.
1031	1031	21 This Section does not apply to a person who first becomes a
1032	1032	22 member or participant under Article 16 on or after the
1033	1033	23 implementation date of the plan created under Section 1-161
1034	1034	24 for that Article, unless that person elects under subsection
1035	1035	25 (b) of Section 1-161 to instead receive the benefits provided
1036	1036	26 under this Section and the applicable provisions of that
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	HB2853 - 28 - LRB103 28267 RPS 54646 b
1043	1043
1044	1044
1045	1045	HB2853- 29 -LRB103 28267 RPS 54646 b HB2853 - 29 - LRB103 28267 RPS 54646 b
1046	1046	HB2853 - 29 - LRB103 28267 RPS 54646 b
1047	1047	1 Article.
1048	1048	2 This Section does not apply to a person who elects under
1049	1049	3 subsection (c-5) of Section 1-161 to receive the benefits
1050	1050	4 under Section 1-161.
1051	1051	5 This Section does not apply to a person who first becomes a
1052	1052	6 member or participant of an affected pension fund on or after 6
1053	1053	7 months after the resolution or ordinance date, as defined in
1054	1054	8 Section 1-162, unless that person elects under subsection (c)
1055	1055	9 of Section 1-162 to receive the benefits provided under this
1056	1056	10 Section and the applicable provisions of the Article under
1057	1057	11 which he or she is a member or participant.
1058	1058	12 (b) "Final average salary" means, except as otherwise
1059	1059	13 provided in this subsection, the average monthly (or annual)
1060	1060	14 salary obtained by dividing the total salary or earnings
1061	1061	15 calculated under the Article applicable to the member or
1062	1062	16 participant during the 96 consecutive months (or 8 consecutive
1063	1063	17 years) of service within the last 120 months (or 10 years) of
1064	1064	18 service in which the total salary or earnings calculated under
1065	1065	19 the applicable Article was the highest by the number of months
1066	1066	20 (or years) of service in that period. For the purposes of a
1067	1067	21 person who first becomes a member or participant of any
1068	1068	22 retirement system or pension fund to which this Section
1069	1069	23 applies on or after January 1, 2011, in this Code, "final
1070	1070	24 average salary" shall be substituted for the following:
1071	1071	25 (1) (Blank).
1072	1072	26 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078	HB2853 - 29 - LRB103 28267 RPS 54646 b
1079	1079
1080	1080
1081	1081	HB2853- 30 -LRB103 28267 RPS 54646 b HB2853 - 30 - LRB103 28267 RPS 54646 b
1082	1082	HB2853 - 30 - LRB103 28267 RPS 54646 b
1083	1083	1 annual salary for any 4 consecutive years within the last
1084	1084	2 10 years of service immediately preceding the date of
1085	1085	3 withdrawal".
1086	1086	4 (3) In Article 13, "average final salary".
1087	1087	5 (4) In Article 14, "final average compensation".
1088	1088	6 (5) In Article 17, "average salary".
1089	1089	7 (6) In Section 22-207, "wages or salary received by
1090	1090	8 him at the date of retirement or discharge".
1091	1091	9 A member of the Teachers' Retirement System of the State
1092	1092	10 of Illinois who retires on or after June 1, 2021 and for whom
1093	1093	11 the 2020-2021 school year is used in the calculation of the
1094	1094	12 member's final average salary shall use the higher of the
1095	1095	13 following for the purpose of determining the member's final
1096	1096	14 average salary:
1097	1097	15 (A) the amount otherwise calculated under the first
1098	1098	16 paragraph of this subsection; or
1099	1099	17 (B) an amount calculated by the Teachers' Retirement
1100	1100	18 System of the State of Illinois using the average of the
1101	1101	19 monthly (or annual) salary obtained by dividing the total
1102	1102	20 salary or earnings calculated under Article 16 applicable
1103	1103	21 to the member or participant during the 96 months (or 8
1104	1104	22 years) of service within the last 120 months (or 10 years)
1105	1105	23 of service in which the total salary or earnings
1106	1106	24 calculated under the Article was the highest by the number
1107	1107	25 of months (or years) of service in that period.
1108	1108	26 (b-5) Beginning on January 1, 2011, for all purposes under
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114	HB2853 - 30 - LRB103 28267 RPS 54646 b
1115	1115
1116	1116
1117	1117	HB2853- 31 -LRB103 28267 RPS 54646 b HB2853 - 31 - LRB103 28267 RPS 54646 b
1118	1118	HB2853 - 31 - LRB103 28267 RPS 54646 b
1119	1119	1 this Code (including without limitation the calculation of
1120	1120	2 benefits and employee contributions), the annual earnings,
1121	1121	3 salary, or wages (based on the plan year) of a member or
1122	1122	4 participant to whom this Section applies shall not exceed
1123	1123	5 $106,800; however, that amount shall annually thereafter be
1124	1124	6 increased by the lesser of (i) 3% of that amount, including all
1125	1125	7 previous adjustments, or (ii) one-half the annual unadjusted
1126	1126	8 percentage increase (but not less than zero) in the consumer
1127	1127	9 price index-u for the 12 months ending with the September
1128	1128	10 preceding each November 1, including all previous adjustments.
1129	1129	11 For the purposes of this Section, "consumer price index-u"
1130	1130	12 means the index published by the Bureau of Labor Statistics of
1131	1131	13 the United States Department of Labor that measures the
1132	1132	14 average change in prices of goods and services purchased by
1133	1133	15 all urban consumers, United States city average, all items,
1134	1134	16 1982-84 = 100. The new amount resulting from each annual
1135	1135	17 adjustment shall be determined by the Public Pension Division
1136	1136	18 of the Department of Insurance and made available to the
1137	1137	19 boards of the retirement systems and pension funds by November
1138	1138	20 1 of each year.
1139	1139	21 (c) A member or participant is entitled to a retirement
1140	1140	22 annuity upon written application if he or she has attained age
1141	1141	23 67 (age 65, with respect to service under Article 12 that is
1142	1142	24 subject to this Section, for a member or participant under
1143	1143	25 Article 12 who first becomes a member or participant under
1144	1144	26 Article 12 on or after January 1, 2022 or who makes the
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150	HB2853 - 31 - LRB103 28267 RPS 54646 b
1151	1151
1152	1152
1153	1153	HB2853- 32 -LRB103 28267 RPS 54646 b HB2853 - 32 - LRB103 28267 RPS 54646 b
1154	1154	HB2853 - 32 - LRB103 28267 RPS 54646 b
1155	1155	1 election under item (i) of subsection (d-15) of this Section)
1156	1156	2 and has at least 10 years of service credit and is otherwise
1157	1157	3 eligible under the requirements of the applicable Article.
1158	1158	4 A member or participant who has attained age 62 (age 60,
1159	1159	5 with respect to service under Article 12 that is subject to
1160	1160	6 this Section, for a member or participant under Article 12 who
1161	1161	7 first becomes a member or participant under Article 12 on or
1162	1162	8 after January 1, 2022 or who makes the election under item (i)
1163	1163	9 of subsection (d-15) of this Section) and has at least 10 years
1164	1164	10 of service credit and is otherwise eligible under the
1165	1165	11 requirements of the applicable Article may elect to receive
1166	1166	12 the lower retirement annuity provided in subsection (d) of
1167	1167	13 this Section.
1168	1168	14 (c-5) A person who first becomes a member or a participant
1169	1169	15 subject to this Section on or after July 6, 2017 (the effective
1170	1170	16 date of Public Act 100-23), notwithstanding any other
1171	1171	17 provision of this Code to the contrary, is entitled to a
1172	1172	18 retirement annuity under Article 8 or Article 11 upon written
1173	1173	19 application if he or she has attained age 65 and has at least
1174	1174	20 10 years of service credit and is otherwise eligible under the
1175	1175	21 requirements of Article 8 or Article 11 of this Code,
1176	1176	22 whichever is applicable.
1177	1177	23 (d) The retirement annuity of a member or participant who
1178	1178	24 is retiring after attaining age 62 (age 60, with respect to
1179	1179	25 service under Article 12 that is subject to this Section, for a
1180	1180	26 member or participant under Article 12 who first becomes a
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186	HB2853 - 32 - LRB103 28267 RPS 54646 b
1187	1187
1188	1188
1189	1189	HB2853- 33 -LRB103 28267 RPS 54646 b HB2853 - 33 - LRB103 28267 RPS 54646 b
1190	1190	HB2853 - 33 - LRB103 28267 RPS 54646 b
1191	1191	1 member or participant under Article 12 on or after January 1,
1192	1192	2 2022 or who makes the election under item (i) of subsection
1193	1193	3 (d-15) of this Section) with at least 10 years of service
1194	1194	4 credit shall be reduced by one-half of 1% for each full month
1195	1195	5 that the member's age is under age 67 (age 65, with respect to
1196	1196	6 service under Article 12 that is subject to this Section, for a
1197	1197	7 member or participant under Article 12 who first becomes a
1198	1198	8 member or participant under Article 12 on or after January 1,
1199	1199	9 2022 or who makes the election under item (i) of subsection
1200	1200	10 (d-15) of this Section). However, this reduction shall be
1201	1201	11 waived for any member under Article 16 who has attained age 66
1202	1202	12 and has earned service credit under Article 16 for the
1203	1203	13 2020-2021 school year. For the purposes of this subsection,
1204	1204	14 any member under Article 16 who has not attained age 66 and has
1205	1205	15 earned service credit under Article 16 for the 2020-2021
1206	1206	16 school year shall be deemed to be one year older than his or
1207	1207	17 her actual age.
1208	1208	18 (d-5) The retirement annuity payable under Article 8 or
1209	1209	19 Article 11 to an eligible person subject to subsection (c-5)
1210	1210	20 of this Section who is retiring at age 60 with at least 10
1211	1211	21 years of service credit shall be reduced by one-half of 1% for
1212	1212	22 each full month that the member's age is under age 65.
1213	1213	23 (d-10) Each person who first became a member or
1214	1214	24 participant under Article 8 or Article 11 of this Code on or
1215	1215	25 after January 1, 2011 and prior to July 6, 2017 (the effective
1216	1216	26 date of Public Act 100-23) shall make an irrevocable election
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222	HB2853 - 33 - LRB103 28267 RPS 54646 b
1223	1223
1224	1224
1225	1225	HB2853- 34 -LRB103 28267 RPS 54646 b HB2853 - 34 - LRB103 28267 RPS 54646 b
1226	1226	HB2853 - 34 - LRB103 28267 RPS 54646 b
1227	1227	1 either:
1228	1228	2 (i) to be eligible for the reduced retirement age
1229	1229	3 provided in subsections (c-5) and (d-5) of this Section,
1230	1230	4 the eligibility for which is conditioned upon the member
1231	1231	5 or participant agreeing to the increases in employee
1232	1232	6 contributions for age and service annuities provided in
1233	1233	7 subsection (a-5) of Section 8-174 of this Code (for
1234	1234	8 service under Article 8) or subsection (a-5) of Section
1235	1235	9 11-170 of this Code (for service under Article 11); or
1236	1236	10 (ii) to not agree to item (i) of this subsection
1237	1237	11 (d-10), in which case the member or participant shall
1238	1238	12 continue to be subject to the retirement age provisions in
1239	1239	13 subsections (c) and (d) of this Section and the employee
1240	1240	14 contributions for age and service annuity as provided in
1241	1241	15 subsection (a) of Section 8-174 of this Code (for service
1242	1242	16 under Article 8) or subsection (a) of Section 11-170 of
1243	1243	17 this Code (for service under Article 11).
1244	1244	18 The election provided for in this subsection shall be made
1245	1245	19 between October 1, 2017 and November 15, 2017. A person
1246	1246	20 subject to this subsection who makes the required election
1247	1247	21 shall remain bound by that election. A person subject to this
1248	1248	22 subsection who fails for any reason to make the required
1249	1249	23 election within the time specified in this subsection shall be
1250	1250	24 deemed to have made the election under item (ii).
1251	1251	25 (d-15) Each person who first becomes a member or
1252	1252	26 participant under Article 12 on or after January 1, 2011 and
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258	HB2853 - 34 - LRB103 28267 RPS 54646 b
1259	1259
1260	1260
1261	1261	HB2853- 35 -LRB103 28267 RPS 54646 b HB2853 - 35 - LRB103 28267 RPS 54646 b
1262	1262	HB2853 - 35 - LRB103 28267 RPS 54646 b
1263	1263	1 prior to January 1, 2022 shall make an irrevocable election
1264	1264	2 either:
1265	1265	3 (i) to be eligible for the reduced retirement age
1266	1266	4 specified in subsections (c) and (d) of this Section, the
1267	1267	5 eligibility for which is conditioned upon the member or
1268	1268	6 participant agreeing to the increase in employee
1269	1269	7 contributions for service annuities specified in
1270	1270	8 subsection (b) of Section 12-150; or
1271	1271	9 (ii) to not agree to item (i) of this subsection
1272	1272	10 (d-15), in which case the member or participant shall not
1273	1273	11 be eligible for the reduced retirement age specified in
1274	1274	12 subsections (c) and (d) of this Section and shall not be
1275	1275	13 subject to the increase in employee contributions for
1276	1276	14 service annuities specified in subsection (b) of Section
1277	1277	15 12-150.
1278	1278	16 The election provided for in this subsection shall be made
1279	1279	17 between January 1, 2022 and April 1, 2022. A person subject to
1280	1280	18 this subsection who makes the required election shall remain
1281	1281	19 bound by that election. A person subject to this subsection
1282	1282	20 who fails for any reason to make the required election within
1283	1283	21 the time specified in this subsection shall be deemed to have
1284	1284	22 made the election under item (ii).
1285	1285	23 (e) Any retirement annuity or supplemental annuity shall
1286	1286	24 be subject to annual increases on the January 1 occurring
1287	1287	25 either on or after the attainment of age 67 (age 65, with
1288	1288	26 respect to service under Article 12 that is subject to this
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294	HB2853 - 35 - LRB103 28267 RPS 54646 b
1295	1295
1296	1296
1297	1297	HB2853- 36 -LRB103 28267 RPS 54646 b HB2853 - 36 - LRB103 28267 RPS 54646 b
1298	1298	HB2853 - 36 - LRB103 28267 RPS 54646 b
1299	1299	1 Section, for a member or participant under Article 12 who
1300	1300	2 first becomes a member or participant under Article 12 on or
1301	1301	3 after January 1, 2022 or who makes the election under item (i)
1302	1302	4 of subsection (d-15); and beginning on July 6, 2017 (the
1303	1303	5 effective date of Public Act 100-23), age 65 with respect to
1304	1304	6 service under Article 8 or Article 11 for eligible persons
1305	1305	7 who: (i) are subject to subsection (c-5) of this Section; or
1306	1306	8 (ii) made the election under item (i) of subsection (d-10) of
1307	1307	9 this Section) or the first anniversary of the annuity start
1308	1308	10 date, whichever is later. Each annual increase shall be
1309	1309	11 calculated at 3% or one-half the annual unadjusted percentage
1310	1310	12 increase (but not less than zero) in the consumer price
1311	1311	13 index-u for the 12 months ending with the September preceding
1312	1312	14 each November 1, whichever is less, of the originally granted
1313	1313	15 retirement annuity. If the annual unadjusted percentage change
1314	1314	16 in the consumer price index-u for the 12 months ending with the
1315	1315	17 September preceding each November 1 is zero or there is a
1316	1316	18 decrease, then the annuity shall not be increased.
1317	1317	19 For the purposes of Section 1-103.1 of this Code, the
1318	1318	20 changes made to this Section by Public Act 102-263 are
1319	1319	21 applicable without regard to whether the employee was in
1320	1320	22 active service on or after August 6, 2021 (the effective date
1321	1321	23 of Public Act 102-263).
1322	1322	24 For the purposes of Section 1-103.1 of this Code, the
1323	1323	25 changes made to this Section by Public Act 100-23 are
1324	1324	26 applicable without regard to whether the employee was in
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330	HB2853 - 36 - LRB103 28267 RPS 54646 b
1331	1331
1332	1332
1333	1333	HB2853- 37 -LRB103 28267 RPS 54646 b HB2853 - 37 - LRB103 28267 RPS 54646 b
1334	1334	HB2853 - 37 - LRB103 28267 RPS 54646 b
1335	1335	1 active service on or after July 6, 2017 (the effective date of
1336	1336	2 Public Act 100-23).
1337	1337	3 (f) The initial survivor's or widow's annuity of an
1338	1338	4 otherwise eligible survivor or widow of a retired member or
1339	1339	5 participant who first became a member or participant on or
1340	1340	6 after January 1, 2011 shall be in the amount of 66 2/3% of the
1341	1341	7 retired member's or participant's retirement annuity at the
1342	1342	8 date of death. In the case of the death of a member or
1343	1343	9 participant who has not retired and who first became a member
1344	1344	10 or participant on or after January 1, 2011, eligibility for a
1345	1345	11 survivor's or widow's annuity shall be determined by the
1346	1346	12 applicable Article of this Code. The initial benefit shall be
1347	1347	13 66 2/3% of the earned annuity without a reduction due to age. A
1348	1348	14 child's annuity of an otherwise eligible child shall be in the
1349	1349	15 amount prescribed under each Article if applicable. Any
1350	1350	16 survivor's or widow's annuity shall be increased (1) on each
1351	1351	17 January 1 occurring on or after the commencement of the
1352	1352	18 annuity if the deceased member died while receiving a
1353	1353	19 retirement annuity or (2) in other cases, on each January 1
1354	1354	20 occurring after the first anniversary of the commencement of
1355	1355	21 the annuity. Each annual increase shall be calculated at 3% or
1356	1356	22 one-half the annual unadjusted percentage increase (but not
1357	1357	23 less than zero) in the consumer price index-u for the 12 months
1358	1358	24 ending with the September preceding each November 1, whichever
1359	1359	25 is less, of the originally granted survivor's annuity. If the
1360	1360	26 annual unadjusted percentage change in the consumer price
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366	HB2853 - 37 - LRB103 28267 RPS 54646 b
1367	1367
1368	1368
1369	1369	HB2853- 38 -LRB103 28267 RPS 54646 b HB2853 - 38 - LRB103 28267 RPS 54646 b
1370	1370	HB2853 - 38 - LRB103 28267 RPS 54646 b
1371	1371	1 index-u for the 12 months ending with the September preceding
1372	1372	2 each November 1 is zero or there is a decrease, then the
1373	1373	3 annuity shall not be increased.
1374	1374	4 (g) The benefits in Section 14-110 apply only if the
1375	1375	5 person is a State policeman, a fire fighter in the fire
1376	1376	6 protection service of a department, a conservation police
1377	1377	7 officer, an investigator for the Secretary of State, an
1378	1378	8 investigator for the Office of the Attorney General, an arson
1379	1379	9 investigator, a Commerce Commission police officer,
1380	1380	10 investigator for the Department of Revenue or the Illinois
1381	1381	11 Gaming Board, a security employee of the Department of
1382	1382	12 Corrections or the Department of Juvenile Justice, or a
1383	1383	13 security employee of the Department of Innovation and
1384	1384	14 Technology, as those terms are defined in subsection (b) and
1385	1385	15 subsection (c) of Section 14-110. A person who meets the
1386	1386	16 requirements of this Section is entitled to an annuity
1387	1387	17 calculated under the provisions of Section 14-110, in lieu of
1388	1388	18 the regular or minimum retirement annuity, only if the person
1389	1389	19 has withdrawn from service with not less than 20 years of
1390	1390	20 eligible creditable service and has attained age 60,
1391	1391	21 regardless of whether the attainment of age 60 occurs while
1392	1392	22 the person is still in service.
1393	1393	23 (h) If a person who first becomes a member or a participant
1394	1394	24 of a retirement system or pension fund subject to this Section
1395	1395	25 on or after January 1, 2011 is receiving a retirement annuity
1396	1396	26 or retirement pension under that system or fund and becomes a
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402	HB2853 - 38 - LRB103 28267 RPS 54646 b
1403	1403
1404	1404
1405	1405	HB2853- 39 -LRB103 28267 RPS 54646 b HB2853 - 39 - LRB103 28267 RPS 54646 b
1406	1406	HB2853 - 39 - LRB103 28267 RPS 54646 b
1407	1407	1 member or participant under any other system or fund created
1408	1408	2 by this Code and is employed on a full-time basis, except for
1409	1409	3 those members or participants exempted from the provisions of
1410	1410	4 this Section under subsection (a) of this Section, then the
1411	1411	5 person's retirement annuity or retirement pension under that
1412	1412	6 system or fund shall be suspended during that employment. Upon
1413	1413	7 termination of that employment, the person's retirement
1414	1414	8 annuity or retirement pension payments shall resume and be
1415	1415	9 recalculated if recalculation is provided for under the
1416	1416	10 applicable Article of this Code.
1417	1417	11 If a person who first becomes a member of a retirement
1418	1418	12 system or pension fund subject to this Section on or after
1419	1419	13 January 1, 2012 and is receiving a retirement annuity or
1420	1420	14 retirement pension under that system or fund and accepts on a
1421	1421	15 contractual basis a position to provide services to a
1422	1422	16 governmental entity from which he or she has retired, then
1423	1423	17 that person's annuity or retirement pension earned as an
1424	1424	18 active employee of the employer shall be suspended during that
1425	1425	19 contractual service. A person receiving an annuity or
1426	1426	20 retirement pension under this Code shall notify the pension
1427	1427	21 fund or retirement system from which he or she is receiving an
1428	1428	22 annuity or retirement pension, as well as his or her
1429	1429	23 contractual employer, of his or her retirement status before
1430	1430	24 accepting contractual employment. A person who fails to submit
1431	1431	25 such notification shall be guilty of a Class A misdemeanor and
1432	1432	26 required to pay a fine of $1,000. Upon termination of that
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438	HB2853 - 39 - LRB103 28267 RPS 54646 b
1439	1439
1440	1440
1441	1441	HB2853- 40 -LRB103 28267 RPS 54646 b HB2853 - 40 - LRB103 28267 RPS 54646 b
1442	1442	HB2853 - 40 - LRB103 28267 RPS 54646 b
1443	1443	1 contractual employment, the person's retirement annuity or
1444	1444	2 retirement pension payments shall resume and, if appropriate,
1445	1445	3 be recalculated under the applicable provisions of this Code.
1446	1446	4 (i) (Blank).
1447	1447	5 (j) In the case of a conflict between the provisions of
1448	1448	6 this Section and any other provision of this Code, the
1449	1449	7 provisions of this Section shall control.
1450	1450	8 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1451	1451	9 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
1452	1452	10 5-27-22.)
1453	1453	11 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
1454	1454	12 Sec. 16-127. Computation of creditable service.
1455	1455	13 (a) Each member shall receive regular credit for all
1456	1456	14 service as a teacher from the date membership begins, for
1457	1457	15 which satisfactory evidence is supplied and all contributions
1458	1458	16 have been paid.
1459	1459	17 (b) The following periods of service shall earn optional
1460	1460	18 credit and each member shall receive credit for all such
1461	1461	19 service for which satisfactory evidence is supplied and all
1462	1462	20 contributions have been paid as of the date specified:
1463	1463	21 (1) Prior service as a teacher.
1464	1464	22 (2) Service in a capacity essentially similar or
1465	1465	23 equivalent to that of a teacher, in the public common
1466	1466	24 schools in school districts in this State not included
1467	1467	25 within the provisions of this System, or of any other
1468	1468
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473	HB2853 - 40 - LRB103 28267 RPS 54646 b
1474	1474
1475	1475
1476	1476	HB2853- 41 -LRB103 28267 RPS 54646 b HB2853 - 41 - LRB103 28267 RPS 54646 b
1477	1477	HB2853 - 41 - LRB103 28267 RPS 54646 b
1478	1478	1 State, territory, dependency or possession of the United
1479	1479	2 States, or in schools operated by or under the auspices of
1480	1480	3 the United States, or under the auspices of any agency or
1481	1481	4 department of any other State, and service during any
1482	1482	5 period of professional speech correction or special
1483	1483	6 education experience for a public agency within this State
1484	1484	7 or any other State, territory, dependency or possession of
1485	1485	8 the United States, and service prior to February 1, 1951
1486	1486	9 as a recreation worker for the Illinois Department of
1487	1487	10 Public Safety, for a period not exceeding the lesser of
1488	1488	11 2/5 of the total creditable service of the member or 10
1489	1489	12 years. The maximum service of 10 years which is allowable
1490	1490	13 under this paragraph shall be reduced by the service
1491	1491	14 credit which is validated by other retirement systems
1492	1492	15 under paragraph (i) of Section 15-113 and paragraph 1 of
1493	1493	16 Section 17-133. Credit granted under this paragraph may
1494	1494	17 not be used in determination of a retirement annuity or
1495	1495	18 disability benefits unless the member has at least 5 years
1496	1496	19 of creditable service earned subsequent to this employment
1497	1497	20 with one or more of the following systems: Teachers'
1498	1498	21 Retirement System of the State of Illinois, State
1499	1499	22 Universities Retirement System, and the Public School
1500	1500	23 Teachers' Pension and Retirement Fund of Chicago. Whenever
1501	1501	24 such service credit exceeds the maximum allowed for all
1502	1502	25 purposes of this Article, the first service rendered in
1503	1503	26 point of time shall be considered. The changes to this
1504	1504
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509	HB2853 - 41 - LRB103 28267 RPS 54646 b
1510	1510
1511	1511
1512	1512	HB2853- 42 -LRB103 28267 RPS 54646 b HB2853 - 42 - LRB103 28267 RPS 54646 b
1513	1513	HB2853 - 42 - LRB103 28267 RPS 54646 b
1514	1514	1 subdivision (b)(2) made by Public Act 86-272 shall apply
1515	1515	2 not only to persons who on or after its effective date
1516	1516	3 (August 23, 1989) are in service as a teacher under the
1517	1517	4 System, but also to persons whose status as such a teacher
1518	1518	5 terminated prior to such effective date, whether or not
1519	1519	6 such person is an annuitant on that date.
1520	1520	7 (3) Any periods immediately following teaching
1521	1521	8 service, under this System or under Article 17, (or
1522	1522	9 immediately following service prior to February 1, 1951 as
1523	1523	10 a recreation worker for the Illinois Department of Public
1524	1524	11 Safety) spent in active service with the military forces
1525	1525	12 of the United States; periods spent in educational
1526	1526	13 programs that prepare for return to teaching sponsored by
1527	1527	14 the federal government following such active military
1528	1528	15 service; if a teacher returns to teaching service within
1529	1529	16 one calendar year after discharge or after the completion
1530	1530	17 of the educational program, a further period, not
1531	1531	18 exceeding one calendar year, between time spent in
1532	1532	19 military service or in such educational programs and the
1533	1533	20 return to employment as a teacher under this System; and a
1534	1534	21 period of up to 2 years of active military service not
1535	1535	22 immediately following employment as a teacher.
1536	1536	23 The changes to this Section and Section 16-128
1537	1537	24 relating to military service made by P.A. 87-794 shall
1538	1538	25 apply not only to persons who on or after its effective
1539	1539	26 date are in service as a teacher under the System, but also
1540	1540
1541	1541
1542	1542
1543	1543
1544	1544
1545	1545	HB2853 - 42 - LRB103 28267 RPS 54646 b
1546	1546
1547	1547
1548	1548	HB2853- 43 -LRB103 28267 RPS 54646 b HB2853 - 43 - LRB103 28267 RPS 54646 b
1549	1549	HB2853 - 43 - LRB103 28267 RPS 54646 b
1550	1550	1 to persons whose status as a teacher terminated prior to
1551	1551	2 that date, whether or not the person is an annuitant on
1552	1552	3 that date. In the case of an annuitant who applies for
1553	1553	4 credit allowable under this Section for a period of
1554	1554	5 military service that did not immediately follow
1555	1555	6 employment, and who has made the required contributions
1556	1556	7 for such credit, the annuity shall be recalculated to
1557	1557	8 include the additional service credit, with the increase
1558	1558	9 taking effect on the date the System received written
1559	1559	10 notification of the annuitant's intent to purchase the
1560	1560	11 credit, if payment of all the required contributions is
1561	1561	12 made within 60 days of such notice, or else on the first
1562	1562	13 annuity payment date following the date of payment of the
1563	1563	14 required contributions. In calculating the automatic
1564	1564	15 annual increase for an annuity that has been recalculated
1565	1565	16 under this Section, the increase attributable to the
1566	1566	17 additional service allowable under P.A. 87-794 shall be
1567	1567	18 included in the calculation of automatic annual increases
1568	1568	19 accruing after the effective date of the recalculation.
1569	1569	20 Credit for military service shall be determined as
1570	1570	21 follows: if entry occurs during the months of July,
1571	1571	22 August, or September and the member was a teacher at the
1572	1572	23 end of the immediately preceding school term, credit shall
1573	1573	24 be granted from July 1 of the year in which he or she
1574	1574	25 entered service; if entry occurs during the school term
1575	1575	26 and the teacher was in teaching service at the beginning
1576	1576
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581	HB2853 - 43 - LRB103 28267 RPS 54646 b
1582	1582
1583	1583
1584	1584	HB2853- 44 -LRB103 28267 RPS 54646 b HB2853 - 44 - LRB103 28267 RPS 54646 b
1585	1585	HB2853 - 44 - LRB103 28267 RPS 54646 b
1586	1586	1 of the school term, credit shall be granted from July 1 of
1587	1587	2 such year. In all other cases where credit for military
1588	1588	3 service is allowed, credit shall be granted from the date
1589	1589	4 of entry into the service.
1590	1590	5 The total period of military service for which credit
1591	1591	6 is granted shall not exceed 5 years for any member unless
1592	1592	7 the service: (A) is validated before July 1, 1964, and (B)
1593	1593	8 does not extend beyond July 1, 1963. Credit for military
1594	1594	9 service shall be granted under this Section only if not
1595	1595	10 more than 5 years of the military service for which credit
1596	1596	11 is granted under this Section is used by the member to
1597	1597	12 qualify for a military retirement allotment from any
1598	1598	13 branch of the armed forces of the United States. The
1599	1599	14 changes to this subdivision (b)(3) made by Public Act
1600	1600	15 86-272 shall apply not only to persons who on or after its
1601	1601	16 effective date (August 23, 1989) are in service as a
1602	1602	17 teacher under the System, but also to persons whose status
1603	1603	18 as such a teacher terminated prior to such effective date,
1604	1604	19 whether or not such person is an annuitant on that date.
1605	1605	20 (4) Any periods served as a member of the General
1606	1606	21 Assembly.
1607	1607	22 (5)(i) Any periods for which a teacher, as defined in
1608	1608	23 Section 16-106, is granted a leave of absence, provided he
1609	1609	24 or she returns to teaching service creditable under this
1610	1610	25 System or the State Universities Retirement System
1611	1611	26 following the leave; (ii) periods during which a teacher
1612	1612
1613	1613
1614	1614
1615	1615
1616	1616
1617	1617	HB2853 - 44 - LRB103 28267 RPS 54646 b
1618	1618
1619	1619
1620	1620	HB2853- 45 -LRB103 28267 RPS 54646 b HB2853 - 45 - LRB103 28267 RPS 54646 b
1621	1621	HB2853 - 45 - LRB103 28267 RPS 54646 b
1622	1622	1 is involuntarily laid off from teaching, provided he or
1623	1623	2 she returns to teaching following the lay-off; (iii)
1624	1624	3 periods prior to July 1, 1983 during which a teacher
1625	1625	4 ceased covered employment due to pregnancy, provided that
1626	1626	5 the teacher returned to teaching service creditable under
1627	1627	6 this System or the State Universities Retirement System
1628	1628	7 following the pregnancy and submits evidence satisfactory
1629	1629	8 to the Board documenting that the employment ceased due to
1630	1630	9 pregnancy; and (iv) periods prior to July 1, 1983 during
1631	1631	10 which a teacher ceased covered employment for the purpose
1632	1632	11 of adopting an infant under 3 years of age or caring for a
1633	1633	12 newly adopted infant under 3 years of age, provided that
1634	1634	13 the teacher returned to teaching service creditable under
1635	1635	14 this System or the State Universities Retirement System
1636	1636	15 following the adoption and submits evidence satisfactory
1637	1637	16 to the Board documenting that the employment ceased for
1638	1638	17 the purpose of adopting an infant under 3 years of age or
1639	1639	18 caring for a newly adopted infant under 3 years of age.
1640	1640	19 However, total credit under this paragraph (5) may not
1641	1641	20 exceed 3 years.
1642	1642	21 Any qualified member or annuitant may apply for credit
1643	1643	22 under item (iii) or (iv) of this paragraph (5) without
1644	1644	23 regard to whether service was terminated before the
1645	1645	24 effective date of this amendatory Act of 1997. In the case
1646	1646	25 of an annuitant who establishes credit under item (iii) or
1647	1647	26 (iv), the annuity shall be recalculated to include the
1648	1648
1649	1649
1650	1650
1651	1651
1652	1652
1653	1653	HB2853 - 45 - LRB103 28267 RPS 54646 b
1654	1654
1655	1655
1656	1656	HB2853- 46 -LRB103 28267 RPS 54646 b HB2853 - 46 - LRB103 28267 RPS 54646 b
1657	1657	HB2853 - 46 - LRB103 28267 RPS 54646 b
1658	1658	1 additional service credit. The increase in annuity shall
1659	1659	2 take effect on the date the System receives written
1660	1660	3 notification of the annuitant's intent to purchase the
1661	1661	4 credit, if the required evidence is submitted and the
1662	1662	5 required contribution paid within 60 days of that
1663	1663	6 notification, otherwise on the first annuity payment date
1664	1664	7 following the System's receipt of the required evidence
1665	1665	8 and contribution. The increase in an annuity recalculated
1666	1666	9 under this provision shall be included in the calculation
1667	1667	10 of automatic annual increases in the annuity accruing
1668	1668	11 after the effective date of the recalculation.
1669	1669	12 Optional credit may be purchased under this subsection
1670	1670	13 (b)(5) for periods during which a teacher has been granted
1671	1671	14 a leave of absence pursuant to Section 24-13 of the School
1672	1672	15 Code. A teacher whose service under this Article
1673	1673	16 terminated prior to the effective date of P.A. 86-1488
1674	1674	17 shall be eligible to purchase such optional credit. If a
1675	1675	18 teacher who purchases this optional credit is already
1676	1676	19 receiving a retirement annuity under this Article, the
1677	1677	20 annuity shall be recalculated as if the annuitant had
1678	1678	21 applied for the leave of absence credit at the time of
1679	1679	22 retirement. The difference between the entitled annuity
1680	1680	23 and the actual annuity shall be credited to the purchase
1681	1681	24 of the optional credit. The remainder of the purchase cost
1682	1682	25 of the optional credit shall be paid on or before April 1,
1683	1683	26 1992.
1684	1684
1685	1685
1686	1686
1687	1687
1688	1688
1689	1689	HB2853 - 46 - LRB103 28267 RPS 54646 b
1690	1690
1691	1691
1692	1692	HB2853- 47 -LRB103 28267 RPS 54646 b HB2853 - 47 - LRB103 28267 RPS 54646 b
1693	1693	HB2853 - 47 - LRB103 28267 RPS 54646 b
1694	1694	1 The change in this paragraph made by Public Act 86-273
1695	1695	2 shall be applicable to teachers who retire after June 1,
1696	1696	3 1989, as well as to teachers who are in service on that
1697	1697	4 date.
1698	1698	5 (6) Any days of unused and uncompensated accumulated
1699	1699	6 sick leave earned by a teacher. The service credit granted
1700	1700	7 under this paragraph shall be the ratio of the number of
1701	1701	8 unused and uncompensated accumulated sick leave days to
1702	1702	9 170 days, subject to a maximum of 2 years of service
1703	1703	10 credit. Prior to the member's retirement, each former
1704	1704	11 employer shall certify to the System the number of unused
1705	1705	12 and uncompensated accumulated sick leave days credited to
1706	1706	13 the member at the time of termination of service. The
1707	1707	14 period of unused sick leave shall not be considered in
1708	1708	15 determining the effective date of retirement. A member is
1709	1709	16 not required to make contributions in order to obtain
1710	1710	17 service credit for unused sick leave.
1711	1711	18 Credit for sick leave shall, at retirement, be granted
1712	1712	19 by the System for any retiring regional or assistant
1713	1713	20 regional superintendent of schools at the rate of 6 days
1714	1714	21 per year of creditable service or portion thereof
1715	1715	22 established while serving as such superintendent or
1716	1716	23 assistant superintendent.
1717	1717	24 (7) Periods prior to February 1, 1987 served as an
1718	1718	25 employee of the Illinois Mathematics and Science Academy
1719	1719	26 for which credit has not been terminated under Section
1720	1720
1721	1721
1722	1722
1723	1723
1724	1724
1725	1725	HB2853 - 47 - LRB103 28267 RPS 54646 b
1726	1726
1727	1727
1728	1728	HB2853- 48 -LRB103 28267 RPS 54646 b HB2853 - 48 - LRB103 28267 RPS 54646 b
1729	1729	HB2853 - 48 - LRB103 28267 RPS 54646 b
1730	1730	1 15-113.9 of this Code.
1731	1731	2 (8) Service as a substitute teacher for work performed
1732	1732	3 prior to July 1, 1990.
1733	1733	4 (9) Service as a part-time teacher for work performed
1734	1734	5 prior to July 1, 1990.
1735	1735	6 (10) Up to 2 years of employment with Southern
1736	1736	7 Illinois University - Carbondale from September 1, 1959 to
1737	1737	8 August 31, 1961, or with Governors State University from
1738	1738	9 September 1, 1972 to August 31, 1974, for which the
1739	1739	10 teacher has no credit under Article 15. To receive credit
1740	1740	11 under this item (10), a teacher must apply in writing to
1741	1741	12 the Board and pay the required contributions before May 1,
1742	1742	13 1993 and have at least 12 years of service credit under
1743	1743	14 this Article.
1744	1744	15 (11) One additional day of service credit for each day
1745	1745	16 of service credit that was earned between March 16, 2020
1746	1746	17 and June 30, 2021 for any day in which the teacher provided
1747	1747	18 in-person instruction during that period.
1748	1748	19 (b-1) A member may establish optional credit for up to 2
1749	1749	20 years of service as a teacher or administrator employed by a
1750	1750	21 private school recognized by the Illinois State Board of
1751	1751	22 Education, provided that the teacher (i) was certified under
1752	1752	23 the law governing the certification of teachers at the time
1753	1753	24 the service was rendered, (ii) applies in writing on or before
1754	1754	25 June 30, 2023, (iii) supplies satisfactory evidence of the
1755	1755	26 employment, (iv) completes at least 10 years of contributing
1756	1756
1757	1757
1758	1758
1759	1759
1760	1760
1761	1761	HB2853 - 48 - LRB103 28267 RPS 54646 b
1762	1762
1763	1763
1764	1764	HB2853- 49 -LRB103 28267 RPS 54646 b HB2853 - 49 - LRB103 28267 RPS 54646 b
1765	1765	HB2853 - 49 - LRB103 28267 RPS 54646 b
1766	1766	1 service as a teacher as defined in Section 16-106, and (v) pays
1767	1767	2 the contribution required in subsection (d-5) of Section
1768	1768	3 16-128. The member may apply for credit under this subsection
1769	1769	4 and pay the required contribution before completing the 10
1770	1770	5 years of contributing service required under item (iv), but
1771	1771	6 the credit may not be used until the item (iv) contributing
1772	1772	7 service requirement has been met.
1773	1773	8 (c) The service credits specified in this Section shall be
1774	1774	9 granted only if: (1) such service credits are not used for
1775	1775	10 credit in any other statutory tax-supported public employee
1776	1776	11 retirement system other than the federal Social Security
1777	1777	12 program; and (2) the member makes the required contributions
1778	1778	13 as specified in Section 16-128. Except as provided in
1779	1779	14 subsection (b-1) of this Section, the service credit shall be
1780	1780	15 effective as of the date the required contributions are
1781	1781	16 completed.
1782	1782	17 Any service credits granted under this Section shall
1783	1783	18 terminate upon cessation of membership for any cause.
1784	1784	19 Credit may not be granted under this Section covering any
1785	1785	20 period for which an age retirement or disability retirement
1786	1786	21 allowance has been paid.
1787	1787	22 Credit may not be granted under this Section for service
1788	1788	23 as an employee of an entity that provides substitute teaching
1789	1789	24 services under Section 2-3.173 of the School Code and is not a
1790	1790	25 school district.
1791	1791	26 (Source: P.A. 102-525, eff. 8-20-21.)
1792	1792
1793	1793
1794	1794
1795	1795
1796	1796
1797	1797	HB2853 - 49 - LRB103 28267 RPS 54646 b
1798	1798
1799	1799
1800	1800	HB2853- 50 -LRB103 28267 RPS 54646 b HB2853 - 50 - LRB103 28267 RPS 54646 b
1801	1801	HB2853 - 50 - LRB103 28267 RPS 54646 b
1802	1802	1 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
1803	1803	2 Sec. 16-133. Retirement annuity; amount.
1804	1804	3 (a) The amount of the retirement annuity shall be (i) in
1805	1805	4 the case of a person who first became a teacher under this
1806	1806	5 Article before July 1, 2005, the larger of the amounts
1807	1807	6 determined under paragraphs (A) and (B) below, or (ii) in the
1808	1808	7 case of a person who first becomes a teacher under this Article
1809	1809	8 on or after July 1, 2005, the amount determined under the
1810	1810	9 applicable provisions of paragraph (B):
1811	1811	10 (A) An amount consisting of the sum of the following:
1812	1812	11 (1) An amount that can be provided on an
1813	1813	12 actuarially equivalent basis by the member's
1814	1814	13 accumulated contributions at the time of retirement;
1815	1815	14 and
1816	1816	15 (2) The sum of (i) the amount that can be provided
1817	1817	16 on an actuarially equivalent basis by the member's
1818	1818	17 accumulated contributions representing service prior
1819	1819	18 to July 1, 1947, and (ii) the amount that can be
1820	1820	19 provided on an actuarially equivalent basis by the
1821	1821	20 amount obtained by multiplying 1.4 times the member's
1822	1822	21 accumulated contributions covering service subsequent
1823	1823	22 to June 30, 1947; and
1824	1824	23 (3) If there is prior service, 2 times the amount
1825	1825	24 that would have been determined under subparagraph (2)
1826	1826	25 of paragraph (A) above on account of contributions
1827	1827
1828	1828
1829	1829
1830	1830
1831	1831
1832	1832	HB2853 - 50 - LRB103 28267 RPS 54646 b
1833	1833
1834	1834
1835	1835	HB2853- 51 -LRB103 28267 RPS 54646 b HB2853 - 51 - LRB103 28267 RPS 54646 b
1836	1836	HB2853 - 51 - LRB103 28267 RPS 54646 b
1837	1837	1 which would have been made during the period of prior
1838	1838	2 service creditable to the member had the System been
1839	1839	3 in operation and had the member made contributions at
1840	1840	4 the contribution rate in effect prior to July 1, 1947.
1841	1841	5 This paragraph (A) does not apply to a person who
1842	1842	6 first becomes a teacher under this Article on or after
1843	1843	7 July 1, 2005.
1844	1844	8 (B) An amount consisting of the greater of the
1845	1845	9 following:
1846	1846	10 (1) For creditable service earned before July 1,
1847	1847	11 1998 that has not been augmented under Section
1848	1848	12 16-129.1: 1.67% of final average salary for each of
1849	1849	13 the first 10 years of creditable service, 1.90% of
1850	1850	14 final average salary for each year in excess of 10 but
1851	1851	15 not exceeding 20, 2.10% of final average salary for
1852	1852	16 each year in excess of 20 but not exceeding 30, and
1853	1853	17 2.30% of final average salary for each year in excess
1854	1854	18 of 30; and
1855	1855	19 For creditable service earned on or after July 1,
1856	1856	20 1998 by a member who has at least 24 years of
1857	1857	21 creditable service on July 1, 1998 and who does not
1858	1858	22 elect to augment service under Section 16-129.1: 2.2%
1859	1859	23 of final average salary for each year of creditable
1860	1860	24 service earned on or after July 1, 1998 but before the
1861	1861	25 member reaches a total of 30 years of creditable
1862	1862	26 service and 2.3% of final average salary for each year
1863	1863
1864	1864
1865	1865
1866	1866
1867	1867
1868	1868	HB2853 - 51 - LRB103 28267 RPS 54646 b
1869	1869
1870	1870
1871	1871	HB2853- 52 -LRB103 28267 RPS 54646 b HB2853 - 52 - LRB103 28267 RPS 54646 b
1872	1872	HB2853 - 52 - LRB103 28267 RPS 54646 b
1873	1873	1 of creditable service earned on or after July 1, 1998
1874	1874	2 and after the member reaches a total of 30 years of
1875	1875	3 creditable service; and
1876	1876	4 For all other creditable service: 2.2% of final
1877	1877	5 average salary for each year of creditable service; or
1878	1878	6 (2) 1.5% of final average salary for each year of
1879	1879	7 creditable service plus the sum $7.50 for each of the
1880	1880	8 first 20 years of creditable service.
1881	1881	9 The amount of the retirement annuity determined under this
1882	1882	10 paragraph (B) shall be reduced by 1/2 of 1% for each month
1883	1883	11 that the member is less than age 60 at the time the
1884	1884	12 retirement annuity begins. However, this reduction shall
1885	1885	13 not apply (i) if the member has at least 35 years of
1886	1886	14 creditable service, or (ii) if the member retires on
1887	1887	15 account of disability under Section 16-149.2 of this
1888	1888	16 Article with at least 20 years of creditable service, or
1889	1889	17 (iii) if the member (1) has earned during the period
1890	1890	18 immediately preceding the last day of service at least one
1891	1891	19 year of contributing creditable service as an employee of
1892	1892	20 a department as defined in Section 14-103.04, (2) has
1893	1893	21 earned at least 5 years of contributing creditable service
1894	1894	22 as an employee of a department as defined in Section
1895	1895	23 14-103.04, (3) retires on or after January 1, 2001, and
1896	1896	24 (4) retires having attained an age which, when added to
1897	1897	25 the number of years of his or her total creditable
1898	1898	26 service, equals at least 85. Portions of years shall be
1899	1899
1900	1900
1901	1901
1902	1902
1903	1903
1904	1904	HB2853 - 52 - LRB103 28267 RPS 54646 b
1905	1905
1906	1906
1907	1907	HB2853- 53 -LRB103 28267 RPS 54646 b HB2853 - 53 - LRB103 28267 RPS 54646 b
1908	1908	HB2853 - 53 - LRB103 28267 RPS 54646 b
1909	1909	1 counted as decimal equivalents. The System shall waive
1910	1910	2 this reduction for any member who has attained age 59 and
1911	1911	3 has earned service credit for the 2020-2021 school year.
1912	1912	4 For the purposes of this paragraph, any member who has not
1913	1913	5 attained age 59 and has earned service credit for the
1914	1914	6 2020-2021 school year shall be deemed to be one year older
1915	1915	7 than his or her actual age.
1916	1916	8 (b) For purposes of this Section, except as provided in
1917	1917	9 subsection (b-5), final average salary shall be the average
1918	1918	10 salary for the highest 4 consecutive years within the last 10
1919	1919	11 years of creditable service as determined under rules of the
1920	1920	12 board.
1921	1921	13 The minimum final average salary shall be considered to
1922	1922	14 be $2,400 per year.
1923	1923	15 In the determination of final average salary for members
1924	1924	16 other than elected officials and their appointees when such
1925	1925	17 appointees are allowed by statute, that part of a member's
1926	1926	18 salary for any year beginning after June 30, 1979 which
1927	1927	19 exceeds the member's annual full-time salary rate with the
1928	1928	20 same employer for the preceding year by more than 20% shall be
1929	1929	21 excluded. The exclusion shall not apply in any year in which
1930	1930	22 the member's creditable earnings are less than 50% of the
1931	1931	23 preceding year's mean salary for downstate teachers as
1932	1932	24 determined by the survey of school district salaries provided
1933	1933	25 in Section 2-3.103 of the School Code.
1934	1934	26 (b-5) A teacher who retires on or after June 1, 2021 and
1935	1935
1936	1936
1937	1937
1938	1938
1939	1939
1940	1940	HB2853 - 53 - LRB103 28267 RPS 54646 b
1941	1941
1942	1942
1943	1943	HB2853- 54 -LRB103 28267 RPS 54646 b HB2853 - 54 - LRB103 28267 RPS 54646 b
1944	1944	HB2853 - 54 - LRB103 28267 RPS 54646 b
1945	1945	1 for whom the 2020-2021 school year is used in the calculation
1946	1946	2 of the member's final average salary shall use the higher of
1947	1947	3 the following for the purpose of determining the member's
1948	1948	4 final average salary:
1949	1949	5 (A) the amount otherwise calculated under subsection
1950	1950	6 (b); or
1951	1951	7 (B) an amount calculated by the System using the
1952	1952	8 average salary for the 4 highest years within the last 10
1953	1953	9 years of creditable service as determined under the rules
1954	1954	10 of the board.
1955	1955	11 (c) In determining the amount of the retirement annuity
1956	1956	12 under paragraph (B) of this Section, a fractional year shall
1957	1957	13 be granted proportional credit.
1958	1958	14 (d) The retirement annuity determined under paragraph (B)
1959	1959	15 of this Section shall be available only to members who render
1960	1960	16 teaching service after July 1, 1947 for which member
1961	1961	17 contributions are required, and to annuitants who re-enter
1962	1962	18 under the provisions of Section 16-150.
1963	1963	19 (e) The maximum retirement annuity provided under
1964	1964	20 paragraph (B) of this Section shall be 75% of final average
1965	1965	21 salary.
1966	1966	22 (f) A member retiring after the effective date of this
1967	1967	23 amendatory Act of 1998 shall receive a pension equal to 75% of
1968	1968	24 final average salary if the member is qualified to receive a
1969	1969	25 retirement annuity equal to at least 74.6% of final average
1970	1970	26 salary under this Article or as proportional annuities under
1971	1971
1972	1972
1973	1973
1974	1974
1975	1975
1976	1976	HB2853 - 54 - LRB103 28267 RPS 54646 b
1977	1977
1978	1978
1979	1979	HB2853- 55 -LRB103 28267 RPS 54646 b HB2853 - 55 - LRB103 28267 RPS 54646 b
1980	1980	HB2853 - 55 - LRB103 28267 RPS 54646 b
1981	1981	1 Article 20 of this Code.
1982	1982	2 (Source: P.A. 102-16, eff. 6-17-21.)
1983	1983	3 (40 ILCS 5/16-203)
1984	1984	4 Sec. 16-203. Application and expiration of new benefit
1985	1985	5 increases.
1986	1986	6 (a) As used in this Section, "new benefit increase" means
1987	1987	7 an increase in the amount of any benefit provided under this
1988	1988	8 Article, or an expansion of the conditions of eligibility for
1989	1989	9 any benefit under this Article, that results from an amendment
1990	1990	10 to this Code that takes effect after June 1, 2005 (the
1991	1991	11 effective date of Public Act 94-4). "New benefit increase",
1992	1992	12 however, does not include any benefit increase resulting from
1993	1993	13 the changes made to Article 1 or this Article by Public Act
1994	1994	14 95-910, Public Act 100-23, Public Act 100-587, Public Act
1995	1995	15 100-743, Public Act 100-769, Public Act 101-10, Public Act
1996	1996	16 101-49, Public Act 102-16, or Public Act 102-871, or this
1997	1997	17 amendatory Act of the 103rd General Assembly Public Act 102-16
1998	1998	18 this amendatory Act of the 102nd General Assembly.
1999	1999	19 (b) Notwithstanding any other provision of this Code or
2000	2000	20 any subsequent amendment to this Code, every new benefit
2001	2001	21 increase is subject to this Section and shall be deemed to be
2002	2002	22 granted only in conformance with and contingent upon
2003	2003	23 compliance with the provisions of this Section.
2004	2004	24 (c) The Public Act enacting a new benefit increase must
2005	2005	25 identify and provide for payment to the System of additional
2006	2006
2007	2007
2008	2008
2009	2009
2010	2010
2011	2011	HB2853 - 55 - LRB103 28267 RPS 54646 b
2012	2012
2013	2013
2014	2014	HB2853- 56 -LRB103 28267 RPS 54646 b HB2853 - 56 - LRB103 28267 RPS 54646 b
2015	2015	HB2853 - 56 - LRB103 28267 RPS 54646 b
2016	2016	1 funding at least sufficient to fund the resulting annual
2017	2017	2 increase in cost to the System as it accrues.
2018	2018	3 Every new benefit increase is contingent upon the General
2019	2019	4 Assembly providing the additional funding required under this
2020	2020	5 subsection. The Commission on Government Forecasting and
2021	2021	6 Accountability shall analyze whether adequate additional
2022	2022	7 funding has been provided for the new benefit increase and
2023	2023	8 shall report its analysis to the Public Pension Division of
2024	2024	9 the Department of Insurance. A new benefit increase created by
2025	2025	10 a Public Act that does not include the additional funding
2026	2026	11 required under this subsection is null and void. If the Public
2027	2027	12 Pension Division determines that the additional funding
2028	2028	13 provided for a new benefit increase under this subsection is
2029	2029	14 or has become inadequate, it may so certify to the Governor and
2030	2030	15 the State Comptroller and, in the absence of corrective action
2031	2031	16 by the General Assembly, the new benefit increase shall expire
2032	2032	17 at the end of the fiscal year in which the certification is
2033	2033	18 made.
2034	2034	19 (d) Every new benefit increase shall expire 5 years after
2035	2035	20 its effective date or on such earlier date as may be specified
2036	2036	21 in the language enacting the new benefit increase or provided
2037	2037	22 under subsection (c). This does not prevent the General
2038	2038	23 Assembly from extending or re-creating a new benefit increase
2039	2039	24 by law.
2040	2040	25 (e) Except as otherwise provided in the language creating
2041	2041	26 the new benefit increase, a new benefit increase that expires
2042	2042
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047	HB2853 - 56 - LRB103 28267 RPS 54646 b
2048	2048
2049	2049
2050	2050	HB2853- 57 -LRB103 28267 RPS 54646 b HB2853 - 57 - LRB103 28267 RPS 54646 b
2051	2051	HB2853 - 57 - LRB103 28267 RPS 54646 b
2052	2052	1 under this Section continues to apply to persons who applied
2053	2053	2 and qualified for the affected benefit while the new benefit
2054	2054	3 increase was in effect and to the affected beneficiaries and
2055	2055	4 alternate payees of such persons, but does not apply to any
2056	2056	5 other person, including, without limitation, a person who
2057	2057	6 continues in service after the expiration date and did not
2058	2058	7 apply and qualify for the affected benefit while the new
2059	2059	8 benefit increase was in effect.
2060	2060	9 (Source: P.A. 101-10, eff. 6-5-19; 101-49, eff. 7-12-19;
2061	2061	10 101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff.
2062	2062	11 8-20-21; 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; revised
2063	2063	12 7-26-22.)
2064	2064	13 Section 99. Effective date. This Act takes effect upon
2065	2065	14 becoming law.
2066	2066
2067	2067
2068	2068
2069	2069
2070	2070
2071	2071	HB2853 - 57 - LRB103 28267 RPS 54646 b