Illinois 2023-2024 Regular Session

Illinois House Bill HB3266 Compare Versions

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

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3266 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-160 40 ILCS 5/14-152.1 Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that for a Tier 2 State policeman for all purposes under the Code, including, without limitation, the calculation of benefits and employee contributions, the annual earnings, salary, or wages based on the plan year of a State policeman shall not exceed the amount determined by the Social Security Administration to be the Old-Age, Survivors and Disability Insurance Contribution and Benefit Base (instead of $106,800, as annually adjusted). Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately. LRB103 28897 RPS 55283 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3266 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-160 40 ILCS 5/14-152.1 40 ILCS 5/1-160 40 ILCS 5/14-152.1 Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that for a Tier 2 State policeman for all purposes under the Code, including, without limitation, the calculation of benefits and employee contributions, the annual earnings, salary, or wages based on the plan year of a State policeman shall not exceed the amount determined by the Social Security Administration to be the Old-Age, Survivors and Disability Insurance Contribution and Benefit Base (instead of $106,800, as annually adjusted). Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately. LRB103 28897 RPS 55283 b LRB103 28897 RPS 55283 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3266 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/1-160 40 ILCS 5/14-152.1 40 ILCS 5/1-160 40 ILCS 5/14-152.1
4	4	40 ILCS 5/1-160
5	5	40 ILCS 5/14-152.1
6	6	Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that for a Tier 2 State policeman for all purposes under the Code, including, without limitation, the calculation of benefits and employee contributions, the annual earnings, salary, or wages based on the plan year of a State policeman shall not exceed the amount determined by the Social Security Administration to be the Old-Age, Survivors and Disability Insurance Contribution and Benefit Base (instead of $106,800, as annually adjusted). Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
7	7	LRB103 28897 RPS 55283 b LRB103 28897 RPS 55283 b
8	8	LRB103 28897 RPS 55283 b
9	9	A BILL FOR
10	10	HB3266LRB103 28897 RPS 55283 b HB3266 LRB103 28897 RPS 55283 b
11	11	HB3266 LRB103 28897 RPS 55283 b
12	12	1 AN ACT concerning public employee benefits.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Pension Code is amended by
16	16	5 changing Sections 1-160 and 14-152.1 as follows:
17	17	6 (40 ILCS 5/1-160)
18	18	7 (Text of Section from P.A. 102-719)
19	19	8 Sec. 1-160. Provisions applicable to new hires.
20	20	9 (a) The provisions of this Section apply to a person who,
21	21	10 on or after January 1, 2011, first becomes a member or a
22	22	11 participant under any reciprocal retirement system or pension
23	23	12 fund established under this Code, other than a retirement
24	24	13 system or pension fund established under Article 2, 3, 4, 5, 6,
25	25	14 7, 15, or 18 of this Code, notwithstanding any other provision
26	26	15 of this Code to the contrary, but do not apply to any
27	27	16 self-managed plan established under this Code or to any
28	28	17 participant of the retirement plan established under Section
29	29	18 22-101; except that this Section applies to a person who
30	30	19 elected to establish alternative credits by electing in
31	31	20 writing after January 1, 2011, but before August 8, 2011,
32	32	21 under Section 7-145.1 of this Code. Notwithstanding anything
33	33	22 to the contrary in this Section, for purposes of this Section,
34	34	23 a person who is a Tier 1 regular employee as defined in Section
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3266 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
39	39	40 ILCS 5/1-160 40 ILCS 5/14-152.1 40 ILCS 5/1-160 40 ILCS 5/14-152.1
40	40	40 ILCS 5/1-160
41	41	40 ILCS 5/14-152.1
42	42	Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that for a Tier 2 State policeman for all purposes under the Code, including, without limitation, the calculation of benefits and employee contributions, the annual earnings, salary, or wages based on the plan year of a State policeman shall not exceed the amount determined by the Social Security Administration to be the Old-Age, Survivors and Disability Insurance Contribution and Benefit Base (instead of $106,800, as annually adjusted). Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
43	43	LRB103 28897 RPS 55283 b LRB103 28897 RPS 55283 b
44	44	LRB103 28897 RPS 55283 b
45	45	A BILL FOR
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51	51	40 ILCS 5/1-160
52	52	40 ILCS 5/14-152.1
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71	71	1 7-109.4 of this Code or who participated in a retirement
72	72	2 system under Article 15 prior to January 1, 2011 shall be
73	73	3 deemed a person who first became a member or participant prior
74	74	4 to January 1, 2011 under any retirement system or pension fund
75	75	5 subject to this Section. The changes made to this Section by
76	76	6 Public Act 98-596 are a clarification of existing law and are
77	77	7 intended to be retroactive to January 1, 2011 (the effective
78	78	8 date of Public Act 96-889), notwithstanding the provisions of
79	79	9 Section 1-103.1 of this Code.
80	80	10 This Section does not apply to a person who first becomes a
81	81	11 noncovered employee under Article 14 on or after the
82	82	12 implementation date of the plan created under Section 1-161
83	83	13 for that Article, unless that person elects under subsection
84	84	14 (b) of Section 1-161 to instead receive the benefits provided
85	85	15 under this Section and the applicable provisions of that
86	86	16 Article.
87	87	17 This Section does not apply to a person who first becomes a
88	88	18 member or participant under Article 16 on or after the
89	89	19 implementation date of the plan created under Section 1-161
90	90	20 for that Article, unless that person elects under subsection
91	91	21 (b) of Section 1-161 to instead receive the benefits provided
92	92	22 under this Section and the applicable provisions of that
93	93	23 Article.
94	94	24 This Section does not apply to a person who elects under
95	95	25 subsection (c-5) of Section 1-161 to receive the benefits
96	96	26 under Section 1-161.
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107	107	1 This Section does not apply to a person who first becomes a
108	108	2 member or participant of an affected pension fund on or after 6
109	109	3 months after the resolution or ordinance date, as defined in
110	110	4 Section 1-162, unless that person elects under subsection (c)
111	111	5 of Section 1-162 to receive the benefits provided under this
112	112	6 Section and the applicable provisions of the Article under
113	113	7 which he or she is a member or participant.
114	114	8 (b) "Final average salary" means, except as otherwise
115	115	9 provided in this subsection, the average monthly (or annual)
116	116	10 salary obtained by dividing the total salary or earnings
117	117	11 calculated under the Article applicable to the member or
118	118	12 participant during the 96 consecutive months (or 8 consecutive
119	119	13 years) of service within the last 120 months (or 10 years) of
120	120	14 service in which the total salary or earnings calculated under
121	121	15 the applicable Article was the highest by the number of months
122	122	16 (or years) of service in that period. For the purposes of a
123	123	17 person who first becomes a member or participant of any
124	124	18 retirement system or pension fund to which this Section
125	125	19 applies on or after January 1, 2011, in this Code, "final
126	126	20 average salary" shall be substituted for the following:
127	127	21 (1) (Blank).
128	128	22 (2) In Articles 8, 9, 10, 11, and 12, "highest average
129	129	23 annual salary for any 4 consecutive years within the last
130	130	24 10 years of service immediately preceding the date of
131	131	25 withdrawal".
132	132	26 (3) In Article 13, "average final salary".
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143	143	1 (4) In Article 14, "final average compensation".
144	144	2 (5) In Article 17, "average salary".
145	145	3 (6) In Section 22-207, "wages or salary received by
146	146	4 him at the date of retirement or discharge".
147	147	5 A member of the Teachers' Retirement System of the State
148	148	6 of Illinois who retires on or after June 1, 2021 and for whom
149	149	7 the 2020-2021 school year is used in the calculation of the
150	150	8 member's final average salary shall use the higher of the
151	151	9 following for the purpose of determining the member's final
152	152	10 average salary:
153	153	11 (A) the amount otherwise calculated under the first
154	154	12 paragraph of this subsection; or
155	155	13 (B) an amount calculated by the Teachers' Retirement
156	156	14 System of the State of Illinois using the average of the
157	157	15 monthly (or annual) salary obtained by dividing the total
158	158	16 salary or earnings calculated under Article 16 applicable
159	159	17 to the member or participant during the 96 months (or 8
160	160	18 years) of service within the last 120 months (or 10 years)
161	161	19 of service in which the total salary or earnings
162	162	20 calculated under the Article was the highest by the number
163	163	21 of months (or years) of service in that period.
164	164	22 (b-5) Except as provided under subsection (b-10),
165	165	23 beginning Beginning on January 1, 2011, for all purposes under
166	166	24 this Code (including without limitation the calculation of
167	167	25 benefits and employee contributions), the annual earnings,
168	168	26 salary, or wages (based on the plan year) of a member or
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179	179	1 participant to whom this Section applies shall not exceed
180	180	2 $106,800; however, that amount shall annually thereafter be
181	181	3 increased by the lesser of (i) 3% of that amount, including all
182	182	4 previous adjustments, or (ii) one-half the annual unadjusted
183	183	5 percentage increase (but not less than zero) in the consumer
184	184	6 price index-u for the 12 months ending with the September
185	185	7 preceding each November 1, including all previous adjustments.
186	186	8 For the purposes of this Section, "consumer price index-u"
187	187	9 means the index published by the Bureau of Labor Statistics of
188	188	10 the United States Department of Labor that measures the
189	189	11 average change in prices of goods and services purchased by
190	190	12 all urban consumers, United States city average, all items,
191	191	13 1982-84 = 100. The new amount resulting from each annual
192	192	14 adjustment shall be determined by the Public Pension Division
193	193	15 of the Department of Insurance and made available to the
194	194	16 boards of the retirement systems and pension funds by November
195	195	17 1 of each year.
196	196	18 (b-10) Beginning on the effective date of this amendatory
197	197	19 Act of the 103rd General Assembly, for a State policeman to
198	198	20 whom this Section applies and for all purposes under this Code
199	199	21 (including, without limitation, the calculation of benefits
200	200	22 and employee contributions), the annual earnings, salary, or
201	201	23 wages (based on the plan year) of a State policeman shall not
202	202	24 exceed the amount determined by the Social Security
203	203	25 Administration to be the Old-Age, Survivors and Disability
204	204	26 Insurance Contribution and Benefit Base.
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215	215	1 (c) A member or participant is entitled to a retirement
216	216	2 annuity upon written application if he or she has attained age
217	217	3 67 (age 65, with respect to service under Article 12 that is
218	218	4 subject to this Section, for a member or participant under
219	219	5 Article 12 who first becomes a member or participant under
220	220	6 Article 12 on or after January 1, 2022 or who makes the
221	221	7 election under item (i) of subsection (d-15) of this Section)
222	222	8 and has at least 10 years of service credit and is otherwise
223	223	9 eligible under the requirements of the applicable Article.
224	224	10 A member or participant who has attained age 62 (age 60,
225	225	11 with respect to service under Article 12 that is subject to
226	226	12 this Section, for a member or participant under Article 12 who
227	227	13 first becomes a member or participant under Article 12 on or
228	228	14 after January 1, 2022 or who makes the election under item (i)
229	229	15 of subsection (d-15) of this Section) and has at least 10 years
230	230	16 of service credit and is otherwise eligible under the
231	231	17 requirements of the applicable Article may elect to receive
232	232	18 the lower retirement annuity provided in subsection (d) of
233	233	19 this Section.
234	234	20 (c-5) A person who first becomes a member or a participant
235	235	21 subject to this Section on or after July 6, 2017 (the effective
236	236	22 date of Public Act 100-23), notwithstanding any other
237	237	23 provision of this Code to the contrary, is entitled to a
238	238	24 retirement annuity under Article 8 or Article 11 upon written
239	239	25 application if he or she has attained age 65 and has at least
240	240	26 10 years of service credit and is otherwise eligible under the
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251	251	1 requirements of Article 8 or Article 11 of this Code,
252	252	2 whichever is applicable.
253	253	3 (d) The retirement annuity of a member or participant who
254	254	4 is retiring after attaining age 62 (age 60, with respect to
255	255	5 service under Article 12 that is subject to this Section, for a
256	256	6 member or participant under Article 12 who first becomes a
257	257	7 member or participant under Article 12 on or after January 1,
258	258	8 2022 or who makes the election under item (i) of subsection
259	259	9 (d-15) of this Section) with at least 10 years of service
260	260	10 credit shall be reduced by one-half of 1% for each full month
261	261	11 that the member's age is under age 67 (age 65, with respect to
262	262	12 service under Article 12 that is subject to this Section, for a
263	263	13 member or participant under Article 12 who first becomes a
264	264	14 member or participant under Article 12 on or after January 1,
265	265	15 2022 or who makes the election under item (i) of subsection
266	266	16 (d-15) of this Section).
267	267	17 (d-5) The retirement annuity payable under Article 8 or
268	268	18 Article 11 to an eligible person subject to subsection (c-5)
269	269	19 of this Section who is retiring at age 60 with at least 10
270	270	20 years of service credit shall be reduced by one-half of 1% for
271	271	21 each full month that the member's age is under age 65.
272	272	22 (d-10) Each person who first became a member or
273	273	23 participant under Article 8 or Article 11 of this Code on or
274	274	24 after January 1, 2011 and prior to July 6, 2017 (the effective
275	275	25 date of Public Act 100-23) shall make an irrevocable election
276	276	26 either:
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287	287	1 (i) to be eligible for the reduced retirement age
288	288	2 provided in subsections (c-5) and (d-5) of this Section,
289	289	3 the eligibility for which is conditioned upon the member
290	290	4 or participant agreeing to the increases in employee
291	291	5 contributions for age and service annuities provided in
292	292	6 subsection (a-5) of Section 8-174 of this Code (for
293	293	7 service under Article 8) or subsection (a-5) of Section
294	294	8 11-170 of this Code (for service under Article 11); or
295	295	9 (ii) to not agree to item (i) of this subsection
296	296	10 (d-10), in which case the member or participant shall
297	297	11 continue to be subject to the retirement age provisions in
298	298	12 subsections (c) and (d) of this Section and the employee
299	299	13 contributions for age and service annuity as provided in
300	300	14 subsection (a) of Section 8-174 of this Code (for service
301	301	15 under Article 8) or subsection (a) of Section 11-170 of
302	302	16 this Code (for service under Article 11).
303	303	17 The election provided for in this subsection shall be made
304	304	18 between October 1, 2017 and November 15, 2017. A person
305	305	19 subject to this subsection who makes the required election
306	306	20 shall remain bound by that election. A person subject to this
307	307	21 subsection who fails for any reason to make the required
308	308	22 election within the time specified in this subsection shall be
309	309	23 deemed to have made the election under item (ii).
310	310	24 (d-15) Each person who first becomes a member or
311	311	25 participant under Article 12 on or after January 1, 2011 and
312	312	26 prior to January 1, 2022 shall make an irrevocable election
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323	323	1 either:
324	324	2 (i) to be eligible for the reduced retirement age
325	325	3 specified in subsections (c) and (d) of this Section, the
326	326	4 eligibility for which is conditioned upon the member or
327	327	5 participant agreeing to the increase in employee
328	328	6 contributions for service annuities specified in
329	329	7 subsection (b) of Section 12-150; or
330	330	8 (ii) to not agree to item (i) of this subsection
331	331	9 (d-15), in which case the member or participant shall not
332	332	10 be eligible for the reduced retirement age specified in
333	333	11 subsections (c) and (d) of this Section and shall not be
334	334	12 subject to the increase in employee contributions for
335	335	13 service annuities specified in subsection (b) of Section
336	336	14 12-150.
337	337	15 The election provided for in this subsection shall be made
338	338	16 between January 1, 2022 and April 1, 2022. A person subject to
339	339	17 this subsection who makes the required election shall remain
340	340	18 bound by that election. A person subject to this subsection
341	341	19 who fails for any reason to make the required election within
342	342	20 the time specified in this subsection shall be deemed to have
343	343	21 made the election under item (ii).
344	344	22 (e) Any retirement annuity or supplemental annuity shall
345	345	23 be subject to annual increases on the January 1 occurring
346	346	24 either on or after the attainment of age 67 (age 65, with
347	347	25 respect to service under Article 12 that is subject to this
348	348	26 Section, for a member or participant under Article 12 who
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359	359	1 first becomes a member or participant under Article 12 on or
360	360	2 after January 1, 2022 or who makes the election under item (i)
361	361	3 of subsection (d-15); and beginning on July 6, 2017 (the
362	362	4 effective date of Public Act 100-23), age 65 with respect to
363	363	5 service under Article 8 or Article 11 for eligible persons
364	364	6 who: (i) are subject to subsection (c-5) of this Section; or
365	365	7 (ii) made the election under item (i) of subsection (d-10) of
366	366	8 this Section) or the first anniversary of the annuity start
367	367	9 date, whichever is later. Each annual increase shall be
368	368	10 calculated at 3% or one-half the annual unadjusted percentage
369	369	11 increase (but not less than zero) in the consumer price
370	370	12 index-u for the 12 months ending with the September preceding
371	371	13 each November 1, whichever is less, of the originally granted
372	372	14 retirement annuity. If the annual unadjusted percentage change
373	373	15 in the consumer price index-u for the 12 months ending with the
374	374	16 September preceding each November 1 is zero or there is a
375	375	17 decrease, then the annuity shall not be increased.
376	376	18 For the purposes of Section 1-103.1 of this Code, the
377	377	19 changes made to this Section by Public Act 102-263 are
378	378	20 applicable without regard to whether the employee was in
379	379	21 active service on or after August 6, 2021 (the effective date
380	380	22 of Public Act 102-263).
381	381	23 For the purposes of Section 1-103.1 of this Code, the
382	382	24 changes made to this Section by Public Act 100-23 are
383	383	25 applicable without regard to whether the employee was in
384	384	26 active service on or after July 6, 2017 (the effective date of
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395	395	1 Public Act 100-23).
396	396	2 (f) The initial survivor's or widow's annuity of an
397	397	3 otherwise eligible survivor or widow of a retired member or
398	398	4 participant who first became a member or participant on or
399	399	5 after January 1, 2011 shall be in the amount of 66 2/3% of the
400	400	6 retired member's or participant's retirement annuity at the
401	401	7 date of death. In the case of the death of a member or
402	402	8 participant who has not retired and who first became a member
403	403	9 or participant on or after January 1, 2011, eligibility for a
404	404	10 survivor's or widow's annuity shall be determined by the
405	405	11 applicable Article of this Code. The initial benefit shall be
406	406	12 66 2/3% of the earned annuity without a reduction due to age. A
407	407	13 child's annuity of an otherwise eligible child shall be in the
408	408	14 amount prescribed under each Article if applicable. Any
409	409	15 survivor's or widow's annuity shall be increased (1) on each
410	410	16 January 1 occurring on or after the commencement of the
411	411	17 annuity if the deceased member died while receiving a
412	412	18 retirement annuity or (2) in other cases, on each January 1
413	413	19 occurring after the first anniversary of the commencement of
414	414	20 the annuity. Each annual increase shall be calculated at 3% or
415	415	21 one-half the annual unadjusted percentage increase (but not
416	416	22 less than zero) in the consumer price index-u for the 12 months
417	417	23 ending with the September preceding each November 1, whichever
418	418	24 is less, of the originally granted survivor's annuity. If the
419	419	25 annual unadjusted percentage change in the consumer price
420	420	26 index-u for the 12 months ending with the September preceding
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431	431	1 each November 1 is zero or there is a decrease, then the
432	432	2 annuity shall not be increased.
433	433	3 (g) The benefits in Section 14-110 apply if the person is a
434	434	4 fire fighter in the fire protection service of a department, a
435	435	5 security employee of the Department of Corrections or the
436	436	6 Department of Juvenile Justice, or a security employee of the
437	437	7 Department of Innovation and Technology, as those terms are
438	438	8 defined in subsection (b) and subsection (c) of Section
439	439	9 14-110. A person who meets the requirements of this Section is
440	440	10 entitled to an annuity calculated under the provisions of
441	441	11 Section 14-110, in lieu of the regular or minimum retirement
442	442	12 annuity, only if the person has withdrawn from service with
443	443	13 not less than 20 years of eligible creditable service and has
444	444	14 attained age 60, regardless of whether the attainment of age
445	445	15 60 occurs while the person is still in service.
446	446	16 (g-5) The benefits in Section 14-110 apply if the person
447	447	17 is a State policeman, investigator for the Secretary of State,
448	448	18 conservation police officer, investigator for the Department
449	449	19 of Revenue or the Illinois Gaming Board, investigator for the
450	450	20 Office of the Attorney General, Commerce Commission police
451	451	21 officer, or arson investigator, as those terms are defined in
452	452	22 subsection (b) and subsection (c) of Section 14-110. A person
453	453	23 who meets the requirements of this Section is entitled to an
454	454	24 annuity calculated under the provisions of Section 14-110, in
455	455	25 lieu of the regular or minimum retirement annuity, only if the
456	456	26 person has withdrawn from service with not less than 20 years
457	457
458	458
459	459
460	460
461	461
462	462	HB3266 - 12 - LRB103 28897 RPS 55283 b
463	463
464	464
465	465	HB3266- 13 -LRB103 28897 RPS 55283 b HB3266 - 13 - LRB103 28897 RPS 55283 b
466	466	HB3266 - 13 - LRB103 28897 RPS 55283 b
467	467	1 of eligible creditable service and has attained age 55,
468	468	2 regardless of whether the attainment of age 55 occurs while
469	469	3 the person is still in service.
470	470	4 (h) If a person who first becomes a member or a participant
471	471	5 of a retirement system or pension fund subject to this Section
472	472	6 on or after January 1, 2011 is receiving a retirement annuity
473	473	7 or retirement pension under that system or fund and becomes a
474	474	8 member or participant under any other system or fund created
475	475	9 by this Code and is employed on a full-time basis, except for
476	476	10 those members or participants exempted from the provisions of
477	477	11 this Section under subsection (a) of this Section, then the
478	478	12 person's retirement annuity or retirement pension under that
479	479	13 system or fund shall be suspended during that employment. Upon
480	480	14 termination of that employment, the person's retirement
481	481	15 annuity or retirement pension payments shall resume and be
482	482	16 recalculated if recalculation is provided for under the
483	483	17 applicable Article of this Code.
484	484	18 If a person who first becomes a member of a retirement
485	485	19 system or pension fund subject to this Section on or after
486	486	20 January 1, 2012 and is receiving a retirement annuity or
487	487	21 retirement pension under that system or fund and accepts on a
488	488	22 contractual basis a position to provide services to a
489	489	23 governmental entity from which he or she has retired, then
490	490	24 that person's annuity or retirement pension earned as an
491	491	25 active employee of the employer shall be suspended during that
492	492	26 contractual service. A person receiving an annuity or
493	493
494	494
495	495
496	496
497	497
498	498	HB3266 - 13 - LRB103 28897 RPS 55283 b
499	499
500	500
501	501	HB3266- 14 -LRB103 28897 RPS 55283 b HB3266 - 14 - LRB103 28897 RPS 55283 b
502	502	HB3266 - 14 - LRB103 28897 RPS 55283 b
503	503	1 retirement pension under this Code shall notify the pension
504	504	2 fund or retirement system from which he or she is receiving an
505	505	3 annuity or retirement pension, as well as his or her
506	506	4 contractual employer, of his or her retirement status before
507	507	5 accepting contractual employment. A person who fails to submit
508	508	6 such notification shall be guilty of a Class A misdemeanor and
509	509	7 required to pay a fine of $1,000. Upon termination of that
510	510	8 contractual employment, the person's retirement annuity or
511	511	9 retirement pension payments shall resume and, if appropriate,
512	512	10 be recalculated under the applicable provisions of this Code.
513	513	11 (i) (Blank).
514	514	12 (j) In the case of a conflict between the provisions of
515	515	13 this Section and any other provision of this Code, the
516	516	14 provisions of this Section shall control.
517	517	15 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
518	518	16 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
519	519	17 5-6-22.)
520	520	18 (Text of Section from P.A. 102-813)
521	521	19 Sec. 1-160. Provisions applicable to new hires.
522	522	20 (a) The provisions of this Section apply to a person who,
523	523	21 on or after January 1, 2011, first becomes a member or a
524	524	22 participant under any reciprocal retirement system or pension
525	525	23 fund established under this Code, other than a retirement
526	526	24 system or pension fund established under Article 2, 3, 4, 5, 6,
527	527	25 7, 15, or 18 of this Code, notwithstanding any other provision
528	528
529	529
530	530
531	531
532	532
533	533	HB3266 - 14 - LRB103 28897 RPS 55283 b
534	534
535	535
536	536	HB3266- 15 -LRB103 28897 RPS 55283 b HB3266 - 15 - LRB103 28897 RPS 55283 b
537	537	HB3266 - 15 - LRB103 28897 RPS 55283 b
538	538	1 of this Code to the contrary, but do not apply to any
539	539	2 self-managed plan established under this Code or to any
540	540	3 participant of the retirement plan established under Section
541	541	4 22-101; except that this Section applies to a person who
542	542	5 elected to establish alternative credits by electing in
543	543	6 writing after January 1, 2011, but before August 8, 2011,
544	544	7 under Section 7-145.1 of this Code. Notwithstanding anything
545	545	8 to the contrary in this Section, for purposes of this Section,
546	546	9 a person who is a Tier 1 regular employee as defined in Section
547	547	10 7-109.4 of this Code or who participated in a retirement
548	548	11 system under Article 15 prior to January 1, 2011 shall be
549	549	12 deemed a person who first became a member or participant prior
550	550	13 to January 1, 2011 under any retirement system or pension fund
551	551	14 subject to this Section. The changes made to this Section by
552	552	15 Public Act 98-596 are a clarification of existing law and are
553	553	16 intended to be retroactive to January 1, 2011 (the effective
554	554	17 date of Public Act 96-889), notwithstanding the provisions of
555	555	18 Section 1-103.1 of this Code.
556	556	19 This Section does not apply to a person who first becomes a
557	557	20 noncovered employee under Article 14 on or after the
558	558	21 implementation date of the plan created under Section 1-161
559	559	22 for that Article, unless that person elects under subsection
560	560	23 (b) of Section 1-161 to instead receive the benefits provided
561	561	24 under this Section and the applicable provisions of that
562	562	25 Article.
563	563	26 This Section does not apply to a person who first becomes a
564	564
565	565
566	566
567	567
568	568
569	569	HB3266 - 15 - LRB103 28897 RPS 55283 b
570	570
571	571
572	572	HB3266- 16 -LRB103 28897 RPS 55283 b HB3266 - 16 - LRB103 28897 RPS 55283 b
573	573	HB3266 - 16 - LRB103 28897 RPS 55283 b
574	574	1 member or participant under Article 16 on or after the
575	575	2 implementation date of the plan created under Section 1-161
576	576	3 for that Article, unless that person elects under subsection
577	577	4 (b) of Section 1-161 to instead receive the benefits provided
578	578	5 under this Section and the applicable provisions of that
579	579	6 Article.
580	580	7 This Section does not apply to a person who elects under
581	581	8 subsection (c-5) of Section 1-161 to receive the benefits
582	582	9 under Section 1-161.
583	583	10 This Section does not apply to a person who first becomes a
584	584	11 member or participant of an affected pension fund on or after 6
585	585	12 months after the resolution or ordinance date, as defined in
586	586	13 Section 1-162, unless that person elects under subsection (c)
587	587	14 of Section 1-162 to receive the benefits provided under this
588	588	15 Section and the applicable provisions of the Article under
589	589	16 which he or she is a member or participant.
590	590	17 (b) "Final average salary" means, except as otherwise
591	591	18 provided in this subsection, the average monthly (or annual)
592	592	19 salary obtained by dividing the total salary or earnings
593	593	20 calculated under the Article applicable to the member or
594	594	21 participant during the 96 consecutive months (or 8 consecutive
595	595	22 years) of service within the last 120 months (or 10 years) of
596	596	23 service in which the total salary or earnings calculated under
597	597	24 the applicable Article was the highest by the number of months
598	598	25 (or years) of service in that period. For the purposes of a
599	599	26 person who first becomes a member or participant of any
600	600
601	601
602	602
603	603
604	604
605	605	HB3266 - 16 - LRB103 28897 RPS 55283 b
606	606
607	607
608	608	HB3266- 17 -LRB103 28897 RPS 55283 b HB3266 - 17 - LRB103 28897 RPS 55283 b
609	609	HB3266 - 17 - LRB103 28897 RPS 55283 b
610	610	1 retirement system or pension fund to which this Section
611	611	2 applies on or after January 1, 2011, in this Code, "final
612	612	3 average salary" shall be substituted for the following:
613	613	4 (1) (Blank).
614	614	5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
615	615	6 annual salary for any 4 consecutive years within the last
616	616	7 10 years of service immediately preceding the date of
617	617	8 withdrawal".
618	618	9 (3) In Article 13, "average final salary".
619	619	10 (4) In Article 14, "final average compensation".
620	620	11 (5) In Article 17, "average salary".
621	621	12 (6) In Section 22-207, "wages or salary received by
622	622	13 him at the date of retirement or discharge".
623	623	14 A member of the Teachers' Retirement System of the State
624	624	15 of Illinois who retires on or after June 1, 2021 and for whom
625	625	16 the 2020-2021 school year is used in the calculation of the
626	626	17 member's final average salary shall use the higher of the
627	627	18 following for the purpose of determining the member's final
628	628	19 average salary:
629	629	20 (A) the amount otherwise calculated under the first
630	630	21 paragraph of this subsection; or
631	631	22 (B) an amount calculated by the Teachers' Retirement
632	632	23 System of the State of Illinois using the average of the
633	633	24 monthly (or annual) salary obtained by dividing the total
634	634	25 salary or earnings calculated under Article 16 applicable
635	635	26 to the member or participant during the 96 months (or 8
636	636
637	637
638	638
639	639
640	640
641	641	HB3266 - 17 - LRB103 28897 RPS 55283 b
642	642
643	643
644	644	HB3266- 18 -LRB103 28897 RPS 55283 b HB3266 - 18 - LRB103 28897 RPS 55283 b
645	645	HB3266 - 18 - LRB103 28897 RPS 55283 b
646	646	1 years) of service within the last 120 months (or 10 years)
647	647	2 of service in which the total salary or earnings
648	648	3 calculated under the Article was the highest by the number
649	649	4 of months (or years) of service in that period.
650	650	5 (b-5) Except as provided under subsection (b-10),
651	651	6 beginning Beginning on January 1, 2011, for all purposes under
652	652	7 this Code (including without limitation the calculation of
653	653	8 benefits and employee contributions), the annual earnings,
654	654	9 salary, or wages (based on the plan year) of a member or
655	655	10 participant to whom this Section applies shall not exceed
656	656	11 $106,800; however, that amount shall annually thereafter be
657	657	12 increased by the lesser of (i) 3% of that amount, including all
658	658	13 previous adjustments, or (ii) one-half the annual unadjusted
659	659	14 percentage increase (but not less than zero) in the consumer
660	660	15 price index-u for the 12 months ending with the September
661	661	16 preceding each November 1, including all previous adjustments.
662	662	17 For the purposes of this Section, "consumer price index-u"
663	663	18 means the index published by the Bureau of Labor Statistics of
664	664	19 the United States Department of Labor that measures the
665	665	20 average change in prices of goods and services purchased by
666	666	21 all urban consumers, United States city average, all items,
667	667	22 1982-84 = 100. The new amount resulting from each annual
668	668	23 adjustment shall be determined by the Public Pension Division
669	669	24 of the Department of Insurance and made available to the
670	670	25 boards of the retirement systems and pension funds by November
671	671	26 1 of each year.
672	672
673	673
674	674
675	675
676	676
677	677	HB3266 - 18 - LRB103 28897 RPS 55283 b
678	678
679	679
680	680	HB3266- 19 -LRB103 28897 RPS 55283 b HB3266 - 19 - LRB103 28897 RPS 55283 b
681	681	HB3266 - 19 - LRB103 28897 RPS 55283 b
682	682	1 (b-10) Beginning on the effective date of this amendatory
683	683	2 Act of the 103rd General Assembly, for a State policeman to
684	684	3 whom this Section applies and for all purposes under this Code
685	685	4 (including, without limitation, the calculation of benefits
686	686	5 and employee contributions), the annual earnings, salary, or
687	687	6 wages (based on the plan year) of a State policeman shall not
688	688	7 exceed the amount determined by the Social Security
689	689	8 Administration to be the Old-Age, Survivors and Disability
690	690	9 Insurance Contribution and Benefit Base.
691	691	10 (c) A member or participant is entitled to a retirement
692	692	11 annuity upon written application if he or she has attained age
693	693	12 67 (age 65, with respect to service under Article 12 that is
694	694	13 subject to this Section, for a member or participant under
695	695	14 Article 12 who first becomes a member or participant under
696	696	15 Article 12 on or after January 1, 2022 or who makes the
697	697	16 election under item (i) of subsection (d-15) of this Section)
698	698	17 and has at least 10 years of service credit and is otherwise
699	699	18 eligible under the requirements of the applicable Article.
700	700	19 A member or participant who has attained age 62 (age 60,
701	701	20 with respect to service under Article 12 that is subject to
702	702	21 this Section, for a member or participant under Article 12 who
703	703	22 first becomes a member or participant under Article 12 on or
704	704	23 after January 1, 2022 or who makes the election under item (i)
705	705	24 of subsection (d-15) of this Section) and has at least 10 years
706	706	25 of service credit and is otherwise eligible under the
707	707	26 requirements of the applicable Article may elect to receive
708	708
709	709
710	710
711	711
712	712
713	713	HB3266 - 19 - LRB103 28897 RPS 55283 b
714	714
715	715
716	716	HB3266- 20 -LRB103 28897 RPS 55283 b HB3266 - 20 - LRB103 28897 RPS 55283 b
717	717	HB3266 - 20 - LRB103 28897 RPS 55283 b
718	718	1 the lower retirement annuity provided in subsection (d) of
719	719	2 this Section.
720	720	3 (c-5) A person who first becomes a member or a participant
721	721	4 subject to this Section on or after July 6, 2017 (the effective
722	722	5 date of Public Act 100-23), notwithstanding any other
723	723	6 provision of this Code to the contrary, is entitled to a
724	724	7 retirement annuity under Article 8 or Article 11 upon written
725	725	8 application if he or she has attained age 65 and has at least
726	726	9 10 years of service credit and is otherwise eligible under the
727	727	10 requirements of Article 8 or Article 11 of this Code,
728	728	11 whichever is applicable.
729	729	12 (d) The retirement annuity of a member or participant who
730	730	13 is retiring after attaining age 62 (age 60, with respect to
731	731	14 service under Article 12 that is subject to this Section, for a
732	732	15 member or participant under Article 12 who first becomes a
733	733	16 member or participant under Article 12 on or after January 1,
734	734	17 2022 or who makes the election under item (i) of subsection
735	735	18 (d-15) of this Section) with at least 10 years of service
736	736	19 credit shall be reduced by one-half of 1% for each full month
737	737	20 that the member's age is under age 67 (age 65, with respect to
738	738	21 service under Article 12 that is subject to this Section, for a
739	739	22 member or participant under Article 12 who first becomes a
740	740	23 member or participant under Article 12 on or after January 1,
741	741	24 2022 or who makes the election under item (i) of subsection
742	742	25 (d-15) of this Section).
743	743	26 (d-5) The retirement annuity payable under Article 8 or
744	744
745	745
746	746
747	747
748	748
749	749	HB3266 - 20 - LRB103 28897 RPS 55283 b
750	750
751	751
752	752	HB3266- 21 -LRB103 28897 RPS 55283 b HB3266 - 21 - LRB103 28897 RPS 55283 b
753	753	HB3266 - 21 - LRB103 28897 RPS 55283 b
754	754	1 Article 11 to an eligible person subject to subsection (c-5)
755	755	2 of this Section who is retiring at age 60 with at least 10
756	756	3 years of service credit shall be reduced by one-half of 1% for
757	757	4 each full month that the member's age is under age 65.
758	758	5 (d-10) Each person who first became a member or
759	759	6 participant under Article 8 or Article 11 of this Code on or
760	760	7 after January 1, 2011 and prior to July 6, 2017 (the effective
761	761	8 date of Public Act 100-23) shall make an irrevocable election
762	762	9 either:
763	763	10 (i) to be eligible for the reduced retirement age
764	764	11 provided in subsections (c-5) and (d-5) of this Section,
765	765	12 the eligibility for which is conditioned upon the member
766	766	13 or participant agreeing to the increases in employee
767	767	14 contributions for age and service annuities provided in
768	768	15 subsection (a-5) of Section 8-174 of this Code (for
769	769	16 service under Article 8) or subsection (a-5) of Section
770	770	17 11-170 of this Code (for service under Article 11); or
771	771	18 (ii) to not agree to item (i) of this subsection
772	772	19 (d-10), in which case the member or participant shall
773	773	20 continue to be subject to the retirement age provisions in
774	774	21 subsections (c) and (d) of this Section and the employee
775	775	22 contributions for age and service annuity as provided in
776	776	23 subsection (a) of Section 8-174 of this Code (for service
777	777	24 under Article 8) or subsection (a) of Section 11-170 of
778	778	25 this Code (for service under Article 11).
779	779	26 The election provided for in this subsection shall be made
780	780
781	781
782	782
783	783
784	784
785	785	HB3266 - 21 - LRB103 28897 RPS 55283 b
786	786
787	787
788	788	HB3266- 22 -LRB103 28897 RPS 55283 b HB3266 - 22 - LRB103 28897 RPS 55283 b
789	789	HB3266 - 22 - LRB103 28897 RPS 55283 b
790	790	1 between October 1, 2017 and November 15, 2017. A person
791	791	2 subject to this subsection who makes the required election
792	792	3 shall remain bound by that election. A person subject to this
793	793	4 subsection who fails for any reason to make the required
794	794	5 election within the time specified in this subsection shall be
795	795	6 deemed to have made the election under item (ii).
796	796	7 (d-15) Each person who first becomes a member or
797	797	8 participant under Article 12 on or after January 1, 2011 and
798	798	9 prior to January 1, 2022 shall make an irrevocable election
799	799	10 either:
800	800	11 (i) to be eligible for the reduced retirement age
801	801	12 specified in subsections (c) and (d) of this Section, the
802	802	13 eligibility for which is conditioned upon the member or
803	803	14 participant agreeing to the increase in employee
804	804	15 contributions for service annuities specified in
805	805	16 subsection (b) of Section 12-150; or
806	806	17 (ii) to not agree to item (i) of this subsection
807	807	18 (d-15), in which case the member or participant shall not
808	808	19 be eligible for the reduced retirement age specified in
809	809	20 subsections (c) and (d) of this Section and shall not be
810	810	21 subject to the increase in employee contributions for
811	811	22 service annuities specified in subsection (b) of Section
812	812	23 12-150.
813	813	24 The election provided for in this subsection shall be made
814	814	25 between January 1, 2022 and April 1, 2022. A person subject to
815	815	26 this subsection who makes the required election shall remain
816	816
817	817
818	818
819	819
820	820
821	821	HB3266 - 22 - LRB103 28897 RPS 55283 b
822	822
823	823
824	824	HB3266- 23 -LRB103 28897 RPS 55283 b HB3266 - 23 - LRB103 28897 RPS 55283 b
825	825	HB3266 - 23 - LRB103 28897 RPS 55283 b
826	826	1 bound by that election. A person subject to this subsection
827	827	2 who fails for any reason to make the required election within
828	828	3 the time specified in this subsection shall be deemed to have
829	829	4 made the election under item (ii).
830	830	5 (e) Any retirement annuity or supplemental annuity shall
831	831	6 be subject to annual increases on the January 1 occurring
832	832	7 either on or after the attainment of age 67 (age 65, with
833	833	8 respect to service under Article 12 that is subject to this
834	834	9 Section, for a member or participant under Article 12 who
835	835	10 first becomes a member or participant under Article 12 on or
836	836	11 after January 1, 2022 or who makes the election under item (i)
837	837	12 of subsection (d-15); and beginning on July 6, 2017 (the
838	838	13 effective date of Public Act 100-23), age 65 with respect to
839	839	14 service under Article 8 or Article 11 for eligible persons
840	840	15 who: (i) are subject to subsection (c-5) of this Section; or
841	841	16 (ii) made the election under item (i) of subsection (d-10) of
842	842	17 this Section) or the first anniversary of the annuity start
843	843	18 date, whichever is later. Each annual increase shall be
844	844	19 calculated at 3% or one-half the annual unadjusted percentage
845	845	20 increase (but not less than zero) in the consumer price
846	846	21 index-u for the 12 months ending with the September preceding
847	847	22 each November 1, whichever is less, of the originally granted
848	848	23 retirement annuity. If the annual unadjusted percentage change
849	849	24 in the consumer price index-u for the 12 months ending with the
850	850	25 September preceding each November 1 is zero or there is a
851	851	26 decrease, then the annuity shall not be increased.
852	852
853	853
854	854
855	855
856	856
857	857	HB3266 - 23 - LRB103 28897 RPS 55283 b
858	858
859	859
860	860	HB3266- 24 -LRB103 28897 RPS 55283 b HB3266 - 24 - LRB103 28897 RPS 55283 b
861	861	HB3266 - 24 - LRB103 28897 RPS 55283 b
862	862	1 For the purposes of Section 1-103.1 of this Code, the
863	863	2 changes made to this Section by Public Act 102-263 are
864	864	3 applicable without regard to whether the employee was in
865	865	4 active service on or after August 6, 2021 (the effective date
866	866	5 of Public Act 102-263).
867	867	6 For the purposes of Section 1-103.1 of this Code, the
868	868	7 changes made to this Section by Public Act 100-23 are
869	869	8 applicable without regard to whether the employee was in
870	870	9 active service on or after July 6, 2017 (the effective date of
871	871	10 Public Act 100-23).
872	872	11 (f) The initial survivor's or widow's annuity of an
873	873	12 otherwise eligible survivor or widow of a retired member or
874	874	13 participant who first became a member or participant on or
875	875	14 after January 1, 2011 shall be in the amount of 66 2/3% of the
876	876	15 retired member's or participant's retirement annuity at the
877	877	16 date of death. In the case of the death of a member or
878	878	17 participant who has not retired and who first became a member
879	879	18 or participant on or after January 1, 2011, eligibility for a
880	880	19 survivor's or widow's annuity shall be determined by the
881	881	20 applicable Article of this Code. The initial benefit shall be
882	882	21 66 2/3% of the earned annuity without a reduction due to age. A
883	883	22 child's annuity of an otherwise eligible child shall be in the
884	884	23 amount prescribed under each Article if applicable. Any
885	885	24 survivor's or widow's annuity shall be increased (1) on each
886	886	25 January 1 occurring on or after the commencement of the
887	887	26 annuity if the deceased member died while receiving a
888	888
889	889
890	890
891	891
892	892
893	893	HB3266 - 24 - LRB103 28897 RPS 55283 b
894	894
895	895
896	896	HB3266- 25 -LRB103 28897 RPS 55283 b HB3266 - 25 - LRB103 28897 RPS 55283 b
897	897	HB3266 - 25 - LRB103 28897 RPS 55283 b
898	898	1 retirement annuity or (2) in other cases, on each January 1
899	899	2 occurring after the first anniversary of the commencement of
900	900	3 the annuity. Each annual increase shall be calculated at 3% or
901	901	4 one-half the annual unadjusted percentage increase (but not
902	902	5 less than zero) in the consumer price index-u for the 12 months
903	903	6 ending with the September preceding each November 1, whichever
904	904	7 is less, of the originally granted survivor's annuity. If the
905	905	8 annual unadjusted percentage change in the consumer price
906	906	9 index-u for the 12 months ending with the September preceding
907	907	10 each November 1 is zero or there is a decrease, then the
908	908	11 annuity shall not be increased.
909	909	12 (g) The benefits in Section 14-110 apply only if the
910	910	13 person is a State policeman, a fire fighter in the fire
911	911	14 protection service of a department, a conservation police
912	912	15 officer, an investigator for the Secretary of State, an arson
913	913	16 investigator, a Commerce Commission police officer,
914	914	17 investigator for the Department of Revenue or the Illinois
915	915	18 Gaming Board, a security employee of the Department of
916	916	19 Corrections or the Department of Juvenile Justice, or a
917	917	20 security employee of the Department of Innovation and
918	918	21 Technology, as those terms are defined in subsection (b) and
919	919	22 subsection (c) of Section 14-110. A person who meets the
920	920	23 requirements of this Section is entitled to an annuity
921	921	24 calculated under the provisions of Section 14-110, in lieu of
922	922	25 the regular or minimum retirement annuity, only if the person
923	923	26 has withdrawn from service with not less than 20 years of
924	924
925	925
926	926
927	927
928	928
929	929	HB3266 - 25 - LRB103 28897 RPS 55283 b
930	930
931	931
932	932	HB3266- 26 -LRB103 28897 RPS 55283 b HB3266 - 26 - LRB103 28897 RPS 55283 b
933	933	HB3266 - 26 - LRB103 28897 RPS 55283 b
934	934	1 eligible creditable service and has attained age 60,
935	935	2 regardless of whether the attainment of age 60 occurs while
936	936	3 the person is still in service.
937	937	4 (h) If a person who first becomes a member or a participant
938	938	5 of a retirement system or pension fund subject to this Section
939	939	6 on or after January 1, 2011 is receiving a retirement annuity
940	940	7 or retirement pension under that system or fund and becomes a
941	941	8 member or participant under any other system or fund created
942	942	9 by this Code and is employed on a full-time basis, except for
943	943	10 those members or participants exempted from the provisions of
944	944	11 this Section under subsection (a) of this Section, then the
945	945	12 person's retirement annuity or retirement pension under that
946	946	13 system or fund shall be suspended during that employment. Upon
947	947	14 termination of that employment, the person's retirement
948	948	15 annuity or retirement pension payments shall resume and be
949	949	16 recalculated if recalculation is provided for under the
950	950	17 applicable Article of this Code.
951	951	18 If a person who first becomes a member of a retirement
952	952	19 system or pension fund subject to this Section on or after
953	953	20 January 1, 2012 and is receiving a retirement annuity or
954	954	21 retirement pension under that system or fund and accepts on a
955	955	22 contractual basis a position to provide services to a
956	956	23 governmental entity from which he or she has retired, then
957	957	24 that person's annuity or retirement pension earned as an
958	958	25 active employee of the employer shall be suspended during that
959	959	26 contractual service. A person receiving an annuity or
960	960
961	961
962	962
963	963
964	964
965	965	HB3266 - 26 - LRB103 28897 RPS 55283 b
966	966
967	967
968	968	HB3266- 27 -LRB103 28897 RPS 55283 b HB3266 - 27 - LRB103 28897 RPS 55283 b
969	969	HB3266 - 27 - LRB103 28897 RPS 55283 b
970	970	1 retirement pension under this Code shall notify the pension
971	971	2 fund or retirement system from which he or she is receiving an
972	972	3 annuity or retirement pension, as well as his or her
973	973	4 contractual employer, of his or her retirement status before
974	974	5 accepting contractual employment. A person who fails to submit
975	975	6 such notification shall be guilty of a Class A misdemeanor and
976	976	7 required to pay a fine of $1,000. Upon termination of that
977	977	8 contractual employment, the person's retirement annuity or
978	978	9 retirement pension payments shall resume and, if appropriate,
979	979	10 be recalculated under the applicable provisions of this Code.
980	980	11 (i) (Blank).
981	981	12 (j) In the case of a conflict between the provisions of
982	982	13 this Section and any other provision of this Code, the
983	983	14 provisions of this Section shall control.
984	984	15 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
985	985	16 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
986	986	17 5-13-22.)
987	987	18 (Text of Section from P.A. 102-956)
988	988	19 Sec. 1-160. Provisions applicable to new hires.
989	989	20 (a) The provisions of this Section apply to a person who,
990	990	21 on or after January 1, 2011, first becomes a member or a
991	991	22 participant under any reciprocal retirement system or pension
992	992	23 fund established under this Code, other than a retirement
993	993	24 system or pension fund established under Article 2, 3, 4, 5, 6,
994	994	25 7, 15, or 18 of this Code, notwithstanding any other provision
995	995
996	996
997	997
998	998
999	999
1000	1000	HB3266 - 27 - LRB103 28897 RPS 55283 b
1001	1001
1002	1002
1003	1003	HB3266- 28 -LRB103 28897 RPS 55283 b HB3266 - 28 - LRB103 28897 RPS 55283 b
1004	1004	HB3266 - 28 - LRB103 28897 RPS 55283 b
1005	1005	1 of this Code to the contrary, but do not apply to any
1006	1006	2 self-managed plan established under this Code or to any
1007	1007	3 participant of the retirement plan established under Section
1008	1008	4 22-101; except that this Section applies to a person who
1009	1009	5 elected to establish alternative credits by electing in
1010	1010	6 writing after January 1, 2011, but before August 8, 2011,
1011	1011	7 under Section 7-145.1 of this Code. Notwithstanding anything
1012	1012	8 to the contrary in this Section, for purposes of this Section,
1013	1013	9 a person who is a Tier 1 regular employee as defined in Section
1014	1014	10 7-109.4 of this Code or who participated in a retirement
1015	1015	11 system under Article 15 prior to January 1, 2011 shall be
1016	1016	12 deemed a person who first became a member or participant prior
1017	1017	13 to January 1, 2011 under any retirement system or pension fund
1018	1018	14 subject to this Section. The changes made to this Section by
1019	1019	15 Public Act 98-596 are a clarification of existing law and are
1020	1020	16 intended to be retroactive to January 1, 2011 (the effective
1021	1021	17 date of Public Act 96-889), notwithstanding the provisions of
1022	1022	18 Section 1-103.1 of this Code.
1023	1023	19 This Section does not apply to a person who first becomes a
1024	1024	20 noncovered employee under Article 14 on or after the
1025	1025	21 implementation date of the plan created under Section 1-161
1026	1026	22 for that Article, unless that person elects under subsection
1027	1027	23 (b) of Section 1-161 to instead receive the benefits provided
1028	1028	24 under this Section and the applicable provisions of that
1029	1029	25 Article.
1030	1030	26 This Section does not apply to a person who first becomes a
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035
1036	1036	HB3266 - 28 - LRB103 28897 RPS 55283 b
1037	1037
1038	1038
1039	1039	HB3266- 29 -LRB103 28897 RPS 55283 b HB3266 - 29 - LRB103 28897 RPS 55283 b
1040	1040	HB3266 - 29 - LRB103 28897 RPS 55283 b
1041	1041	1 member or participant under Article 16 on or after the
1042	1042	2 implementation date of the plan created under Section 1-161
1043	1043	3 for that Article, unless that person elects under subsection
1044	1044	4 (b) of Section 1-161 to instead receive the benefits provided
1045	1045	5 under this Section and the applicable provisions of that
1046	1046	6 Article.
1047	1047	7 This Section does not apply to a person who elects under
1048	1048	8 subsection (c-5) of Section 1-161 to receive the benefits
1049	1049	9 under Section 1-161.
1050	1050	10 This Section does not apply to a person who first becomes a
1051	1051	11 member or participant of an affected pension fund on or after 6
1052	1052	12 months after the resolution or ordinance date, as defined in
1053	1053	13 Section 1-162, unless that person elects under subsection (c)
1054	1054	14 of Section 1-162 to receive the benefits provided under this
1055	1055	15 Section and the applicable provisions of the Article under
1056	1056	16 which he or she is a member or participant.
1057	1057	17 (b) "Final average salary" means, except as otherwise
1058	1058	18 provided in this subsection, the average monthly (or annual)
1059	1059	19 salary obtained by dividing the total salary or earnings
1060	1060	20 calculated under the Article applicable to the member or
1061	1061	21 participant during the 96 consecutive months (or 8 consecutive
1062	1062	22 years) of service within the last 120 months (or 10 years) of
1063	1063	23 service in which the total salary or earnings calculated under
1064	1064	24 the applicable Article was the highest by the number of months
1065	1065	25 (or years) of service in that period. For the purposes of a
1066	1066	26 person who first becomes a member or participant of any
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071
1072	1072	HB3266 - 29 - LRB103 28897 RPS 55283 b
1073	1073
1074	1074
1075	1075	HB3266- 30 -LRB103 28897 RPS 55283 b HB3266 - 30 - LRB103 28897 RPS 55283 b
1076	1076	HB3266 - 30 - LRB103 28897 RPS 55283 b
1077	1077	1 retirement system or pension fund to which this Section
1078	1078	2 applies on or after January 1, 2011, in this Code, "final
1079	1079	3 average salary" shall be substituted for the following:
1080	1080	4 (1) (Blank).
1081	1081	5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1082	1082	6 annual salary for any 4 consecutive years within the last
1083	1083	7 10 years of service immediately preceding the date of
1084	1084	8 withdrawal".
1085	1085	9 (3) In Article 13, "average final salary".
1086	1086	10 (4) In Article 14, "final average compensation".
1087	1087	11 (5) In Article 17, "average salary".
1088	1088	12 (6) In Section 22-207, "wages or salary received by
1089	1089	13 him at the date of retirement or discharge".
1090	1090	14 A member of the Teachers' Retirement System of the State
1091	1091	15 of Illinois who retires on or after June 1, 2021 and for whom
1092	1092	16 the 2020-2021 school year is used in the calculation of the
1093	1093	17 member's final average salary shall use the higher of the
1094	1094	18 following for the purpose of determining the member's final
1095	1095	19 average salary:
1096	1096	20 (A) the amount otherwise calculated under the first
1097	1097	21 paragraph of this subsection; or
1098	1098	22 (B) an amount calculated by the Teachers' Retirement
1099	1099	23 System of the State of Illinois using the average of the
1100	1100	24 monthly (or annual) salary obtained by dividing the total
1101	1101	25 salary or earnings calculated under Article 16 applicable
1102	1102	26 to the member or participant during the 96 months (or 8
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107
1108	1108	HB3266 - 30 - LRB103 28897 RPS 55283 b
1109	1109
1110	1110
1111	1111	HB3266- 31 -LRB103 28897 RPS 55283 b HB3266 - 31 - LRB103 28897 RPS 55283 b
1112	1112	HB3266 - 31 - LRB103 28897 RPS 55283 b
1113	1113	1 years) of service within the last 120 months (or 10 years)
1114	1114	2 of service in which the total salary or earnings
1115	1115	3 calculated under the Article was the highest by the number
1116	1116	4 of months (or years) of service in that period.
1117	1117	5 (b-5) Except as provided under subsection (b-10),
1118	1118	6 beginning Beginning on January 1, 2011, for all purposes under
1119	1119	7 this Code (including without limitation the calculation of
1120	1120	8 benefits and employee contributions), the annual earnings,
1121	1121	9 salary, or wages (based on the plan year) of a member or
1122	1122	10 participant to whom this Section applies shall not exceed
1123	1123	11 $106,800; however, that amount shall annually thereafter be
1124	1124	12 increased by the lesser of (i) 3% of that amount, including all
1125	1125	13 previous adjustments, or (ii) one-half the annual unadjusted
1126	1126	14 percentage increase (but not less than zero) in the consumer
1127	1127	15 price index-u for the 12 months ending with the September
1128	1128	16 preceding each November 1, including all previous adjustments.
1129	1129	17 For the purposes of this Section, "consumer price index-u"
1130	1130	18 means the index published by the Bureau of Labor Statistics of
1131	1131	19 the United States Department of Labor that measures the
1132	1132	20 average change in prices of goods and services purchased by
1133	1133	21 all urban consumers, United States city average, all items,
1134	1134	22 1982-84 = 100. The new amount resulting from each annual
1135	1135	23 adjustment shall be determined by the Public Pension Division
1136	1136	24 of the Department of Insurance and made available to the
1137	1137	25 boards of the retirement systems and pension funds by November
1138	1138	26 1 of each year.
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143
1144	1144	HB3266 - 31 - LRB103 28897 RPS 55283 b
1145	1145
1146	1146
1147	1147	HB3266- 32 -LRB103 28897 RPS 55283 b HB3266 - 32 - LRB103 28897 RPS 55283 b
1148	1148	HB3266 - 32 - LRB103 28897 RPS 55283 b
1149	1149	1 (b-10) Beginning on the effective date of this amendatory
1150	1150	2 Act of the 103rd General Assembly, for a State policeman to
1151	1151	3 whom this Section applies and for all purposes under this Code
1152	1152	4 (including, without limitation, the calculation of benefits
1153	1153	5 and employee contributions), the annual earnings, salary, or
1154	1154	6 wages (based on the plan year) of a State policeman shall not
1155	1155	7 exceed the amount determined by the Social Security
1156	1156	8 Administration to be the Old-Age, Survivors and Disability
1157	1157	9 Insurance Contribution and Benefit Base.
1158	1158	10 (c) A member or participant is entitled to a retirement
1159	1159	11 annuity upon written application if he or she has attained age
1160	1160	12 67 (age 65, with respect to service under Article 12 that is
1161	1161	13 subject to this Section, for a member or participant under
1162	1162	14 Article 12 who first becomes a member or participant under
1163	1163	15 Article 12 on or after January 1, 2022 or who makes the
1164	1164	16 election under item (i) of subsection (d-15) of this Section)
1165	1165	17 and has at least 10 years of service credit and is otherwise
1166	1166	18 eligible under the requirements of the applicable Article.
1167	1167	19 A member or participant who has attained age 62 (age 60,
1168	1168	20 with respect to service under Article 12 that is subject to
1169	1169	21 this Section, for a member or participant under Article 12 who
1170	1170	22 first becomes a member or participant under Article 12 on or
1171	1171	23 after January 1, 2022 or who makes the election under item (i)
1172	1172	24 of subsection (d-15) of this Section) and has at least 10 years
1173	1173	25 of service credit and is otherwise eligible under the
1174	1174	26 requirements of the applicable Article may elect to receive
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179
1180	1180	HB3266 - 32 - LRB103 28897 RPS 55283 b
1181	1181
1182	1182
1183	1183	HB3266- 33 -LRB103 28897 RPS 55283 b HB3266 - 33 - LRB103 28897 RPS 55283 b
1184	1184	HB3266 - 33 - LRB103 28897 RPS 55283 b
1185	1185	1 the lower retirement annuity provided in subsection (d) of
1186	1186	2 this Section.
1187	1187	3 (c-5) A person who first becomes a member or a participant
1188	1188	4 subject to this Section on or after July 6, 2017 (the effective
1189	1189	5 date of Public Act 100-23), notwithstanding any other
1190	1190	6 provision of this Code to the contrary, is entitled to a
1191	1191	7 retirement annuity under Article 8 or Article 11 upon written
1192	1192	8 application if he or she has attained age 65 and has at least
1193	1193	9 10 years of service credit and is otherwise eligible under the
1194	1194	10 requirements of Article 8 or Article 11 of this Code,
1195	1195	11 whichever is applicable.
1196	1196	12 (d) The retirement annuity of a member or participant who
1197	1197	13 is retiring after attaining age 62 (age 60, with respect to
1198	1198	14 service under Article 12 that is subject to this Section, for a
1199	1199	15 member or participant under Article 12 who first becomes a
1200	1200	16 member or participant under Article 12 on or after January 1,
1201	1201	17 2022 or who makes the election under item (i) of subsection
1202	1202	18 (d-15) of this Section) with at least 10 years of service
1203	1203	19 credit shall be reduced by one-half of 1% for each full month
1204	1204	20 that the member's age is under age 67 (age 65, with respect to
1205	1205	21 service under Article 12 that is subject to this Section, for a
1206	1206	22 member or participant under Article 12 who first becomes a
1207	1207	23 member or participant under Article 12 on or after January 1,
1208	1208	24 2022 or who makes the election under item (i) of subsection
1209	1209	25 (d-15) of this Section).
1210	1210	26 (d-5) The retirement annuity payable under Article 8 or
1211	1211
1212	1212
1213	1213
1214	1214
1215	1215
1216	1216	HB3266 - 33 - LRB103 28897 RPS 55283 b
1217	1217
1218	1218
1219	1219	HB3266- 34 -LRB103 28897 RPS 55283 b HB3266 - 34 - LRB103 28897 RPS 55283 b
1220	1220	HB3266 - 34 - LRB103 28897 RPS 55283 b
1221	1221	1 Article 11 to an eligible person subject to subsection (c-5)
1222	1222	2 of this Section who is retiring at age 60 with at least 10
1223	1223	3 years of service credit shall be reduced by one-half of 1% for
1224	1224	4 each full month that the member's age is under age 65.
1225	1225	5 (d-10) Each person who first became a member or
1226	1226	6 participant under Article 8 or Article 11 of this Code on or
1227	1227	7 after January 1, 2011 and prior to July 6, 2017 (the effective
1228	1228	8 date of Public Act 100-23) shall make an irrevocable election
1229	1229	9 either:
1230	1230	10 (i) to be eligible for the reduced retirement age
1231	1231	11 provided in subsections (c-5) and (d-5) of this Section,
1232	1232	12 the eligibility for which is conditioned upon the member
1233	1233	13 or participant agreeing to the increases in employee
1234	1234	14 contributions for age and service annuities provided in
1235	1235	15 subsection (a-5) of Section 8-174 of this Code (for
1236	1236	16 service under Article 8) or subsection (a-5) of Section
1237	1237	17 11-170 of this Code (for service under Article 11); or
1238	1238	18 (ii) to not agree to item (i) of this subsection
1239	1239	19 (d-10), in which case the member or participant shall
1240	1240	20 continue to be subject to the retirement age provisions in
1241	1241	21 subsections (c) and (d) of this Section and the employee
1242	1242	22 contributions for age and service annuity as provided in
1243	1243	23 subsection (a) of Section 8-174 of this Code (for service
1244	1244	24 under Article 8) or subsection (a) of Section 11-170 of
1245	1245	25 this Code (for service under Article 11).
1246	1246	26 The election provided for in this subsection shall be made
1247	1247
1248	1248
1249	1249
1250	1250
1251	1251
1252	1252	HB3266 - 34 - LRB103 28897 RPS 55283 b
1253	1253
1254	1254
1255	1255	HB3266- 35 -LRB103 28897 RPS 55283 b HB3266 - 35 - LRB103 28897 RPS 55283 b
1256	1256	HB3266 - 35 - LRB103 28897 RPS 55283 b
1257	1257	1 between October 1, 2017 and November 15, 2017. A person
1258	1258	2 subject to this subsection who makes the required election
1259	1259	3 shall remain bound by that election. A person subject to this
1260	1260	4 subsection who fails for any reason to make the required
1261	1261	5 election within the time specified in this subsection shall be
1262	1262	6 deemed to have made the election under item (ii).
1263	1263	7 (d-15) Each person who first becomes a member or
1264	1264	8 participant under Article 12 on or after January 1, 2011 and
1265	1265	9 prior to January 1, 2022 shall make an irrevocable election
1266	1266	10 either:
1267	1267	11 (i) to be eligible for the reduced retirement age
1268	1268	12 specified in subsections (c) and (d) of this Section, the
1269	1269	13 eligibility for which is conditioned upon the member or
1270	1270	14 participant agreeing to the increase in employee
1271	1271	15 contributions for service annuities specified in
1272	1272	16 subsection (b) of Section 12-150; or
1273	1273	17 (ii) to not agree to item (i) of this subsection
1274	1274	18 (d-15), in which case the member or participant shall not
1275	1275	19 be eligible for the reduced retirement age specified in
1276	1276	20 subsections (c) and (d) of this Section and shall not be
1277	1277	21 subject to the increase in employee contributions for
1278	1278	22 service annuities specified in subsection (b) of Section
1279	1279	23 12-150.
1280	1280	24 The election provided for in this subsection shall be made
1281	1281	25 between January 1, 2022 and April 1, 2022. A person subject to
1282	1282	26 this subsection who makes the required election shall remain
1283	1283
1284	1284
1285	1285
1286	1286
1287	1287
1288	1288	HB3266 - 35 - LRB103 28897 RPS 55283 b
1289	1289
1290	1290
1291	1291	HB3266- 36 -LRB103 28897 RPS 55283 b HB3266 - 36 - LRB103 28897 RPS 55283 b
1292	1292	HB3266 - 36 - LRB103 28897 RPS 55283 b
1293	1293	1 bound by that election. A person subject to this subsection
1294	1294	2 who fails for any reason to make the required election within
1295	1295	3 the time specified in this subsection shall be deemed to have
1296	1296	4 made the election under item (ii).
1297	1297	5 (e) Any retirement annuity or supplemental annuity shall
1298	1298	6 be subject to annual increases on the January 1 occurring
1299	1299	7 either on or after the attainment of age 67 (age 65, with
1300	1300	8 respect to service under Article 12 that is subject to this
1301	1301	9 Section, for a member or participant under Article 12 who
1302	1302	10 first becomes a member or participant under Article 12 on or
1303	1303	11 after January 1, 2022 or who makes the election under item (i)
1304	1304	12 of subsection (d-15); and beginning on July 6, 2017 (the
1305	1305	13 effective date of Public Act 100-23), age 65 with respect to
1306	1306	14 service under Article 8 or Article 11 for eligible persons
1307	1307	15 who: (i) are subject to subsection (c-5) of this Section; or
1308	1308	16 (ii) made the election under item (i) of subsection (d-10) of
1309	1309	17 this Section) or the first anniversary of the annuity start
1310	1310	18 date, whichever is later. Each annual increase shall be
1311	1311	19 calculated at 3% or one-half the annual unadjusted percentage
1312	1312	20 increase (but not less than zero) in the consumer price
1313	1313	21 index-u for the 12 months ending with the September preceding
1314	1314	22 each November 1, whichever is less, of the originally granted
1315	1315	23 retirement annuity. If the annual unadjusted percentage change
1316	1316	24 in the consumer price index-u for the 12 months ending with the
1317	1317	25 September preceding each November 1 is zero or there is a
1318	1318	26 decrease, then the annuity shall not be increased.
1319	1319
1320	1320
1321	1321
1322	1322
1323	1323
1324	1324	HB3266 - 36 - LRB103 28897 RPS 55283 b
1325	1325
1326	1326
1327	1327	HB3266- 37 -LRB103 28897 RPS 55283 b HB3266 - 37 - LRB103 28897 RPS 55283 b
1328	1328	HB3266 - 37 - LRB103 28897 RPS 55283 b
1329	1329	1 For the purposes of Section 1-103.1 of this Code, the
1330	1330	2 changes made to this Section by Public Act 102-263 are
1331	1331	3 applicable without regard to whether the employee was in
1332	1332	4 active service on or after August 6, 2021 (the effective date
1333	1333	5 of Public Act 102-263).
1334	1334	6 For the purposes of Section 1-103.1 of this Code, the
1335	1335	7 changes made to this Section by Public Act 100-23 are
1336	1336	8 applicable without regard to whether the employee was in
1337	1337	9 active service on or after July 6, 2017 (the effective date of
1338	1338	10 Public Act 100-23).
1339	1339	11 (f) The initial survivor's or widow's annuity of an
1340	1340	12 otherwise eligible survivor or widow of a retired member or
1341	1341	13 participant who first became a member or participant on or
1342	1342	14 after January 1, 2011 shall be in the amount of 66 2/3% of the
1343	1343	15 retired member's or participant's retirement annuity at the
1344	1344	16 date of death. In the case of the death of a member or
1345	1345	17 participant who has not retired and who first became a member
1346	1346	18 or participant on or after January 1, 2011, eligibility for a
1347	1347	19 survivor's or widow's annuity shall be determined by the
1348	1348	20 applicable Article of this Code. The initial benefit shall be
1349	1349	21 66 2/3% of the earned annuity without a reduction due to age. A
1350	1350	22 child's annuity of an otherwise eligible child shall be in the
1351	1351	23 amount prescribed under each Article if applicable. Any
1352	1352	24 survivor's or widow's annuity shall be increased (1) on each
1353	1353	25 January 1 occurring on or after the commencement of the
1354	1354	26 annuity if the deceased member died while receiving a
1355	1355
1356	1356
1357	1357
1358	1358
1359	1359
1360	1360	HB3266 - 37 - LRB103 28897 RPS 55283 b
1361	1361
1362	1362
1363	1363	HB3266- 38 -LRB103 28897 RPS 55283 b HB3266 - 38 - LRB103 28897 RPS 55283 b
1364	1364	HB3266 - 38 - LRB103 28897 RPS 55283 b
1365	1365	1 retirement annuity or (2) in other cases, on each January 1
1366	1366	2 occurring after the first anniversary of the commencement of
1367	1367	3 the annuity. Each annual increase shall be calculated at 3% or
1368	1368	4 one-half the annual unadjusted percentage increase (but not
1369	1369	5 less than zero) in the consumer price index-u for the 12 months
1370	1370	6 ending with the September preceding each November 1, whichever
1371	1371	7 is less, of the originally granted survivor's annuity. If the
1372	1372	8 annual unadjusted percentage change in the consumer price
1373	1373	9 index-u for the 12 months ending with the September preceding
1374	1374	10 each November 1 is zero or there is a decrease, then the
1375	1375	11 annuity shall not be increased.
1376	1376	12 (g) The benefits in Section 14-110 apply only if the
1377	1377	13 person is a State policeman, a fire fighter in the fire
1378	1378	14 protection service of a department, a conservation police
1379	1379	15 officer, an investigator for the Secretary of State, an
1380	1380	16 investigator for the Office of the Attorney General, an arson
1381	1381	17 investigator, a Commerce Commission police officer,
1382	1382	18 investigator for the Department of Revenue or the Illinois
1383	1383	19 Gaming Board, a security employee of the Department of
1384	1384	20 Corrections or the Department of Juvenile Justice, or a
1385	1385	21 security employee of the Department of Innovation and
1386	1386	22 Technology, as those terms are defined in subsection (b) and
1387	1387	23 subsection (c) of Section 14-110. A person who meets the
1388	1388	24 requirements of this Section is entitled to an annuity
1389	1389	25 calculated under the provisions of Section 14-110, in lieu of
1390	1390	26 the regular or minimum retirement annuity, only if the person
1391	1391
1392	1392
1393	1393
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1401	1401	1 has withdrawn from service with not less than 20 years of
1402	1402	2 eligible creditable service and has attained age 60,
1403	1403	3 regardless of whether the attainment of age 60 occurs while
1404	1404	4 the person is still in service.
1405	1405	5 (h) If a person who first becomes a member or a participant
1406	1406	6 of a retirement system or pension fund subject to this Section
1407	1407	7 on or after January 1, 2011 is receiving a retirement annuity
1408	1408	8 or retirement pension under that system or fund and becomes a
1409	1409	9 member or participant under any other system or fund created
1410	1410	10 by this Code and is employed on a full-time basis, except for
1411	1411	11 those members or participants exempted from the provisions of
1412	1412	12 this Section under subsection (a) of this Section, then the
1413	1413	13 person's retirement annuity or retirement pension under that
1414	1414	14 system or fund shall be suspended during that employment. Upon
1415	1415	15 termination of that employment, the person's retirement
1416	1416	16 annuity or retirement pension payments shall resume and be
1417	1417	17 recalculated if recalculation is provided for under the
1418	1418	18 applicable Article of this Code.
1419	1419	19 If a person who first becomes a member of a retirement
1420	1420	20 system or pension fund subject to this Section on or after
1421	1421	21 January 1, 2012 and is receiving a retirement annuity or
1422	1422	22 retirement pension under that system or fund and accepts on a
1423	1423	23 contractual basis a position to provide services to a
1424	1424	24 governmental entity from which he or she has retired, then
1425	1425	25 that person's annuity or retirement pension earned as an
1426	1426	26 active employee of the employer shall be suspended during that
1427	1427
1428	1428
1429	1429
1430	1430
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1437	1437	1 contractual service. A person receiving an annuity or
1438	1438	2 retirement pension under this Code shall notify the pension
1439	1439	3 fund or retirement system from which he or she is receiving an
1440	1440	4 annuity or retirement pension, as well as his or her
1441	1441	5 contractual employer, of his or her retirement status before
1442	1442	6 accepting contractual employment. A person who fails to submit
1443	1443	7 such notification shall be guilty of a Class A misdemeanor and
1444	1444	8 required to pay a fine of $1,000. Upon termination of that
1445	1445	9 contractual employment, the person's retirement annuity or
1446	1446	10 retirement pension payments shall resume and, if appropriate,
1447	1447	11 be recalculated under the applicable provisions of this Code.
1448	1448	12 (i) (Blank).
1449	1449	13 (j) In the case of a conflict between the provisions of
1450	1450	14 this Section and any other provision of this Code, the
1451	1451	15 provisions of this Section shall control.
1452	1452	16 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1453	1453	17 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
1454	1454	18 5-27-22.)
1455	1455	19 (40 ILCS 5/14-152.1)
1456	1456	20 Sec. 14-152.1. Application and expiration of new benefit
1457	1457	21 increases.
1458	1458	22 (a) As used in this Section, "new benefit increase" means
1459	1459	23 an increase in the amount of any benefit provided under this
1460	1460	24 Article, or an expansion of the conditions of eligibility for
1461	1461	25 any benefit under this Article, that results from an amendment
1462	1462
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1472	1472	1 to this Code that takes effect after June 1, 2005 (the
1473	1473	2 effective date of Public Act 94-4). "New benefit increase",
1474	1474	3 however, does not include any benefit increase resulting from
1475	1475	4 the changes made to Article 1 or this Article by Public Act
1476	1476	5 96-37, Public Act 100-23, Public Act 100-587, Public Act
1477	1477	6 100-611, Public Act 101-10, Public Act 101-610, Public Act
1478	1478	7 102-210, Public Act 102-856, Public Act 102-956, or this
1479	1479	8 amendatory Act of the 103rd General Assembly this amendatory
1480	1480	9 Act of the 102nd General Assembly.
1481	1481	10 (b) Notwithstanding any other provision of this Code or
1482	1482	11 any subsequent amendment to this Code, every new benefit
1483	1483	12 increase is subject to this Section and shall be deemed to be
1484	1484	13 granted only in conformance with and contingent upon
1485	1485	14 compliance with the provisions of this Section.
1486	1486	15 (c) The Public Act enacting a new benefit increase must
1487	1487	16 identify and provide for payment to the System of additional
1488	1488	17 funding at least sufficient to fund the resulting annual
1489	1489	18 increase in cost to the System as it accrues.
1490	1490	19 Every new benefit increase is contingent upon the General
1491	1491	20 Assembly providing the additional funding required under this
1492	1492	21 subsection. The Commission on Government Forecasting and
1493	1493	22 Accountability shall analyze whether adequate additional
1494	1494	23 funding has been provided for the new benefit increase and
1495	1495	24 shall report its analysis to the Public Pension Division of
1496	1496	25 the Department of Insurance. A new benefit increase created by
1497	1497	26 a Public Act that does not include the additional funding
1498	1498
1499	1499
1500	1500
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1504	1504
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1508	1508	1 required under this subsection is null and void. If the Public
1509	1509	2 Pension Division determines that the additional funding
1510	1510	3 provided for a new benefit increase under this subsection is
1511	1511	4 or has become inadequate, it may so certify to the Governor and
1512	1512	5 the State Comptroller and, in the absence of corrective action
1513	1513	6 by the General Assembly, the new benefit increase shall expire
1514	1514	7 at the end of the fiscal year in which the certification is
1515	1515	8 made.
1516	1516	9 (d) Every new benefit increase shall expire 5 years after
1517	1517	10 its effective date or on such earlier date as may be specified
1518	1518	11 in the language enacting the new benefit increase or provided
1519	1519	12 under subsection (c). This does not prevent the General
1520	1520	13 Assembly from extending or re-creating a new benefit increase
1521	1521	14 by law.
1522	1522	15 (e) Except as otherwise provided in the language creating
1523	1523	16 the new benefit increase, a new benefit increase that expires
1524	1524	17 under this Section continues to apply to persons who applied
1525	1525	18 and qualified for the affected benefit while the new benefit
1526	1526	19 increase was in effect and to the affected beneficiaries and
1527	1527	20 alternate payees of such persons, but does not apply to any
1528	1528	21 other person, including, without limitation, a person who
1529	1529	22 continues in service after the expiration date and did not
1530	1530	23 apply and qualify for the affected benefit while the new
1531	1531	24 benefit increase was in effect.
1532	1532	25 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
1533	1533	26 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1534	1534
1535	1535
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1543	1543	HB3266 - 43 - LRB103 28897 RPS 55283 b
1544	1544	1 1-1-23; 102-956, eff. 5-27-22.)
1545	1545	2 Section 99. Effective date. This Act takes effect upon
1546	1546	3 becoming law.
1547	1547
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