Illinois 2023-2024 Regular Session

Illinois House Bill HB3519 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3519 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement. LRB103 30448 RPS 56880 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3519 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement. LRB103 30448 RPS 56880 b LRB103 30448 RPS 56880 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3519 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
33 See Index See Index
44 See Index
55 Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement.
66 LRB103 30448 RPS 56880 b LRB103 30448 RPS 56880 b
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88 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
99 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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1313 1 AN ACT concerning public employee benefits.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The Illinois Pension Code is amended by
1717 5 changing Sections 1-160, 14-152.1, and 15-198 and by adding
1818 6 Sections 1-103.4, 1-163, 7-226, 8-251.5, 9-242, 14-157, and
1919 7 15-203 as follows:
2020 8 (40 ILCS 5/1-103.4 new)
2121 9 Sec. 1-103.4. Application of this amendatory Act of the
2222 10 103rd General Assembly. The changes made by this amendatory
2323 11 Act of the 103rd General Assembly are intended to be
2424 12 retroactive to January 1, 2011 and are applicable without
2525 13 regard to whether a member or participant was in active
2626 14 service on or after the effective date of this amendatory Act
2727 15 of the 103rd General Assembly, notwithstanding Section
2828 16 1-103.1.
2929 17 (40 ILCS 5/1-160)
3030 18 (Text of Section from P.A. 102-719)
3131 19 Sec. 1-160. Provisions applicable to new hires.
3232 20 (a) The provisions of this Section apply to a person who,
3333 21 on or after January 1, 2011, first becomes a member or a
3434 22 participant under any reciprocal retirement system or pension
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3519 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
3939 See Index See Index
4040 See Index
4141 Amends the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice under the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement formula, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55 (instead of age 60). With regard to Tier 2 members and participants under the Illinois Municipal Retirement Fund (IMRF), Chicago Municipal, Cook County, State Employees, and State Universities Article: changes the retirement age to age 60 with 20 years of service or age 67 with 10 years of service; changes the final average salary calculation to the total salary during the 60 months (instead of 96 months) of service within the last 120 months of service in which the total salary was the highest; rescinds an election for certain benefits for persons under the Chicago Municipal Article; provides that the automatic annual increase in retirement annuity shall be calculated at 3% or one-half the annual unadjusted increase in the consumer-price index-u, whichever is greater (instead of whichever is less) of the originally granted retirement annuity; and makes other changes. Provides that the changes made by the amendatory Act are intended to be retroactive to January 1, 2011 and are applicable without regard to whether a member or participant was in active service on or after the effective date. Amends the State Mandates Act to require implementation without reimbursement.
4242 LRB103 30448 RPS 56880 b LRB103 30448 RPS 56880 b
4343 LRB103 30448 RPS 56880 b
4444 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
4545 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
4646 A BILL FOR
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7575 1 fund established under this Code, other than a retirement
7676 2 system or pension fund established under Article 2, 3, 4, 5, 6,
7777 3 7, 15, or 18 of this Code, notwithstanding any other provision
7878 4 of this Code to the contrary, but do not apply to any
7979 5 self-managed plan established under this Code or to any
8080 6 participant of the retirement plan established under Section
8181 7 22-101; except that this Section applies to a person who
8282 8 elected to establish alternative credits by electing in
8383 9 writing after January 1, 2011, but before August 8, 2011,
8484 10 under Section 7-145.1 of this Code. Notwithstanding anything
8585 11 to the contrary in this Section, for purposes of this Section,
8686 12 a person who is a Tier 1 regular employee as defined in Section
8787 13 7-109.4 of this Code or who participated in a retirement
8888 14 system under Article 15 prior to January 1, 2011 shall be
8989 15 deemed a person who first became a member or participant prior
9090 16 to January 1, 2011 under any retirement system or pension fund
9191 17 subject to this Section. The changes made to this Section by
9292 18 Public Act 98-596 are a clarification of existing law and are
9393 19 intended to be retroactive to January 1, 2011 (the effective
9494 20 date of Public Act 96-889), notwithstanding the provisions of
9595 21 Section 1-103.1 of this Code.
9696 22 This Section does not apply to a person who first becomes a
9797 23 noncovered employee under Article 14 on or after the
9898 24 implementation date of the plan created under Section 1-161
9999 25 for that Article, unless that person elects under subsection
100100 26 (b) of Section 1-161 to instead receive the benefits provided
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111111 1 under this Section and the applicable provisions of that
112112 2 Article.
113113 3 This Section does not apply to a person who first becomes a
114114 4 member or participant under Article 16 on or after the
115115 5 implementation date of the plan created under Section 1-161
116116 6 for that Article, unless that person elects under subsection
117117 7 (b) of Section 1-161 to instead receive the benefits provided
118118 8 under this Section and the applicable provisions of that
119119 9 Article.
120120 10 This Section does not apply to a person who elects under
121121 11 subsection (c-5) of Section 1-161 to receive the benefits
122122 12 under Section 1-161.
123123 13 This Section does not apply to a person who first becomes a
124124 14 member or participant of an affected pension fund on or after 6
125125 15 months after the resolution or ordinance date, as defined in
126126 16 Section 1-162, unless that person elects under subsection (c)
127127 17 of Section 1-162 to receive the benefits provided under this
128128 18 Section and the applicable provisions of the Article under
129129 19 which he or she is a member or participant.
130130 20 (b) "Final average salary" means, except as otherwise
131131 21 provided in this subsection, the average monthly (or annual)
132132 22 salary obtained by dividing the total salary or earnings
133133 23 calculated under the Article applicable to the member or
134134 24 participant during the 96 consecutive months (or 8 consecutive
135135 25 years) of service within the last 120 months (or 10 years) of
136136 26 service in which the total salary or earnings calculated under
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147147 1 the applicable Article was the highest by the number of months
148148 2 (or years) of service in that period. For the purposes of a
149149 3 person who first becomes a member or participant of any
150150 4 retirement system or pension fund to which this Section
151151 5 applies on or after January 1, 2011, in this Code, "final
152152 6 average salary" shall be substituted for the following:
153153 7 (1) (Blank).
154154 8 (2) In Articles 8, 9, 10, 11, and 12, "highest average
155155 9 annual salary for any 4 consecutive years within the last
156156 10 10 years of service immediately preceding the date of
157157 11 withdrawal".
158158 12 (3) In Article 13, "average final salary".
159159 13 (4) In Article 14, "final average compensation".
160160 14 (5) In Article 17, "average salary".
161161 15 (6) In Section 22-207, "wages or salary received by
162162 16 him at the date of retirement or discharge".
163163 17 A member of the Teachers' Retirement System of the State
164164 18 of Illinois who retires on or after June 1, 2021 and for whom
165165 19 the 2020-2021 school year is used in the calculation of the
166166 20 member's final average salary shall use the higher of the
167167 21 following for the purpose of determining the member's final
168168 22 average salary:
169169 23 (A) the amount otherwise calculated under the first
170170 24 paragraph of this subsection; or
171171 25 (B) an amount calculated by the Teachers' Retirement
172172 26 System of the State of Illinois using the average of the
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183183 1 monthly (or annual) salary obtained by dividing the total
184184 2 salary or earnings calculated under Article 16 applicable
185185 3 to the member or participant during the 96 months (or 8
186186 4 years) of service within the last 120 months (or 10 years)
187187 5 of service in which the total salary or earnings
188188 6 calculated under the Article was the highest by the number
189189 7 of months (or years) of service in that period.
190190 8 (b-5) Beginning on January 1, 2011, for all purposes under
191191 9 this Code (including without limitation the calculation of
192192 10 benefits and employee contributions), the annual earnings,
193193 11 salary, or wages (based on the plan year) of a member or
194194 12 participant to whom this Section applies shall not exceed
195195 13 $106,800; however, that amount shall annually thereafter be
196196 14 increased by the lesser of (i) 3% of that amount, including all
197197 15 previous adjustments, or (ii) one-half the annual unadjusted
198198 16 percentage increase (but not less than zero) in the consumer
199199 17 price index-u for the 12 months ending with the September
200200 18 preceding each November 1, including all previous adjustments.
201201 19 For the purposes of this Section, "consumer price index-u"
202202 20 means the index published by the Bureau of Labor Statistics of
203203 21 the United States Department of Labor that measures the
204204 22 average change in prices of goods and services purchased by
205205 23 all urban consumers, United States city average, all items,
206206 24 1982-84 = 100. The new amount resulting from each annual
207207 25 adjustment shall be determined by the Public Pension Division
208208 26 of the Department of Insurance and made available to the
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219219 1 boards of the retirement systems and pension funds by November
220220 2 1 of each year.
221221 3 (c) A member or participant is entitled to a retirement
222222 4 annuity upon written application if he or she has attained age
223223 5 67 (age 65, with respect to service under Article 12 that is
224224 6 subject to this Section, for a member or participant under
225225 7 Article 12 who first becomes a member or participant under
226226 8 Article 12 on or after January 1, 2022 or who makes the
227227 9 election under item (i) of subsection (d-15) of this Section)
228228 10 and has at least 10 years of service credit and is otherwise
229229 11 eligible under the requirements of the applicable Article.
230230 12 A member or participant who has attained age 62 (age 60,
231231 13 with respect to service under Article 12 that is subject to
232232 14 this Section, for a member or participant under Article 12 who
233233 15 first becomes a member or participant under Article 12 on or
234234 16 after January 1, 2022 or who makes the election under item (i)
235235 17 of subsection (d-15) of this Section) and has at least 10 years
236236 18 of service credit and is otherwise eligible under the
237237 19 requirements of the applicable Article may elect to receive
238238 20 the lower retirement annuity provided in subsection (d) of
239239 21 this Section.
240240 22 (c-5) A person who first becomes a member or a participant
241241 23 subject to this Section on or after July 6, 2017 (the effective
242242 24 date of Public Act 100-23), notwithstanding any other
243243 25 provision of this Code to the contrary, is entitled to a
244244 26 retirement annuity under Article 8 or Article 11 upon written
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255255 1 application if he or she has attained age 65 and has at least
256256 2 10 years of service credit and is otherwise eligible under the
257257 3 requirements of Article 8 or Article 11 of this Code,
258258 4 whichever is applicable.
259259 5 (d) The retirement annuity of a member or participant who
260260 6 is retiring after attaining age 62 (age 60, with respect to
261261 7 service under Article 12 that is subject to this Section, for a
262262 8 member or participant under Article 12 who first becomes a
263263 9 member or participant under Article 12 on or after January 1,
264264 10 2022 or who makes the election under item (i) of subsection
265265 11 (d-15) of this Section) with at least 10 years of service
266266 12 credit shall be reduced by one-half of 1% for each full month
267267 13 that the member's age is under age 67 (age 65, with respect to
268268 14 service under Article 12 that is subject to this Section, for a
269269 15 member or participant under Article 12 who first becomes a
270270 16 member or participant under Article 12 on or after January 1,
271271 17 2022 or who makes the election under item (i) of subsection
272272 18 (d-15) of this Section).
273273 19 (d-5) The retirement annuity payable under Article 8 or
274274 20 Article 11 to an eligible person subject to subsection (c-5)
275275 21 of this Section who is retiring at age 60 with at least 10
276276 22 years of service credit shall be reduced by one-half of 1% for
277277 23 each full month that the member's age is under age 65.
278278 24 (d-10) Each person who first became a member or
279279 25 participant under Article 8 or Article 11 of this Code on or
280280 26 after January 1, 2011 and prior to July 6, 2017 (the effective
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291291 1 date of Public Act 100-23) shall make an irrevocable election
292292 2 either:
293293 3 (i) to be eligible for the reduced retirement age
294294 4 provided in subsections (c-5) and (d-5) of this Section,
295295 5 the eligibility for which is conditioned upon the member
296296 6 or participant agreeing to the increases in employee
297297 7 contributions for age and service annuities provided in
298298 8 subsection (a-5) of Section 8-174 of this Code (for
299299 9 service under Article 8) or subsection (a-5) of Section
300300 10 11-170 of this Code (for service under Article 11); or
301301 11 (ii) to not agree to item (i) of this subsection
302302 12 (d-10), in which case the member or participant shall
303303 13 continue to be subject to the retirement age provisions in
304304 14 subsections (c) and (d) of this Section and the employee
305305 15 contributions for age and service annuity as provided in
306306 16 subsection (a) of Section 8-174 of this Code (for service
307307 17 under Article 8) or subsection (a) of Section 11-170 of
308308 18 this Code (for service under Article 11).
309309 19 The election provided for in this subsection shall be made
310310 20 between October 1, 2017 and November 15, 2017. A person
311311 21 subject to this subsection who makes the required election
312312 22 shall remain bound by that election, except that an election
313313 23 made under this subsection by a participant under Article 8 is
314314 24 rescinded by operation of law and such person is subject to the
315315 25 provisions otherwise applicable to a participant who first
316316 26 became a participant under Article 8 on or after January 1,
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327327 1 2011. A person subject to this subsection who fails for any
328328 2 reason to make the required election within the time specified
329329 3 in this subsection shall be deemed to have made the election
330330 4 under item (ii).
331331 5 (d-15) Each person who first becomes a member or
332332 6 participant under Article 12 on or after January 1, 2011 and
333333 7 prior to January 1, 2022 shall make an irrevocable election
334334 8 either:
335335 9 (i) to be eligible for the reduced retirement age
336336 10 specified in subsections (c) and (d) of this Section, the
337337 11 eligibility for which is conditioned upon the member or
338338 12 participant agreeing to the increase in employee
339339 13 contributions for service annuities specified in
340340 14 subsection (b) of Section 12-150; or
341341 15 (ii) to not agree to item (i) of this subsection
342342 16 (d-15), in which case the member or participant shall not
343343 17 be eligible for the reduced retirement age specified in
344344 18 subsections (c) and (d) of this Section and shall not be
345345 19 subject to the increase in employee contributions for
346346 20 service annuities specified in subsection (b) of Section
347347 21 12-150.
348348 22 The election provided for in this subsection shall be made
349349 23 between January 1, 2022 and April 1, 2022. A person subject to
350350 24 this subsection who makes the required election shall remain
351351 25 bound by that election. A person subject to this subsection
352352 26 who fails for any reason to make the required election within
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363363 1 the time specified in this subsection shall be deemed to have
364364 2 made the election under item (ii).
365365 3 (e) Any retirement annuity or supplemental annuity shall
366366 4 be subject to annual increases on the January 1 occurring
367367 5 either on or after the attainment of age 67 (age 65, with
368368 6 respect to service under Article 12 that is subject to this
369369 7 Section, for a member or participant under Article 12 who
370370 8 first becomes a member or participant under Article 12 on or
371371 9 after January 1, 2022 or who makes the election under item (i)
372372 10 of subsection (d-15); and beginning on July 6, 2017 (the
373373 11 effective date of Public Act 100-23), age 65 with respect to
374374 12 service under Article 8 or Article 11 for eligible persons
375375 13 who: (i) are subject to subsection (c-5) of this Section; or
376376 14 (ii) made the election under item (i) of subsection (d-10) of
377377 15 this Section) or the first anniversary of the annuity start
378378 16 date, whichever is later. Each annual increase shall be
379379 17 calculated at 3% or one-half the annual unadjusted percentage
380380 18 increase (but not less than zero) in the consumer price
381381 19 index-u for the 12 months ending with the September preceding
382382 20 each November 1, whichever is less, of the originally granted
383383 21 retirement annuity. If the annual unadjusted percentage change
384384 22 in the consumer price index-u for the 12 months ending with the
385385 23 September preceding each November 1 is zero or there is a
386386 24 decrease, then the annuity shall not be increased.
387387 25 For the purposes of Section 1-103.1 of this Code, the
388388 26 changes made to this Section by Public Act 102-263 are
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399399 1 applicable without regard to whether the employee was in
400400 2 active service on or after August 6, 2021 (the effective date
401401 3 of Public Act 102-263).
402402 4 For the purposes of Section 1-103.1 of this Code, the
403403 5 changes made to this Section by Public Act 100-23 are
404404 6 applicable without regard to whether the employee was in
405405 7 active service on or after July 6, 2017 (the effective date of
406406 8 Public Act 100-23).
407407 9 (f) The initial survivor's or widow's annuity of an
408408 10 otherwise eligible survivor or widow of a retired member or
409409 11 participant who first became a member or participant on or
410410 12 after January 1, 2011 shall be in the amount of 66 2/3% of the
411411 13 retired member's or participant's retirement annuity at the
412412 14 date of death. In the case of the death of a member or
413413 15 participant who has not retired and who first became a member
414414 16 or participant on or after January 1, 2011, eligibility for a
415415 17 survivor's or widow's annuity shall be determined by the
416416 18 applicable Article of this Code. The initial benefit shall be
417417 19 66 2/3% of the earned annuity without a reduction due to age. A
418418 20 child's annuity of an otherwise eligible child shall be in the
419419 21 amount prescribed under each Article if applicable. Any
420420 22 survivor's or widow's annuity shall be increased (1) on each
421421 23 January 1 occurring on or after the commencement of the
422422 24 annuity if the deceased member died while receiving a
423423 25 retirement annuity or (2) in other cases, on each January 1
424424 26 occurring after the first anniversary of the commencement of
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435435 1 the annuity. Each annual increase shall be calculated at 3% or
436436 2 one-half the annual unadjusted percentage increase (but not
437437 3 less than zero) in the consumer price index-u for the 12 months
438438 4 ending with the September preceding each November 1, whichever
439439 5 is less, of the originally granted survivor's annuity. If the
440440 6 annual unadjusted percentage change in the consumer price
441441 7 index-u for the 12 months ending with the September preceding
442442 8 each November 1 is zero or there is a decrease, then the
443443 9 annuity shall not be increased.
444444 10 (g) The benefits in Section 14-110 apply if the person is a
445445 11 fire fighter in the fire protection service of a department, a
446446 12 security employee of the Department of Corrections or the
447447 13 Department of Juvenile Justice, or a security employee of the
448448 14 Department of Innovation and Technology, as those terms are
449449 15 defined in subsection (b) and subsection (c) of Section
450450 16 14-110. A person who meets the requirements of this Section is
451451 17 entitled to an annuity calculated under the provisions of
452452 18 Section 14-110, in lieu of the regular or minimum retirement
453453 19 annuity, only if the person has withdrawn from service with
454454 20 not less than 20 years of eligible creditable service and has
455455 21 attained age 60, regardless of whether the attainment of age
456456 22 60 occurs while the person is still in service.
457457 23 (g-1) The benefits in Section 14-110 apply if the person
458458 24 is a security employee of the Department of Corrections or the
459459 25 Department of Juvenile Justice, as those terms are defined in
460460 26 subsection (b) and subsection (c) of Section 14-110. A person
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471471 1 who meets the requirements of this Section is entitled to an
472472 2 annuity calculated under the provisions of Section 14-110, in
473473 3 lieu of the regular or minimum retirement annuity, only if the
474474 4 person has withdrawn from service with not less than 20 years
475475 5 of eligible creditable service and has attained age 55,
476476 6 regardless of whether the attainment of age 55 occurs while
477477 7 the person is still in service.
478478 8 (g-5) The benefits in Section 14-110 apply if the person
479479 9 is a State policeman, investigator for the Secretary of State,
480480 10 conservation police officer, investigator for the Department
481481 11 of Revenue or the Illinois Gaming Board, investigator for the
482482 12 Office of the Attorney General, Commerce Commission police
483483 13 officer, or arson investigator, as those terms are defined in
484484 14 subsection (b) and subsection (c) of Section 14-110. A person
485485 15 who meets the requirements of this Section is entitled to an
486486 16 annuity calculated under the provisions of Section 14-110, in
487487 17 lieu of the regular or minimum retirement annuity, only if the
488488 18 person has withdrawn from service with not less than 20 years
489489 19 of eligible creditable service and has attained age 55,
490490 20 regardless of whether the attainment of age 55 occurs while
491491 21 the person is still in service.
492492 22 (h) If a person who first becomes a member or a participant
493493 23 of a retirement system or pension fund subject to this Section
494494 24 on or after January 1, 2011 is receiving a retirement annuity
495495 25 or retirement pension under that system or fund and becomes a
496496 26 member or participant under any other system or fund created
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506506 HB3519 - 14 - LRB103 30448 RPS 56880 b
507507 1 by this Code and is employed on a full-time basis, except for
508508 2 those members or participants exempted from the provisions of
509509 3 this Section under subsection (a) of this Section, then the
510510 4 person's retirement annuity or retirement pension under that
511511 5 system or fund shall be suspended during that employment. Upon
512512 6 termination of that employment, the person's retirement
513513 7 annuity or retirement pension payments shall resume and be
514514 8 recalculated if recalculation is provided for under the
515515 9 applicable Article of this Code.
516516 10 If a person who first becomes a member of a retirement
517517 11 system or pension fund subject to this Section on or after
518518 12 January 1, 2012 and is receiving a retirement annuity or
519519 13 retirement pension under that system or fund and accepts on a
520520 14 contractual basis a position to provide services to a
521521 15 governmental entity from which he or she has retired, then
522522 16 that person's annuity or retirement pension earned as an
523523 17 active employee of the employer shall be suspended during that
524524 18 contractual service. A person receiving an annuity or
525525 19 retirement pension under this Code shall notify the pension
526526 20 fund or retirement system from which he or she is receiving an
527527 21 annuity or retirement pension, as well as his or her
528528 22 contractual employer, of his or her retirement status before
529529 23 accepting contractual employment. A person who fails to submit
530530 24 such notification shall be guilty of a Class A misdemeanor and
531531 25 required to pay a fine of $1,000. Upon termination of that
532532 26 contractual employment, the person's retirement annuity or
533533
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542542 HB3519 - 15 - LRB103 30448 RPS 56880 b
543543 1 retirement pension payments shall resume and, if appropriate,
544544 2 be recalculated under the applicable provisions of this Code.
545545 3 (i) (Blank).
546546 4 (j) Except for conflicts between this Section and Section
547547 5 1-163, in In the case of a conflict between the provisions of
548548 6 this Section and any other provision of this Code, the
549549 7 provisions of this Section shall control.
550550 8 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
551551 9 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
552552 10 5-6-22.)
553553 11 (Text of Section from P.A. 102-813)
554554 12 Sec. 1-160. Provisions applicable to new hires.
555555 13 (a) The provisions of this Section apply to a person who,
556556 14 on or after January 1, 2011, first becomes a member or a
557557 15 participant under any reciprocal retirement system or pension
558558 16 fund established under this Code, other than a retirement
559559 17 system or pension fund established under Article 2, 3, 4, 5, 6,
560560 18 7, 15, or 18 of this Code, notwithstanding any other provision
561561 19 of this Code to the contrary, but do not apply to any
562562 20 self-managed plan established under this Code or to any
563563 21 participant of the retirement plan established under Section
564564 22 22-101; except that this Section applies to a person who
565565 23 elected to establish alternative credits by electing in
566566 24 writing after January 1, 2011, but before August 8, 2011,
567567 25 under Section 7-145.1 of this Code. Notwithstanding anything
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577577 HB3519 - 16 - LRB103 30448 RPS 56880 b
578578 1 to the contrary in this Section, for purposes of this Section,
579579 2 a person who is a Tier 1 regular employee as defined in Section
580580 3 7-109.4 of this Code or who participated in a retirement
581581 4 system under Article 15 prior to January 1, 2011 shall be
582582 5 deemed a person who first became a member or participant prior
583583 6 to January 1, 2011 under any retirement system or pension fund
584584 7 subject to this Section. The changes made to this Section by
585585 8 Public Act 98-596 are a clarification of existing law and are
586586 9 intended to be retroactive to January 1, 2011 (the effective
587587 10 date of Public Act 96-889), notwithstanding the provisions of
588588 11 Section 1-103.1 of this Code.
589589 12 This Section does not apply to a person who first becomes a
590590 13 noncovered employee under Article 14 on or after the
591591 14 implementation date of the plan created under Section 1-161
592592 15 for that Article, unless that person elects under subsection
593593 16 (b) of Section 1-161 to instead receive the benefits provided
594594 17 under this Section and the applicable provisions of that
595595 18 Article.
596596 19 This Section does not apply to a person who first becomes a
597597 20 member or participant under Article 16 on or after the
598598 21 implementation date of the plan created under Section 1-161
599599 22 for that Article, unless that person elects under subsection
600600 23 (b) of Section 1-161 to instead receive the benefits provided
601601 24 under this Section and the applicable provisions of that
602602 25 Article.
603603 26 This Section does not apply to a person who elects under
604604
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610610
611611
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613613 HB3519 - 17 - LRB103 30448 RPS 56880 b
614614 1 subsection (c-5) of Section 1-161 to receive the benefits
615615 2 under Section 1-161.
616616 3 This Section does not apply to a person who first becomes a
617617 4 member or participant of an affected pension fund on or after 6
618618 5 months after the resolution or ordinance date, as defined in
619619 6 Section 1-162, unless that person elects under subsection (c)
620620 7 of Section 1-162 to receive the benefits provided under this
621621 8 Section and the applicable provisions of the Article under
622622 9 which he or she is a member or participant.
623623 10 (b) "Final average salary" means, except as otherwise
624624 11 provided in this subsection, the average monthly (or annual)
625625 12 salary obtained by dividing the total salary or earnings
626626 13 calculated under the Article applicable to the member or
627627 14 participant during the 96 consecutive months (or 8 consecutive
628628 15 years) of service within the last 120 months (or 10 years) of
629629 16 service in which the total salary or earnings calculated under
630630 17 the applicable Article was the highest by the number of months
631631 18 (or years) of service in that period. For the purposes of a
632632 19 person who first becomes a member or participant of any
633633 20 retirement system or pension fund to which this Section
634634 21 applies on or after January 1, 2011, in this Code, "final
635635 22 average salary" shall be substituted for the following:
636636 23 (1) (Blank).
637637 24 (2) In Articles 8, 9, 10, 11, and 12, "highest average
638638 25 annual salary for any 4 consecutive years within the last
639639 26 10 years of service immediately preceding the date of
640640
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646646
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648648 HB3519- 18 -LRB103 30448 RPS 56880 b HB3519 - 18 - LRB103 30448 RPS 56880 b
649649 HB3519 - 18 - LRB103 30448 RPS 56880 b
650650 1 withdrawal".
651651 2 (3) In Article 13, "average final salary".
652652 3 (4) In Article 14, "final average compensation".
653653 4 (5) In Article 17, "average salary".
654654 5 (6) In Section 22-207, "wages or salary received by
655655 6 him at the date of retirement or discharge".
656656 7 A member of the Teachers' Retirement System of the State
657657 8 of Illinois who retires on or after June 1, 2021 and for whom
658658 9 the 2020-2021 school year is used in the calculation of the
659659 10 member's final average salary shall use the higher of the
660660 11 following for the purpose of determining the member's final
661661 12 average salary:
662662 13 (A) the amount otherwise calculated under the first
663663 14 paragraph of this subsection; or
664664 15 (B) an amount calculated by the Teachers' Retirement
665665 16 System of the State of Illinois using the average of the
666666 17 monthly (or annual) salary obtained by dividing the total
667667 18 salary or earnings calculated under Article 16 applicable
668668 19 to the member or participant during the 96 months (or 8
669669 20 years) of service within the last 120 months (or 10 years)
670670 21 of service in which the total salary or earnings
671671 22 calculated under the Article was the highest by the number
672672 23 of months (or years) of service in that period.
673673 24 (b-5) Beginning on January 1, 2011, for all purposes under
674674 25 this Code (including without limitation the calculation of
675675 26 benefits and employee contributions), the annual earnings,
676676
677677
678678
679679
680680
681681 HB3519 - 18 - LRB103 30448 RPS 56880 b
682682
683683
684684 HB3519- 19 -LRB103 30448 RPS 56880 b HB3519 - 19 - LRB103 30448 RPS 56880 b
685685 HB3519 - 19 - LRB103 30448 RPS 56880 b
686686 1 salary, or wages (based on the plan year) of a member or
687687 2 participant to whom this Section applies shall not exceed
688688 3 $106,800; however, that amount shall annually thereafter be
689689 4 increased by the lesser of (i) 3% of that amount, including all
690690 5 previous adjustments, or (ii) one-half the annual unadjusted
691691 6 percentage increase (but not less than zero) in the consumer
692692 7 price index-u for the 12 months ending with the September
693693 8 preceding each November 1, including all previous adjustments.
694694 9 For the purposes of this Section, "consumer price index-u"
695695 10 means the index published by the Bureau of Labor Statistics of
696696 11 the United States Department of Labor that measures the
697697 12 average change in prices of goods and services purchased by
698698 13 all urban consumers, United States city average, all items,
699699 14 1982-84 = 100. The new amount resulting from each annual
700700 15 adjustment shall be determined by the Public Pension Division
701701 16 of the Department of Insurance and made available to the
702702 17 boards of the retirement systems and pension funds by November
703703 18 1 of each year.
704704 19 (c) A member or participant is entitled to a retirement
705705 20 annuity upon written application if he or she has attained age
706706 21 67 (age 65, with respect to service under Article 12 that is
707707 22 subject to this Section, for a member or participant under
708708 23 Article 12 who first becomes a member or participant under
709709 24 Article 12 on or after January 1, 2022 or who makes the
710710 25 election under item (i) of subsection (d-15) of this Section)
711711 26 and has at least 10 years of service credit and is otherwise
712712
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721721 HB3519 - 20 - LRB103 30448 RPS 56880 b
722722 1 eligible under the requirements of the applicable Article.
723723 2 A member or participant who has attained age 62 (age 60,
724724 3 with respect to service under Article 12 that is subject to
725725 4 this Section, for a member or participant under Article 12 who
726726 5 first becomes a member or participant under Article 12 on or
727727 6 after January 1, 2022 or who makes the election under item (i)
728728 7 of subsection (d-15) of this Section) and has at least 10 years
729729 8 of service credit and is otherwise eligible under the
730730 9 requirements of the applicable Article may elect to receive
731731 10 the lower retirement annuity provided in subsection (d) of
732732 11 this Section.
733733 12 (c-5) A person who first becomes a member or a participant
734734 13 subject to this Section on or after July 6, 2017 (the effective
735735 14 date of Public Act 100-23), notwithstanding any other
736736 15 provision of this Code to the contrary, is entitled to a
737737 16 retirement annuity under Article 8 or Article 11 upon written
738738 17 application if he or she has attained age 65 and has at least
739739 18 10 years of service credit and is otherwise eligible under the
740740 19 requirements of Article 8 or Article 11 of this Code,
741741 20 whichever is applicable.
742742 21 (d) The retirement annuity of a member or participant who
743743 22 is retiring after attaining age 62 (age 60, with respect to
744744 23 service under Article 12 that is subject to this Section, for a
745745 24 member or participant under Article 12 who first becomes a
746746 25 member or participant under Article 12 on or after January 1,
747747 26 2022 or who makes the election under item (i) of subsection
748748
749749
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754754
755755
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757757 HB3519 - 21 - LRB103 30448 RPS 56880 b
758758 1 (d-15) of this Section) with at least 10 years of service
759759 2 credit shall be reduced by one-half of 1% for each full month
760760 3 that the member's age is under age 67 (age 65, with respect to
761761 4 service under Article 12 that is subject to this Section, for a
762762 5 member or participant under Article 12 who first becomes a
763763 6 member or participant under Article 12 on or after January 1,
764764 7 2022 or who makes the election under item (i) of subsection
765765 8 (d-15) of this Section).
766766 9 (d-5) The retirement annuity payable under Article 8 or
767767 10 Article 11 to an eligible person subject to subsection (c-5)
768768 11 of this Section who is retiring at age 60 with at least 10
769769 12 years of service credit shall be reduced by one-half of 1% for
770770 13 each full month that the member's age is under age 65.
771771 14 (d-10) Each person who first became a member or
772772 15 participant under Article 8 or Article 11 of this Code on or
773773 16 after January 1, 2011 and prior to July 6, 2017 (the effective
774774 17 date of Public Act 100-23) shall make an irrevocable election
775775 18 either:
776776 19 (i) to be eligible for the reduced retirement age
777777 20 provided in subsections (c-5) and (d-5) of this Section,
778778 21 the eligibility for which is conditioned upon the member
779779 22 or participant agreeing to the increases in employee
780780 23 contributions for age and service annuities provided in
781781 24 subsection (a-5) of Section 8-174 of this Code (for
782782 25 service under Article 8) or subsection (a-5) of Section
783783 26 11-170 of this Code (for service under Article 11); or
784784
785785
786786
787787
788788
789789 HB3519 - 21 - LRB103 30448 RPS 56880 b
790790
791791
792792 HB3519- 22 -LRB103 30448 RPS 56880 b HB3519 - 22 - LRB103 30448 RPS 56880 b
793793 HB3519 - 22 - LRB103 30448 RPS 56880 b
794794 1 (ii) to not agree to item (i) of this subsection
795795 2 (d-10), in which case the member or participant shall
796796 3 continue to be subject to the retirement age provisions in
797797 4 subsections (c) and (d) of this Section and the employee
798798 5 contributions for age and service annuity as provided in
799799 6 subsection (a) of Section 8-174 of this Code (for service
800800 7 under Article 8) or subsection (a) of Section 11-170 of
801801 8 this Code (for service under Article 11).
802802 9 The election provided for in this subsection shall be made
803803 10 between October 1, 2017 and November 15, 2017. A person
804804 11 subject to this subsection who makes the required election
805805 12 shall remain bound by that election, except that an election
806806 13 made under this subsection by a participant under Article 8 is
807807 14 rescinded by operation of law and such person is subject to the
808808 15 provisions otherwise applicable to a participant who first
809809 16 became a participant under Article 8 on or after January 1,
810810 17 2011. A person subject to this subsection who fails for any
811811 18 reason to make the required election within the time specified
812812 19 in this subsection shall be deemed to have made the election
813813 20 under item (ii).
814814 21 (d-15) Each person who first becomes a member or
815815 22 participant under Article 12 on or after January 1, 2011 and
816816 23 prior to January 1, 2022 shall make an irrevocable election
817817 24 either:
818818 25 (i) to be eligible for the reduced retirement age
819819 26 specified in subsections (c) and (d) of this Section, the
820820
821821
822822
823823
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829829 HB3519 - 23 - LRB103 30448 RPS 56880 b
830830 1 eligibility for which is conditioned upon the member or
831831 2 participant agreeing to the increase in employee
832832 3 contributions for service annuities specified in
833833 4 subsection (b) of Section 12-150; or
834834 5 (ii) to not agree to item (i) of this subsection
835835 6 (d-15), in which case the member or participant shall not
836836 7 be eligible for the reduced retirement age specified in
837837 8 subsections (c) and (d) of this Section and shall not be
838838 9 subject to the increase in employee contributions for
839839 10 service annuities specified in subsection (b) of Section
840840 11 12-150.
841841 12 The election provided for in this subsection shall be made
842842 13 between January 1, 2022 and April 1, 2022. A person subject to
843843 14 this subsection who makes the required election shall remain
844844 15 bound by that election. A person subject to this subsection
845845 16 who fails for any reason to make the required election within
846846 17 the time specified in this subsection shall be deemed to have
847847 18 made the election under item (ii).
848848 19 (e) Any retirement annuity or supplemental annuity shall
849849 20 be subject to annual increases on the January 1 occurring
850850 21 either on or after the attainment of age 67 (age 65, with
851851 22 respect to service under Article 12 that is subject to this
852852 23 Section, for a member or participant under Article 12 who
853853 24 first becomes a member or participant under Article 12 on or
854854 25 after January 1, 2022 or who makes the election under item (i)
855855 26 of subsection (d-15); and beginning on July 6, 2017 (the
856856
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865865 HB3519 - 24 - LRB103 30448 RPS 56880 b
866866 1 effective date of Public Act 100-23), age 65 with respect to
867867 2 service under Article 8 or Article 11 for eligible persons
868868 3 who: (i) are subject to subsection (c-5) of this Section; or
869869 4 (ii) made the election under item (i) of subsection (d-10) of
870870 5 this Section) or the first anniversary of the annuity start
871871 6 date, whichever is later. Each annual increase shall be
872872 7 calculated at 3% or one-half the annual unadjusted percentage
873873 8 increase (but not less than zero) in the consumer price
874874 9 index-u for the 12 months ending with the September preceding
875875 10 each November 1, whichever is less, of the originally granted
876876 11 retirement annuity. If the annual unadjusted percentage change
877877 12 in the consumer price index-u for the 12 months ending with the
878878 13 September preceding each November 1 is zero or there is a
879879 14 decrease, then the annuity shall not be increased.
880880 15 For the purposes of Section 1-103.1 of this Code, the
881881 16 changes made to this Section by Public Act 102-263 are
882882 17 applicable without regard to whether the employee was in
883883 18 active service on or after August 6, 2021 (the effective date
884884 19 of Public Act 102-263).
885885 20 For the purposes of Section 1-103.1 of this Code, the
886886 21 changes made to this Section by Public Act 100-23 are
887887 22 applicable without regard to whether the employee was in
888888 23 active service on or after July 6, 2017 (the effective date of
889889 24 Public Act 100-23).
890890 25 (f) The initial survivor's or widow's annuity of an
891891 26 otherwise eligible survivor or widow of a retired member or
892892
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894894
895895
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898898
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901901 HB3519 - 25 - LRB103 30448 RPS 56880 b
902902 1 participant who first became a member or participant on or
903903 2 after January 1, 2011 shall be in the amount of 66 2/3% of the
904904 3 retired member's or participant's retirement annuity at the
905905 4 date of death. In the case of the death of a member or
906906 5 participant who has not retired and who first became a member
907907 6 or participant on or after January 1, 2011, eligibility for a
908908 7 survivor's or widow's annuity shall be determined by the
909909 8 applicable Article of this Code. The initial benefit shall be
910910 9 66 2/3% of the earned annuity without a reduction due to age. A
911911 10 child's annuity of an otherwise eligible child shall be in the
912912 11 amount prescribed under each Article if applicable. Any
913913 12 survivor's or widow's annuity shall be increased (1) on each
914914 13 January 1 occurring on or after the commencement of the
915915 14 annuity if the deceased member died while receiving a
916916 15 retirement annuity or (2) in other cases, on each January 1
917917 16 occurring after the first anniversary of the commencement of
918918 17 the annuity. Each annual increase shall be calculated at 3% or
919919 18 one-half the annual unadjusted percentage increase (but not
920920 19 less than zero) in the consumer price index-u for the 12 months
921921 20 ending with the September preceding each November 1, whichever
922922 21 is less, of the originally granted survivor's annuity. If the
923923 22 annual unadjusted percentage change in the consumer price
924924 23 index-u for the 12 months ending with the September preceding
925925 24 each November 1 is zero or there is a decrease, then the
926926 25 annuity shall not be increased.
927927 26 (g) The benefits in Section 14-110 apply only if the
928928
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937937 HB3519 - 26 - LRB103 30448 RPS 56880 b
938938 1 person is a State policeman, a fire fighter in the fire
939939 2 protection service of a department, a conservation police
940940 3 officer, an investigator for the Secretary of State, an arson
941941 4 investigator, a Commerce Commission police officer,
942942 5 investigator for the Department of Revenue or the Illinois
943943 6 Gaming Board, a security employee of the Department of
944944 7 Corrections or the Department of Juvenile Justice, or a
945945 8 security employee of the Department of Innovation and
946946 9 Technology, as those terms are defined in subsection (b) and
947947 10 subsection (c) of Section 14-110. A person who meets the
948948 11 requirements of this Section is entitled to an annuity
949949 12 calculated under the provisions of Section 14-110, in lieu of
950950 13 the regular or minimum retirement annuity, only if the person
951951 14 has withdrawn from service with not less than 20 years of
952952 15 eligible creditable service and has attained age 60,
953953 16 regardless of whether the attainment of age 60 occurs while
954954 17 the person is still in service.
955955 18 (g-1) The benefits in Section 14-110 apply if the person
956956 19 is a security employee of the Department of Corrections or the
957957 20 Department of Juvenile Justice, as those terms are defined in
958958 21 subsection (b) and subsection (c) of Section 14-110. A person
959959 22 who meets the requirements of this Section is entitled to an
960960 23 annuity calculated under the provisions of Section 14-110, in
961961 24 lieu of the regular or minimum retirement annuity, only if the
962962 25 person has withdrawn from service with not less than 20 years
963963 26 of eligible creditable service and has attained age 55,
964964
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970970
971971
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973973 HB3519 - 27 - LRB103 30448 RPS 56880 b
974974 1 regardless of whether the attainment of age 55 occurs while
975975 2 the person is still in service.
976976 3 (h) If a person who first becomes a member or a participant
977977 4 of a retirement system or pension fund subject to this Section
978978 5 on or after January 1, 2011 is receiving a retirement annuity
979979 6 or retirement pension under that system or fund and becomes a
980980 7 member or participant under any other system or fund created
981981 8 by this Code and is employed on a full-time basis, except for
982982 9 those members or participants exempted from the provisions of
983983 10 this Section under subsection (a) of this Section, then the
984984 11 person's retirement annuity or retirement pension under that
985985 12 system or fund shall be suspended during that employment. Upon
986986 13 termination of that employment, the person's retirement
987987 14 annuity or retirement pension payments shall resume and be
988988 15 recalculated if recalculation is provided for under the
989989 16 applicable Article of this Code.
990990 17 If a person who first becomes a member of a retirement
991991 18 system or pension fund subject to this Section on or after
992992 19 January 1, 2012 and is receiving a retirement annuity or
993993 20 retirement pension under that system or fund and accepts on a
994994 21 contractual basis a position to provide services to a
995995 22 governmental entity from which he or she has retired, then
996996 23 that person's annuity or retirement pension earned as an
997997 24 active employee of the employer shall be suspended during that
998998 25 contractual service. A person receiving an annuity or
999999 26 retirement pension under this Code shall notify the pension
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10091009 HB3519 - 28 - LRB103 30448 RPS 56880 b
10101010 1 fund or retirement system from which he or she is receiving an
10111011 2 annuity or retirement pension, as well as his or her
10121012 3 contractual employer, of his or her retirement status before
10131013 4 accepting contractual employment. A person who fails to submit
10141014 5 such notification shall be guilty of a Class A misdemeanor and
10151015 6 required to pay a fine of $1,000. Upon termination of that
10161016 7 contractual employment, the person's retirement annuity or
10171017 8 retirement pension payments shall resume and, if appropriate,
10181018 9 be recalculated under the applicable provisions of this Code.
10191019 10 (i) (Blank).
10201020 11 (j) Except for conflicts between this Section and Section
10211021 12 1-163, in In the case of a conflict between the provisions of
10221022 13 this Section and any other provision of this Code, the
10231023 14 provisions of this Section shall control.
10241024 15 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
10251025 16 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
10261026 17 5-13-22.)
10271027 18 (Text of Section from P.A. 102-956)
10281028 19 Sec. 1-160. Provisions applicable to new hires.
10291029 20 (a) The provisions of this Section apply to a person who,
10301030 21 on or after January 1, 2011, first becomes a member or a
10311031 22 participant under any reciprocal retirement system or pension
10321032 23 fund established under this Code, other than a retirement
10331033 24 system or pension fund established under Article 2, 3, 4, 5, 6,
10341034 25 7, 15, or 18 of this Code, notwithstanding any other provision
10351035
10361036
10371037
10381038
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10411041
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10441044 HB3519 - 29 - LRB103 30448 RPS 56880 b
10451045 1 of this Code to the contrary, but do not apply to any
10461046 2 self-managed plan established under this Code or to any
10471047 3 participant of the retirement plan established under Section
10481048 4 22-101; except that this Section applies to a person who
10491049 5 elected to establish alternative credits by electing in
10501050 6 writing after January 1, 2011, but before August 8, 2011,
10511051 7 under Section 7-145.1 of this Code. Notwithstanding anything
10521052 8 to the contrary in this Section, for purposes of this Section,
10531053 9 a person who is a Tier 1 regular employee as defined in Section
10541054 10 7-109.4 of this Code or who participated in a retirement
10551055 11 system under Article 15 prior to January 1, 2011 shall be
10561056 12 deemed a person who first became a member or participant prior
10571057 13 to January 1, 2011 under any retirement system or pension fund
10581058 14 subject to this Section. The changes made to this Section by
10591059 15 Public Act 98-596 are a clarification of existing law and are
10601060 16 intended to be retroactive to January 1, 2011 (the effective
10611061 17 date of Public Act 96-889), notwithstanding the provisions of
10621062 18 Section 1-103.1 of this Code.
10631063 19 This Section does not apply to a person who first becomes a
10641064 20 noncovered employee under Article 14 on or after the
10651065 21 implementation date of the plan created under Section 1-161
10661066 22 for that Article, unless that person elects under subsection
10671067 23 (b) of Section 1-161 to instead receive the benefits provided
10681068 24 under this Section and the applicable provisions of that
10691069 25 Article.
10701070 26 This Section does not apply to a person who first becomes a
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10731073
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10771077
10781078
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10801080 HB3519 - 30 - LRB103 30448 RPS 56880 b
10811081 1 member or participant under Article 16 on or after the
10821082 2 implementation date of the plan created under Section 1-161
10831083 3 for that Article, unless that person elects under subsection
10841084 4 (b) of Section 1-161 to instead receive the benefits provided
10851085 5 under this Section and the applicable provisions of that
10861086 6 Article.
10871087 7 This Section does not apply to a person who elects under
10881088 8 subsection (c-5) of Section 1-161 to receive the benefits
10891089 9 under Section 1-161.
10901090 10 This Section does not apply to a person who first becomes a
10911091 11 member or participant of an affected pension fund on or after 6
10921092 12 months after the resolution or ordinance date, as defined in
10931093 13 Section 1-162, unless that person elects under subsection (c)
10941094 14 of Section 1-162 to receive the benefits provided under this
10951095 15 Section and the applicable provisions of the Article under
10961096 16 which he or she is a member or participant.
10971097 17 (b) "Final average salary" means, except as otherwise
10981098 18 provided in this subsection, the average monthly (or annual)
10991099 19 salary obtained by dividing the total salary or earnings
11001100 20 calculated under the Article applicable to the member or
11011101 21 participant during the 96 consecutive months (or 8 consecutive
11021102 22 years) of service within the last 120 months (or 10 years) of
11031103 23 service in which the total salary or earnings calculated under
11041104 24 the applicable Article was the highest by the number of months
11051105 25 (or years) of service in that period. For the purposes of a
11061106 26 person who first becomes a member or participant of any
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11091109
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11131113
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11161116 HB3519 - 31 - LRB103 30448 RPS 56880 b
11171117 1 retirement system or pension fund to which this Section
11181118 2 applies on or after January 1, 2011, in this Code, "final
11191119 3 average salary" shall be substituted for the following:
11201120 4 (1) (Blank).
11211121 5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
11221122 6 annual salary for any 4 consecutive years within the last
11231123 7 10 years of service immediately preceding the date of
11241124 8 withdrawal".
11251125 9 (3) In Article 13, "average final salary".
11261126 10 (4) In Article 14, "final average compensation".
11271127 11 (5) In Article 17, "average salary".
11281128 12 (6) In Section 22-207, "wages or salary received by
11291129 13 him at the date of retirement or discharge".
11301130 14 A member of the Teachers' Retirement System of the State
11311131 15 of Illinois who retires on or after June 1, 2021 and for whom
11321132 16 the 2020-2021 school year is used in the calculation of the
11331133 17 member's final average salary shall use the higher of the
11341134 18 following for the purpose of determining the member's final
11351135 19 average salary:
11361136 20 (A) the amount otherwise calculated under the first
11371137 21 paragraph of this subsection; or
11381138 22 (B) an amount calculated by the Teachers' Retirement
11391139 23 System of the State of Illinois using the average of the
11401140 24 monthly (or annual) salary obtained by dividing the total
11411141 25 salary or earnings calculated under Article 16 applicable
11421142 26 to the member or participant during the 96 months (or 8
11431143
11441144
11451145
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11481148 HB3519 - 31 - LRB103 30448 RPS 56880 b
11491149
11501150
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11521152 HB3519 - 32 - LRB103 30448 RPS 56880 b
11531153 1 years) of service within the last 120 months (or 10 years)
11541154 2 of service in which the total salary or earnings
11551155 3 calculated under the Article was the highest by the number
11561156 4 of months (or years) of service in that period.
11571157 5 (b-5) Beginning on January 1, 2011, for all purposes under
11581158 6 this Code (including without limitation the calculation of
11591159 7 benefits and employee contributions), the annual earnings,
11601160 8 salary, or wages (based on the plan year) of a member or
11611161 9 participant to whom this Section applies shall not exceed
11621162 10 $106,800; however, that amount shall annually thereafter be
11631163 11 increased by the lesser of (i) 3% of that amount, including all
11641164 12 previous adjustments, or (ii) one-half the annual unadjusted
11651165 13 percentage increase (but not less than zero) in the consumer
11661166 14 price index-u for the 12 months ending with the September
11671167 15 preceding each November 1, including all previous adjustments.
11681168 16 For the purposes of this Section, "consumer price index-u"
11691169 17 means the index published by the Bureau of Labor Statistics of
11701170 18 the United States Department of Labor that measures the
11711171 19 average change in prices of goods and services purchased by
11721172 20 all urban consumers, United States city average, all items,
11731173 21 1982-84 = 100. The new amount resulting from each annual
11741174 22 adjustment shall be determined by the Public Pension Division
11751175 23 of the Department of Insurance and made available to the
11761176 24 boards of the retirement systems and pension funds by November
11771177 25 1 of each year.
11781178 26 (c) A member or participant is entitled to a retirement
11791179
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11811181
11821182
11831183
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11851185
11861186
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11881188 HB3519 - 33 - LRB103 30448 RPS 56880 b
11891189 1 annuity upon written application if he or she has attained age
11901190 2 67 (age 65, with respect to service under Article 12 that is
11911191 3 subject to this Section, for a member or participant under
11921192 4 Article 12 who first becomes a member or participant under
11931193 5 Article 12 on or after January 1, 2022 or who makes the
11941194 6 election under item (i) of subsection (d-15) of this Section)
11951195 7 and has at least 10 years of service credit and is otherwise
11961196 8 eligible under the requirements of the applicable Article.
11971197 9 A member or participant who has attained age 62 (age 60,
11981198 10 with respect to service under Article 12 that is subject to
11991199 11 this Section, for a member or participant under Article 12 who
12001200 12 first becomes a member or participant under Article 12 on or
12011201 13 after January 1, 2022 or who makes the election under item (i)
12021202 14 of subsection (d-15) of this Section) and has at least 10 years
12031203 15 of service credit and is otherwise eligible under the
12041204 16 requirements of the applicable Article may elect to receive
12051205 17 the lower retirement annuity provided in subsection (d) of
12061206 18 this Section.
12071207 19 (c-5) A person who first becomes a member or a participant
12081208 20 subject to this Section on or after July 6, 2017 (the effective
12091209 21 date of Public Act 100-23), notwithstanding any other
12101210 22 provision of this Code to the contrary, is entitled to a
12111211 23 retirement annuity under Article 8 or Article 11 upon written
12121212 24 application if he or she has attained age 65 and has at least
12131213 25 10 years of service credit and is otherwise eligible under the
12141214 26 requirements of Article 8 or Article 11 of this Code,
12151215
12161216
12171217
12181218
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12211221
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12241224 HB3519 - 34 - LRB103 30448 RPS 56880 b
12251225 1 whichever is applicable.
12261226 2 (d) The retirement annuity of a member or participant who
12271227 3 is retiring after attaining age 62 (age 60, with respect to
12281228 4 service under Article 12 that is subject to this Section, for a
12291229 5 member or participant under Article 12 who first becomes a
12301230 6 member or participant under Article 12 on or after January 1,
12311231 7 2022 or who makes the election under item (i) of subsection
12321232 8 (d-15) of this Section) with at least 10 years of service
12331233 9 credit shall be reduced by one-half of 1% for each full month
12341234 10 that the member's age is under age 67 (age 65, with respect to
12351235 11 service under Article 12 that is subject to this Section, for a
12361236 12 member or participant under Article 12 who first becomes a
12371237 13 member or participant under Article 12 on or after January 1,
12381238 14 2022 or who makes the election under item (i) of subsection
12391239 15 (d-15) of this Section).
12401240 16 (d-5) The retirement annuity payable under Article 8 or
12411241 17 Article 11 to an eligible person subject to subsection (c-5)
12421242 18 of this Section who is retiring at age 60 with at least 10
12431243 19 years of service credit shall be reduced by one-half of 1% for
12441244 20 each full month that the member's age is under age 65.
12451245 21 (d-10) Each person who first became a member or
12461246 22 participant under Article 8 or Article 11 of this Code on or
12471247 23 after January 1, 2011 and prior to July 6, 2017 (the effective
12481248 24 date of Public Act 100-23) shall make an irrevocable election
12491249 25 either:
12501250 26 (i) to be eligible for the reduced retirement age
12511251
12521252
12531253
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12571257
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12601260 HB3519 - 35 - LRB103 30448 RPS 56880 b
12611261 1 provided in subsections (c-5) and (d-5) of this Section,
12621262 2 the eligibility for which is conditioned upon the member
12631263 3 or participant agreeing to the increases in employee
12641264 4 contributions for age and service annuities provided in
12651265 5 subsection (a-5) of Section 8-174 of this Code (for
12661266 6 service under Article 8) or subsection (a-5) of Section
12671267 7 11-170 of this Code (for service under Article 11); or
12681268 8 (ii) to not agree to item (i) of this subsection
12691269 9 (d-10), in which case the member or participant shall
12701270 10 continue to be subject to the retirement age provisions in
12711271 11 subsections (c) and (d) of this Section and the employee
12721272 12 contributions for age and service annuity as provided in
12731273 13 subsection (a) of Section 8-174 of this Code (for service
12741274 14 under Article 8) or subsection (a) of Section 11-170 of
12751275 15 this Code (for service under Article 11).
12761276 16 The election provided for in this subsection shall be made
12771277 17 between October 1, 2017 and November 15, 2017. A person
12781278 18 subject to this subsection who makes the required election
12791279 19 shall remain bound by that election, except that an election
12801280 20 made under this subsection by a participant under Article 8 is
12811281 21 rescinded by operation of law and such person is subject to the
12821282 22 provisions otherwise applicable to a participant who first
12831283 23 became a participant under Article 8 on or after January 1,
12841284 24 2011. A person subject to this subsection who fails for any
12851285 25 reason to make the required election within the time specified
12861286 26 in this subsection shall be deemed to have made the election
12871287
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12891289
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12931293
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12961296 HB3519 - 36 - LRB103 30448 RPS 56880 b
12971297 1 under item (ii).
12981298 2 (d-15) Each person who first becomes a member or
12991299 3 participant under Article 12 on or after January 1, 2011 and
13001300 4 prior to January 1, 2022 shall make an irrevocable election
13011301 5 either:
13021302 6 (i) to be eligible for the reduced retirement age
13031303 7 specified in subsections (c) and (d) of this Section, the
13041304 8 eligibility for which is conditioned upon the member or
13051305 9 participant agreeing to the increase in employee
13061306 10 contributions for service annuities specified in
13071307 11 subsection (b) of Section 12-150; or
13081308 12 (ii) to not agree to item (i) of this subsection
13091309 13 (d-15), in which case the member or participant shall not
13101310 14 be eligible for the reduced retirement age specified in
13111311 15 subsections (c) and (d) of this Section and shall not be
13121312 16 subject to the increase in employee contributions for
13131313 17 service annuities specified in subsection (b) of Section
13141314 18 12-150.
13151315 19 The election provided for in this subsection shall be made
13161316 20 between January 1, 2022 and April 1, 2022. A person subject to
13171317 21 this subsection who makes the required election shall remain
13181318 22 bound by that election. A person subject to this subsection
13191319 23 who fails for any reason to make the required election within
13201320 24 the time specified in this subsection shall be deemed to have
13211321 25 made the election under item (ii).
13221322 26 (e) Any retirement annuity or supplemental annuity shall
13231323
13241324
13251325
13261326
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13291329
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13321332 HB3519 - 37 - LRB103 30448 RPS 56880 b
13331333 1 be subject to annual increases on the January 1 occurring
13341334 2 either on or after the attainment of age 67 (age 65, with
13351335 3 respect to service under Article 12 that is subject to this
13361336 4 Section, for a member or participant under Article 12 who
13371337 5 first becomes a member or participant under Article 12 on or
13381338 6 after January 1, 2022 or who makes the election under item (i)
13391339 7 of subsection (d-15); and beginning on July 6, 2017 (the
13401340 8 effective date of Public Act 100-23), age 65 with respect to
13411341 9 service under Article 8 or Article 11 for eligible persons
13421342 10 who: (i) are subject to subsection (c-5) of this Section; or
13431343 11 (ii) made the election under item (i) of subsection (d-10) of
13441344 12 this Section) or the first anniversary of the annuity start
13451345 13 date, whichever is later. Each annual increase shall be
13461346 14 calculated at 3% or one-half the annual unadjusted percentage
13471347 15 increase (but not less than zero) in the consumer price
13481348 16 index-u for the 12 months ending with the September preceding
13491349 17 each November 1, whichever is less, of the originally granted
13501350 18 retirement annuity. If the annual unadjusted percentage change
13511351 19 in the consumer price index-u for the 12 months ending with the
13521352 20 September preceding each November 1 is zero or there is a
13531353 21 decrease, then the annuity shall not be increased.
13541354 22 For the purposes of Section 1-103.1 of this Code, the
13551355 23 changes made to this Section by Public Act 102-263 are
13561356 24 applicable without regard to whether the employee was in
13571357 25 active service on or after August 6, 2021 (the effective date
13581358 26 of Public Act 102-263).
13591359
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13681368 HB3519 - 38 - LRB103 30448 RPS 56880 b
13691369 1 For the purposes of Section 1-103.1 of this Code, the
13701370 2 changes made to this Section by Public Act 100-23 are
13711371 3 applicable without regard to whether the employee was in
13721372 4 active service on or after July 6, 2017 (the effective date of
13731373 5 Public Act 100-23).
13741374 6 (f) The initial survivor's or widow's annuity of an
13751375 7 otherwise eligible survivor or widow of a retired member or
13761376 8 participant who first became a member or participant on or
13771377 9 after January 1, 2011 shall be in the amount of 66 2/3% of the
13781378 10 retired member's or participant's retirement annuity at the
13791379 11 date of death. In the case of the death of a member or
13801380 12 participant who has not retired and who first became a member
13811381 13 or participant on or after January 1, 2011, eligibility for a
13821382 14 survivor's or widow's annuity shall be determined by the
13831383 15 applicable Article of this Code. The initial benefit shall be
13841384 16 66 2/3% of the earned annuity without a reduction due to age. A
13851385 17 child's annuity of an otherwise eligible child shall be in the
13861386 18 amount prescribed under each Article if applicable. Any
13871387 19 survivor's or widow's annuity shall be increased (1) on each
13881388 20 January 1 occurring on or after the commencement of the
13891389 21 annuity if the deceased member died while receiving a
13901390 22 retirement annuity or (2) in other cases, on each January 1
13911391 23 occurring after the first anniversary of the commencement of
13921392 24 the annuity. Each annual increase shall be calculated at 3% or
13931393 25 one-half the annual unadjusted percentage increase (but not
13941394 26 less than zero) in the consumer price index-u for the 12 months
13951395
13961396
13971397
13981398
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14011401
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14041404 HB3519 - 39 - LRB103 30448 RPS 56880 b
14051405 1 ending with the September preceding each November 1, whichever
14061406 2 is less, of the originally granted survivor's annuity. If the
14071407 3 annual unadjusted percentage change in the consumer price
14081408 4 index-u for the 12 months ending with the September preceding
14091409 5 each November 1 is zero or there is a decrease, then the
14101410 6 annuity shall not be increased.
14111411 7 (g) The benefits in Section 14-110 apply only if the
14121412 8 person is a State policeman, a fire fighter in the fire
14131413 9 protection service of a department, a conservation police
14141414 10 officer, an investigator for the Secretary of State, an
14151415 11 investigator for the Office of the Attorney General, an arson
14161416 12 investigator, a Commerce Commission police officer,
14171417 13 investigator for the Department of Revenue or the Illinois
14181418 14 Gaming Board, a security employee of the Department of
14191419 15 Corrections or the Department of Juvenile Justice, or a
14201420 16 security employee of the Department of Innovation and
14211421 17 Technology, as those terms are defined in subsection (b) and
14221422 18 subsection (c) of Section 14-110. A person who meets the
14231423 19 requirements of this Section is entitled to an annuity
14241424 20 calculated under the provisions of Section 14-110, in lieu of
14251425 21 the regular or minimum retirement annuity, only if the person
14261426 22 has withdrawn from service with not less than 20 years of
14271427 23 eligible creditable service and has attained age 60,
14281428 24 regardless of whether the attainment of age 60 occurs while
14291429 25 the person is still in service.
14301430 26 (g-1) The benefits in Section 14-110 apply if the person
14311431
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14401440 HB3519 - 40 - LRB103 30448 RPS 56880 b
14411441 1 is a security employee of the Department of Corrections or the
14421442 2 Department of Juvenile Justice, as those terms are defined in
14431443 3 subsection (b) and subsection (c) of Section 14-110. A person
14441444 4 who meets the requirements of this Section is entitled to an
14451445 5 annuity calculated under the provisions of Section 14-110, in
14461446 6 lieu of the regular or minimum retirement annuity, only if the
14471447 7 person has withdrawn from service with not less than 20 years
14481448 8 of eligible creditable service and has attained age 55,
14491449 9 regardless of whether the attainment of age 55 occurs while
14501450 10 the person is still in service.
14511451 11 (h) If a person who first becomes a member or a participant
14521452 12 of a retirement system or pension fund subject to this Section
14531453 13 on or after January 1, 2011 is receiving a retirement annuity
14541454 14 or retirement pension under that system or fund and becomes a
14551455 15 member or participant under any other system or fund created
14561456 16 by this Code and is employed on a full-time basis, except for
14571457 17 those members or participants exempted from the provisions of
14581458 18 this Section under subsection (a) of this Section, then the
14591459 19 person's retirement annuity or retirement pension under that
14601460 20 system or fund shall be suspended during that employment. Upon
14611461 21 termination of that employment, the person's retirement
14621462 22 annuity or retirement pension payments shall resume and be
14631463 23 recalculated if recalculation is provided for under the
14641464 24 applicable Article of this Code.
14651465 25 If a person who first becomes a member of a retirement
14661466 26 system or pension fund subject to this Section on or after
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14771477 1 January 1, 2012 and is receiving a retirement annuity or
14781478 2 retirement pension under that system or fund and accepts on a
14791479 3 contractual basis a position to provide services to a
14801480 4 governmental entity from which he or she has retired, then
14811481 5 that person's annuity or retirement pension earned as an
14821482 6 active employee of the employer shall be suspended during that
14831483 7 contractual service. A person receiving an annuity or
14841484 8 retirement pension under this Code shall notify the pension
14851485 9 fund or retirement system from which he or she is receiving an
14861486 10 annuity or retirement pension, as well as his or her
14871487 11 contractual employer, of his or her retirement status before
14881488 12 accepting contractual employment. A person who fails to submit
14891489 13 such notification shall be guilty of a Class A misdemeanor and
14901490 14 required to pay a fine of $1,000. Upon termination of that
14911491 15 contractual employment, the person's retirement annuity or
14921492 16 retirement pension payments shall resume and, if appropriate,
14931493 17 be recalculated under the applicable provisions of this Code.
14941494 18 (i) (Blank).
14951495 19 (j) Except for conflicts between this Section and Section
14961496 20 1-163, in In the case of a conflict between the provisions of
14971497 21 this Section and any other provision of this Code, the
14981498 22 provisions of this Section shall control.
14991499 23 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
15001500 24 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
15011501 25 5-27-22.)
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15031503
15041504
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15081508
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15121512 1 (40 ILCS 5/1-163 new)
15131513 2 Sec. 1-163. Benefits for certain Tier 2 members.
15141514 3 (a) Notwithstanding any provision of law to the contrary,
15151515 4 including Section 1-160, this Section applies to a person who
15161516 5 first becomes a member or participant of a pension fund or
15171517 6 retirement system established under Article 7, 8, 9, 14, or 15
15181518 7 on or after January 1, 2011. To the extent that any provision
15191519 8 of this Section conflicts with a provision under those
15201520 9 Articles or Section 1-160, this Section controls.
15211521 10 (b) "Final average salary" means, except as otherwise
15221522 11 provided in this subsection, the average monthly (or annual)
15231523 12 salary obtained by dividing the total salary or earnings
15241524 13 calculated under the Article applicable to the member or
15251525 14 participant during the 60 consecutive months (or 5 consecutive
15261526 15 years) of service within the last 120 months (or 10 years) of
15271527 16 service in which the total salary or earnings calculated under
15281528 17 the applicable Article was the highest by the number of months
15291529 18 (or years) of service in that period. For the purposes of a
15301530 19 person who first becomes a member or participant of any
15311531 20 retirement system or pension fund to which this Section
15321532 21 applies on or after January 1, 2011, in this Code, "final
15331533 22 average salary" shall be substituted for the following:
15341534 23 (1) In Article 7 (except for service as sheriff's law
15351535 24 enforcement employees), "final rate of earnings".
15361536 25 (2) In Articles 8 and 9, "highest average annual
15371537 26 salary for any 4 consecutive years within the last 10
15381538
15391539
15401540
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15481548 1 years of service immediately preceding the date of
15491549 2 withdrawal".
15501550 3 (3) In Article 14, "final average compensation".
15511551 4 (c) Beginning on January 1, 2011, for all purposes under
15521552 5 this Code (including without limitation the calculation of
15531553 6 benefits and employee contributions), the annual earnings,
15541554 7 salary, or wages (based on the plan year) of a member or
15551555 8 participant to whom this Section applies shall not exceed the
15561556 9 federal Social Security Wage Base then in effect.
15571557 10 (d) A member or participant is entitled to a retirement
15581558 11 annuity upon written application if he or she has attained age
15591559 12 60, has at least 20 years of service credit, and is otherwise
15601560 13 eligible under the requirements of the applicable Article.
15611561 14 A member or participant is entitled to a retirement
15621562 15 annuity upon written application if he or she has attained age
15631563 16 67, has at least 10 years of service credit, and is otherwise
15641564 17 eligible under the requirements of the applicable Article.
15651565 18 If the Article under which a member or participant
15661566 19 participates provides for a retirement age of under 60 with a
15671567 20 reduction in the amount of the annuity for persons who first
15681568 21 became members before January 1, 2011, then that provision
15691569 22 shall apply to the member or participant with the same age,
15701570 23 service, and other eligibility requirements and in the same
15711571 24 amount, including any reduction due to age, as provided in the
15721572 25 applicable Article.
15731573 26 (e) Any retirement annuity or supplemental annuity shall
15741574
15751575
15761576
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15841584 1 be subject to annual increases on January 1 in the manner and
15851585 2 with the same eligibility requirements provided for members or
15861586 3 participants under the applicable Article who first became
15871587 4 members or participants in that Article before January 1,
15881588 5 2011, except that each annual increase shall be calculated at
15891589 6 3% or one-half the annual unadjusted percentage increase (but
15901590 7 not less than zero) in the consumer price index-u for the 12
15911591 8 months ending with the September preceding each November 1,
15921592 9 whichever is greater, of the originally granted retirement
15931593 10 annuity. If the annual unadjusted percentage change in the
15941594 11 consumer price index-u for the 12 months ending with the
15951595 12 September preceding each November 1 is zero or there is a
15961596 13 decrease, then the annuity shall not be increased.
15971597 14 For the purposes of this Section, "consumer price index-u"
15981598 15 means the index published by the Bureau of Labor Statistics of
15991599 16 the United States Department of Labor that measures the
16001600 17 average change in prices of goods and services purchased by
16011601 18 all urban consumers, United States city average, all items,
16021602 19 1982-84 = 100. The new amount resulting from each annual
16031603 20 adjustment shall be determined by the Public Pension Division
16041604 21 of the Department of Insurance and made available to the
16051605 22 boards of the retirement systems and pension funds by November
16061606 23 1 of each year.
16071607 24 (40 ILCS 5/7-226 new)
16081608 25 Sec. 7-226. Application of Section 1-163. To the extent
16091609
16101610
16111611
16121612
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16151615
16161616
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16181618 HB3519 - 45 - LRB103 30448 RPS 56880 b
16191619 1 that any provision of this Article conflicts with Section
16201620 2 1-163, Section 1-163 controls.
16211621 3 (40 ILCS 5/8-251.5 new)
16221622 4 Sec. 8-251.5. Application of Section 1-163. To the extent
16231623 5 that any provision of this Article conflicts with Section
16241624 6 1-163, Section 1-163 controls.
16251625 7 (40 ILCS 5/9-242 new)
16261626 8 Sec. 9-242. Application of Section 1-163. To the extent
16271627 9 that any provision of this Article conflicts with Section
16281628 10 1-163, Section 1-163 controls.
16291629 11 (40 ILCS 5/14-152.1)
16301630 12 Sec. 14-152.1. Application and expiration of new benefit
16311631 13 increases.
16321632 14 (a) As used in this Section, "new benefit increase" means
16331633 15 an increase in the amount of any benefit provided under this
16341634 16 Article, or an expansion of the conditions of eligibility for
16351635 17 any benefit under this Article, that results from an amendment
16361636 18 to this Code that takes effect after June 1, 2005 (the
16371637 19 effective date of Public Act 94-4). "New benefit increase",
16381638 20 however, does not include any benefit increase resulting from
16391639 21 the changes made to Article 1 or this Article by Public Act
16401640 22 96-37, Public Act 100-23, Public Act 100-587, Public Act
16411641 23 100-611, Public Act 101-10, Public Act 101-610, Public Act
16421642
16431643
16441644
16451645
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16481648
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16521652 1 102-210, Public Act 102-856, Public Act 102-956, or this
16531653 2 amendatory Act of the 103rd General Assembly this amendatory
16541654 3 Act of the 102nd General Assembly.
16551655 4 (b) Notwithstanding any other provision of this Code or
16561656 5 any subsequent amendment to this Code, every new benefit
16571657 6 increase is subject to this Section and shall be deemed to be
16581658 7 granted only in conformance with and contingent upon
16591659 8 compliance with the provisions of this Section.
16601660 9 (c) The Public Act enacting a new benefit increase must
16611661 10 identify and provide for payment to the System of additional
16621662 11 funding at least sufficient to fund the resulting annual
16631663 12 increase in cost to the System as it accrues.
16641664 13 Every new benefit increase is contingent upon the General
16651665 14 Assembly providing the additional funding required under this
16661666 15 subsection. The Commission on Government Forecasting and
16671667 16 Accountability shall analyze whether adequate additional
16681668 17 funding has been provided for the new benefit increase and
16691669 18 shall report its analysis to the Public Pension Division of
16701670 19 the Department of Insurance. A new benefit increase created by
16711671 20 a Public Act that does not include the additional funding
16721672 21 required under this subsection is null and void. If the Public
16731673 22 Pension Division determines that the additional funding
16741674 23 provided for a new benefit increase under this subsection is
16751675 24 or has become inadequate, it may so certify to the Governor and
16761676 25 the State Comptroller and, in the absence of corrective action
16771677 26 by the General Assembly, the new benefit increase shall expire
16781678
16791679
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16811681
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16841684
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16881688 1 at the end of the fiscal year in which the certification is
16891689 2 made.
16901690 3 (d) Every new benefit increase shall expire 5 years after
16911691 4 its effective date or on such earlier date as may be specified
16921692 5 in the language enacting the new benefit increase or provided
16931693 6 under subsection (c). This does not prevent the General
16941694 7 Assembly from extending or re-creating a new benefit increase
16951695 8 by law.
16961696 9 (e) Except as otherwise provided in the language creating
16971697 10 the new benefit increase, a new benefit increase that expires
16981698 11 under this Section continues to apply to persons who applied
16991699 12 and qualified for the affected benefit while the new benefit
17001700 13 increase was in effect and to the affected beneficiaries and
17011701 14 alternate payees of such persons, but does not apply to any
17021702 15 other person, including, without limitation, a person who
17031703 16 continues in service after the expiration date and did not
17041704 17 apply and qualify for the affected benefit while the new
17051705 18 benefit increase was in effect.
17061706 19 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
17071707 20 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
17081708 21 1-1-23; 102-956, eff. 5-27-22.)
17091709 22 (40 ILCS 5/14-157 new)
17101710 23 Sec. 14-157. Application of Section 1-163. To the extent
17111711 24 that any provision of this Article conflicts with Section
17121712 25 1-163, Section 1-163 controls.
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17231723 1 (40 ILCS 5/15-198)
17241724 2 Sec. 15-198. Application and expiration of new benefit
17251725 3 increases.
17261726 4 (a) As used in this Section, "new benefit increase" means
17271727 5 an increase in the amount of any benefit provided under this
17281728 6 Article, or an expansion of the conditions of eligibility for
17291729 7 any benefit under this Article, that results from an amendment
17301730 8 to this Code that takes effect after June 1, 2005 (the
17311731 9 effective date of Public Act 94-4). "New benefit increase",
17321732 10 however, does not include any benefit increase resulting from
17331733 11 the changes made to Article 1 or this Article by Public Act
17341734 12 100-23, Public Act 100-587, Public Act 100-769, Public Act
17351735 13 101-10, Public Act 101-610, Public Act 102-16, or this
17361736 14 amendatory Act of the 103rd General Assembly this amendatory
17371737 15 Act of the 102nd General Assembly.
17381738 16 (b) Notwithstanding any other provision of this Code or
17391739 17 any subsequent amendment to this Code, every new benefit
17401740 18 increase is subject to this Section and shall be deemed to be
17411741 19 granted only in conformance with and contingent upon
17421742 20 compliance with the provisions of this Section.
17431743 21 (c) The Public Act enacting a new benefit increase must
17441744 22 identify and provide for payment to the System of additional
17451745 23 funding at least sufficient to fund the resulting annual
17461746 24 increase in cost to the System as it accrues.
17471747 25 Every new benefit increase is contingent upon the General
17481748
17491749
17501750
17511751
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17541754
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17581758 1 Assembly providing the additional funding required under this
17591759 2 subsection. The Commission on Government Forecasting and
17601760 3 Accountability shall analyze whether adequate additional
17611761 4 funding has been provided for the new benefit increase and
17621762 5 shall report its analysis to the Public Pension Division of
17631763 6 the Department of Insurance. A new benefit increase created by
17641764 7 a Public Act that does not include the additional funding
17651765 8 required under this subsection is null and void. If the Public
17661766 9 Pension Division determines that the additional funding
17671767 10 provided for a new benefit increase under this subsection is
17681768 11 or has become inadequate, it may so certify to the Governor and
17691769 12 the State Comptroller and, in the absence of corrective action
17701770 13 by the General Assembly, the new benefit increase shall expire
17711771 14 at the end of the fiscal year in which the certification is
17721772 15 made.
17731773 16 (d) Every new benefit increase shall expire 5 years after
17741774 17 its effective date or on such earlier date as may be specified
17751775 18 in the language enacting the new benefit increase or provided
17761776 19 under subsection (c). This does not prevent the General
17771777 20 Assembly from extending or re-creating a new benefit increase
17781778 21 by law.
17791779 22 (e) Except as otherwise provided in the language creating
17801780 23 the new benefit increase, a new benefit increase that expires
17811781 24 under this Section continues to apply to persons who applied
17821782 25 and qualified for the affected benefit while the new benefit
17831783 26 increase was in effect and to the affected beneficiaries and
17841784
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17941794 1 alternate payees of such persons, but does not apply to any
17951795 2 other person, including, without limitation, a person who
17961796 3 continues in service after the expiration date and did not
17971797 4 apply and qualify for the affected benefit while the new
17981798 5 benefit increase was in effect.
17991799 6 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
18001800 7 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
18011801 8 (40 ILCS 5/15-203 new)
18021802 9 Sec. 15-203. Application of Section 1-163. To the extent
18031803 10 that any provision of this Article conflicts with Section
18041804 11 1-163, Section 1-163 controls.
18051805 12 Section 90. The State Mandates Act is amended by adding
18061806 13 Section 8.47 as follows:
18071807 14 (30 ILCS 805/8.47 new)
18081808 15 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
18091809 16 8 of this Act, no reimbursement by the State is required for
18101810 17 the implementation of any mandate created by this amendatory
18111811 18 Act of the 103rd General Assembly.
18121812 HB3519- 51 -LRB103 30448 RPS 56880 b 1 INDEX 2 Statutes amended in order of appearance HB3519- 51 -LRB103 30448 RPS 56880 b HB3519 - 51 - LRB103 30448 RPS 56880 b 1 INDEX 2 Statutes amended in order of appearance
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18151815 1 INDEX
18161816 2 Statutes amended in order of appearance
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18181818
18191819
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18231823
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18271827 HB3519 - 51 - LRB103 30448 RPS 56880 b
18281828 1 INDEX
18291829 2 Statutes amended in order of appearance
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18311831
18321832
18331833
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