Illinois 2023-2024 Regular Session

Illinois House Bill HB4065 Compare Versions

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

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4065 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED: See Index Amends the General Provisions, Downstate Police, Downstate Firefighter, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), State Employees, and State Universities Articles of the Illinois Pension Code. With regard to police officers, firefighters, and similar public safety employees, removes Tier 2 limitations on the amount of salary for annuity purposes; provides that the automatic annual increases to a retirement pension or survivor pension are calculated under the Tier 1 formulas; and provides that the amount of and eligibility for a retirement annuity are calculated under the Tier 1 provisions. Amends the State Finance Act. Provides that each fiscal year, the Comptroller shall pay to each unit of local government that makes a certification of certain employer costs under the Illinois Pension Code or under a specified provision of the Public Safety Employee Benefits Act an amount equal to 40% of the total amount certified by the unit of local government. Creates a continuing appropriation of that amount. Amends the Public Safety Employee Benefits Act. Provides that a unit of local government that provides health insurance to police officers and firefighters shall maintain the health insurance plans of these employees after retirement and shall contribute toward the cost of the annuitant's coverage under the unit of local government's health insurance plan an amount equal to 4% of that cost for each full year of creditable service upon which the annuitant's retirement annuity is based. Makes other and conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 31966 RPS 60743 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4065 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED: See Index See Index Amends the General Provisions, Downstate Police, Downstate Firefighter, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), State Employees, and State Universities Articles of the Illinois Pension Code. With regard to police officers, firefighters, and similar public safety employees, removes Tier 2 limitations on the amount of salary for annuity purposes; provides that the automatic annual increases to a retirement pension or survivor pension are calculated under the Tier 1 formulas; and provides that the amount of and eligibility for a retirement annuity are calculated under the Tier 1 provisions. Amends the State Finance Act. Provides that each fiscal year, the Comptroller shall pay to each unit of local government that makes a certification of certain employer costs under the Illinois Pension Code or under a specified provision of the Public Safety Employee Benefits Act an amount equal to 40% of the total amount certified by the unit of local government. Creates a continuing appropriation of that amount. Amends the Public Safety Employee Benefits Act. Provides that a unit of local government that provides health insurance to police officers and firefighters shall maintain the health insurance plans of these employees after retirement and shall contribute toward the cost of the annuitant's coverage under the unit of local government's health insurance plan an amount equal to 4% of that cost for each full year of creditable service upon which the annuitant's retirement annuity is based. Makes other and conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 31966 RPS 60743 b LRB103 31966 RPS 60743 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4065 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the General Provisions, Downstate Police, Downstate Firefighter, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), State Employees, and State Universities Articles of the Illinois Pension Code. With regard to police officers, firefighters, and similar public safety employees, removes Tier 2 limitations on the amount of salary for annuity purposes; provides that the automatic annual increases to a retirement pension or survivor pension are calculated under the Tier 1 formulas; and provides that the amount of and eligibility for a retirement annuity are calculated under the Tier 1 provisions. Amends the State Finance Act. Provides that each fiscal year, the Comptroller shall pay to each unit of local government that makes a certification of certain employer costs under the Illinois Pension Code or under a specified provision of the Public Safety Employee Benefits Act an amount equal to 40% of the total amount certified by the unit of local government. Creates a continuing appropriation of that amount. Amends the Public Safety Employee Benefits Act. Provides that a unit of local government that provides health insurance to police officers and firefighters shall maintain the health insurance plans of these employees after retirement and shall contribute toward the cost of the annuitant's coverage under the unit of local government's health insurance plan an amount equal to 4% of that cost for each full year of creditable service upon which the annuitant's retirement annuity is based. Makes other and conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
6	6	LRB103 31966 RPS 60743 b LRB103 31966 RPS 60743 b
7	7	LRB103 31966 RPS 60743 b
8	8	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
9	9	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
10	10	A BILL FOR
11	11	HB4065LRB103 31966 RPS 60743 b HB4065 LRB103 31966 RPS 60743 b
12	12	HB4065 LRB103 31966 RPS 60743 b
13	13	1 AN ACT concerning public employee benefits.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The State Finance Act is amended by adding
17	17	5 Sections 5.990 and 6z-139 as follows:
18	18	6 (30 ILCS 105/5.990 new)
19	19	7 Sec. 5.990. The Local Government Retirement Fund.
20	20	8 (30 ILCS 105/6z-139 new)
21	21	9 Sec. 6z-139. The Local Government Retirement Fund.
22	22	10 (a) There is created in the State treasury a special fund
23	23	11 known as the Local Government Retirement Fund for the purpose
24	24	12 of receiving funds from any source for the purposes of making
25	25	13 payments toward public safety employee health insurance costs
26	26	14 and retirement contributions as provided in this Section.
27	27	15 (b) Each fiscal year beginning with fiscal year 2024, the
28	28	16 State Treasurer shall direct the State Comptroller to pay to
29	29	17 each unit of local government that makes a certification under
30	30	18 Sections 3-125, 4-118, 5-168, 6-165, and 7-172 of the Illinois
31	31	19 Pension Code or under Section 11 of the Public Safety Employee
32	32	20 Benefits Act an amount equal to 40% of the total amount
33	33	21 certified by that unit of local government under all of the
34	34	22 applicable Sections.
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36	36
37	37
38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4065 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED:
39	39	See Index See Index
40	40	See Index
41	41	Amends the General Provisions, Downstate Police, Downstate Firefighter, Chicago Police, Chicago Firefighter, Illinois Municipal Retirement Fund (IMRF), State Employees, and State Universities Articles of the Illinois Pension Code. With regard to police officers, firefighters, and similar public safety employees, removes Tier 2 limitations on the amount of salary for annuity purposes; provides that the automatic annual increases to a retirement pension or survivor pension are calculated under the Tier 1 formulas; and provides that the amount of and eligibility for a retirement annuity are calculated under the Tier 1 provisions. Amends the State Finance Act. Provides that each fiscal year, the Comptroller shall pay to each unit of local government that makes a certification of certain employer costs under the Illinois Pension Code or under a specified provision of the Public Safety Employee Benefits Act an amount equal to 40% of the total amount certified by the unit of local government. Creates a continuing appropriation of that amount. Amends the Public Safety Employee Benefits Act. Provides that a unit of local government that provides health insurance to police officers and firefighters shall maintain the health insurance plans of these employees after retirement and shall contribute toward the cost of the annuitant's coverage under the unit of local government's health insurance plan an amount equal to 4% of that cost for each full year of creditable service upon which the annuitant's retirement annuity is based. Makes other and conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
42	42	LRB103 31966 RPS 60743 b LRB103 31966 RPS 60743 b
43	43	LRB103 31966 RPS 60743 b
44	44	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
45	45	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
46	46	A BILL FOR
47	47
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51	51
52	52	See Index
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56	56	LRB103 31966 RPS 60743 b
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58	58	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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75	75	1 (c) If, for any reason, the aggregate appropriations made
76	76	2 available are insufficient to meet the amount required in
77	77	3 subsection (b), this Section shall constitute a continuing
78	78	4 appropriation of the amount required under subsection (b).
79	79	5 Section 10. The Illinois Pension Code is amended by
80	80	6 changing Sections 1-160, 3-111, 3-111.1, 3-112, 3-125, 4-109,
81	81	7 4-109.1, 4-114, 4-118, 5-155, 5-167.1, 5-168, 5-169, 6-165,
82	82	8 6-210, 7-142.1, 7-171, 7-172, 14-152.1, 15-108.1, 15-108.2,
83	83	9 15-135, 15-136, and 15-198 and by adding Sections 3-148.5,
84	84	10 4-138.15, 5-239, 6-231, and 15-203 as follows:
85	85	11 (40 ILCS 5/1-160)
86	86	12 (Text of Section from P.A. 102-719)
87	87	13 Sec. 1-160. Provisions applicable to new hires.
88	88	14 (a) The provisions of this Section apply to a person who,
89	89	15 on or after January 1, 2011, first becomes a member or a
90	90	16 participant under any reciprocal retirement system or pension
91	91	17 fund established under this Code, other than a retirement
92	92	18 system or pension fund established under Article 2, 3, 4, 5, 6,
93	93	19 7, 15, or 18 of this Code, notwithstanding any other provision
94	94	20 of this Code to the contrary, but do not apply to any
95	95	21 self-managed plan established under this Code or to any
96	96	22 participant of the retirement plan established under Section
97	97	23 22-101; except that this Section applies to a person who
98	98	24 elected to establish alternative credits by electing in
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109	109	1 writing after January 1, 2011, but before August 8, 2011,
110	110	2 under Section 7-145.1 of this Code. Notwithstanding anything
111	111	3 to the contrary in this Section, for purposes of this Section,
112	112	4 a person who is a Tier 1 regular employee as defined in Section
113	113	5 7-109.4 of this Code or who participated in a retirement
114	114	6 system under Article 15 prior to January 1, 2011 shall be
115	115	7 deemed a person who first became a member or participant prior
116	116	8 to January 1, 2011 under any retirement system or pension fund
117	117	9 subject to this Section. The changes made to this Section by
118	118	10 Public Act 98-596 are a clarification of existing law and are
119	119	11 intended to be retroactive to January 1, 2011 (the effective
120	120	12 date of Public Act 96-889), notwithstanding the provisions of
121	121	13 Section 1-103.1 of this Code.
122	122	14 This Section does not apply to a person who first becomes a
123	123	15 noncovered employee under Article 14 on or after the
124	124	16 implementation date of the plan created under Section 1-161
125	125	17 for that Article, unless that person elects under subsection
126	126	18 (b) of Section 1-161 to instead receive the benefits provided
127	127	19 under this Section and the applicable provisions of that
128	128	20 Article.
129	129	21 This Section does not apply to a person who first becomes a
130	130	22 member or participant under Article 16 on or after the
131	131	23 implementation date of the plan created under Section 1-161
132	132	24 for that Article, unless that person elects under subsection
133	133	25 (b) of Section 1-161 to instead receive the benefits provided
134	134	26 under this Section and the applicable provisions of that
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145	145	1 Article.
146	146	2 This Section does not apply to a person who elects under
147	147	3 subsection (c-5) of Section 1-161 to receive the benefits
148	148	4 under Section 1-161.
149	149	5 This Section does not apply to a person who first becomes a
150	150	6 member or participant of an affected pension fund on or after 6
151	151	7 months after the resolution or ordinance date, as defined in
152	152	8 Section 1-162, unless that person elects under subsection (c)
153	153	9 of Section 1-162 to receive the benefits provided under this
154	154	10 Section and the applicable provisions of the Article under
155	155	11 which he or she is a member or participant.
156	156	12 (b) "Final average salary" means, except as otherwise
157	157	13 provided in this subsection, the average monthly (or annual)
158	158	14 salary obtained by dividing the total salary or earnings
159	159	15 calculated under the Article applicable to the member or
160	160	16 participant during the 96 consecutive months (or 8 consecutive
161	161	17 years) of service within the last 120 months (or 10 years) of
162	162	18 service in which the total salary or earnings calculated under
163	163	19 the applicable Article was the highest by the number of months
164	164	20 (or years) of service in that period. For the purposes of a
165	165	21 person who first becomes a member or participant of any
166	166	22 retirement system or pension fund to which this Section
167	167	23 applies on or after January 1, 2011, in this Code, "final
168	168	24 average salary" shall be substituted for the following:
169	169	25 (1) (Blank).
170	170	26 (2) In Articles 8, 9, 10, 11, and 12, "highest average
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181	181	1 annual salary for any 4 consecutive years within the last
182	182	2 10 years of service immediately preceding the date of
183	183	3 withdrawal".
184	184	4 (3) In Article 13, "average final salary".
185	185	5 (4) In Article 14, "final average compensation".
186	186	6 (5) In Article 17, "average salary".
187	187	7 (6) In Section 22-207, "wages or salary received by
188	188	8 him at the date of retirement or discharge".
189	189	9 A member of the Teachers' Retirement System of the State
190	190	10 of Illinois who retires on or after June 1, 2021 and for whom
191	191	11 the 2020-2021 school year is used in the calculation of the
192	192	12 member's final average salary shall use the higher of the
193	193	13 following for the purpose of determining the member's final
194	194	14 average salary:
195	195	15 (A) the amount otherwise calculated under the first
196	196	16 paragraph of this subsection; or
197	197	17 (B) an amount calculated by the Teachers' Retirement
198	198	18 System of the State of Illinois using the average of the
199	199	19 monthly (or annual) salary obtained by dividing the total
200	200	20 salary or earnings calculated under Article 16 applicable
201	201	21 to the member or participant during the 96 months (or 8
202	202	22 years) of service within the last 120 months (or 10 years)
203	203	23 of service in which the total salary or earnings
204	204	24 calculated under the Article was the highest by the number
205	205	25 of months (or years) of service in that period.
206	206	26 (b-5) Beginning on January 1, 2011, for all purposes under
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217	217	1 this Code (including without limitation the calculation of
218	218	2 benefits and employee contributions), the annual earnings,
219	219	3 salary, or wages (based on the plan year) of a member or
220	220	4 participant to whom this Section applies shall not exceed
221	221	5 $106,800; however, that amount shall annually thereafter be
222	222	6 increased by the lesser of (i) 3% of that amount, including all
223	223	7 previous adjustments, or (ii) one-half the annual unadjusted
224	224	8 percentage increase (but not less than zero) in the consumer
225	225	9 price index-u for the 12 months ending with the September
226	226	10 preceding each November 1, including all previous adjustments.
227	227	11 For the purposes of this Section, "consumer price index-u"
228	228	12 means the index published by the Bureau of Labor Statistics of
229	229	13 the United States Department of Labor that measures the
230	230	14 average change in prices of goods and services purchased by
231	231	15 all urban consumers, United States city average, all items,
232	232	16 1982-84 = 100. The new amount resulting from each annual
233	233	17 adjustment shall be determined by the Public Pension Division
234	234	18 of the Department of Insurance and made available to the
235	235	19 boards of the retirement systems and pension funds by November
236	236	20 1 of each year.
237	237	21 (c) A member or participant is entitled to a retirement
238	238	22 annuity upon written application if he or she has attained age
239	239	23 67 (age 65, with respect to service under Article 12 that is
240	240	24 subject to this Section, for a member or participant under
241	241	25 Article 12 who first becomes a member or participant under
242	242	26 Article 12 on or after January 1, 2022 or who makes the
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253	253	1 election under item (i) of subsection (d-15) of this Section)
254	254	2 and has at least 10 years of service credit and is otherwise
255	255	3 eligible under the requirements of the applicable Article.
256	256	4 A member or participant who has attained age 62 (age 60,
257	257	5 with respect to service under Article 12 that is subject to
258	258	6 this Section, for a member or participant under Article 12 who
259	259	7 first becomes a member or participant under Article 12 on or
260	260	8 after January 1, 2022 or who makes the election under item (i)
261	261	9 of subsection (d-15) of this Section) and has at least 10 years
262	262	10 of service credit and is otherwise eligible under the
263	263	11 requirements of the applicable Article may elect to receive
264	264	12 the lower retirement annuity provided in subsection (d) of
265	265	13 this Section.
266	266	14 (c-5) A person who first becomes a member or a participant
267	267	15 subject to this Section on or after July 6, 2017 (the effective
268	268	16 date of Public Act 100-23), notwithstanding any other
269	269	17 provision of this Code to the contrary, is entitled to a
270	270	18 retirement annuity under Article 8 or Article 11 upon written
271	271	19 application if he or she has attained age 65 and has at least
272	272	20 10 years of service credit and is otherwise eligible under the
273	273	21 requirements of Article 8 or Article 11 of this Code,
274	274	22 whichever is applicable.
275	275	23 (d) The retirement annuity of a member or participant who
276	276	24 is retiring after attaining age 62 (age 60, with respect to
277	277	25 service under Article 12 that is subject to this Section, for a
278	278	26 member or participant under Article 12 who first becomes a
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289	289	1 member or participant under Article 12 on or after January 1,
290	290	2 2022 or who makes the election under item (i) of subsection
291	291	3 (d-15) of this Section) with at least 10 years of service
292	292	4 credit shall be reduced by one-half of 1% for each full month
293	293	5 that the member's age is under age 67 (age 65, with respect to
294	294	6 service under Article 12 that is subject to this Section, for a
295	295	7 member or participant under Article 12 who first becomes a
296	296	8 member or participant under Article 12 on or after January 1,
297	297	9 2022 or who makes the election under item (i) of subsection
298	298	10 (d-15) of this Section).
299	299	11 (d-5) The retirement annuity payable under Article 8 or
300	300	12 Article 11 to an eligible person subject to subsection (c-5)
301	301	13 of this Section who is retiring at age 60 with at least 10
302	302	14 years of service credit shall be reduced by one-half of 1% for
303	303	15 each full month that the member's age is under age 65.
304	304	16 (d-10) Each person who first became a member or
305	305	17 participant under Article 8 or Article 11 of this Code on or
306	306	18 after January 1, 2011 and prior to July 6, 2017 (the effective
307	307	19 date of Public Act 100-23) shall make an irrevocable election
308	308	20 either:
309	309	21 (i) to be eligible for the reduced retirement age
310	310	22 provided in subsections (c-5) and (d-5) of this Section,
311	311	23 the eligibility for which is conditioned upon the member
312	312	24 or participant agreeing to the increases in employee
313	313	25 contributions for age and service annuities provided in
314	314	26 subsection (a-5) of Section 8-174 of this Code (for
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325	325	1 service under Article 8) or subsection (a-5) of Section
326	326	2 11-170 of this Code (for service under Article 11); or
327	327	3 (ii) to not agree to item (i) of this subsection
328	328	4 (d-10), in which case the member or participant shall
329	329	5 continue to be subject to the retirement age provisions in
330	330	6 subsections (c) and (d) of this Section and the employee
331	331	7 contributions for age and service annuity as provided in
332	332	8 subsection (a) of Section 8-174 of this Code (for service
333	333	9 under Article 8) or subsection (a) of Section 11-170 of
334	334	10 this Code (for service under Article 11).
335	335	11 The election provided for in this subsection shall be made
336	336	12 between October 1, 2017 and November 15, 2017. A person
337	337	13 subject to this subsection who makes the required election
338	338	14 shall remain bound by that election. A person subject to this
339	339	15 subsection who fails for any reason to make the required
340	340	16 election within the time specified in this subsection shall be
341	341	17 deemed to have made the election under item (ii).
342	342	18 (d-15) Each person who first becomes a member or
343	343	19 participant under Article 12 on or after January 1, 2011 and
344	344	20 prior to January 1, 2022 shall make an irrevocable election
345	345	21 either:
346	346	22 (i) to be eligible for the reduced retirement age
347	347	23 specified in subsections (c) and (d) of this Section, the
348	348	24 eligibility for which is conditioned upon the member or
349	349	25 participant agreeing to the increase in employee
350	350	26 contributions for service annuities specified in
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361	361	1 subsection (b) of Section 12-150; or
362	362	2 (ii) to not agree to item (i) of this subsection
363	363	3 (d-15), in which case the member or participant shall not
364	364	4 be eligible for the reduced retirement age specified in
365	365	5 subsections (c) and (d) of this Section and shall not be
366	366	6 subject to the increase in employee contributions for
367	367	7 service annuities specified in subsection (b) of Section
368	368	8 12-150.
369	369	9 The election provided for in this subsection shall be made
370	370	10 between January 1, 2022 and April 1, 2022. A person subject to
371	371	11 this subsection who makes the required election shall remain
372	372	12 bound by that election. A person subject to this subsection
373	373	13 who fails for any reason to make the required election within
374	374	14 the time specified in this subsection shall be deemed to have
375	375	15 made the election under item (ii).
376	376	16 (e) Any retirement annuity or supplemental annuity shall
377	377	17 be subject to annual increases on the January 1 occurring
378	378	18 either on or after the attainment of age 67 (age 65, with
379	379	19 respect to service under Article 12 that is subject to this
380	380	20 Section, for a member or participant under Article 12 who
381	381	21 first becomes a member or participant under Article 12 on or
382	382	22 after January 1, 2022 or who makes the election under item (i)
383	383	23 of subsection (d-15); and beginning on July 6, 2017 (the
384	384	24 effective date of Public Act 100-23), age 65 with respect to
385	385	25 service under Article 8 or Article 11 for eligible persons
386	386	26 who: (i) are subject to subsection (c-5) of this Section; or
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397	397	1 (ii) made the election under item (i) of subsection (d-10) of
398	398	2 this Section) or the first anniversary of the annuity start
399	399	3 date, whichever is later. Each annual increase shall be
400	400	4 calculated at 3% or one-half the annual unadjusted percentage
401	401	5 increase (but not less than zero) in the consumer price
402	402	6 index-u for the 12 months ending with the September preceding
403	403	7 each November 1, whichever is less, of the originally granted
404	404	8 retirement annuity. If the annual unadjusted percentage change
405	405	9 in the consumer price index-u for the 12 months ending with the
406	406	10 September preceding each November 1 is zero or there is a
407	407	11 decrease, then the annuity shall not be increased.
408	408	12 For the purposes of Section 1-103.1 of this Code, the
409	409	13 changes made to this Section by Public Act 102-263 are
410	410	14 applicable without regard to whether the employee was in
411	411	15 active service on or after August 6, 2021 (the effective date
412	412	16 of Public Act 102-263).
413	413	17 For the purposes of Section 1-103.1 of this Code, the
414	414	18 changes made to this Section by Public Act 100-23 are
415	415	19 applicable without regard to whether the employee was in
416	416	20 active service on or after July 6, 2017 (the effective date of
417	417	21 Public Act 100-23).
418	418	22 (f) The initial survivor's or widow's annuity of an
419	419	23 otherwise eligible survivor or widow of a retired member or
420	420	24 participant who first became a member or participant on or
421	421	25 after January 1, 2011 shall be in the amount of 66 2/3% of the
422	422	26 retired member's or participant's retirement annuity at the
423	423
424	424
425	425
426	426
427	427
428	428	HB4065 - 11 - LRB103 31966 RPS 60743 b
429	429
430	430
431	431	HB4065- 12 -LRB103 31966 RPS 60743 b HB4065 - 12 - LRB103 31966 RPS 60743 b
432	432	HB4065 - 12 - LRB103 31966 RPS 60743 b
433	433	1 date of death. In the case of the death of a member or
434	434	2 participant who has not retired and who first became a member
435	435	3 or participant on or after January 1, 2011, eligibility for a
436	436	4 survivor's or widow's annuity shall be determined by the
437	437	5 applicable Article of this Code. The initial benefit shall be
438	438	6 66 2/3% of the earned annuity without a reduction due to age. A
439	439	7 child's annuity of an otherwise eligible child shall be in the
440	440	8 amount prescribed under each Article if applicable. Any
441	441	9 survivor's or widow's annuity shall be increased (1) on each
442	442	10 January 1 occurring on or after the commencement of the
443	443	11 annuity if the deceased member died while receiving a
444	444	12 retirement annuity or (2) in other cases, on each January 1
445	445	13 occurring after the first anniversary of the commencement of
446	446	14 the annuity. Each annual increase shall be calculated at 3% or
447	447	15 one-half the annual unadjusted percentage increase (but not
448	448	16 less than zero) in the consumer price index-u for the 12 months
449	449	17 ending with the September preceding each November 1, whichever
450	450	18 is less, of the originally granted survivor's annuity. If the
451	451	19 annual unadjusted percentage change in the consumer price
452	452	20 index-u for the 12 months ending with the September preceding
453	453	21 each November 1 is zero or there is a decrease, then the
454	454	22 annuity shall not be increased.
455	455	23 (g) This Section does not apply to a person who The
456	456	24 benefits in Section 14-110 apply if the person is a fire
457	457	25 fighter in the fire protection service of a department, a
458	458	26 security employee of the Department of Corrections or the
459	459
460	460
461	461
462	462
463	463
464	464	HB4065 - 12 - LRB103 31966 RPS 60743 b
465	465
466	466
467	467	HB4065- 13 -LRB103 31966 RPS 60743 b HB4065 - 13 - LRB103 31966 RPS 60743 b
468	468	HB4065 - 13 - LRB103 31966 RPS 60743 b
469	469	1 Department of Juvenile Justice, or a security employee of the
470	470	2 Department of Innovation and Technology, as those terms are
471	471	3 defined in subsection (b) and subsection (c) of Section
472	472	4 14-110. A person who meets the requirements of this Section is
473	473	5 entitled to an annuity calculated under the provisions of
474	474	6 Section 14-110, in lieu of the regular or minimum retirement
475	475	7 annuity, only if the person has withdrawn from service with
476	476	8 not less than 20 years of eligible creditable service and has
477	477	9 attained age 60, regardless of whether the attainment of age
478	478	10 60 occurs while the person is still in service.
479	479	11 (g-5) This Section does not apply to a person who The
480	480	12 benefits in Section 14-110 apply if the person is a State
481	481	13 policeman, investigator for the Secretary of State,
482	482	14 conservation police officer, investigator for the Department
483	483	15 of Revenue or the Illinois Gaming Board, investigator for the
484	484	16 Office of the Attorney General, Commerce Commission police
485	485	17 officer, or arson investigator, as those terms are defined in
486	486	18 subsection (b) and subsection (c) of Section 14-110. A person
487	487	19 who meets the requirements of this Section is entitled to an
488	488	20 annuity calculated under the provisions of Section 14-110, in
489	489	21 lieu of the regular or minimum retirement annuity, only if the
490	490	22 person has withdrawn from service with not less than 20 years
491	491	23 of eligible creditable service and has attained age 55,
492	492	24 regardless of whether the attainment of age 55 occurs while
493	493	25 the person is still in service.
494	494	26 (h) If a person who first becomes a member or a participant
495	495
496	496
497	497
498	498
499	499
500	500	HB4065 - 13 - LRB103 31966 RPS 60743 b
501	501
502	502
503	503	HB4065- 14 -LRB103 31966 RPS 60743 b HB4065 - 14 - LRB103 31966 RPS 60743 b
504	504	HB4065 - 14 - LRB103 31966 RPS 60743 b
505	505	1 of a retirement system or pension fund subject to this Section
506	506	2 on or after January 1, 2011 is receiving a retirement annuity
507	507	3 or retirement pension under that system or fund and becomes a
508	508	4 member or participant under any other system or fund created
509	509	5 by this Code and is employed on a full-time basis, except for
510	510	6 those members or participants exempted from the provisions of
511	511	7 this Section under subsection (a) of this Section, then the
512	512	8 person's retirement annuity or retirement pension under that
513	513	9 system or fund shall be suspended during that employment. Upon
514	514	10 termination of that employment, the person's retirement
515	515	11 annuity or retirement pension payments shall resume and be
516	516	12 recalculated if recalculation is provided for under the
517	517	13 applicable Article of this Code.
518	518	14 If a person who first becomes a member of a retirement
519	519	15 system or pension fund subject to this Section on or after
520	520	16 January 1, 2012 and is receiving a retirement annuity or
521	521	17 retirement pension under that system or fund and accepts on a
522	522	18 contractual basis a position to provide services to a
523	523	19 governmental entity from which he or she has retired, then
524	524	20 that person's annuity or retirement pension earned as an
525	525	21 active employee of the employer shall be suspended during that
526	526	22 contractual service. A person receiving an annuity or
527	527	23 retirement pension under this Code shall notify the pension
528	528	24 fund or retirement system from which he or she is receiving an
529	529	25 annuity or retirement pension, as well as his or her
530	530	26 contractual employer, of his or her retirement status before
531	531
532	532
533	533
534	534
535	535
536	536	HB4065 - 14 - LRB103 31966 RPS 60743 b
537	537
538	538
539	539	HB4065- 15 -LRB103 31966 RPS 60743 b HB4065 - 15 - LRB103 31966 RPS 60743 b
540	540	HB4065 - 15 - LRB103 31966 RPS 60743 b
541	541	1 accepting contractual employment. A person who fails to submit
542	542	2 such notification shall be guilty of a Class A misdemeanor and
543	543	3 required to pay a fine of $1,000. Upon termination of that
544	544	4 contractual employment, the person's retirement annuity or
545	545	5 retirement pension payments shall resume and, if appropriate,
546	546	6 be recalculated under the applicable provisions of this Code.
547	547	7 (i) (Blank).
548	548	8 (i-5) It is the intent of this amendatory Act of the 103rd
549	549	9 General Assembly to provide to the participants specified in
550	550	10 subsections (g) and (g-5) who first became participants on or
551	551	11 after January 1, 2011 the same level of benefits and
552	552	12 eligibility criteria for benefits as those who first became
553	553	13 participants before January 1, 2011. The changes made to this
554	554	14 Article by this amendatory Act of the 103rd General Assembly
555	555	15 that provide benefit increases for participants specified in
556	556	16 subsections (g) and (g-5) apply without regard to whether the
557	557	17 participant was in service on or after the effective date of
558	558	18 this amendatory Act of the 103rd General Assembly,
559	559	19 notwithstanding the provisions of Section 1-103.1. The benefit
560	560	20 increases are intended to apply prospectively and do not
561	561	21 entitle a participant to retroactive benefit payments or
562	562	22 increases. The changes made to this Article by this amendatory
563	563	23 Act of the 103rd General Assembly shall not cause or otherwise
564	564	24 result in any retroactive adjustment of any employee
565	565	25 contributions.
566	566	26 (j) In the case of a conflict between the provisions of
567	567
568	568
569	569
570	570
571	571
572	572	HB4065 - 15 - LRB103 31966 RPS 60743 b
573	573
574	574
575	575	HB4065- 16 -LRB103 31966 RPS 60743 b HB4065 - 16 - LRB103 31966 RPS 60743 b
576	576	HB4065 - 16 - LRB103 31966 RPS 60743 b
577	577	1 this Section and any other provision of this Code, the
578	578	2 provisions of this Section shall control.
579	579	3 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
580	580	4 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
581	581	5 5-6-22.)
582	582	6 (Text of Section from P.A. 102-813)
583	583	7 Sec. 1-160. Provisions applicable to new hires.
584	584	8 (a) The provisions of this Section apply to a person who,
585	585	9 on or after January 1, 2011, first becomes a member or a
586	586	10 participant under any reciprocal retirement system or pension
587	587	11 fund established under this Code, other than a retirement
588	588	12 system or pension fund established under Article 2, 3, 4, 5, 6,
589	589	13 7, 15, or 18 of this Code, notwithstanding any other provision
590	590	14 of this Code to the contrary, but do not apply to any
591	591	15 self-managed plan established under this Code or to any
592	592	16 participant of the retirement plan established under Section
593	593	17 22-101; except that this Section applies to a person who
594	594	18 elected to establish alternative credits by electing in
595	595	19 writing after January 1, 2011, but before August 8, 2011,
596	596	20 under Section 7-145.1 of this Code. Notwithstanding anything
597	597	21 to the contrary in this Section, for purposes of this Section,
598	598	22 a person who is a Tier 1 regular employee as defined in Section
599	599	23 7-109.4 of this Code or who participated in a retirement
600	600	24 system under Article 15 prior to January 1, 2011 shall be
601	601	25 deemed a person who first became a member or participant prior
602	602
603	603
604	604
605	605
606	606
607	607	HB4065 - 16 - LRB103 31966 RPS 60743 b
608	608
609	609
610	610	HB4065- 17 -LRB103 31966 RPS 60743 b HB4065 - 17 - LRB103 31966 RPS 60743 b
611	611	HB4065 - 17 - LRB103 31966 RPS 60743 b
612	612	1 to January 1, 2011 under any retirement system or pension fund
613	613	2 subject to this Section. The changes made to this Section by
614	614	3 Public Act 98-596 are a clarification of existing law and are
615	615	4 intended to be retroactive to January 1, 2011 (the effective
616	616	5 date of Public Act 96-889), notwithstanding the provisions of
617	617	6 Section 1-103.1 of this Code.
618	618	7 This Section does not apply to a person who first becomes a
619	619	8 noncovered employee under Article 14 on or after the
620	620	9 implementation date of the plan created under Section 1-161
621	621	10 for that Article, unless that person elects under subsection
622	622	11 (b) of Section 1-161 to instead receive the benefits provided
623	623	12 under this Section and the applicable provisions of that
624	624	13 Article.
625	625	14 This Section does not apply to a person who first becomes a
626	626	15 member or participant under Article 16 on or after the
627	627	16 implementation date of the plan created under Section 1-161
628	628	17 for that Article, unless that person elects under subsection
629	629	18 (b) of Section 1-161 to instead receive the benefits provided
630	630	19 under this Section and the applicable provisions of that
631	631	20 Article.
632	632	21 This Section does not apply to a person who elects under
633	633	22 subsection (c-5) of Section 1-161 to receive the benefits
634	634	23 under Section 1-161.
635	635	24 This Section does not apply to a person who first becomes a
636	636	25 member or participant of an affected pension fund on or after 6
637	637	26 months after the resolution or ordinance date, as defined in
638	638
639	639
640	640
641	641
642	642
643	643	HB4065 - 17 - LRB103 31966 RPS 60743 b
644	644
645	645
646	646	HB4065- 18 -LRB103 31966 RPS 60743 b HB4065 - 18 - LRB103 31966 RPS 60743 b
647	647	HB4065 - 18 - LRB103 31966 RPS 60743 b
648	648	1 Section 1-162, unless that person elects under subsection (c)
649	649	2 of Section 1-162 to receive the benefits provided under this
650	650	3 Section and the applicable provisions of the Article under
651	651	4 which he or she is a member or participant.
652	652	5 (b) "Final average salary" means, except as otherwise
653	653	6 provided in this subsection, the average monthly (or annual)
654	654	7 salary obtained by dividing the total salary or earnings
655	655	8 calculated under the Article applicable to the member or
656	656	9 participant during the 96 consecutive months (or 8 consecutive
657	657	10 years) of service within the last 120 months (or 10 years) of
658	658	11 service in which the total salary or earnings calculated under
659	659	12 the applicable Article was the highest by the number of months
660	660	13 (or years) of service in that period. For the purposes of a
661	661	14 person who first becomes a member or participant of any
662	662	15 retirement system or pension fund to which this Section
663	663	16 applies on or after January 1, 2011, in this Code, "final
664	664	17 average salary" shall be substituted for the following:
665	665	18 (1) (Blank).
666	666	19 (2) In Articles 8, 9, 10, 11, and 12, "highest average
667	667	20 annual salary for any 4 consecutive years within the last
668	668	21 10 years of service immediately preceding the date of
669	669	22 withdrawal".
670	670	23 (3) In Article 13, "average final salary".
671	671	24 (4) In Article 14, "final average compensation".
672	672	25 (5) In Article 17, "average salary".
673	673	26 (6) In Section 22-207, "wages or salary received by
674	674
675	675
676	676
677	677
678	678
679	679	HB4065 - 18 - LRB103 31966 RPS 60743 b
680	680
681	681
682	682	HB4065- 19 -LRB103 31966 RPS 60743 b HB4065 - 19 - LRB103 31966 RPS 60743 b
683	683	HB4065 - 19 - LRB103 31966 RPS 60743 b
684	684	1 him at the date of retirement or discharge".
685	685	2 A member of the Teachers' Retirement System of the State
686	686	3 of Illinois who retires on or after June 1, 2021 and for whom
687	687	4 the 2020-2021 school year is used in the calculation of the
688	688	5 member's final average salary shall use the higher of the
689	689	6 following for the purpose of determining the member's final
690	690	7 average salary:
691	691	8 (A) the amount otherwise calculated under the first
692	692	9 paragraph of this subsection; or
693	693	10 (B) an amount calculated by the Teachers' Retirement
694	694	11 System of the State of Illinois using the average of the
695	695	12 monthly (or annual) salary obtained by dividing the total
696	696	13 salary or earnings calculated under Article 16 applicable
697	697	14 to the member or participant during the 96 months (or 8
698	698	15 years) of service within the last 120 months (or 10 years)
699	699	16 of service in which the total salary or earnings
700	700	17 calculated under the Article was the highest by the number
701	701	18 of months (or years) of service in that period.
702	702	19 (b-5) Beginning on January 1, 2011, for all purposes under
703	703	20 this Code (including without limitation the calculation of
704	704	21 benefits and employee contributions), the annual earnings,
705	705	22 salary, or wages (based on the plan year) of a member or
706	706	23 participant to whom this Section applies shall not exceed
707	707	24 $106,800; however, that amount shall annually thereafter be
708	708	25 increased by the lesser of (i) 3% of that amount, including all
709	709	26 previous adjustments, or (ii) one-half the annual unadjusted
710	710
711	711
712	712
713	713
714	714
715	715	HB4065 - 19 - LRB103 31966 RPS 60743 b
716	716
717	717
718	718	HB4065- 20 -LRB103 31966 RPS 60743 b HB4065 - 20 - LRB103 31966 RPS 60743 b
719	719	HB4065 - 20 - LRB103 31966 RPS 60743 b
720	720	1 percentage increase (but not less than zero) in the consumer
721	721	2 price index-u for the 12 months ending with the September
722	722	3 preceding each November 1, including all previous adjustments.
723	723	4 For the purposes of this Section, "consumer price index-u"
724	724	5 means the index published by the Bureau of Labor Statistics of
725	725	6 the United States Department of Labor that measures the
726	726	7 average change in prices of goods and services purchased by
727	727	8 all urban consumers, United States city average, all items,
728	728	9 1982-84 = 100. The new amount resulting from each annual
729	729	10 adjustment shall be determined by the Public Pension Division
730	730	11 of the Department of Insurance and made available to the
731	731	12 boards of the retirement systems and pension funds by November
732	732	13 1 of each year.
733	733	14 (c) A member or participant is entitled to a retirement
734	734	15 annuity upon written application if he or she has attained age
735	735	16 67 (age 65, with respect to service under Article 12 that is
736	736	17 subject to this Section, for a member or participant under
737	737	18 Article 12 who first becomes a member or participant under
738	738	19 Article 12 on or after January 1, 2022 or who makes the
739	739	20 election under item (i) of subsection (d-15) of this Section)
740	740	21 and has at least 10 years of service credit and is otherwise
741	741	22 eligible under the requirements of the applicable Article.
742	742	23 A member or participant who has attained age 62 (age 60,
743	743	24 with respect to service under Article 12 that is subject to
744	744	25 this Section, for a member or participant under Article 12 who
745	745	26 first becomes a member or participant under Article 12 on or
746	746
747	747
748	748
749	749
750	750
751	751	HB4065 - 20 - LRB103 31966 RPS 60743 b
752	752
753	753
754	754	HB4065- 21 -LRB103 31966 RPS 60743 b HB4065 - 21 - LRB103 31966 RPS 60743 b
755	755	HB4065 - 21 - LRB103 31966 RPS 60743 b
756	756	1 after January 1, 2022 or who makes the election under item (i)
757	757	2 of subsection (d-15) of this Section) and has at least 10 years
758	758	3 of service credit and is otherwise eligible under the
759	759	4 requirements of the applicable Article may elect to receive
760	760	5 the lower retirement annuity provided in subsection (d) of
761	761	6 this Section.
762	762	7 (c-5) A person who first becomes a member or a participant
763	763	8 subject to this Section on or after July 6, 2017 (the effective
764	764	9 date of Public Act 100-23), notwithstanding any other
765	765	10 provision of this Code to the contrary, is entitled to a
766	766	11 retirement annuity under Article 8 or Article 11 upon written
767	767	12 application if he or she has attained age 65 and has at least
768	768	13 10 years of service credit and is otherwise eligible under the
769	769	14 requirements of Article 8 or Article 11 of this Code,
770	770	15 whichever is applicable.
771	771	16 (d) The retirement annuity of a member or participant who
772	772	17 is retiring after attaining age 62 (age 60, with respect to
773	773	18 service under Article 12 that is subject to this Section, for a
774	774	19 member or participant under Article 12 who first becomes a
775	775	20 member or participant under Article 12 on or after January 1,
776	776	21 2022 or who makes the election under item (i) of subsection
777	777	22 (d-15) of this Section) with at least 10 years of service
778	778	23 credit shall be reduced by one-half of 1% for each full month
779	779	24 that the member's age is under age 67 (age 65, with respect to
780	780	25 service under Article 12 that is subject to this Section, for a
781	781	26 member or participant under Article 12 who first becomes a
782	782
783	783
784	784
785	785
786	786
787	787	HB4065 - 21 - LRB103 31966 RPS 60743 b
788	788
789	789
790	790	HB4065- 22 -LRB103 31966 RPS 60743 b HB4065 - 22 - LRB103 31966 RPS 60743 b
791	791	HB4065 - 22 - LRB103 31966 RPS 60743 b
792	792	1 member or participant under Article 12 on or after January 1,
793	793	2 2022 or who makes the election under item (i) of subsection
794	794	3 (d-15) of this Section).
795	795	4 (d-5) The retirement annuity payable under Article 8 or
796	796	5 Article 11 to an eligible person subject to subsection (c-5)
797	797	6 of this Section who is retiring at age 60 with at least 10
798	798	7 years of service credit shall be reduced by one-half of 1% for
799	799	8 each full month that the member's age is under age 65.
800	800	9 (d-10) Each person who first became a member or
801	801	10 participant under Article 8 or Article 11 of this Code on or
802	802	11 after January 1, 2011 and prior to July 6, 2017 (the effective
803	803	12 date of Public Act 100-23) shall make an irrevocable election
804	804	13 either:
805	805	14 (i) to be eligible for the reduced retirement age
806	806	15 provided in subsections (c-5) and (d-5) of this Section,
807	807	16 the eligibility for which is conditioned upon the member
808	808	17 or participant agreeing to the increases in employee
809	809	18 contributions for age and service annuities provided in
810	810	19 subsection (a-5) of Section 8-174 of this Code (for
811	811	20 service under Article 8) or subsection (a-5) of Section
812	812	21 11-170 of this Code (for service under Article 11); or
813	813	22 (ii) to not agree to item (i) of this subsection
814	814	23 (d-10), in which case the member or participant shall
815	815	24 continue to be subject to the retirement age provisions in
816	816	25 subsections (c) and (d) of this Section and the employee
817	817	26 contributions for age and service annuity as provided in
818	818
819	819
820	820
821	821
822	822
823	823	HB4065 - 22 - LRB103 31966 RPS 60743 b
824	824
825	825
826	826	HB4065- 23 -LRB103 31966 RPS 60743 b HB4065 - 23 - LRB103 31966 RPS 60743 b
827	827	HB4065 - 23 - LRB103 31966 RPS 60743 b
828	828	1 subsection (a) of Section 8-174 of this Code (for service
829	829	2 under Article 8) or subsection (a) of Section 11-170 of
830	830	3 this Code (for service under Article 11).
831	831	4 The election provided for in this subsection shall be made
832	832	5 between October 1, 2017 and November 15, 2017. A person
833	833	6 subject to this subsection who makes the required election
834	834	7 shall remain bound by that election. A person subject to this
835	835	8 subsection who fails for any reason to make the required
836	836	9 election within the time specified in this subsection shall be
837	837	10 deemed to have made the election under item (ii).
838	838	11 (d-15) Each person who first becomes a member or
839	839	12 participant under Article 12 on or after January 1, 2011 and
840	840	13 prior to January 1, 2022 shall make an irrevocable election
841	841	14 either:
842	842	15 (i) to be eligible for the reduced retirement age
843	843	16 specified in subsections (c) and (d) of this Section, the
844	844	17 eligibility for which is conditioned upon the member or
845	845	18 participant agreeing to the increase in employee
846	846	19 contributions for service annuities specified in
847	847	20 subsection (b) of Section 12-150; or
848	848	21 (ii) to not agree to item (i) of this subsection
849	849	22 (d-15), in which case the member or participant shall not
850	850	23 be eligible for the reduced retirement age specified in
851	851	24 subsections (c) and (d) of this Section and shall not be
852	852	25 subject to the increase in employee contributions for
853	853	26 service annuities specified in subsection (b) of Section
854	854
855	855
856	856
857	857
858	858
859	859	HB4065 - 23 - LRB103 31966 RPS 60743 b
860	860
861	861
862	862	HB4065- 24 -LRB103 31966 RPS 60743 b HB4065 - 24 - LRB103 31966 RPS 60743 b
863	863	HB4065 - 24 - LRB103 31966 RPS 60743 b
864	864	1 12-150.
865	865	2 The election provided for in this subsection shall be made
866	866	3 between January 1, 2022 and April 1, 2022. A person subject to
867	867	4 this subsection who makes the required election shall remain
868	868	5 bound by that election. A person subject to this subsection
869	869	6 who fails for any reason to make the required election within
870	870	7 the time specified in this subsection shall be deemed to have
871	871	8 made the election under item (ii).
872	872	9 (e) Any retirement annuity or supplemental annuity shall
873	873	10 be subject to annual increases on the January 1 occurring
874	874	11 either on or after the attainment of age 67 (age 65, with
875	875	12 respect to service under Article 12 that is subject to this
876	876	13 Section, for a member or participant under Article 12 who
877	877	14 first becomes a member or participant under Article 12 on or
878	878	15 after January 1, 2022 or who makes the election under item (i)
879	879	16 of subsection (d-15); and beginning on July 6, 2017 (the
880	880	17 effective date of Public Act 100-23), age 65 with respect to
881	881	18 service under Article 8 or Article 11 for eligible persons
882	882	19 who: (i) are subject to subsection (c-5) of this Section; or
883	883	20 (ii) made the election under item (i) of subsection (d-10) of
884	884	21 this Section) or the first anniversary of the annuity start
885	885	22 date, whichever is later. Each annual increase shall be
886	886	23 calculated at 3% or one-half the annual unadjusted percentage
887	887	24 increase (but not less than zero) in the consumer price
888	888	25 index-u for the 12 months ending with the September preceding
889	889	26 each November 1, whichever is less, of the originally granted
890	890
891	891
892	892
893	893
894	894
895	895	HB4065 - 24 - LRB103 31966 RPS 60743 b
896	896
897	897
898	898	HB4065- 25 -LRB103 31966 RPS 60743 b HB4065 - 25 - LRB103 31966 RPS 60743 b
899	899	HB4065 - 25 - LRB103 31966 RPS 60743 b
900	900	1 retirement annuity. If the annual unadjusted percentage change
901	901	2 in the consumer price index-u for the 12 months ending with the
902	902	3 September preceding each November 1 is zero or there is a
903	903	4 decrease, then the annuity shall not be increased.
904	904	5 For the purposes of Section 1-103.1 of this Code, the
905	905	6 changes made to this Section by Public Act 102-263 are
906	906	7 applicable without regard to whether the employee was in
907	907	8 active service on or after August 6, 2021 (the effective date
908	908	9 of Public Act 102-263).
909	909	10 For the purposes of Section 1-103.1 of this Code, the
910	910	11 changes made to this Section by Public Act 100-23 are
911	911	12 applicable without regard to whether the employee was in
912	912	13 active service on or after July 6, 2017 (the effective date of
913	913	14 Public Act 100-23).
914	914	15 (f) The initial survivor's or widow's annuity of an
915	915	16 otherwise eligible survivor or widow of a retired member or
916	916	17 participant who first became a member or participant on or
917	917	18 after January 1, 2011 shall be in the amount of 66 2/3% of the
918	918	19 retired member's or participant's retirement annuity at the
919	919	20 date of death. In the case of the death of a member or
920	920	21 participant who has not retired and who first became a member
921	921	22 or participant on or after January 1, 2011, eligibility for a
922	922	23 survivor's or widow's annuity shall be determined by the
923	923	24 applicable Article of this Code. The initial benefit shall be
924	924	25 66 2/3% of the earned annuity without a reduction due to age. A
925	925	26 child's annuity of an otherwise eligible child shall be in the
926	926
927	927
928	928
929	929
930	930
931	931	HB4065 - 25 - LRB103 31966 RPS 60743 b
932	932
933	933
934	934	HB4065- 26 -LRB103 31966 RPS 60743 b HB4065 - 26 - LRB103 31966 RPS 60743 b
935	935	HB4065 - 26 - LRB103 31966 RPS 60743 b
936	936	1 amount prescribed under each Article if applicable. Any
937	937	2 survivor's or widow's annuity shall be increased (1) on each
938	938	3 January 1 occurring on or after the commencement of the
939	939	4 annuity if the deceased member died while receiving a
940	940	5 retirement annuity or (2) in other cases, on each January 1
941	941	6 occurring after the first anniversary of the commencement of
942	942	7 the annuity. Each annual increase shall be calculated at 3% or
943	943	8 one-half the annual unadjusted percentage increase (but not
944	944	9 less than zero) in the consumer price index-u for the 12 months
945	945	10 ending with the September preceding each November 1, whichever
946	946	11 is less, of the originally granted survivor's annuity. If the
947	947	12 annual unadjusted percentage change in the consumer price
948	948	13 index-u for the 12 months ending with the September preceding
949	949	14 each November 1 is zero or there is a decrease, then the
950	950	15 annuity shall not be increased.
951	951	16 (g) This Section does not apply to a person who The
952	952	17 benefits in Section 14-110 apply only if the person is a State
953	953	18 policeman, a fire fighter in the fire protection service of a
954	954	19 department, a conservation police officer, an investigator for
955	955	20 the Secretary of State, an arson investigator, a Commerce
956	956	21 Commission police officer, investigator for the Department of
957	957	22 Revenue or the Illinois Gaming Board, a security employee of
958	958	23 the Department of Corrections or the Department of Juvenile
959	959	24 Justice, or a security employee of the Department of
960	960	25 Innovation and Technology, as those terms are defined in
961	961	26 subsection (b) and subsection (c) of Section 14-110. A person
962	962
963	963
964	964
965	965
966	966
967	967	HB4065 - 26 - LRB103 31966 RPS 60743 b
968	968
969	969
970	970	HB4065- 27 -LRB103 31966 RPS 60743 b HB4065 - 27 - LRB103 31966 RPS 60743 b
971	971	HB4065 - 27 - LRB103 31966 RPS 60743 b
972	972	1 who meets the requirements of this Section is entitled to an
973	973	2 annuity calculated under the provisions of Section 14-110, in
974	974	3 lieu of the regular or minimum retirement annuity, only if the
975	975	4 person has withdrawn from service with not less than 20 years
976	976	5 of eligible creditable service and has attained age 60,
977	977	6 regardless of whether the attainment of age 60 occurs while
978	978	7 the person is still in service.
979	979	8 (h) If a person who first becomes a member or a participant
980	980	9 of a retirement system or pension fund subject to this Section
981	981	10 on or after January 1, 2011 is receiving a retirement annuity
982	982	11 or retirement pension under that system or fund and becomes a
983	983	12 member or participant under any other system or fund created
984	984	13 by this Code and is employed on a full-time basis, except for
985	985	14 those members or participants exempted from the provisions of
986	986	15 this Section under subsection (a) of this Section, then the
987	987	16 person's retirement annuity or retirement pension under that
988	988	17 system or fund shall be suspended during that employment. Upon
989	989	18 termination of that employment, the person's retirement
990	990	19 annuity or retirement pension payments shall resume and be
991	991	20 recalculated if recalculation is provided for under the
992	992	21 applicable Article of this Code.
993	993	22 If a person who first becomes a member of a retirement
994	994	23 system or pension fund subject to this Section on or after
995	995	24 January 1, 2012 and is receiving a retirement annuity or
996	996	25 retirement pension under that system or fund and accepts on a
997	997	26 contractual basis a position to provide services to a
998	998
999	999
1000	1000
1001	1001
1002	1002
1003	1003	HB4065 - 27 - LRB103 31966 RPS 60743 b
1004	1004
1005	1005
1006	1006	HB4065- 28 -LRB103 31966 RPS 60743 b HB4065 - 28 - LRB103 31966 RPS 60743 b
1007	1007	HB4065 - 28 - LRB103 31966 RPS 60743 b
1008	1008	1 governmental entity from which he or she has retired, then
1009	1009	2 that person's annuity or retirement pension earned as an
1010	1010	3 active employee of the employer shall be suspended during that
1011	1011	4 contractual service. A person receiving an annuity or
1012	1012	5 retirement pension under this Code shall notify the pension
1013	1013	6 fund or retirement system from which he or she is receiving an
1014	1014	7 annuity or retirement pension, as well as his or her
1015	1015	8 contractual employer, of his or her retirement status before
1016	1016	9 accepting contractual employment. A person who fails to submit
1017	1017	10 such notification shall be guilty of a Class A misdemeanor and
1018	1018	11 required to pay a fine of $1,000. Upon termination of that
1019	1019	12 contractual employment, the person's retirement annuity or
1020	1020	13 retirement pension payments shall resume and, if appropriate,
1021	1021	14 be recalculated under the applicable provisions of this Code.
1022	1022	15 (i) (Blank).
1023	1023	16 (i-5) It is the intent of this amendatory Act of the 103rd
1024	1024	17 General Assembly to provide to the participants specified in
1025	1025	18 subsections (g) and (g-5) who first became participants on or
1026	1026	19 after January 1, 2011 the same level of benefits and
1027	1027	20 eligibility criteria for benefits as those who first became
1028	1028	21 participants before January 1, 2011. The changes made to this
1029	1029	22 Article by this amendatory Act of the 103rd General Assembly
1030	1030	23 that provide benefit increases for participants specified in
1031	1031	24 subsections (g) and (g-5) apply without regard to whether the
1032	1032	25 participant was in service on or after the effective date of
1033	1033	26 this amendatory Act of the 103rd General Assembly,
1034	1034
1035	1035
1036	1036
1037	1037
1038	1038
1039	1039	HB4065 - 28 - LRB103 31966 RPS 60743 b
1040	1040
1041	1041
1042	1042	HB4065- 29 -LRB103 31966 RPS 60743 b HB4065 - 29 - LRB103 31966 RPS 60743 b
1043	1043	HB4065 - 29 - LRB103 31966 RPS 60743 b
1044	1044	1 notwithstanding the provisions of Section 1-103.1. The benefit
1045	1045	2 increases are intended to apply prospectively and do not
1046	1046	3 entitle a participant to retroactive benefit payments or
1047	1047	4 increases. The changes made to this Article by this amendatory
1048	1048	5 Act of the 103rd General Assembly shall not cause or otherwise
1049	1049	6 result in any retroactive adjustment of any employee
1050	1050	7 contributions.
1051	1051	8 (j) In the case of a conflict between the provisions of
1052	1052	9 this Section and any other provision of this Code, the
1053	1053	10 provisions of this Section shall control.
1054	1054	11 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1055	1055	12 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
1056	1056	13 5-13-22.)
1057	1057	14 (Text of Section from P.A. 102-956)
1058	1058	15 Sec. 1-160. Provisions applicable to new hires.
1059	1059	16 (a) The provisions of this Section apply to a person who,
1060	1060	17 on or after January 1, 2011, first becomes a member or a
1061	1061	18 participant under any reciprocal retirement system or pension
1062	1062	19 fund established under this Code, other than a retirement
1063	1063	20 system or pension fund established under Article 2, 3, 4, 5, 6,
1064	1064	21 7, 15, or 18 of this Code, notwithstanding any other provision
1065	1065	22 of this Code to the contrary, but do not apply to any
1066	1066	23 self-managed plan established under this Code or to any
1067	1067	24 participant of the retirement plan established under Section
1068	1068	25 22-101; except that this Section applies to a person who
1069	1069
1070	1070
1071	1071
1072	1072
1073	1073
1074	1074	HB4065 - 29 - LRB103 31966 RPS 60743 b
1075	1075
1076	1076
1077	1077	HB4065- 30 -LRB103 31966 RPS 60743 b HB4065 - 30 - LRB103 31966 RPS 60743 b
1078	1078	HB4065 - 30 - LRB103 31966 RPS 60743 b
1079	1079	1 elected to establish alternative credits by electing in
1080	1080	2 writing after January 1, 2011, but before August 8, 2011,
1081	1081	3 under Section 7-145.1 of this Code. Notwithstanding anything
1082	1082	4 to the contrary in this Section, for purposes of this Section,
1083	1083	5 a person who is a Tier 1 regular employee as defined in Section
1084	1084	6 7-109.4 of this Code or who participated in a retirement
1085	1085	7 system under Article 15 prior to January 1, 2011 shall be
1086	1086	8 deemed a person who first became a member or participant prior
1087	1087	9 to January 1, 2011 under any retirement system or pension fund
1088	1088	10 subject to this Section. The changes made to this Section by
1089	1089	11 Public Act 98-596 are a clarification of existing law and are
1090	1090	12 intended to be retroactive to January 1, 2011 (the effective
1091	1091	13 date of Public Act 96-889), notwithstanding the provisions of
1092	1092	14 Section 1-103.1 of this Code.
1093	1093	15 This Section does not apply to a person who first becomes a
1094	1094	16 noncovered employee under Article 14 on or after the
1095	1095	17 implementation date of the plan created under Section 1-161
1096	1096	18 for that Article, unless that person elects under subsection
1097	1097	19 (b) of Section 1-161 to instead receive the benefits provided
1098	1098	20 under this Section and the applicable provisions of that
1099	1099	21 Article.
1100	1100	22 This Section does not apply to a person who first becomes a
1101	1101	23 member or participant under Article 16 on or after the
1102	1102	24 implementation date of the plan created under Section 1-161
1103	1103	25 for that Article, unless that person elects under subsection
1104	1104	26 (b) of Section 1-161 to instead receive the benefits provided
1105	1105
1106	1106
1107	1107
1108	1108
1109	1109
1110	1110	HB4065 - 30 - LRB103 31966 RPS 60743 b
1111	1111
1112	1112
1113	1113	HB4065- 31 -LRB103 31966 RPS 60743 b HB4065 - 31 - LRB103 31966 RPS 60743 b
1114	1114	HB4065 - 31 - LRB103 31966 RPS 60743 b
1115	1115	1 under this Section and the applicable provisions of that
1116	1116	2 Article.
1117	1117	3 This Section does not apply to a person who elects under
1118	1118	4 subsection (c-5) of Section 1-161 to receive the benefits
1119	1119	5 under Section 1-161.
1120	1120	6 This Section does not apply to a person who first becomes a
1121	1121	7 member or participant of an affected pension fund on or after 6
1122	1122	8 months after the resolution or ordinance date, as defined in
1123	1123	9 Section 1-162, unless that person elects under subsection (c)
1124	1124	10 of Section 1-162 to receive the benefits provided under this
1125	1125	11 Section and the applicable provisions of the Article under
1126	1126	12 which he or she is a member or participant.
1127	1127	13 (b) "Final average salary" means, except as otherwise
1128	1128	14 provided in this subsection, the average monthly (or annual)
1129	1129	15 salary obtained by dividing the total salary or earnings
1130	1130	16 calculated under the Article applicable to the member or
1131	1131	17 participant during the 96 consecutive months (or 8 consecutive
1132	1132	18 years) of service within the last 120 months (or 10 years) of
1133	1133	19 service in which the total salary or earnings calculated under
1134	1134	20 the applicable Article was the highest by the number of months
1135	1135	21 (or years) of service in that period. For the purposes of a
1136	1136	22 person who first becomes a member or participant of any
1137	1137	23 retirement system or pension fund to which this Section
1138	1138	24 applies on or after January 1, 2011, in this Code, "final
1139	1139	25 average salary" shall be substituted for the following:
1140	1140	26 (1) (Blank).
1141	1141
1142	1142
1143	1143
1144	1144
1145	1145
1146	1146	HB4065 - 31 - LRB103 31966 RPS 60743 b
1147	1147
1148	1148
1149	1149	HB4065- 32 -LRB103 31966 RPS 60743 b HB4065 - 32 - LRB103 31966 RPS 60743 b
1150	1150	HB4065 - 32 - LRB103 31966 RPS 60743 b
1151	1151	1 (2) In Articles 8, 9, 10, 11, and 12, "highest average
1152	1152	2 annual salary for any 4 consecutive years within the last
1153	1153	3 10 years of service immediately preceding the date of
1154	1154	4 withdrawal".
1155	1155	5 (3) In Article 13, "average final salary".
1156	1156	6 (4) In Article 14, "final average compensation".
1157	1157	7 (5) In Article 17, "average salary".
1158	1158	8 (6) In Section 22-207, "wages or salary received by
1159	1159	9 him at the date of retirement or discharge".
1160	1160	10 A member of the Teachers' Retirement System of the State
1161	1161	11 of Illinois who retires on or after June 1, 2021 and for whom
1162	1162	12 the 2020-2021 school year is used in the calculation of the
1163	1163	13 member's final average salary shall use the higher of the
1164	1164	14 following for the purpose of determining the member's final
1165	1165	15 average salary:
1166	1166	16 (A) the amount otherwise calculated under the first
1167	1167	17 paragraph of this subsection; or
1168	1168	18 (B) an amount calculated by the Teachers' Retirement
1169	1169	19 System of the State of Illinois using the average of the
1170	1170	20 monthly (or annual) salary obtained by dividing the total
1171	1171	21 salary or earnings calculated under Article 16 applicable
1172	1172	22 to the member or participant during the 96 months (or 8
1173	1173	23 years) of service within the last 120 months (or 10 years)
1174	1174	24 of service in which the total salary or earnings
1175	1175	25 calculated under the Article was the highest by the number
1176	1176	26 of months (or years) of service in that period.
1177	1177
1178	1178
1179	1179
1180	1180
1181	1181
1182	1182	HB4065 - 32 - LRB103 31966 RPS 60743 b
1183	1183
1184	1184
1185	1185	HB4065- 33 -LRB103 31966 RPS 60743 b HB4065 - 33 - LRB103 31966 RPS 60743 b
1186	1186	HB4065 - 33 - LRB103 31966 RPS 60743 b
1187	1187	1 (b-5) Beginning on January 1, 2011, for all purposes under
1188	1188	2 this Code (including without limitation the calculation of
1189	1189	3 benefits and employee contributions), the annual earnings,
1190	1190	4 salary, or wages (based on the plan year) of a member or
1191	1191	5 participant to whom this Section applies shall not exceed
1192	1192	6 $106,800; however, that amount shall annually thereafter be
1193	1193	7 increased by the lesser of (i) 3% of that amount, including all
1194	1194	8 previous adjustments, or (ii) one-half the annual unadjusted
1195	1195	9 percentage increase (but not less than zero) in the consumer
1196	1196	10 price index-u for the 12 months ending with the September
1197	1197	11 preceding each November 1, including all previous adjustments.
1198	1198	12 For the purposes of this Section, "consumer price index-u"
1199	1199	13 means the index published by the Bureau of Labor Statistics of
1200	1200	14 the United States Department of Labor that measures the
1201	1201	15 average change in prices of goods and services purchased by
1202	1202	16 all urban consumers, United States city average, all items,
1203	1203	17 1982-84 = 100. The new amount resulting from each annual
1204	1204	18 adjustment shall be determined by the Public Pension Division
1205	1205	19 of the Department of Insurance and made available to the
1206	1206	20 boards of the retirement systems and pension funds by November
1207	1207	21 1 of each year.
1208	1208	22 (c) A member or participant is entitled to a retirement
1209	1209	23 annuity upon written application if he or she has attained age
1210	1210	24 67 (age 65, with respect to service under Article 12 that is
1211	1211	25 subject to this Section, for a member or participant under
1212	1212	26 Article 12 who first becomes a member or participant under
1213	1213
1214	1214
1215	1215
1216	1216
1217	1217
1218	1218	HB4065 - 33 - LRB103 31966 RPS 60743 b
1219	1219
1220	1220
1221	1221	HB4065- 34 -LRB103 31966 RPS 60743 b HB4065 - 34 - LRB103 31966 RPS 60743 b
1222	1222	HB4065 - 34 - LRB103 31966 RPS 60743 b
1223	1223	1 Article 12 on or after January 1, 2022 or who makes the
1224	1224	2 election under item (i) of subsection (d-15) of this Section)
1225	1225	3 and has at least 10 years of service credit and is otherwise
1226	1226	4 eligible under the requirements of the applicable Article.
1227	1227	5 A member or participant who has attained age 62 (age 60,
1228	1228	6 with respect to service under Article 12 that is subject to
1229	1229	7 this Section, for a member or participant under Article 12 who
1230	1230	8 first becomes a member or participant under Article 12 on or
1231	1231	9 after January 1, 2022 or who makes the election under item (i)
1232	1232	10 of subsection (d-15) of this Section) and has at least 10 years
1233	1233	11 of service credit and is otherwise eligible under the
1234	1234	12 requirements of the applicable Article may elect to receive
1235	1235	13 the lower retirement annuity provided in subsection (d) of
1236	1236	14 this Section.
1237	1237	15 (c-5) A person who first becomes a member or a participant
1238	1238	16 subject to this Section on or after July 6, 2017 (the effective
1239	1239	17 date of Public Act 100-23), notwithstanding any other
1240	1240	18 provision of this Code to the contrary, is entitled to a
1241	1241	19 retirement annuity under Article 8 or Article 11 upon written
1242	1242	20 application if he or she has attained age 65 and has at least
1243	1243	21 10 years of service credit and is otherwise eligible under the
1244	1244	22 requirements of Article 8 or Article 11 of this Code,
1245	1245	23 whichever is applicable.
1246	1246	24 (d) The retirement annuity of a member or participant who
1247	1247	25 is retiring after attaining age 62 (age 60, with respect to
1248	1248	26 service under Article 12 that is subject to this Section, for a
1249	1249
1250	1250
1251	1251
1252	1252
1253	1253
1254	1254	HB4065 - 34 - LRB103 31966 RPS 60743 b
1255	1255
1256	1256
1257	1257	HB4065- 35 -LRB103 31966 RPS 60743 b HB4065 - 35 - LRB103 31966 RPS 60743 b
1258	1258	HB4065 - 35 - LRB103 31966 RPS 60743 b
1259	1259	1 member or participant under Article 12 who first becomes a
1260	1260	2 member or participant under Article 12 on or after January 1,
1261	1261	3 2022 or who makes the election under item (i) of subsection
1262	1262	4 (d-15) of this Section) with at least 10 years of service
1263	1263	5 credit shall be reduced by one-half of 1% for each full month
1264	1264	6 that the member's age is under age 67 (age 65, with respect to
1265	1265	7 service under Article 12 that is subject to this Section, for a
1266	1266	8 member or participant under Article 12 who first becomes a
1267	1267	9 member or participant under Article 12 on or after January 1,
1268	1268	10 2022 or who makes the election under item (i) of subsection
1269	1269	11 (d-15) of this Section).
1270	1270	12 (d-5) The retirement annuity payable under Article 8 or
1271	1271	13 Article 11 to an eligible person subject to subsection (c-5)
1272	1272	14 of this Section who is retiring at age 60 with at least 10
1273	1273	15 years of service credit shall be reduced by one-half of 1% for
1274	1274	16 each full month that the member's age is under age 65.
1275	1275	17 (d-10) Each person who first became a member or
1276	1276	18 participant under Article 8 or Article 11 of this Code on or
1277	1277	19 after January 1, 2011 and prior to July 6, 2017 (the effective
1278	1278	20 date of Public Act 100-23) shall make an irrevocable election
1279	1279	21 either:
1280	1280	22 (i) to be eligible for the reduced retirement age
1281	1281	23 provided in subsections (c-5) and (d-5) of this Section,
1282	1282	24 the eligibility for which is conditioned upon the member
1283	1283	25 or participant agreeing to the increases in employee
1284	1284	26 contributions for age and service annuities provided in
1285	1285
1286	1286
1287	1287
1288	1288
1289	1289
1290	1290	HB4065 - 35 - LRB103 31966 RPS 60743 b
1291	1291
1292	1292
1293	1293	HB4065- 36 -LRB103 31966 RPS 60743 b HB4065 - 36 - LRB103 31966 RPS 60743 b
1294	1294	HB4065 - 36 - LRB103 31966 RPS 60743 b
1295	1295	1 subsection (a-5) of Section 8-174 of this Code (for
1296	1296	2 service under Article 8) or subsection (a-5) of Section
1297	1297	3 11-170 of this Code (for service under Article 11); or
1298	1298	4 (ii) to not agree to item (i) of this subsection
1299	1299	5 (d-10), in which case the member or participant shall
1300	1300	6 continue to be subject to the retirement age provisions in
1301	1301	7 subsections (c) and (d) of this Section and the employee
1302	1302	8 contributions for age and service annuity as provided in
1303	1303	9 subsection (a) of Section 8-174 of this Code (for service
1304	1304	10 under Article 8) or subsection (a) of Section 11-170 of
1305	1305	11 this Code (for service under Article 11).
1306	1306	12 The election provided for in this subsection shall be made
1307	1307	13 between October 1, 2017 and November 15, 2017. A person
1308	1308	14 subject to this subsection who makes the required election
1309	1309	15 shall remain bound by that election. A person subject to this
1310	1310	16 subsection who fails for any reason to make the required
1311	1311	17 election within the time specified in this subsection shall be
1312	1312	18 deemed to have made the election under item (ii).
1313	1313	19 (d-15) Each person who first becomes a member or
1314	1314	20 participant under Article 12 on or after January 1, 2011 and
1315	1315	21 prior to January 1, 2022 shall make an irrevocable election
1316	1316	22 either:
1317	1317	23 (i) to be eligible for the reduced retirement age
1318	1318	24 specified in subsections (c) and (d) of this Section, the
1319	1319	25 eligibility for which is conditioned upon the member or
1320	1320	26 participant agreeing to the increase in employee
1321	1321
1322	1322
1323	1323
1324	1324
1325	1325
1326	1326	HB4065 - 36 - LRB103 31966 RPS 60743 b
1327	1327
1328	1328
1329	1329	HB4065- 37 -LRB103 31966 RPS 60743 b HB4065 - 37 - LRB103 31966 RPS 60743 b
1330	1330	HB4065 - 37 - LRB103 31966 RPS 60743 b
1331	1331	1 contributions for service annuities specified in
1332	1332	2 subsection (b) of Section 12-150; or
1333	1333	3 (ii) to not agree to item (i) of this subsection
1334	1334	4 (d-15), in which case the member or participant shall not
1335	1335	5 be eligible for the reduced retirement age specified in
1336	1336	6 subsections (c) and (d) of this Section and shall not be
1337	1337	7 subject to the increase in employee contributions for
1338	1338	8 service annuities specified in subsection (b) of Section
1339	1339	9 12-150.
1340	1340	10 The election provided for in this subsection shall be made
1341	1341	11 between January 1, 2022 and April 1, 2022. A person subject to
1342	1342	12 this subsection who makes the required election shall remain
1343	1343	13 bound by that election. A person subject to this subsection
1344	1344	14 who fails for any reason to make the required election within
1345	1345	15 the time specified in this subsection shall be deemed to have
1346	1346	16 made the election under item (ii).
1347	1347	17 (e) Any retirement annuity or supplemental annuity shall
1348	1348	18 be subject to annual increases on the January 1 occurring
1349	1349	19 either on or after the attainment of age 67 (age 65, with
1350	1350	20 respect to service under Article 12 that is subject to this
1351	1351	21 Section, for a member or participant under Article 12 who
1352	1352	22 first becomes a member or participant under Article 12 on or
1353	1353	23 after January 1, 2022 or who makes the election under item (i)
1354	1354	24 of subsection (d-15); and beginning on July 6, 2017 (the
1355	1355	25 effective date of Public Act 100-23), age 65 with respect to
1356	1356	26 service under Article 8 or Article 11 for eligible persons
1357	1357
1358	1358
1359	1359
1360	1360
1361	1361
1362	1362	HB4065 - 37 - LRB103 31966 RPS 60743 b
1363	1363
1364	1364
1365	1365	HB4065- 38 -LRB103 31966 RPS 60743 b HB4065 - 38 - LRB103 31966 RPS 60743 b
1366	1366	HB4065 - 38 - LRB103 31966 RPS 60743 b
1367	1367	1 who: (i) are subject to subsection (c-5) of this Section; or
1368	1368	2 (ii) made the election under item (i) of subsection (d-10) of
1369	1369	3 this Section) or the first anniversary of the annuity start
1370	1370	4 date, whichever is later. Each annual increase shall be
1371	1371	5 calculated at 3% or one-half the annual unadjusted percentage
1372	1372	6 increase (but not less than zero) in the consumer price
1373	1373	7 index-u for the 12 months ending with the September preceding
1374	1374	8 each November 1, whichever is less, of the originally granted
1375	1375	9 retirement annuity. If the annual unadjusted percentage change
1376	1376	10 in the consumer price index-u for the 12 months ending with the
1377	1377	11 September preceding each November 1 is zero or there is a
1378	1378	12 decrease, then the annuity shall not be increased.
1379	1379	13 For the purposes of Section 1-103.1 of this Code, the
1380	1380	14 changes made to this Section by Public Act 102-263 are
1381	1381	15 applicable without regard to whether the employee was in
1382	1382	16 active service on or after August 6, 2021 (the effective date
1383	1383	17 of Public Act 102-263).
1384	1384	18 For the purposes of Section 1-103.1 of this Code, the
1385	1385	19 changes made to this Section by Public Act 100-23 are
1386	1386	20 applicable without regard to whether the employee was in
1387	1387	21 active service on or after July 6, 2017 (the effective date of
1388	1388	22 Public Act 100-23).
1389	1389	23 (f) The initial survivor's or widow's annuity of an
1390	1390	24 otherwise eligible survivor or widow of a retired member or
1391	1391	25 participant who first became a member or participant on or
1392	1392	26 after January 1, 2011 shall be in the amount of 66 2/3% of the
1393	1393
1394	1394
1395	1395
1396	1396
1397	1397
1398	1398	HB4065 - 38 - LRB103 31966 RPS 60743 b
1399	1399
1400	1400
1401	1401	HB4065- 39 -LRB103 31966 RPS 60743 b HB4065 - 39 - LRB103 31966 RPS 60743 b
1402	1402	HB4065 - 39 - LRB103 31966 RPS 60743 b
1403	1403	1 retired member's or participant's retirement annuity at the
1404	1404	2 date of death. In the case of the death of a member or
1405	1405	3 participant who has not retired and who first became a member
1406	1406	4 or participant on or after January 1, 2011, eligibility for a
1407	1407	5 survivor's or widow's annuity shall be determined by the
1408	1408	6 applicable Article of this Code. The initial benefit shall be
1409	1409	7 66 2/3% of the earned annuity without a reduction due to age. A
1410	1410	8 child's annuity of an otherwise eligible child shall be in the
1411	1411	9 amount prescribed under each Article if applicable. Any
1412	1412	10 survivor's or widow's annuity shall be increased (1) on each
1413	1413	11 January 1 occurring on or after the commencement of the
1414	1414	12 annuity if the deceased member died while receiving a
1415	1415	13 retirement annuity or (2) in other cases, on each January 1
1416	1416	14 occurring after the first anniversary of the commencement of
1417	1417	15 the annuity. Each annual increase shall be calculated at 3% or
1418	1418	16 one-half the annual unadjusted percentage increase (but not
1419	1419	17 less than zero) in the consumer price index-u for the 12 months
1420	1420	18 ending with the September preceding each November 1, whichever
1421	1421	19 is less, of the originally granted survivor's annuity. If the
1422	1422	20 annual unadjusted percentage change in the consumer price
1423	1423	21 index-u for the 12 months ending with the September preceding
1424	1424	22 each November 1 is zero or there is a decrease, then the
1425	1425	23 annuity shall not be increased.
1426	1426	24 (g) This Section does not apply to a person who The
1427	1427	25 benefits in Section 14-110 apply only if the person is a State
1428	1428	26 policeman, a fire fighter in the fire protection service of a
1429	1429
1430	1430
1431	1431
1432	1432
1433	1433
1434	1434	HB4065 - 39 - LRB103 31966 RPS 60743 b
1435	1435
1436	1436
1437	1437	HB4065- 40 -LRB103 31966 RPS 60743 b HB4065 - 40 - LRB103 31966 RPS 60743 b
1438	1438	HB4065 - 40 - LRB103 31966 RPS 60743 b
1439	1439	1 department, a conservation police officer, an investigator for
1440	1440	2 the Secretary of State, an investigator for the Office of the
1441	1441	3 Attorney General, an arson investigator, a Commerce Commission
1442	1442	4 police officer, investigator for the Department of Revenue or
1443	1443	5 the Illinois Gaming Board, a security employee of the
1444	1444	6 Department of Corrections or the Department of Juvenile
1445	1445	7 Justice, or a security employee of the Department of
1446	1446	8 Innovation and Technology, as those terms are defined in
1447	1447	9 subsection (b) and subsection (c) of Section 14-110. A person
1448	1448	10 who meets the requirements of this Section is entitled to an
1449	1449	11 annuity calculated under the provisions of Section 14-110, in
1450	1450	12 lieu of the regular or minimum retirement annuity, only if the
1451	1451	13 person has withdrawn from service with not less than 20 years
1452	1452	14 of eligible creditable service and has attained age 60,
1453	1453	15 regardless of whether the attainment of age 60 occurs while
1454	1454	16 the person is still in service.
1455	1455	17 (h) If a person who first becomes a member or a participant
1456	1456	18 of a retirement system or pension fund subject to this Section
1457	1457	19 on or after January 1, 2011 is receiving a retirement annuity
1458	1458	20 or retirement pension under that system or fund and becomes a
1459	1459	21 member or participant under any other system or fund created
1460	1460	22 by this Code and is employed on a full-time basis, except for
1461	1461	23 those members or participants exempted from the provisions of
1462	1462	24 this Section under subsection (a) of this Section, then the
1463	1463	25 person's retirement annuity or retirement pension under that
1464	1464	26 system or fund shall be suspended during that employment. Upon
1465	1465
1466	1466
1467	1467
1468	1468
1469	1469
1470	1470	HB4065 - 40 - LRB103 31966 RPS 60743 b
1471	1471
1472	1472
1473	1473	HB4065- 41 -LRB103 31966 RPS 60743 b HB4065 - 41 - LRB103 31966 RPS 60743 b
1474	1474	HB4065 - 41 - LRB103 31966 RPS 60743 b
1475	1475	1 termination of that employment, the person's retirement
1476	1476	2 annuity or retirement pension payments shall resume and be
1477	1477	3 recalculated if recalculation is provided for under the
1478	1478	4 applicable Article of this Code.
1479	1479	5 If a person who first becomes a member of a retirement
1480	1480	6 system or pension fund subject to this Section on or after
1481	1481	7 January 1, 2012 and is receiving a retirement annuity or
1482	1482	8 retirement pension under that system or fund and accepts on a
1483	1483	9 contractual basis a position to provide services to a
1484	1484	10 governmental entity from which he or she has retired, then
1485	1485	11 that person's annuity or retirement pension earned as an
1486	1486	12 active employee of the employer shall be suspended during that
1487	1487	13 contractual service. A person receiving an annuity or
1488	1488	14 retirement pension under this Code shall notify the pension
1489	1489	15 fund or retirement system from which he or she is receiving an
1490	1490	16 annuity or retirement pension, as well as his or her
1491	1491	17 contractual employer, of his or her retirement status before
1492	1492	18 accepting contractual employment. A person who fails to submit
1493	1493	19 such notification shall be guilty of a Class A misdemeanor and
1494	1494	20 required to pay a fine of $1,000. Upon termination of that
1495	1495	21 contractual employment, the person's retirement annuity or
1496	1496	22 retirement pension payments shall resume and, if appropriate,
1497	1497	23 be recalculated under the applicable provisions of this Code.
1498	1498	24 (i) (Blank).
1499	1499	25 (i-5) It is the intent of this amendatory Act of the 103rd
1500	1500	26 General Assembly to provide to the participants specified in
1501	1501
1502	1502
1503	1503
1504	1504
1505	1505
1506	1506	HB4065 - 41 - LRB103 31966 RPS 60743 b
1507	1507
1508	1508
1509	1509	HB4065- 42 -LRB103 31966 RPS 60743 b HB4065 - 42 - LRB103 31966 RPS 60743 b
1510	1510	HB4065 - 42 - LRB103 31966 RPS 60743 b
1511	1511	1 subsections (g) and (g-5) who first became participants on or
1512	1512	2 after January 1, 2011 the same level of benefits and
1513	1513	3 eligibility criteria for benefits as those who first became
1514	1514	4 participants before January 1, 2011. The changes made to this
1515	1515	5 Article by this amendatory Act of the 103rd General Assembly
1516	1516	6 that provide benefit increases for participants specified in
1517	1517	7 subsections (g) and (g-5) apply without regard to whether the
1518	1518	8 participant was in service on or after the effective date of
1519	1519	9 this amendatory Act of the 103rd General Assembly,
1520	1520	10 notwithstanding the provisions of Section 1-103.1. The benefit
1521	1521	11 increases are intended to apply prospectively and do not
1522	1522	12 entitle a participant to retroactive benefit payments or
1523	1523	13 increases. The changes made to this Article by this amendatory
1524	1524	14 Act of the 103rd General Assembly shall not cause or otherwise
1525	1525	15 result in any retroactive adjustment of any employee
1526	1526	16 contributions.
1527	1527	17 (j) In the case of a conflict between the provisions of
1528	1528	18 this Section and any other provision of this Code, the
1529	1529	19 provisions of this Section shall control.
1530	1530	20 (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
1531	1531	21 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
1532	1532	22 5-27-22.)
1533	1533	23 (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
1534	1534	24 Sec. 3-111. Pension.
1535	1535	25 (a) A police officer age 50 or more with 20 or more years
1536	1536
1537	1537
1538	1538
1539	1539
1540	1540
1541	1541	HB4065 - 42 - LRB103 31966 RPS 60743 b
1542	1542
1543	1543
1544	1544	HB4065- 43 -LRB103 31966 RPS 60743 b HB4065 - 43 - LRB103 31966 RPS 60743 b
1545	1545	HB4065 - 43 - LRB103 31966 RPS 60743 b
1546	1546	1 of creditable service, who is not a participant in the
1547	1547	2 self-managed plan under Section 3-109.3 and who is no longer
1548	1548	3 in service as a police officer, shall receive a pension of 1/2
1549	1549	4 of the salary attached to the rank held by the officer on the
1550	1550	5 police force for one year immediately prior to retirement or,
1551	1551	6 beginning July 1, 1987 for persons terminating service on or
1552	1552	7 after that date, the salary attached to the rank held on the
1553	1553	8 last day of service or for one year prior to the last day,
1554	1554	9 whichever is greater. The pension shall be increased by 2.5%
1555	1555	10 of such salary for each additional year of service over 20
1556	1556	11 years of service through 30 years of service, to a maximum of
1557	1557	12 75% of such salary.
1558	1558	13 The changes made to this subsection (a) by this amendatory
1559	1559	14 Act of the 91st General Assembly apply to all pensions that
1560	1560	15 become payable under this subsection on or after January 1,
1561	1561	16 1999. All pensions payable under this subsection that began on
1562	1562	17 or after January 1, 1999 and before the effective date of this
1563	1563	18 amendatory Act shall be recalculated, and the amount of the
1564	1564	19 increase accruing for that period shall be payable to the
1565	1565	20 pensioner in a lump sum.
1566	1566	21 (a-5) No pension in effect on or granted after June 30,
1567	1567	22 1973 shall be less than $200 per month. Beginning July 1, 1987,
1568	1568	23 the minimum retirement pension for a police officer having at
1569	1569	24 least 20 years of creditable service shall be $400 per month,
1570	1570	25 without regard to whether or not retirement occurred prior to
1571	1571	26 that date. If the minimum pension established in Section
1572	1572
1573	1573
1574	1574
1575	1575
1576	1576
1577	1577	HB4065 - 43 - LRB103 31966 RPS 60743 b
1578	1578
1579	1579
1580	1580	HB4065- 44 -LRB103 31966 RPS 60743 b HB4065 - 44 - LRB103 31966 RPS 60743 b
1581	1581	HB4065 - 44 - LRB103 31966 RPS 60743 b
1582	1582	1 3-113.1 is greater than the minimum provided in this
1583	1583	2 subsection, the Section 3-113.1 minimum controls.
1584	1584	3 (b) A police officer mandatorily retired from service due
1585	1585	4 to age by operation of law, having at least 8 but less than 20
1586	1586	5 years of creditable service, shall receive a pension equal to
1587	1587	6 2 1/2% of the salary attached to the rank he or she held on the
1588	1588	7 police force for one year immediately prior to retirement or,
1589	1589	8 beginning July 1, 1987 for persons terminating service on or
1590	1590	9 after that date, the salary attached to the rank held on the
1591	1591	10 last day of service or for one year prior to the last day,
1592	1592	11 whichever is greater, for each year of creditable service.
1593	1593	12 A police officer who retires or is separated from service
1594	1594	13 having at least 8 years but less than 20 years of creditable
1595	1595	14 service, who is not mandatorily retired due to age by
1596	1596	15 operation of law, and who does not apply for a refund of
1597	1597	16 contributions at his or her last separation from police
1598	1598	17 service, shall receive a pension upon attaining age 60 equal
1599	1599	18 to 2.5% of the salary attached to the rank held by the police
1600	1600	19 officer on the police force for one year immediately prior to
1601	1601	20 retirement or, beginning July 1, 1987 for persons terminating
1602	1602	21 service on or after that date, the salary attached to the rank
1603	1603	22 held on the last day of service or for one year prior to the
1604	1604	23 last day, whichever is greater, for each year of creditable
1605	1605	24 service.
1606	1606	25 (c) A police officer no longer in service who has at least
1607	1607	26 one but less than 8 years of creditable service in a police
1608	1608
1609	1609
1610	1610
1611	1611
1612	1612
1613	1613	HB4065 - 44 - LRB103 31966 RPS 60743 b
1614	1614
1615	1615
1616	1616	HB4065- 45 -LRB103 31966 RPS 60743 b HB4065 - 45 - LRB103 31966 RPS 60743 b
1617	1617	HB4065 - 45 - LRB103 31966 RPS 60743 b
1618	1618	1 pension fund but meets the requirements of this subsection (c)
1619	1619	2 shall be eligible to receive a pension from that fund equal to
1620	1620	3 2.5% of the salary attached to the rank held on the last day of
1621	1621	4 service under that fund or for one year prior to that last day,
1622	1622	5 whichever is greater, for each year of creditable service in
1623	1623	6 that fund. The pension shall begin no earlier than upon
1624	1624	7 attainment of age 60 (or upon mandatory retirement from the
1625	1625	8 fund by operation of law due to age, if that occurs before age
1626	1626	9 60) and in no event before the effective date of this
1627	1627	10 amendatory Act of 1997.
1628	1628	11 In order to be eligible for a pension under this
1629	1629	12 subsection (c), the police officer must have at least 8 years
1630	1630	13 of creditable service in a second police pension fund under
1631	1631	14 this Article and be receiving a pension under subsection (a)
1632	1632	15 or (b) of this Section from that second fund. The police
1633	1633	16 officer need not be in service on or after the effective date
1634	1634	17 of this amendatory Act of 1997.
1635	1635	18 (d) (Blank). Notwithstanding any other provision of this
1636	1636	19 Article, the provisions of this subsection (d) apply to a
1637	1637	20 person who is not a participant in the self-managed plan under
1638	1638	21 Section 3-109.3 and who first becomes a police officer under
1639	1639	22 this Article on or after January 1, 2011.
1640	1640	23 A police officer age 55 or more who has 10 or more years of
1641	1641	24 service in that capacity shall be entitled at his option to
1642	1642	25 receive a monthly pension for his service as a police officer
1643	1643	26 computed by multiplying 2.5% for each year of such service by
1644	1644
1645	1645
1646	1646
1647	1647
1648	1648
1649	1649	HB4065 - 45 - LRB103 31966 RPS 60743 b
1650	1650
1651	1651
1652	1652	HB4065- 46 -LRB103 31966 RPS 60743 b HB4065 - 46 - LRB103 31966 RPS 60743 b
1653	1653	HB4065 - 46 - LRB103 31966 RPS 60743 b
1654	1654	1 his or her final average salary.
1655	1655	2 The pension of a police officer who is retiring after
1656	1656	3 attaining age 50 with 10 or more years of creditable service
1657	1657	4 shall be reduced by one-half of 1% for each month that the
1658	1658	5 police officer's age is under age 55.
1659	1659	6 The maximum pension under this subsection (d) shall be 75%
1660	1660	7 of final average salary.
1661	1661	8 For the purposes of this subsection (d), "final average
1662	1662	9 salary" means the greater of: (i) the average monthly salary
1663	1663	10 obtained by dividing the total salary of the police officer
1664	1664	11 during the 48 consecutive months of service within the last 60
1665	1665	12 months of service in which the total salary was the highest by
1666	1666	13 the number of months of service in that period; or (ii) the
1667	1667	14 average monthly salary obtained by dividing the total salary
1668	1668	15 of the police officer during the 96 consecutive months of
1669	1669	16 service within the last 120 months of service in which the
1670	1670	17 total salary was the highest by the number of months of service
1671	1671	18 in that period.
1672	1672	19 Beginning on January 1, 2011, for all purposes under this
1673	1673	20 Code (including without limitation the calculation of benefits
1674	1674	21 and employee contributions), the annual salary based on the
1675	1675	22 plan year of a member or participant to whom this Section
1676	1676	23 applies shall not exceed $106,800; however, that amount shall
1677	1677	24 annually thereafter be increased by the lesser of (i) 3% of
1678	1678	25 that amount, including all previous adjustments, or (ii) the
1679	1679	26 annual unadjusted percentage increase (but not less than zero)
1680	1680
1681	1681
1682	1682
1683	1683
1684	1684
1685	1685	HB4065 - 46 - LRB103 31966 RPS 60743 b
1686	1686
1687	1687
1688	1688	HB4065- 47 -LRB103 31966 RPS 60743 b HB4065 - 47 - LRB103 31966 RPS 60743 b
1689	1689	HB4065 - 47 - LRB103 31966 RPS 60743 b
1690	1690	1 in the consumer price index-u for the 12 months ending with the
1691	1691	2 September preceding each November 1, including all previous
1692	1692	3 adjustments.
1693	1693	4 Nothing in this amendatory Act of the 101st General
1694	1694	5 Assembly shall cause or otherwise result in any retroactive
1695	1695	6 adjustment of any employee contributions.
1696	1696	7 (Source: P.A. 101-610, eff. 1-1-20.)
1697	1697	8 (40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
1698	1698	9 Sec. 3-111.1. Increase in pension.
1699	1699	10 (a) Except as provided in subsection (e), the monthly
1700	1700	11 pension of a police officer who retires after July 1, 1971, and
1701	1701	12 prior to January 1, 1986, shall be increased, upon either the
1702	1702	13 first of the month following the first anniversary of the date
1703	1703	14 of retirement if the officer is 60 years of age or over at
1704	1704	15 retirement date, or upon the first day of the month following
1705	1705	16 attainment of age 60 if it occurs after the first anniversary
1706	1706	17 of retirement, by 3% of the originally granted pension and by
1707	1707	18 an additional 3% of the originally granted pension in January
1708	1708	19 of each year thereafter.
1709	1709	20 (b) The monthly pension of a police officer who retired
1710	1710	21 from service with 20 or more years of service, on or before
1711	1711	22 July 1, 1971, shall be increased in January of the year
1712	1712	23 following the year of attaining age 65 or in January of 1972,
1713	1713	24 if then over age 65, by 3% of the originally granted pension
1714	1714	25 for each year the police officer received pension payments. In
1715	1715
1716	1716
1717	1717
1718	1718
1719	1719
1720	1720	HB4065 - 47 - LRB103 31966 RPS 60743 b
1721	1721
1722	1722
1723	1723	HB4065- 48 -LRB103 31966 RPS 60743 b HB4065 - 48 - LRB103 31966 RPS 60743 b
1724	1724	HB4065 - 48 - LRB103 31966 RPS 60743 b
1725	1725	1 each January thereafter, he or she shall receive an additional
1726	1726	2 increase of 3% of the original pension.
1727	1727	3 (c) The monthly pension of a police officer who retires on
1728	1728	4 disability or is retired for disability shall be increased in
1729	1729	5 January of the year following the year of attaining age 60, by
1730	1730	6 3% of the original grant of pension for each year he or she
1731	1731	7 received pension payments. In each January thereafter, the
1732	1732	8 police officer shall receive an additional increase of 3% of
1733	1733	9 the original pension.
1734	1734	10 (d) The monthly pension of a police officer who retires
1735	1735	11 after January 1, 1986, shall be increased, upon either the
1736	1736	12 first of the month following the first anniversary of the date
1737	1737	13 of retirement if the officer is 55 years of age or over, or
1738	1738	14 upon the first day of the month following attainment of age 55
1739	1739	15 if it occurs after the first anniversary of retirement, by
1740	1740	16 1/12 of 3% of the originally granted pension for each full
1741	1741	17 month that has elapsed since the pension began, and by an
1742	1742	18 additional 3% of the originally granted pension in January of
1743	1743	19 each year thereafter.
1744	1744	20 The changes made to this subsection (d) by this amendatory
1745	1745	21 Act of the 91st General Assembly apply to all initial
1746	1746	22 increases that become payable under this subsection on or
1747	1747	23 after January 1, 1999. All initial increases that became
1748	1748	24 payable under this subsection on or after January 1, 1999 and
1749	1749	25 before the effective date of this amendatory Act shall be
1750	1750	26 recalculated and the additional amount accruing for that
1751	1751
1752	1752
1753	1753
1754	1754
1755	1755
1756	1756	HB4065 - 48 - LRB103 31966 RPS 60743 b
1757	1757
1758	1758
1759	1759	HB4065- 49 -LRB103 31966 RPS 60743 b HB4065 - 49 - LRB103 31966 RPS 60743 b
1760	1760	HB4065 - 49 - LRB103 31966 RPS 60743 b
1761	1761	1 period, if any, shall be payable to the pensioner in a lump
1762	1762	2 sum.
1763	1763	3 (e) Notwithstanding the provisions of subsection (a), upon
1764	1764	4 the first day of the month following (1) the first anniversary
1765	1765	5 of the date of retirement, or (2) the attainment of age 55, or
1766	1766	6 (3) July 1, 1987, whichever occurs latest, the monthly pension
1767	1767	7 of a police officer who retired on or after January 1, 1977 and
1768	1768	8 on or before January 1, 1986, and did not receive an increase
1769	1769	9 under subsection (a) before July 1, 1987, shall be increased
1770	1770	10 by 3% of the originally granted monthly pension for each full
1771	1771	11 year that has elapsed since the pension began, and by an
1772	1772	12 additional 3% of the originally granted pension in each
1773	1773	13 January thereafter. The increases provided under this
1774	1774	14 subsection are in lieu of the increases provided in subsection
1775	1775	15 (a).
1776	1776	16 (f) Notwithstanding the other provisions of this Section,
1777	1777	17 beginning with increases granted on or after July 1, 1993, the
1778	1778	18 second and all subsequent automatic annual increases granted
1779	1779	19 under subsection (a), (b), (d), or (e) of this Section shall be
1780	1780	20 calculated as 3% of the amount of pension payable at the time
1781	1781	21 of the increase, including any increases previously granted
1782	1782	22 under this Section, rather than 3% of the originally granted
1783	1783	23 pension amount. Section 1-103.1 does not apply to this
1784	1784	24 subsection (f).
1785	1785	25 (g) Notwithstanding any other provision of this Article,
1786	1786	26 the monthly pension of a person who first becomes a police
1787	1787
1788	1788
1789	1789
1790	1790
1791	1791
1792	1792	HB4065 - 49 - LRB103 31966 RPS 60743 b
1793	1793
1794	1794
1795	1795	HB4065- 50 -LRB103 31966 RPS 60743 b HB4065 - 50 - LRB103 31966 RPS 60743 b
1796	1796	HB4065 - 50 - LRB103 31966 RPS 60743 b
1797	1797	1 officer under this Article on or after January 1, 2011 shall be
1798	1798	2 increased on the January 1 occurring either on or after the
1799	1799	3 attainment of age 60 or the first anniversary of the pension
1800	1800	4 start date, whichever is later; except that, beginning on the
1801	1801	5 effective date of this amendatory Act of the 103rd General
1802	1802	6 Assembly, eligibility for and the amount of the automatic
1803	1803	7 increase in the monthly pension of such a person shall be
1804	1804	8 calculated as otherwise provided in this Section. Each annual
1805	1805	9 increase shall be calculated at 3% or one-half the annual
1806	1806	10 unadjusted percentage increase (but not less than zero) in the
1807	1807	11 consumer price index-u for the 12 months ending with the
1808	1808	12 September preceding each November 1, whichever is less, of the
1809	1809	13 originally granted pension. If the annual unadjusted
1810	1810	14 percentage change in the consumer price index-u for a 12-month
1811	1811	15 period ending in September is zero or, when compared with the
1812	1812	16 preceding period, decreases, then the pension shall not be
1813	1813	17 increased.
1814	1814	18 For the purposes of this subsection (g), "consumer price
1815	1815	19 index-u" means the index published by the Bureau of Labor
1816	1816	20 Statistics of the United States Department of Labor that
1817	1817	21 measures the average change in prices of goods and services
1818	1818	22 purchased by all urban consumers, United States city average,
1819	1819	23 all items, 1982-84 = 100. The new amount resulting from each
1820	1820	24 annual adjustment shall be determined by the Public Pension
1821	1821	25 Division of the Department of Insurance and made available to
1822	1822	26 the boards of the pension funds.
1823	1823
1824	1824
1825	1825
1826	1826
1827	1827
1828	1828	HB4065 - 50 - LRB103 31966 RPS 60743 b
1829	1829
1830	1830
1831	1831	HB4065- 51 -LRB103 31966 RPS 60743 b HB4065 - 51 - LRB103 31966 RPS 60743 b
1832	1832	HB4065 - 51 - LRB103 31966 RPS 60743 b
1833	1833	1 (Source: P.A. 96-1495, eff. 1-1-11.)
1834	1834	2 (40 ILCS 5/3-112) (from Ch. 108 1/2, par. 3-112)
1835	1835	3 Sec. 3-112. Pension to survivors.
1836	1836	4 (a) Upon the death of a police officer entitled to a
1837	1837	5 pension under Section 3-111, the surviving spouse shall be
1838	1838	6 entitled to the pension to which the police officer was then
1839	1839	7 entitled. Upon the death of the surviving spouse, or upon the
1840	1840	8 remarriage of the surviving spouse if that remarriage
1841	1841	9 terminates the surviving spouse's eligibility under Section
1842	1842	10 3-121, the police officer's unmarried children who are under
1843	1843	11 age 18 or who are dependent because of physical or mental
1844	1844	12 disability shall be entitled to equal shares of such pension.
1845	1845	13 If there is no eligible surviving spouse and no eligible
1846	1846	14 child, the dependent parent or parents of the officer shall be
1847	1847	15 entitled to receive or share such pension until their death or
1848	1848	16 marriage or remarriage after the death of the police officer.
1849	1849	17 Notwithstanding any other provision of this Article, for a
1850	1850	18 person who first becomes a police officer under this Article
1851	1851	19 on or after January 1, 2011, the pension to which the surviving
1852	1852	20 spouse, children, or parents are entitled under this
1853	1853	21 subsection (a) shall be in an amount equal to the greater of
1854	1854	22 (i) 54% of the police officer's monthly salary at the date of
1855	1855	23 death, or (ii) 66 2/3% of the police officer's earned pension
1856	1856	24 at the date of death, and, if there is a surviving spouse, 12%
1857	1857	25 of such monthly salary shall be granted to the guardian of any
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862
1863	1863	HB4065 - 51 - LRB103 31966 RPS 60743 b
1864	1864
1865	1865
1866	1866	HB4065- 52 -LRB103 31966 RPS 60743 b HB4065 - 52 - LRB103 31966 RPS 60743 b
1867	1867	HB4065 - 52 - LRB103 31966 RPS 60743 b
1868	1868	1 minor child or children, including a child who has been
1869	1869	2 conceived but not yet born, for each such child until
1870	1870	3 attainment of age 18. Upon the death of the surviving spouse
1871	1871	4 leaving one or more minor children, or upon the death of a
1872	1872	5 police officer leaving one or more minor children but no
1873	1873	6 surviving spouse, a monthly pension of 20% of the monthly
1874	1874	7 salary shall be granted to the duly appointed guardian of each
1875	1875	8 such child for the support and maintenance of each such child
1876	1876	9 until the child reaches age 18. The total pension provided
1877	1877	10 under this paragraph shall not exceed 75% of the monthly
1878	1878	11 salary of the deceased police officer (1) when paid to the
1879	1879	12 survivor of a police officer who has attained 20 or more years
1880	1880	13 of service credit and who receives or is eligible to receive a
1881	1881	14 retirement pension under this Article, (2) when paid to the
1882	1882	15 survivor of a police officer who dies as a result of illness or
1883	1883	16 accident, (3) when paid to the survivor of a police officer who
1884	1884	17 dies from any cause while in receipt of a disability pension
1885	1885	18 under this Article, or (4) when paid to the survivor of a
1886	1886	19 deferred pensioner. Nothing in this subsection (a) shall act
1887	1887	20 to diminish the survivor's benefits described in subsection
1888	1888	21 (e) of this Section.
1889	1889	22 Notwithstanding Section 1-103.1, the changes made to this
1890	1890	23 subsection apply without regard to whether the deceased police
1891	1891	24 officer was in service on or after the effective date of this
1892	1892	25 amendatory Act of the 101st General Assembly.
1893	1893	26 Notwithstanding any other provision of this Article, the
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898
1899	1899	HB4065 - 52 - LRB103 31966 RPS 60743 b
1900	1900
1901	1901
1902	1902	HB4065- 53 -LRB103 31966 RPS 60743 b HB4065 - 53 - LRB103 31966 RPS 60743 b
1903	1903	HB4065 - 53 - LRB103 31966 RPS 60743 b
1904	1904	1 monthly pension of a survivor of a person who first becomes a
1905	1905	2 police officer under this Article on or after January 1, 2011
1906	1906	3 shall be increased on the January 1 after attainment of age 60
1907	1907	4 by the recipient of the survivor's pension and each January 1
1908	1908	5 thereafter by 3% or one-half the annual unadjusted percentage
1909	1909	6 increase (but not less than zero) in the consumer price
1910	1910	7 index-u for the 12 months ending with the September preceding
1911	1911	8 each November 1, whichever is less, of the originally granted
1912	1912	9 survivor's pension; except that, beginning on the effective
1913	1913	10 date of this amendatory Act of the 103rd General Assembly,
1914	1914	11 eligibility for and the amount of the automatic increase in
1915	1915	12 the monthly pension of such a survivor shall be calculated as
1916	1916	13 otherwise provided in this Section. If the annual unadjusted
1917	1917	14 percentage change in the consumer price index-u for a 12-month
1918	1918	15 period ending in September is zero or, when compared with the
1919	1919	16 preceding period, decreases, then the survivor's pension shall
1920	1920	17 not be increased.
1921	1921	18 For the purposes of this subsection (a), "consumer price
1922	1922	19 index-u" means the index published by the Bureau of Labor
1923	1923	20 Statistics of the United States Department of Labor that
1924	1924	21 measures the average change in prices of goods and services
1925	1925	22 purchased by all urban consumers, United States city average,
1926	1926	23 all items, 1982-84 = 100. The new amount resulting from each
1927	1927	24 annual adjustment shall be determined by the Public Pension
1928	1928	25 Division of the Department of Insurance and made available to
1929	1929	26 the boards of the pension funds.
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934
1935	1935	HB4065 - 53 - LRB103 31966 RPS 60743 b
1936	1936
1937	1937
1938	1938	HB4065- 54 -LRB103 31966 RPS 60743 b HB4065 - 54 - LRB103 31966 RPS 60743 b
1939	1939	HB4065 - 54 - LRB103 31966 RPS 60743 b
1940	1940	1 (b) Upon the death of a police officer while in service,
1941	1941	2 having at least 20 years of creditable service, or upon the
1942	1942	3 death of a police officer who retired from service with at
1943	1943	4 least 20 years of creditable service, whether death occurs
1944	1944	5 before or after attainment of age 50, the pension earned by the
1945	1945	6 police officer as of the date of death as provided in Section
1946	1946	7 3-111 shall be paid to the survivors in the sequence provided
1947	1947	8 in subsection (a) of this Section.
1948	1948	9 (c) Upon the death of a police officer while in service,
1949	1949	10 having at least 10 but less than 20 years of service, a pension
1950	1950	11 of 1/2 of the salary attached to the rank or ranks held by the
1951	1951	12 officer for one year immediately prior to death shall be
1952	1952	13 payable to the survivors in the sequence provided in
1953	1953	14 subsection (a) of this Section. If death occurs as a result of
1954	1954	15 the performance of duty, the 10 year requirement shall not
1955	1955	16 apply and the pension to survivors shall be payable after any
1956	1956	17 period of service.
1957	1957	18 (d) Beginning July 1, 1987, a minimum pension of $400 per
1958	1958	19 month shall be paid to all surviving spouses, without regard
1959	1959	20 to the fact that the death of the police officer occurred prior
1960	1960	21 to that date. If the minimum pension established in Section
1961	1961	22 3-113.1 is greater than the minimum provided in this
1962	1962	23 subsection, the Section 3-113.1 minimum controls.
1963	1963	24 (e) The pension of the surviving spouse of a police
1964	1964	25 officer who dies (i) on or after January 1, 2001, (ii) without
1965	1965	26 having begun to receive either a retirement pension payable
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970
1971	1971	HB4065 - 54 - LRB103 31966 RPS 60743 b
1972	1972
1973	1973
1974	1974	HB4065- 55 -LRB103 31966 RPS 60743 b HB4065 - 55 - LRB103 31966 RPS 60743 b
1975	1975	HB4065 - 55 - LRB103 31966 RPS 60743 b
1976	1976	1 under Section 3-111 or a disability pension payable under
1977	1977	2 Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6, and (iii) as a
1978	1978	3 result of sickness, accident, or injury incurred in or
1979	1979	4 resulting from the performance of an act of duty shall not be
1980	1980	5 less than 100% of the salary attached to the rank held by the
1981	1981	6 deceased police officer on the last day of service,
1982	1982	7 notwithstanding any provision in this Article to the contrary.
1983	1983	8 (Source: P.A. 101-610, eff. 1-1-20.)
1984	1984	9 (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
1985	1985	10 Sec. 3-125. Financing.
1986	1986	11 (a) The city council or the board of trustees of the
1987	1987	12 municipality shall annually levy a tax upon all the taxable
1988	1988	13 property of the municipality at the rate on the dollar which
1989	1989	14 will produce an amount which, when added to the deductions
1990	1990	15 from the salaries or wages of police officers, and revenues
1991	1991	16 available from other sources, including State contributions,
1992	1992	17 will equal a sum sufficient to meet the annual requirements of
1993	1993	18 the police pension fund. The annual requirements to be
1994	1994	19 provided by such tax levy are equal to (1) the normal cost of
1995	1995	20 the pension fund for the year involved, plus (2) an amount
1996	1996	21 sufficient to bring the total assets of the pension fund up to
1997	1997	22 90% of the total actuarial liabilities of the pension fund by
1998	1998	23 the end of municipal fiscal year 2040, as annually updated and
1999	1999	24 determined by an enrolled actuary employed by the Illinois
2000	2000	25 Department of Insurance or by an enrolled actuary retained by
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006	HB4065 - 55 - LRB103 31966 RPS 60743 b
2007	2007
2008	2008
2009	2009	HB4065- 56 -LRB103 31966 RPS 60743 b HB4065 - 56 - LRB103 31966 RPS 60743 b
2010	2010	HB4065 - 56 - LRB103 31966 RPS 60743 b
2011	2011	1 the pension fund or the municipality, minus (3) any
2012	2012	2 anticipated State contributions from the Local Government
2013	2013	3 Retirement Fund for the year involved. In making these
2014	2014	4 determinations, the required minimum employer contribution
2015	2015	5 shall be calculated each year as a level percentage of payroll
2016	2016	6 over the years remaining up to and including fiscal year 2040
2017	2017	7 and shall be determined under the projected unit credit
2018	2018	8 actuarial cost method. The tax shall be levied and collected
2019	2019	9 in the same manner as the general taxes of the municipality,
2020	2020	10 and in addition to all other taxes now or hereafter authorized
2021	2021	11 to be levied upon all property within the municipality, and
2022	2022	12 shall be in addition to the amount authorized to be levied for
2023	2023	13 general purposes as provided by Section 8-3-1 of the Illinois
2024	2024	14 Municipal Code, approved May 29, 1961, as amended. The tax
2025	2025	15 shall be forwarded directly to the treasurer of the board
2026	2026	16 within 30 business days after receipt by the county.
2027	2027	17 (a-5) Beginning in State fiscal year 2024, the city
2028	2028	18 council or the board of trustees of the municipality shall
2029	2029	19 certify to the Governor the amount of (1) the normal cost of
2030	2030	20 the pension fund for the year involved, plus (2) an amount
2031	2031	21 sufficient to bring the total assets of the pension fund up to
2032	2032	22 90% of the total actuarial liabilities of the pension fund by
2033	2033	23 the end of municipal fiscal year 2040, as annually updated and
2034	2034	24 determined by an enrolled actuary employed by the Department
2035	2035	25 of Insurance or by an enrolled actuary retained by the pension
2036	2036	26 fund or the municipality.
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042	HB4065 - 56 - LRB103 31966 RPS 60743 b
2043	2043
2044	2044
2045	2045	HB4065- 57 -LRB103 31966 RPS 60743 b HB4065 - 57 - LRB103 31966 RPS 60743 b
2046	2046	HB4065 - 57 - LRB103 31966 RPS 60743 b
2047	2047	1 (b) For purposes of determining the required employer
2048	2048	2 contribution to a pension fund, the value of the pension
2049	2049	3 fund's assets shall be equal to the actuarial value of the
2050	2050	4 pension fund's assets, which shall be calculated as follows:
2051	2051	5 (1) On March 30, 2011, the actuarial value of a
2052	2052	6 pension fund's assets shall be equal to the market value
2053	2053	7 of the assets as of that date.
2054	2054	8 (2) In determining the actuarial value of the System's
2055	2055	9 assets for fiscal years after March 30, 2011, any
2056	2056	10 actuarial gains or losses from investment return incurred
2057	2057	11 in a fiscal year shall be recognized in equal annual
2058	2058	12 amounts over the 5-year period following that fiscal year.
2059	2059	13 (c) If a participating municipality fails to transmit to
2060	2060	14 the fund contributions required of it under this Article for
2061	2061	15 more than 90 days after the payment of those contributions is
2062	2062	16 due, the fund may, after giving notice to the municipality,
2063	2063	17 certify to the State Comptroller the amounts of the delinquent
2064	2064	18 payments in accordance with any applicable rules of the
2065	2065	19 Comptroller, and the Comptroller must, beginning in fiscal
2066	2066	20 year 2016, deduct and remit to the fund the certified amounts
2067	2067	21 or a portion of those amounts from the following proportions
2068	2068	22 of payments of State funds to the municipality:
2069	2069	23 (1) in fiscal year 2016, one-third of the total amount
2070	2070	24 of any payments of State funds to the municipality;
2071	2071	25 (2) in fiscal year 2017, two-thirds of the total
2072	2072	26 amount of any payments of State funds to the municipality;
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077
2078	2078	HB4065 - 57 - LRB103 31966 RPS 60743 b
2079	2079
2080	2080
2081	2081	HB4065- 58 -LRB103 31966 RPS 60743 b HB4065 - 58 - LRB103 31966 RPS 60743 b
2082	2082	HB4065 - 58 - LRB103 31966 RPS 60743 b
2083	2083	1 and
2084	2084	2 (3) in fiscal year 2018 and each fiscal year
2085	2085	3 thereafter, the total amount of any payments of State
2086	2086	4 funds to the municipality.
2087	2087	5 The State Comptroller may not deduct from any payments of
2088	2088	6 State funds to the municipality more than the amount of
2089	2089	7 delinquent payments certified to the State Comptroller by the
2090	2090	8 fund.
2091	2091	9 (d) The police pension fund shall consist of the following
2092	2092	10 moneys which shall be set apart by the treasurer of the
2093	2093	11 municipality:
2094	2094	12 (1) All moneys derived from the taxes levied
2095	2095	13 hereunder;
2096	2096	14 (2) Contributions by police officers under Section
2097	2097	15 3-125.1;
2098	2098	16 (2.5) All moneys received from the Police Officers'
2099	2099	17 Pension Investment Fund as provided in Article 22B of this
2100	2100	18 Code;
2101	2101	19 (3) All moneys accumulated by the municipality under
2102	2102	20 any previous legislation establishing a fund for the
2103	2103	21 benefit of disabled or retired police officers;
2104	2104	22 (4) Donations, gifts or other transfers authorized by
2105	2105	23 this Article.
2106	2106	24 (e) The Commission on Government Forecasting and
2107	2107	25 Accountability shall conduct a study of all funds established
2108	2108	26 under this Article and shall report its findings to the
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113
2114	2114	HB4065 - 58 - LRB103 31966 RPS 60743 b
2115	2115
2116	2116
2117	2117	HB4065- 59 -LRB103 31966 RPS 60743 b HB4065 - 59 - LRB103 31966 RPS 60743 b
2118	2118	HB4065 - 59 - LRB103 31966 RPS 60743 b
2119	2119	1 General Assembly on or before January 1, 2013. To the fullest
2120	2120	2 extent possible, the study shall include, but not be limited
2121	2121	3 to, the following:
2122	2122	4 (1) fund balances;
2123	2123	5 (2) historical employer contribution rates for each
2124	2124	6 fund;
2125	2125	7 (3) the actuarial formulas used as a basis for
2126	2126	8 employer contributions, including the actual assumed rate
2127	2127	9 of return for each year, for each fund;
2128	2128	10 (4) available contribution funding sources;
2129	2129	11 (5) the impact of any revenue limitations caused by
2130	2130	12 PTELL and employer home rule or non-home rule status; and
2131	2131	13 (6) existing statutory funding compliance procedures
2132	2132	14 and funding enforcement mechanisms for all municipal
2133	2133	15 pension funds.
2134	2134	16 (Source: P.A. 101-610, eff. 1-1-20.)
2135	2135	17 (40 ILCS 5/3-148.5 new)
2136	2136	18 Sec. 3-148.5. Application of this amendatory Act of the
2137	2137	19 103rd General Assembly. It is the intent of this amendatory
2138	2138	20 Act of the 103rd General Assembly to provide to police
2139	2139	21 officers who first became police officers on or after January
2140	2140	22 1, 2011 the same level of benefits and eligibility criteria
2141	2141	23 for benefits as those who first became police officers before
2142	2142	24 January 1, 2011. The changes made to this Article by this
2143	2143	25 amendatory Act of the 103rd General Assembly that provide
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149	HB4065 - 59 - LRB103 31966 RPS 60743 b
2150	2150
2151	2151
2152	2152	HB4065- 60 -LRB103 31966 RPS 60743 b HB4065 - 60 - LRB103 31966 RPS 60743 b
2153	2153	HB4065 - 60 - LRB103 31966 RPS 60743 b
2154	2154	1 benefit increases for police officers apply without regard to
2155	2155	2 whether the police officer was in service on or after the
2156	2156	3 effective date of this amendatory Act of the 103rd General
2157	2157	4 Assembly, notwithstanding the provisions of Section 1-103.1.
2158	2158	5 The benefit increases are intended to apply prospectively and
2159	2159	6 do not entitle a police officer to retroactive benefit
2160	2160	7 payments or increases. The changes made to this Article by
2161	2161	8 this amendatory Act of the 103rd General Assembly shall not
2162	2162	9 cause or otherwise result in any retroactive adjustment of any
2163	2163	10 employee contributions.
2164	2164	11 (40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
2165	2165	12 Sec. 4-109. Pension.
2166	2166	13 (a) A firefighter age 50 or more with 20 or more years of
2167	2167	14 creditable service, who is no longer in service as a
2168	2168	15 firefighter, shall receive a monthly pension of 1/2 the
2169	2169	16 monthly salary attached to the rank held by him or her in the
2170	2170	17 fire service at the date of retirement.
2171	2171	18 The monthly pension shall be increased by 1/12 of 2.5% of
2172	2172	19 such monthly salary for each additional month over 20 years of
2173	2173	20 service through 30 years of service, to a maximum of 75% of
2174	2174	21 such monthly salary.
2175	2175	22 The changes made to this subsection (a) by this amendatory
2176	2176	23 Act of the 91st General Assembly apply to all pensions that
2177	2177	24 become payable under this subsection on or after January 1,
2178	2178	25 1999. All pensions payable under this subsection that began on
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184	HB4065 - 60 - LRB103 31966 RPS 60743 b
2185	2185
2186	2186
2187	2187	HB4065- 61 -LRB103 31966 RPS 60743 b HB4065 - 61 - LRB103 31966 RPS 60743 b
2188	2188	HB4065 - 61 - LRB103 31966 RPS 60743 b
2189	2189	1 or after January 1, 1999 and before the effective date of this
2190	2190	2 amendatory Act shall be recalculated, and the amount of the
2191	2191	3 increase accruing for that period shall be payable to the
2192	2192	4 pensioner in a lump sum.
2193	2193	5 (b) A firefighter who retires or is separated from service
2194	2194	6 having at least 10 but less than 20 years of creditable
2195	2195	7 service, who is not entitled to receive a disability pension,
2196	2196	8 and who did not apply for a refund of contributions at his or
2197	2197	9 her last separation from service shall receive a monthly
2198	2198	10 pension upon attainment of age 60 based on the monthly salary
2199	2199	11 attached to his or her rank in the fire service on the date of
2200	2200	12 retirement or separation from service according to the
2201	2201	13 following schedule:
2202	2202	14 For 10 years of service, 15% of salary;
2203	2203	15 For 11 years of service, 17.6% of salary;
2204	2204	16 For 12 years of service, 20.4% of salary;
2205	2205	17 For 13 years of service, 23.4% of salary;
2206	2206	18 For 14 years of service, 26.6% of salary;
2207	2207	19 For 15 years of service, 30% of salary;
2208	2208	20 For 16 years of service, 33.6% of salary;
2209	2209	21 For 17 years of service, 37.4% of salary;
2210	2210	22 For 18 years of service, 41.4% of salary;
2211	2211	23 For 19 years of service, 45.6% of salary.
2212	2212	24 (c) (Blank). Notwithstanding any other provision of this
2213	2213	25 Article, the provisions of this subsection (c) apply to a
2214	2214	26 person who first becomes a firefighter under this Article on
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220	HB4065 - 61 - LRB103 31966 RPS 60743 b
2221	2221
2222	2222
2223	2223	HB4065- 62 -LRB103 31966 RPS 60743 b HB4065 - 62 - LRB103 31966 RPS 60743 b
2224	2224	HB4065 - 62 - LRB103 31966 RPS 60743 b
2225	2225	1 or after January 1, 2011.
2226	2226	2 A firefighter age 55 or more who has 10 or more years of
2227	2227	3 service in that capacity shall be entitled at his option to
2228	2228	4 receive a monthly pension for his service as a firefighter
2229	2229	5 computed by multiplying 2.5% for each year of such service by
2230	2230	6 his or her final average salary.
2231	2231	7 The pension of a firefighter who is retiring after
2232	2232	8 attaining age 50 with 10 or more years of creditable service
2233	2233	9 shall be reduced by one-half of 1% for each month that the
2234	2234	10 firefighter's age is under age 55.
2235	2235	11 The maximum pension under this subsection (c) shall be 75%
2236	2236	12 of final average salary.
2237	2237	13 For the purposes of this subsection (c), "final average
2238	2238	14 salary" means the greater of: (i) the average monthly salary
2239	2239	15 obtained by dividing the total salary of the firefighter
2240	2240	16 during the 48 consecutive months of service within the last 60
2241	2241	17 months of service in which the total salary was the highest by
2242	2242	18 the number of months of service in that period; or (ii) the
2243	2243	19 average monthly salary obtained by dividing the total salary
2244	2244	20 of the firefighter during the 96 consecutive months of service
2245	2245	21 within the last 120 months of service in which the total salary
2246	2246	22 was the highest by the number of months of service in that
2247	2247	23 period.
2248	2248	24 Beginning on January 1, 2011, for all purposes under this
2249	2249	25 Code (including without limitation the calculation of benefits
2250	2250	26 and employee contributions), the annual salary based on the
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256	HB4065 - 62 - LRB103 31966 RPS 60743 b
2257	2257
2258	2258
2259	2259	HB4065- 63 -LRB103 31966 RPS 60743 b HB4065 - 63 - LRB103 31966 RPS 60743 b
2260	2260	HB4065 - 63 - LRB103 31966 RPS 60743 b
2261	2261	1 plan year of a member or participant to whom this Section
2262	2262	2 applies shall not exceed $106,800; however, that amount shall
2263	2263	3 annually thereafter be increased by the lesser of (i) 3% of
2264	2264	4 that amount, including all previous adjustments, or (ii) the
2265	2265	5 annual unadjusted percentage increase (but not less than zero)
2266	2266	6 in the consumer price index-u for the 12 months ending with the
2267	2267	7 September preceding each November 1, including all previous
2268	2268	8 adjustments.
2269	2269	9 Nothing in this amendatory Act of the 101st General
2270	2270	10 Assembly shall cause or otherwise result in any retroactive
2271	2271	11 adjustment of any employee contributions.
2272	2272	12 (Source: P.A. 101-610, eff. 1-1-20.)
2273	2273	13 (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
2274	2274	14 Sec. 4-109.1. Increase in pension.
2275	2275	15 (a) Except as provided in subsection (e), the monthly
2276	2276	16 pension of a firefighter who retires after July 1, 1971 and
2277	2277	17 prior to January 1, 1986, shall, upon either the first of the
2278	2278	18 month following the first anniversary of the date of
2279	2279	19 retirement if 60 years of age or over at retirement date, or
2280	2280	20 upon the first day of the month following attainment of age 60
2281	2281	21 if it occurs after the first anniversary of retirement, be
2282	2282	22 increased by 2% of the originally granted monthly pension and
2283	2283	23 by an additional 2% in each January thereafter. Effective
2284	2284	24 January 1976, the rate of the annual increase shall be 3% of
2285	2285	25 the originally granted monthly pension.
2286	2286
2287	2287
2288	2288
2289	2289
2290	2290
2291	2291	HB4065 - 63 - LRB103 31966 RPS 60743 b
2292	2292
2293	2293
2294	2294	HB4065- 64 -LRB103 31966 RPS 60743 b HB4065 - 64 - LRB103 31966 RPS 60743 b
2295	2295	HB4065 - 64 - LRB103 31966 RPS 60743 b
2296	2296	1 (b) The monthly pension of a firefighter who retired from
2297	2297	2 service with 20 or more years of service, on or before July 1,
2298	2298	3 1971, shall be increased, in January of the year following the
2299	2299	4 year of attaining age 65 or in January 1972, if then over age
2300	2300	5 65, by 2% of the originally granted monthly pension, for each
2301	2301	6 year the firefighter received pension payments. In each
2302	2302	7 January thereafter, he or she shall receive an additional
2303	2303	8 increase of 2% of the original monthly pension. Effective
2304	2304	9 January 1976, the rate of the annual increase shall be 3%.
2305	2305	10 (c) The monthly pension of a firefighter who is receiving
2306	2306	11 a disability pension under this Article shall be increased, in
2307	2307	12 January of the year following the year the firefighter attains
2308	2308	13 age 60, or in January 1974, if then over age 60, by 2% of the
2309	2309	14 originally granted monthly pension for each year he or she
2310	2310	15 received pension payments. In each January thereafter, the
2311	2311	16 firefighter shall receive an additional increase of 2% of the
2312	2312	17 original monthly pension. Effective January 1976, the rate of
2313	2313	18 the annual increase shall be 3%.
2314	2314	19 (c-1) On January 1, 1998, every child's disability benefit
2315	2315	20 payable on that date under Section 4-110 or 4-110.1 shall be
2316	2316	21 increased by an amount equal to 1/12 of 3% of the amount of the
2317	2317	22 benefit, multiplied by the number of months for which the
2318	2318	23 benefit has been payable. On each January 1 thereafter, every
2319	2319	24 child's disability benefit payable under Section 4-110 or
2320	2320	25 4-110.1 shall be increased by 3% of the amount of the benefit
2321	2321	26 then being paid, including any previous increases received
2322	2322
2323	2323
2324	2324
2325	2325
2326	2326
2327	2327	HB4065 - 64 - LRB103 31966 RPS 60743 b
2328	2328
2329	2329
2330	2330	HB4065- 65 -LRB103 31966 RPS 60743 b HB4065 - 65 - LRB103 31966 RPS 60743 b
2331	2331	HB4065 - 65 - LRB103 31966 RPS 60743 b
2332	2332	1 under this Article. These increases are not subject to any
2333	2333	2 limitation on the maximum benefit amount included in Section
2334	2334	3 4-110 or 4-110.1.
2335	2335	4 (c-2) On July 1, 2004, every pension payable to or on
2336	2336	5 behalf of a minor or disabled surviving child that is payable
2337	2337	6 on that date under Section 4-114 shall be increased by an
2338	2338	7 amount equal to 1/12 of 3% of the amount of the pension,
2339	2339	8 multiplied by the number of months for which the benefit has
2340	2340	9 been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
2341	2341	10 July 1, 2008, every pension payable to or on behalf of a minor
2342	2342	11 or disabled surviving child that is payable under Section
2343	2343	12 4-114 shall be increased by 3% of the amount of the pension
2344	2344	13 then being paid, including any previous increases received
2345	2345	14 under this Article. These increases are not subject to any
2346	2346	15 limitation on the maximum benefit amount included in Section
2347	2347	16 4-114.
2348	2348	17 (d) The monthly pension of a firefighter who retires after
2349	2349	18 January 1, 1986, shall, upon either the first of the month
2350	2350	19 following the first anniversary of the date of retirement if
2351	2351	20 55 years of age or over, or upon the first day of the month
2352	2352	21 following attainment of age 55 if it occurs after the first
2353	2353	22 anniversary of retirement, be increased by 1/12 of 3% of the
2354	2354	23 originally granted monthly pension for each full month that
2355	2355	24 has elapsed since the pension began, and by an additional 3% in
2356	2356	25 each January thereafter.
2357	2357	26 The changes made to this subsection (d) by this amendatory
2358	2358
2359	2359
2360	2360
2361	2361
2362	2362
2363	2363	HB4065 - 65 - LRB103 31966 RPS 60743 b
2364	2364
2365	2365
2366	2366	HB4065- 66 -LRB103 31966 RPS 60743 b HB4065 - 66 - LRB103 31966 RPS 60743 b
2367	2367	HB4065 - 66 - LRB103 31966 RPS 60743 b
2368	2368	1 Act of the 91st General Assembly apply to all initial
2369	2369	2 increases that become payable under this subsection on or
2370	2370	3 after January 1, 1999. All initial increases that became
2371	2371	4 payable under this subsection on or after January 1, 1999 and
2372	2372	5 before the effective date of this amendatory Act shall be
2373	2373	6 recalculated and the additional amount accruing for that
2374	2374	7 period, if any, shall be payable to the pensioner in a lump
2375	2375	8 sum.
2376	2376	9 (e) Notwithstanding the provisions of subsection (a), upon
2377	2377	10 the first day of the month following (1) the first anniversary
2378	2378	11 of the date of retirement, or (2) the attainment of age 55, or
2379	2379	12 (3) July 1, 1987, whichever occurs latest, the monthly pension
2380	2380	13 of a firefighter who retired on or after January 1, 1977 and on
2381	2381	14 or before January 1, 1986 and did not receive an increase under
2382	2382	15 subsection (a) before July 1, 1987, shall be increased by 3% of
2383	2383	16 the originally granted monthly pension for each full year that
2384	2384	17 has elapsed since the pension began, and by an additional 3% in
2385	2385	18 each January thereafter. The increases provided under this
2386	2386	19 subsection are in lieu of the increases provided in subsection
2387	2387	20 (a).
2388	2388	21 (f) In July 2009, the monthly pension of a firefighter who
2389	2389	22 retired before July 1, 1977 shall be recalculated and
2390	2390	23 increased to reflect the amount that the firefighter would
2391	2391	24 have received in July 2009 had the firefighter been receiving
2392	2392	25 a 3% compounded increase for each year he or she received
2393	2393	26 pension payments after January 1, 1986, plus any increases in
2394	2394
2395	2395
2396	2396
2397	2397
2398	2398
2399	2399	HB4065 - 66 - LRB103 31966 RPS 60743 b
2400	2400
2401	2401
2402	2402	HB4065- 67 -LRB103 31966 RPS 60743 b HB4065 - 67 - LRB103 31966 RPS 60743 b
2403	2403	HB4065 - 67 - LRB103 31966 RPS 60743 b
2404	2404	1 pension received for each year prior to January 1, 1986. In
2405	2405	2 each January thereafter, he or she shall receive an additional
2406	2406	3 increase of 3% of the amount of the pension then being paid.
2407	2407	4 The changes made to this Section by this amendatory Act of the
2408	2408	5 96th General Assembly apply without regard to whether the
2409	2409	6 firefighter was in service on or after its effective date.
2410	2410	7 (g) Notwithstanding any other provision of this Article,
2411	2411	8 the monthly pension of a person who first becomes a
2412	2412	9 firefighter under this Article on or after January 1, 2011
2413	2413	10 shall be increased on the January 1 occurring either on or
2414	2414	11 after the attainment of age 60 or the first anniversary of the
2415	2415	12 pension start date, whichever is later; except that, beginning
2416	2416	13 on the effective date of this amendatory Act of the 103rd
2417	2417	14 General Assembly, eligibility for and the amount of the
2418	2418	15 automatic increase in the monthly pension of such a person
2419	2419	16 shall be calculated as otherwise provided in this Section.
2420	2420	17 Each annual increase shall be calculated at 3% or one-half the
2421	2421	18 annual unadjusted percentage increase (but not less than zero)
2422	2422	19 in the consumer price index-u for the 12 months ending with the
2423	2423	20 September preceding each November 1, whichever is less, of the
2424	2424	21 originally granted pension. If the annual unadjusted
2425	2425	22 percentage change in the consumer price index-u for a 12-month
2426	2426	23 period ending in September is zero or, when compared with the
2427	2427	24 preceding period, decreases, then the pension shall not be
2428	2428	25 increased.
2429	2429	26 For the purposes of this subsection (g), "consumer price
2430	2430
2431	2431
2432	2432
2433	2433
2434	2434
2435	2435	HB4065 - 67 - LRB103 31966 RPS 60743 b
2436	2436
2437	2437
2438	2438	HB4065- 68 -LRB103 31966 RPS 60743 b HB4065 - 68 - LRB103 31966 RPS 60743 b
2439	2439	HB4065 - 68 - LRB103 31966 RPS 60743 b
2440	2440	1 index-u" means the index published by the Bureau of Labor
2441	2441	2 Statistics of the United States Department of Labor that
2442	2442	3 measures the average change in prices of goods and services
2443	2443	4 purchased by all urban consumers, United States city average,
2444	2444	5 all items, 1982-84 = 100. The new amount resulting from each
2445	2445	6 annual adjustment shall be determined by the Public Pension
2446	2446	7 Division of the Department of Insurance and made available to
2447	2447	8 the boards of the pension funds.
2448	2448	9 (Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
2449	2449	10 (40 ILCS 5/4-114) (from Ch. 108 1/2, par. 4-114)
2450	2450	11 Sec. 4-114. Pension to survivors. If a firefighter who is
2451	2451	12 not receiving a disability pension under Section 4-110 or
2452	2452	13 4-110.1 dies (1) as a result of any illness or accident, or (2)
2453	2453	14 from any cause while in receipt of a disability pension under
2454	2454	15 this Article, or (3) during retirement after 20 years service,
2455	2455	16 or (4) while vested for or in receipt of a pension payable
2456	2456	17 under subsection (b) of Section 4-109, or (5) while a deferred
2457	2457	18 pensioner, having made all required contributions, a pension
2458	2458	19 shall be paid to his or her survivors, based on the monthly
2459	2459	20 salary attached to the firefighter's rank on the last day of
2460	2460	21 service in the fire department, as follows:
2461	2461	22 (a)(1) To the surviving spouse, a monthly pension of
2462	2462	23 40% of the monthly salary, and if there is a surviving
2463	2463	24 spouse, to the guardian of any minor child or children
2464	2464	25 including a child which has been conceived but not yet
2465	2465
2466	2466
2467	2467
2468	2468
2469	2469
2470	2470	HB4065 - 68 - LRB103 31966 RPS 60743 b
2471	2471
2472	2472
2473	2473	HB4065- 69 -LRB103 31966 RPS 60743 b HB4065 - 69 - LRB103 31966 RPS 60743 b
2474	2474	HB4065 - 69 - LRB103 31966 RPS 60743 b
2475	2475	1 born, 12% of such monthly salary for each such child until
2476	2476	2 attainment of age 18 or until the child's marriage,
2477	2477	3 whichever occurs first. Beginning July 1, 1993, the
2478	2478	4 monthly pension to the surviving spouse shall be 54% of
2479	2479	5 the monthly salary for all persons receiving a surviving
2480	2480	6 spouse pension under this Article, regardless of whether
2481	2481	7 the deceased firefighter was in service on or after the
2482	2482	8 effective date of this amendatory Act of 1993.
2483	2483	9 (2) Beginning July 1, 2004, unless the amount provided
2484	2484	10 under paragraph (1) of this subsection (a) is greater, the
2485	2485	11 total monthly pension payable under this paragraph (a),
2486	2486	12 including any amount payable on account of children, to
2487	2487	13 the surviving spouse of a firefighter who died (i) while
2488	2488	14 receiving a retirement pension, (ii) while he or she was a
2489	2489	15 deferred pensioner with at least 20 years of creditable
2490	2490	16 service, or (iii) while he or she was in active service
2491	2491	17 having at least 20 years of creditable service, regardless
2492	2492	18 of age, shall be no less than 100% of the monthly
2493	2493	19 retirement pension earned by the deceased firefighter at
2494	2494	20 the time of death, regardless of whether death occurs
2495	2495	21 before or after attainment of age 50, including any
2496	2496	22 increases under Section 4-109.1. This minimum applies to
2497	2497	23 all such surviving spouses who are eligible to receive a
2498	2498	24 surviving spouse pension, regardless of whether the
2499	2499	25 deceased firefighter was in service on or after the
2500	2500	26 effective date of this amendatory Act of the 93rd General
2501	2501
2502	2502
2503	2503
2504	2504
2505	2505
2506	2506	HB4065 - 69 - LRB103 31966 RPS 60743 b
2507	2507
2508	2508
2509	2509	HB4065- 70 -LRB103 31966 RPS 60743 b HB4065 - 70 - LRB103 31966 RPS 60743 b
2510	2510	HB4065 - 70 - LRB103 31966 RPS 60743 b
2511	2511	1 Assembly, and notwithstanding any limitation on maximum
2512	2512	2 pension under paragraph (d) or any other provision of this
2513	2513	3 Article.
2514	2514	4 (3) If the pension paid on and after July 1, 2004 to
2515	2515	5 the surviving spouse of a firefighter who died on or after
2516	2516	6 July 1, 2004 and before the effective date of this
2517	2517	7 amendatory Act of the 93rd General Assembly was less than
2518	2518	8 the minimum pension payable under paragraph (1) or (2) of
2519	2519	9 this subsection (a), the fund shall pay a lump sum equal to
2520	2520	10 the difference within 90 days after the effective date of
2521	2521	11 this amendatory Act of the 93rd General Assembly.
2522	2522	12 The pension to the surviving spouse shall terminate in
2523	2523	13 the event of the surviving spouse's remarriage prior to
2524	2524	14 July 1, 1993; remarriage on or after that date does not
2525	2525	15 affect the surviving spouse's pension, regardless of
2526	2526	16 whether the deceased firefighter was in service on or
2527	2527	17 after the effective date of this amendatory Act of 1993.
2528	2528	18 The surviving spouse's pension shall be subject to the
2529	2529	19 minimum established in Section 4-109.2.
2530	2530	20 (b) Upon the death of the surviving spouse leaving one
2531	2531	21 or more minor children, or upon the death of a firefighter
2532	2532	22 leaving one or more minor children but no surviving
2533	2533	23 spouse, to the duly appointed guardian of each such child,
2534	2534	24 for support and maintenance of each such child until the
2535	2535	25 child reaches age 18 or marries, whichever occurs first, a
2536	2536	26 monthly pension of 20% of the monthly salary.
2537	2537
2538	2538
2539	2539
2540	2540
2541	2541
2542	2542	HB4065 - 70 - LRB103 31966 RPS 60743 b
2543	2543
2544	2544
2545	2545	HB4065- 71 -LRB103 31966 RPS 60743 b HB4065 - 71 - LRB103 31966 RPS 60743 b
2546	2546	HB4065 - 71 - LRB103 31966 RPS 60743 b
2547	2547	1 In a case where the deceased firefighter left one or
2548	2548	2 more minor children but no surviving spouse and the
2549	2549	3 guardian of a child is receiving a pension of 12% of the
2550	2550	4 monthly salary on August 16, 2013 (the effective date of
2551	2551	5 Public Act 98-391), the pension is increased by Public Act
2552	2552	6 98-391 to 20% of the monthly salary for each such child,
2553	2553	7 beginning on the pension payment date occurring on or next
2554	2554	8 following August 16, 2013. The changes to this Section
2555	2555	9 made by Public Act 98-391 apply without regard to whether
2556	2556	10 the deceased firefighter was in service on or after August
2557	2557	11 16, 2013.
2558	2558	12 (c) If a deceased firefighter leaves no surviving
2559	2559	13 spouse or unmarried minor children under age 18, but
2560	2560	14 leaves a dependent father or mother, to each dependent
2561	2561	15 parent a monthly pension of 18% of the monthly salary. To
2562	2562	16 qualify for the pension, a dependent parent must furnish
2563	2563	17 satisfactory proof that the deceased firefighter was at
2564	2564	18 the time of his or her death the sole supporter of the
2565	2565	19 parent or that the parent was the deceased's dependent for
2566	2566	20 federal income tax purposes.
2567	2567	21 (d) The total pension provided under paragraphs (a),
2568	2568	22 (b) and (c) of this Section shall not exceed 75% of the
2569	2569	23 monthly salary of the deceased firefighter (1) when paid
2570	2570	24 to the survivor of a firefighter who has attained 20 or
2571	2571	25 more years of service credit and who receives or is
2572	2572	26 eligible to receive a retirement pension under this
2573	2573
2574	2574
2575	2575
2576	2576
2577	2577
2578	2578	HB4065 - 71 - LRB103 31966 RPS 60743 b
2579	2579
2580	2580
2581	2581	HB4065- 72 -LRB103 31966 RPS 60743 b HB4065 - 72 - LRB103 31966 RPS 60743 b
2582	2582	HB4065 - 72 - LRB103 31966 RPS 60743 b
2583	2583	1 Article, or (2) when paid to the survivor of a firefighter
2584	2584	2 who dies as a result of illness or accident, or (3) when
2585	2585	3 paid to the survivor of a firefighter who dies from any
2586	2586	4 cause while in receipt of a disability pension under this
2587	2587	5 Article, or (4) when paid to the survivor of a deferred
2588	2588	6 pensioner. For all other survivors of deceased
2589	2589	7 firefighters, the total pension provided under paragraphs
2590	2590	8 (a), (b) and (c) of this Section shall not exceed 50% of
2591	2591	9 the retirement annuity the firefighter would have received
2592	2592	10 on the date of death.
2593	2593	11 The maximum pension limitations in this paragraph (d)
2594	2594	12 do not control over any contrary provision of this Article
2595	2595	13 explicitly establishing a minimum amount of pension or
2596	2596	14 granting a one-time or annual increase in pension.
2597	2597	15 (e) If a firefighter leaves no eligible survivors
2598	2598	16 under paragraphs (a), (b) and (c), the board shall refund
2599	2599	17 to the firefighter's estate the amount of his or her
2600	2600	18 accumulated contributions, less the amount of pension
2601	2601	19 payments, if any, made to the firefighter while living.
2602	2602	20 (f) (Blank).
2603	2603	21 (g) If a judgment of dissolution of marriage between a
2604	2604	22 firefighter and spouse is judicially set aside subsequent
2605	2605	23 to the firefighter's death, the surviving spouse is
2606	2606	24 eligible for the pension provided in paragraph (a) only if
2607	2607	25 the judicial proceedings are filed within 2 years after
2608	2608	26 the date of the dissolution of marriage and within one
2609	2609
2610	2610
2611	2611
2612	2612
2613	2613
2614	2614	HB4065 - 72 - LRB103 31966 RPS 60743 b
2615	2615
2616	2616
2617	2617	HB4065- 73 -LRB103 31966 RPS 60743 b HB4065 - 73 - LRB103 31966 RPS 60743 b
2618	2618	HB4065 - 73 - LRB103 31966 RPS 60743 b
2619	2619	1 year after the firefighter's death and the board is made a
2620	2620	2 party to the proceedings. In such case the pension shall
2621	2621	3 be payable only from the date of the court's order setting
2622	2622	4 aside the judgment of dissolution of marriage.
2623	2623	5 (h) Benefits payable on account of a child under this
2624	2624	6 Section shall not be reduced or terminated by reason of
2625	2625	7 the child's attainment of age 18 if he or she is then
2626	2626	8 dependent by reason of a physical or mental disability but
2627	2627	9 shall continue to be paid as long as such dependency
2628	2628	10 continues. Individuals over the age of 18 and adjudged as
2629	2629	11 a disabled person pursuant to Article XIa of the Probate
2630	2630	12 Act of 1975, except for persons receiving benefits under
2631	2631	13 Article III of the Illinois Public Aid Code, shall be
2632	2632	14 eligible to receive benefits under this Act.
2633	2633	15 (i) Beginning January 1, 2000, the pension of the
2634	2634	16 surviving spouse of a firefighter who dies on or after
2635	2635	17 January 1, 1994 as a result of sickness, accident, or
2636	2636	18 injury incurred in or resulting from the performance of an
2637	2637	19 act of duty or from the cumulative effects of acts of duty
2638	2638	20 shall not be less than 100% of the salary attached to the
2639	2639	21 rank held by the deceased firefighter on the last day of
2640	2640	22 service, notwithstanding subsection (d) or any other
2641	2641	23 provision of this Article.
2642	2642	24 (j) Beginning July 1, 2004, the pension of the
2643	2643	25 surviving spouse of a firefighter who dies on or after
2644	2644	26 January 1, 1988 as a result of sickness, accident, or
2645	2645
2646	2646
2647	2647
2648	2648
2649	2649
2650	2650	HB4065 - 73 - LRB103 31966 RPS 60743 b
2651	2651
2652	2652
2653	2653	HB4065- 74 -LRB103 31966 RPS 60743 b HB4065 - 74 - LRB103 31966 RPS 60743 b
2654	2654	HB4065 - 74 - LRB103 31966 RPS 60743 b
2655	2655	1 injury incurred in or resulting from the performance of an
2656	2656	2 act of duty or from the cumulative effects of acts of duty
2657	2657	3 shall not be less than 100% of the salary attached to the
2658	2658	4 rank held by the deceased firefighter on the last day of
2659	2659	5 service, notwithstanding subsection (d) or any other
2660	2660	6 provision of this Article.
2661	2661	7 Notwithstanding any other provision of this Article, if a
2662	2662	8 person who first becomes a firefighter under this Article on
2663	2663	9 or after January 1, 2011 and who is not receiving a disability
2664	2664	10 pension under Section 4-110 or 4-110.1 dies (1) as a result of
2665	2665	11 any illness or accident, (2) from any cause while in receipt of
2666	2666	12 a disability pension under this Article, (3) during retirement
2667	2667	13 after 20 years service, (4) while vested for or in receipt of a
2668	2668	14 pension payable under subsection (b) of Section 4-109, or (5)
2669	2669	15 while a deferred pensioner, having made all required
2670	2670	16 contributions, then a pension shall be paid to his or her
2671	2671	17 survivors in an amount equal to the greater of (i) 54% of the
2672	2672	18 firefighter's monthly salary at the date of death, or (ii) 66
2673	2673	19 2/3% of the firefighter's earned pension at the date of death,
2674	2674	20 and, if there is a surviving spouse, 12% of such monthly salary
2675	2675	21 shall be granted to the guardian of any minor child or
2676	2676	22 children, including a child who has been conceived but not yet
2677	2677	23 born, for each such child until attainment of age 18. Upon the
2678	2678	24 death of the surviving spouse leaving one or more minor
2679	2679	25 children, or upon the death of a firefighter leaving one or
2680	2680	26 more minor children but no surviving spouse, a monthly pension
2681	2681
2682	2682
2683	2683
2684	2684
2685	2685
2686	2686	HB4065 - 74 - LRB103 31966 RPS 60743 b
2687	2687
2688	2688
2689	2689	HB4065- 75 -LRB103 31966 RPS 60743 b HB4065 - 75 - LRB103 31966 RPS 60743 b
2690	2690	HB4065 - 75 - LRB103 31966 RPS 60743 b
2691	2691	1 of 20% of the monthly salary shall be granted to the duly
2692	2692	2 appointed guardian of each such child for the support and
2693	2693	3 maintenance of each such child until the child reaches age 18.
2694	2694	4 The total pension provided under this paragraph shall not
2695	2695	5 exceed 75% of the monthly salary of the deceased firefighter
2696	2696	6 (1) when paid to the survivor of a firefighter who has attained
2697	2697	7 20 or more years of service credit and who receives or is
2698	2698	8 eligible to receive a retirement pension under this Article,
2699	2699	9 (2) when paid to the survivor of a firefighter who dies as a
2700	2700	10 result of illness or accident, (3) when paid to the survivor of
2701	2701	11 a firefighter who dies from any cause while in receipt of a
2702	2702	12 disability pension under this Article, or (4) when paid to the
2703	2703	13 survivor of a deferred pensioner. Nothing in this Section
2704	2704	14 shall act to diminish the survivor's benefits described in
2705	2705	15 subsection (j) of this Section.
2706	2706	16 Notwithstanding Section 1-103.1, the changes made to this
2707	2707	17 subsection apply without regard to whether the deceased
2708	2708	18 firefighter was in service on or after the effective date of
2709	2709	19 this amendatory Act of the 101st General Assembly.
2710	2710	20 Notwithstanding any other provision of this Article, the
2711	2711	21 monthly pension of a survivor of a person who first becomes a
2712	2712	22 firefighter under this Article on or after January 1, 2011
2713	2713	23 shall be increased on the January 1 after attainment of age 60
2714	2714	24 by the recipient of the survivor's pension and each January 1
2715	2715	25 thereafter by 3% or one-half the annual unadjusted percentage
2716	2716	26 increase in the consumer price index-u for the 12 months
2717	2717
2718	2718
2719	2719
2720	2720
2721	2721
2722	2722	HB4065 - 75 - LRB103 31966 RPS 60743 b
2723	2723
2724	2724
2725	2725	HB4065- 76 -LRB103 31966 RPS 60743 b HB4065 - 76 - LRB103 31966 RPS 60743 b
2726	2726	HB4065 - 76 - LRB103 31966 RPS 60743 b
2727	2727	1 ending with the September preceding each November 1, whichever
2728	2728	2 is less, of the originally granted survivor's pension; except
2729	2729	3 that, beginning on the effective date of this amendatory Act
2730	2730	4 of the 103rd General Assembly, eligibility for and the amount
2731	2731	5 of the automatic increase in the monthly pension of such a
2732	2732	6 survivor shall be calculated as otherwise provided in this
2733	2733	7 Section. If the annual unadjusted percentage change in the
2734	2734	8 consumer price index-u for a 12-month period ending in
2735	2735	9 September is zero or, when compared with the preceding period,
2736	2736	10 decreases, then the survivor's pension shall not be increased.
2737	2737	11 For the purposes of this Section, "consumer price index-u"
2738	2738	12 means the index published by the Bureau of Labor Statistics of
2739	2739	13 the United States Department of Labor that measures the
2740	2740	14 average change in prices of goods and services purchased by
2741	2741	15 all urban consumers, United States city average, all items,
2742	2742	16 1982-84 = 100. The new amount resulting from each annual
2743	2743	17 adjustment shall be determined by the Public Pension Division
2744	2744	18 of the Department of Insurance and made available to the
2745	2745	19 boards of the pension funds.
2746	2746	20 (Source: P.A. 101-610, eff. 1-1-20.)
2747	2747	21 (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
2748	2748	22 Sec. 4-118. Financing.
2749	2749	23 (a) The city council or the board of trustees of the
2750	2750	24 municipality shall annually levy a tax upon all the taxable
2751	2751	25 property of the municipality at the rate on the dollar which
2752	2752
2753	2753
2754	2754
2755	2755
2756	2756
2757	2757	HB4065 - 76 - LRB103 31966 RPS 60743 b
2758	2758
2759	2759
2760	2760	HB4065- 77 -LRB103 31966 RPS 60743 b HB4065 - 77 - LRB103 31966 RPS 60743 b
2761	2761	HB4065 - 77 - LRB103 31966 RPS 60743 b
2762	2762	1 will produce an amount which, when added to the deductions
2763	2763	2 from the salaries or wages of firefighters and revenues
2764	2764	3 available from other sources, will equal a sum sufficient to
2765	2765	4 meet the annual actuarial requirements of the pension fund, as
2766	2766	5 determined by an enrolled actuary employed by the Illinois
2767	2767	6 Department of Insurance or by an enrolled actuary retained by
2768	2768	7 the pension fund or municipality. For the purposes of this
2769	2769	8 Section, the annual actuarial requirements of the pension fund
2770	2770	9 are equal to (1) the normal cost of the pension fund, or 17.5%
2771	2771	10 of the salaries and wages to be paid to firefighters for the
2772	2772	11 year involved, whichever is greater, plus (2) an annual amount
2773	2773	12 sufficient to bring the total assets of the pension fund up to
2774	2774	13 90% of the total actuarial liabilities of the pension fund by
2775	2775	14 the end of municipal fiscal year 2040, as annually updated and
2776	2776	15 determined by an enrolled actuary employed by the Illinois
2777	2777	16 Department of Insurance or by an enrolled actuary retained by
2778	2778	17 the pension fund or the municipality, minus (3) any
2779	2779	18 anticipated State contributions from the Local Government
2780	2780	19 Retirement Fund for the year involved. In making these
2781	2781	20 determinations, the required minimum employer contribution
2782	2782	21 shall be calculated each year as a level percentage of payroll
2783	2783	22 over the years remaining up to and including fiscal year 2040
2784	2784	23 and shall be determined under the projected unit credit
2785	2785	24 actuarial cost method. The amount to be applied towards the
2786	2786	25 amortization of the unfunded accrued liability in any year
2787	2787	26 shall not be less than the annual amount required to amortize
2788	2788
2789	2789
2790	2790
2791	2791
2792	2792
2793	2793	HB4065 - 77 - LRB103 31966 RPS 60743 b
2794	2794
2795	2795
2796	2796	HB4065- 78 -LRB103 31966 RPS 60743 b HB4065 - 78 - LRB103 31966 RPS 60743 b
2797	2797	HB4065 - 78 - LRB103 31966 RPS 60743 b
2798	2798	1 the unfunded accrued liability, including interest, as a level
2799	2799	2 percentage of payroll over the number of years remaining in
2800	2800	3 the 40-year amortization period.
2801	2801	4 (a-1) Beginning in State fiscal year 2024, the city
2802	2802	5 council or the board of trustees of the municipality shall
2803	2803	6 certify to the Governor the amount of (1) the normal cost of
2804	2804	7 the pension fund, or 17.5% of the salaries and wages to be paid
2805	2805	8 to firefighters for the year involved, whichever is greater,
2806	2806	9 plus (2) an annual amount sufficient to bring the total assets
2807	2807	10 of the pension fund up to 90% of the total actuarial
2808	2808	11 liabilities of the pension fund by the end of municipal fiscal
2809	2809	12 year 2040, as annually updated and determined by an enrolled
2810	2810	13 actuary employed by the Department of Insurance or by an
2811	2811	14 enrolled actuary retained by the pension fund or the
2812	2812	15 municipality.
2813	2813	16 (a-2) A municipality that has established a pension fund
2814	2814	17 under this Article and that employs a full-time firefighter,
2815	2815	18 as defined in Section 4-106, shall be deemed a primary
2816	2816	19 employer with respect to that full-time firefighter. Any
2817	2817	20 municipality of 5,000 or more inhabitants that employs or
2818	2818	21 enrolls a firefighter while that firefighter continues to earn
2819	2819	22 service credit as a participant in a primary employer's
2820	2820	23 pension fund under this Article shall be deemed a secondary
2821	2821	24 employer and such employees shall be deemed to be secondary
2822	2822	25 employee firefighters. To ensure that the primary employer's
2823	2823	26 pension fund under this Article is aware of additional
2824	2824
2825	2825
2826	2826
2827	2827
2828	2828
2829	2829	HB4065 - 78 - LRB103 31966 RPS 60743 b
2830	2830
2831	2831
2832	2832	HB4065- 79 -LRB103 31966 RPS 60743 b HB4065 - 79 - LRB103 31966 RPS 60743 b
2833	2833	HB4065 - 79 - LRB103 31966 RPS 60743 b
2834	2834	1 liabilities and risks to which firefighters are exposed when
2835	2835	2 performing work as firefighters for secondary employers, a
2836	2836	3 secondary employer shall annually prepare a report accounting
2837	2837	4 for all hours worked by and wages and salaries paid to the
2838	2838	5 secondary employee firefighters it receives services from or
2839	2839	6 employs for each fiscal year in which such firefighters are
2840	2840	7 employed and transmit a certified copy of that report to the
2841	2841	8 primary employer's pension fund, the Department of Insurance,
2842	2842	9 and the secondary employee firefighter no later than 30 days
2843	2843	10 after the end of any fiscal year in which wages were paid to
2844	2844	11 the secondary employee firefighters.
2845	2845	12 Nothing in this Section shall be construed to allow a
2846	2846	13 secondary employee to qualify for benefits or creditable
2847	2847	14 service for employment as a firefighter for a secondary
2848	2848	15 employer.
2849	2849	16 (a-5) For purposes of determining the required employer
2850	2850	17 contribution to a pension fund, the value of the pension
2851	2851	18 fund's assets shall be equal to the actuarial value of the
2852	2852	19 pension fund's assets, which shall be calculated as follows:
2853	2853	20 (1) On March 30, 2011, the actuarial value of a
2854	2854	21 pension fund's assets shall be equal to the market value
2855	2855	22 of the assets as of that date.
2856	2856	23 (2) In determining the actuarial value of the pension
2857	2857	24 fund's assets for fiscal years after March 30, 2011, any
2858	2858	25 actuarial gains or losses from investment return incurred
2859	2859	26 in a fiscal year shall be recognized in equal annual
2860	2860
2861	2861
2862	2862
2863	2863
2864	2864
2865	2865	HB4065 - 79 - LRB103 31966 RPS 60743 b
2866	2866
2867	2867
2868	2868	HB4065- 80 -LRB103 31966 RPS 60743 b HB4065 - 80 - LRB103 31966 RPS 60743 b
2869	2869	HB4065 - 80 - LRB103 31966 RPS 60743 b
2870	2870	1 amounts over the 5-year period following that fiscal year.
2871	2871	2 (b) The tax shall be levied and collected in the same
2872	2872	3 manner as the general taxes of the municipality, and shall be
2873	2873	4 in addition to all other taxes now or hereafter authorized to
2874	2874	5 be levied upon all property within the municipality, and in
2875	2875	6 addition to the amount authorized to be levied for general
2876	2876	7 purposes, under Section 8-3-1 of the Illinois Municipal Code
2877	2877	8 or under Section 14 of the Fire Protection District Act. The
2878	2878	9 tax shall be forwarded directly to the treasurer of the board
2879	2879	10 within 30 business days of receipt by the county (or, in the
2880	2880	11 case of amounts added to the tax levy under subsection (f),
2881	2881	12 used by the municipality to pay the employer contributions
2882	2882	13 required under subsection (b-1) of Section 15-155 of this
2883	2883	14 Code).
2884	2884	15 (b-5) If a participating municipality fails to transmit to
2885	2885	16 the fund contributions required of it under this Article for
2886	2886	17 more than 90 days after the payment of those contributions is
2887	2887	18 due, the fund may, after giving notice to the municipality,
2888	2888	19 certify to the State Comptroller the amounts of the delinquent
2889	2889	20 payments in accordance with any applicable rules of the
2890	2890	21 Comptroller, and the Comptroller must, beginning in fiscal
2891	2891	22 year 2016, deduct and remit to the fund the certified amounts
2892	2892	23 or a portion of those amounts from the following proportions
2893	2893	24 of payments of State funds to the municipality:
2894	2894	25 (1) in fiscal year 2016, one-third of the total amount
2895	2895	26 of any payments of State funds to the municipality;
2896	2896
2897	2897
2898	2898
2899	2899
2900	2900
2901	2901	HB4065 - 80 - LRB103 31966 RPS 60743 b
2902	2902
2903	2903
2904	2904	HB4065- 81 -LRB103 31966 RPS 60743 b HB4065 - 81 - LRB103 31966 RPS 60743 b
2905	2905	HB4065 - 81 - LRB103 31966 RPS 60743 b
2906	2906	1 (2) in fiscal year 2017, two-thirds of the total
2907	2907	2 amount of any payments of State funds to the municipality;
2908	2908	3 and
2909	2909	4 (3) in fiscal year 2018 and each fiscal year
2910	2910	5 thereafter, the total amount of any payments of State
2911	2911	6 funds to the municipality.
2912	2912	7 The State Comptroller may not deduct from any payments of
2913	2913	8 State funds to the municipality more than the amount of
2914	2914	9 delinquent payments certified to the State Comptroller by the
2915	2915	10 fund.
2916	2916	11 (c) The board shall make available to the membership and
2917	2917	12 the general public for inspection and copying at reasonable
2918	2918	13 times the most recent Actuarial Valuation Balance Sheet and
2919	2919	14 Tax Levy Requirement issued to the fund by the Department of
2920	2920	15 Insurance.
2921	2921	16 (d) The firefighters' pension fund shall consist of the
2922	2922	17 following moneys which shall be set apart by the treasurer of
2923	2923	18 the municipality: (1) all moneys derived from the taxes levied
2924	2924	19 hereunder; (2) contributions by firefighters as provided under
2925	2925	20 Section 4-118.1; (2.5) all moneys received from the
2926	2926	21 Firefighters' Pension Investment Fund as provided in Article
2927	2927	22 22C of this Code; (3) all rewards in money, fees, gifts, and
2928	2928	23 emoluments that may be paid or given for or on account of
2929	2929	24 extraordinary service by the fire department or any member
2930	2930	25 thereof, except when allowed to be retained by competitive
2931	2931	26 awards; and (4) any money, real estate or personal property
2932	2932
2933	2933
2934	2934
2935	2935
2936	2936
2937	2937	HB4065 - 81 - LRB103 31966 RPS 60743 b
2938	2938
2939	2939
2940	2940	HB4065- 82 -LRB103 31966 RPS 60743 b HB4065 - 82 - LRB103 31966 RPS 60743 b
2941	2941	HB4065 - 82 - LRB103 31966 RPS 60743 b
2942	2942	1 received by the board.
2943	2943	2 (e) For the purposes of this Section, "enrolled actuary"
2944	2944	3 means an actuary: (1) who is a member of the Society of
2945	2945	4 Actuaries or the American Academy of Actuaries; and (2) who is
2946	2946	5 enrolled under Subtitle C of Title III of the Employee
2947	2947	6 Retirement Income Security Act of 1974, or who has been
2948	2948	7 engaged in providing actuarial services to one or more public
2949	2949	8 retirement systems for a period of at least 3 years as of July
2950	2950	9 1, 1983.
2951	2951	10 (f) The corporate authorities of a municipality that
2952	2952	11 employs a person who is described in subdivision (d) of
2953	2953	12 Section 4-106 may add to the tax levy otherwise provided for in
2954	2954	13 this Section an amount equal to the projected cost of the
2955	2955	14 employer contributions required to be paid by the municipality
2956	2956	15 to the State Universities Retirement System under subsection
2957	2957	16 (b-1) of Section 15-155 of this Code.
2958	2958	17 (g) The Commission on Government Forecasting and
2959	2959	18 Accountability shall conduct a study of all funds established
2960	2960	19 under this Article and shall report its findings to the
2961	2961	20 General Assembly on or before January 1, 2013. To the fullest
2962	2962	21 extent possible, the study shall include, but not be limited
2963	2963	22 to, the following:
2964	2964	23 (1) fund balances;
2965	2965	24 (2) historical employer contribution rates for each
2966	2966	25 fund;
2967	2967	26 (3) the actuarial formulas used as a basis for
2968	2968
2969	2969
2970	2970
2971	2971
2972	2972
2973	2973	HB4065 - 82 - LRB103 31966 RPS 60743 b
2974	2974
2975	2975
2976	2976	HB4065- 83 -LRB103 31966 RPS 60743 b HB4065 - 83 - LRB103 31966 RPS 60743 b
2977	2977	HB4065 - 83 - LRB103 31966 RPS 60743 b
2978	2978	1 employer contributions, including the actual assumed rate
2979	2979	2 of return for each year, for each fund;
2980	2980	3 (4) available contribution funding sources;
2981	2981	4 (5) the impact of any revenue limitations caused by
2982	2982	5 PTELL and employer home rule or non-home rule status; and
2983	2983	6 (6) existing statutory funding compliance procedures
2984	2984	7 and funding enforcement mechanisms for all municipal
2985	2985	8 pension funds.
2986	2986	9 (Source: P.A. 101-522, eff. 8-23-19; 101-610, eff. 1-1-20;
2987	2987	10 102-59, eff. 7-9-21; 102-558, eff. 8-20-21.)
2988	2988	11 (40 ILCS 5/4-138.15 new)
2989	2989	12 Sec. 4-138.15. Application of this amendatory Act of the
2990	2990	13 103rd General Assembly. It is the intent of this amendatory
2991	2991	14 Act of the 103rd General Assembly to provide to firefighters
2992	2992	15 who first became firefighters on or after January 1, 2011 the
2993	2993	16 same level of benefits and eligibility criteria for benefits
2994	2994	17 as those who first became firefighters before January 1, 2011.
2995	2995	18 The changes made to this Article by this amendatory Act of the
2996	2996	19 103rd General Assembly that provide benefit increases for
2997	2997	20 firefighters apply without regard to whether the firefighter
2998	2998	21 was in service on or after the effective date of this
2999	2999	22 amendatory Act of the 103rd General Assembly, notwithstanding
3000	3000	23 the provisions of Section 1-103.1. The benefit increases are
3001	3001	24 intended to apply prospectively and do not entitle a
3002	3002	25 firefighter to retroactive benefit payments or increases. The
3003	3003
3004	3004
3005	3005
3006	3006
3007	3007
3008	3008	HB4065 - 83 - LRB103 31966 RPS 60743 b
3009	3009
3010	3010
3011	3011	HB4065- 84 -LRB103 31966 RPS 60743 b HB4065 - 84 - LRB103 31966 RPS 60743 b
3012	3012	HB4065 - 84 - LRB103 31966 RPS 60743 b
3013	3013	1 changes made to this Article by this amendatory Act of the
3014	3014	2 103rd General Assembly shall not cause or otherwise result in
3015	3015	3 any retroactive adjustment of any employee contributions.
3016	3016	4 (40 ILCS 5/5-155) (from Ch. 108 1/2, par. 5-155)
3017	3017	5 Sec. 5-155. Ordinary disability benefit. A policeman less
3018	3018	6 than age 63 who becomes disabled after the effective date as
3019	3019	7 the result of any cause other than injury incurred in the
3020	3020	8 performance of an act of duty, shall receive ordinary
3021	3021	9 disability benefit during any period or periods of disability
3022	3022	10 exceeding 30 days, for which he does not have a right to
3023	3023	11 receive any part of his salary. Payment of such benefit shall
3024	3024	12 not exceed, in the aggregate, throughout the total service of
3025	3025	13 the policeman, a period equal to one-fourth of the service
3026	3026	14 rendered to the city prior to the time he became disabled, nor
3027	3027	15 more than 5 years. In computing such period of service, the
3028	3028	16 time that the policeman received ordinary disability benefit
3029	3029	17 shall not be included.
3030	3030	18 When a disabled policeman becomes age 63 or would have
3031	3031	19 been retired by operation of law, whichever is later, the
3032	3032	20 disability benefit shall cease. The policeman, if still
3033	3033	21 disabled, shall thereafter receive such annuity as is provided
3034	3034	22 in accordance with other provisions of this Article.
3035	3035	23 Ordinary disability benefit shall be 50% of the
3036	3036	24 policeman's salary, as salary is defined in this Article
3037	3037	25 (including the limitation in Section 5-238 if applicable), at
3038	3038
3039	3039
3040	3040
3041	3041
3042	3042
3043	3043	HB4065 - 84 - LRB103 31966 RPS 60743 b
3044	3044
3045	3045
3046	3046	HB4065- 85 -LRB103 31966 RPS 60743 b HB4065 - 85 - LRB103 31966 RPS 60743 b
3047	3047	HB4065 - 85 - LRB103 31966 RPS 60743 b
3048	3048	1 the time disability occurs. Until September 1, 1969, before
3049	3049	2 any payment, an amount equal to the sum ordinarily deducted
3050	3050	3 from the policeman's salary for all annuity purposes for the
3051	3051	4 period for which payment of ordinary disability benefit is
3052	3052	5 made shall be deducted from such payment and credited as a
3053	3053	6 deduction from salary for such period. Beginning September 1,
3054	3054	7 1969, the city shall also contribute all amounts ordinarily
3055	3055	8 contributed by it for annuity purposes for the policeman as if
3056	3056	9 he were in active discharge of his duties. Such sums so
3057	3057	10 credited shall be regarded, for annuity and refund purposes,
3058	3058	11 as sums contributed by the policeman.
3059	3059	12 (Source: P.A. 99-905, eff. 11-29-16.)
3060	3060	13 (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
3061	3061	14 Sec. 5-167.1. Automatic increase in annuity; retirement
3062	3062	15 from service after September 1, 1967.
3063	3063	16 (a) A policeman who retires from service after September
3064	3064	17 1, 1967 with at least 20 years of service credit shall, upon
3065	3065	18 either the first of the month following the first anniversary
3066	3066	19 of his date of retirement if he is age 60 (age 55 if born
3067	3067	20 before January 1, 1966) or over on that anniversary date, or
3068	3068	21 upon the first of the month following his attainment of age 60
3069	3069	22 (age 55 if born before January 1, 1966) if it occurs after the
3070	3070	23 first anniversary of his retirement date, have his then fixed
3071	3071	24 and payable monthly annuity increased by 1 1/2% and such first
3072	3072	25 fixed annuity as granted at retirement increased by an
3073	3073
3074	3074
3075	3075
3076	3076
3077	3077
3078	3078	HB4065 - 85 - LRB103 31966 RPS 60743 b
3079	3079
3080	3080
3081	3081	HB4065- 86 -LRB103 31966 RPS 60743 b HB4065 - 86 - LRB103 31966 RPS 60743 b
3082	3082	HB4065 - 86 - LRB103 31966 RPS 60743 b
3083	3083	1 additional 1 1/2% in January of each year thereafter up to a
3084	3084	2 maximum increase of 30%. Beginning January 1, 1983 for
3085	3085	3 policemen born before January 1, 1930, and beginning January
3086	3086	4 1, 1988 for policemen born on or after January 1, 1930 but
3087	3087	5 before January 1, 1940, and beginning January 1, 1996 for
3088	3088	6 policemen born on or after January 1, 1940 but before January
3089	3089	7 1, 1945, and beginning January 1, 2000 for policemen born on or
3090	3090	8 after January 1, 1945 but before January 1, 1950, and
3091	3091	9 beginning January 1, 2005 for policemen born on or after
3092	3092	10 January 1, 1950 but before January 1, 1955, and beginning
3093	3093	11 January 1, 2017 for policemen born on or after January 1, 1955
3094	3094	12 but before January 1, 1966, such increases shall be 3% and such
3095	3095	13 policemen shall not be subject to the 30% maximum increase.
3096	3096	14 Any policeman born before January 1, 1945 who qualifies
3097	3097	15 for a minimum annuity and retires after September 1, 1967 but
3098	3098	16 has not received the initial increase under this subsection
3099	3099	17 before January 1, 1996 is entitled to receive the initial
3100	3100	18 increase under this subsection on (1) January 1, 1996, (2) the
3101	3101	19 first anniversary of the date of retirement, or (3) attainment
3102	3102	20 of age 55, whichever occurs last. The changes to this Section
3103	3103	21 made by Public Act 89-12 apply beginning January 1, 1996 and
3104	3104	22 without regard to whether the policeman or annuitant
3105	3105	23 terminated service before the effective date of that Act.
3106	3106	24 Any policeman born before January 1, 1950 who qualifies
3107	3107	25 for a minimum annuity and retires after September 1, 1967 but
3108	3108	26 has not received the initial increase under this subsection
3109	3109
3110	3110
3111	3111
3112	3112
3113	3113
3114	3114	HB4065 - 86 - LRB103 31966 RPS 60743 b
3115	3115
3116	3116
3117	3117	HB4065- 87 -LRB103 31966 RPS 60743 b HB4065 - 87 - LRB103 31966 RPS 60743 b
3118	3118	HB4065 - 87 - LRB103 31966 RPS 60743 b
3119	3119	1 before January 1, 2000 is entitled to receive the initial
3120	3120	2 increase under this subsection on (1) January 1, 2000, (2) the
3121	3121	3 first anniversary of the date of retirement, or (3) attainment
3122	3122	4 of age 55, whichever occurs last. The changes to this Section
3123	3123	5 made by this amendatory Act of the 92nd General Assembly apply
3124	3124	6 without regard to whether the policeman or annuitant
3125	3125	7 terminated service before the effective date of this
3126	3126	8 amendatory Act.
3127	3127	9 Any policeman born before January 1, 1955 who qualifies
3128	3128	10 for a minimum annuity and retires after September 1, 1967 but
3129	3129	11 has not received the initial increase under this subsection
3130	3130	12 before January 1, 2005 is entitled to receive the initial
3131	3131	13 increase under this subsection on (1) January 1, 2005, (2) the
3132	3132	14 first anniversary of the date of retirement, or (3) attainment
3133	3133	15 of age 55, whichever occurs last. The changes to this Section
3134	3134	16 made by this amendatory Act of the 94th General Assembly apply
3135	3135	17 without regard to whether the policeman or annuitant
3136	3136	18 terminated service before the effective date of this
3137	3137	19 amendatory Act.
3138	3138	20 Any policeman born before January 1, 1966 who qualifies
3139	3139	21 for a minimum annuity and retires after September 1, 1967 but
3140	3140	22 has not received the initial increase under this subsection
3141	3141	23 before January 1, 2017 is entitled to receive an initial
3142	3142	24 increase under this subsection on (1) January 1, 2017, (2) the
3143	3143	25 first anniversary of the date of retirement, or (3) attainment
3144	3144	26 of age 55, whichever occurs last, in an amount equal to 3% for
3145	3145
3146	3146
3147	3147
3148	3148
3149	3149
3150	3150	HB4065 - 87 - LRB103 31966 RPS 60743 b
3151	3151
3152	3152
3153	3153	HB4065- 88 -LRB103 31966 RPS 60743 b HB4065 - 88 - LRB103 31966 RPS 60743 b
3154	3154	HB4065 - 88 - LRB103 31966 RPS 60743 b
3155	3155	1 each complete year following the date of retirement or
3156	3156	2 attainment of age 55, whichever occurs later. The changes to
3157	3157	3 this subsection made by this amendatory Act of the 99th
3158	3158	4 General Assembly apply without regard to whether the policeman
3159	3159	5 or annuitant terminated service before the effective date of
3160	3160	6 this amendatory Act.
3161	3161	7 (b) Subsection (a) of this Section is not applicable to an
3162	3162	8 employee receiving a term annuity.
3163	3163	9 (c) To help defray the cost of such increases in annuity,
3164	3164	10 there shall be deducted, beginning September 1, 1967, from
3165	3165	11 each payment of salary to a policeman, 1/2 of 1% of each salary
3166	3166	12 payment concurrently with and in addition to the salary
3167	3167	13 deductions otherwise made for annuity purposes.
3168	3168	14 The city, in addition to the contributions otherwise made
3169	3169	15 by it for annuity purposes under other provisions of this
3170	3170	16 Article, shall make matching contributions concurrently with
3171	3171	17 such salary deductions.
3172	3172	18 Each such 1/2 of 1% deduction from salary and each such
3173	3173	19 contribution by the city of 1/2 of 1% of salary shall be
3174	3174	20 credited to the Automatic Increase Reserve, to be used to
3175	3175	21 defray the cost of the annuity increase provided by this
3176	3176	22 Section. Any balance in such reserve as of the beginning of
3177	3177	23 each calendar year shall be credited with interest at the rate
3178	3178	24 of 3% per annum.
3179	3179	25 Such deductions from salary and city contributions shall
3180	3180	26 continue while the policeman is in service.
3181	3181
3182	3182
3183	3183
3184	3184
3185	3185
3186	3186	HB4065 - 88 - LRB103 31966 RPS 60743 b
3187	3187
3188	3188
3189	3189	HB4065- 89 -LRB103 31966 RPS 60743 b HB4065 - 89 - LRB103 31966 RPS 60743 b
3190	3190	HB4065 - 89 - LRB103 31966 RPS 60743 b
3191	3191	1 The salary deductions provided in this Section are not
3192	3192	2 subject to refund, except to the policeman himself, in any
3193	3193	3 case in which: (i) the policeman withdraws prior to
3194	3194	4 qualification for minimum annuity or Tier 2 monthly retirement
3195	3195	5 annuity and applies for refund, (ii) the policeman applies for
3196	3196	6 an annuity of a type that is not subject to annual increases
3197	3197	7 under this Section, or (iii) a term annuity becomes payable.
3198	3198	8 In such cases, the total of such salary deductions shall be
3199	3199	9 refunded to the policeman, without interest, and charged to
3200	3200	10 the Automatic Increase Reserve.
3201	3201	11 (d) Notwithstanding any other provision of this Article,
3202	3202	12 the Tier 2 monthly retirement annuity of a person who first
3203	3203	13 becomes a policeman under this Article on or after the
3204	3204	14 effective date of this amendatory Act of the 97th General
3205	3205	15 Assembly shall be increased on the January 1 occurring either
3206	3206	16 on or after (i) the attainment of age 60 or (ii) the first
3207	3207	17 anniversary of the annuity start date, whichever is later;
3208	3208	18 except that, beginning on the effective date of this
3209	3209	19 amendatory Act of the 103rd General Assembly, eligibility for
3210	3210	20 and the amount of the automatic increase in the monthly
3211	3211	21 pension of such a person shall be calculated as otherwise
3212	3212	22 provided in this Section. Each annual increase shall be
3213	3213	23 calculated at 3% or one-half the annual unadjusted percentage
3214	3214	24 increase (but not less than zero) in the consumer price
3215	3215	25 index-u for the 12 months ending with the September preceding
3216	3216	26 each November 1, whichever is less, of the originally granted
3217	3217
3218	3218
3219	3219
3220	3220
3221	3221
3222	3222	HB4065 - 89 - LRB103 31966 RPS 60743 b
3223	3223
3224	3224
3225	3225	HB4065- 90 -LRB103 31966 RPS 60743 b HB4065 - 90 - LRB103 31966 RPS 60743 b
3226	3226	HB4065 - 90 - LRB103 31966 RPS 60743 b
3227	3227	1 retirement annuity. If the annual unadjusted percentage change
3228	3228	2 in the consumer price index-u for a 12-month period ending in
3229	3229	3 September is zero or, when compared with the preceding period,
3230	3230	4 decreases, then the annuity shall not be increased.
3231	3231	5 For the purposes of this subsection (d), "consumer price
3232	3232	6 index-u" means the index published by the Bureau of Labor
3233	3233	7 Statistics of the United States Department of Labor that
3234	3234	8 measures the average change in prices of goods and services
3235	3235	9 purchased by all urban consumers, United States city average,
3236	3236	10 all items, 1982-84 = 100. The new amount resulting from each
3237	3237	11 annual adjustment shall be determined by the Public Pension
3238	3238	12 Division of the Department of Insurance and made available to
3239	3239	13 the boards of the pension funds by November 1 of each year.
3240	3240	14 (Source: P.A. 99-905, eff. 11-29-16.)
3241	3241	15 (40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
3242	3242	16 Sec. 5-168. Financing.
3243	3243	17 (a) Except as expressly provided in this Section, the city
3244	3244	18 shall levy a tax annually upon all taxable property therein
3245	3245	19 for the purpose of providing revenue for the fund.
3246	3246	20 The tax shall be at a rate that will produce a sum which,
3247	3247	21 when added to the amounts deducted from the policemen's
3248	3248	22 salaries and the amounts deposited in accordance with
3249	3249	23 subsection (g), is sufficient for the purposes of the fund.
3250	3250	24 For the years 1968 and 1969, the city council shall levy a
3251	3251	25 tax annually at a rate on the dollar of the assessed valuation
3252	3252
3253	3253
3254	3254
3255	3255
3256	3256
3257	3257	HB4065 - 90 - LRB103 31966 RPS 60743 b
3258	3258
3259	3259
3260	3260	HB4065- 91 -LRB103 31966 RPS 60743 b HB4065 - 91 - LRB103 31966 RPS 60743 b
3261	3261	HB4065 - 91 - LRB103 31966 RPS 60743 b
3262	3262	1 of all taxable property that will produce, when extended, not
3263	3263	2 to exceed $9,700,000. Beginning with the year 1970 and through
3264	3264	3 2014, the city council shall levy a tax annually at a rate on
3265	3265	4 the dollar of the assessed valuation of all taxable property
3266	3266	5 that will produce when extended an amount not to exceed the
3267	3267	6 total amount of contributions by the policemen to the Fund
3268	3268	7 made in the calendar year 2 years before the year for which the
3269	3269	8 applicable annual tax is levied, multiplied by 1.40 for the
3270	3270	9 tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
3271	3271	10 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
3272	3272	11 through 1981; by 2.00 for 1982 and for each tax levy year
3273	3273	12 through 2014. Beginning in tax levy year 2015, the city
3274	3274	13 council shall levy a tax annually at a rate on the dollar of
3275	3275	14 the assessed valuation of all taxable property that will
3276	3276	15 produce when extended an annual amount that is equal to no less
3277	3277	16 than the amount of the city's contribution in each of the
3278	3278	17 following payment years: for 2016, $420,000,000; for 2017,
3279	3279	18 $464,000,000; for 2018, $500,000,000; for 2019, $557,000,000;
3280	3280	19 for 2020, $579,000,000.
3281	3281	20 Beginning in tax levy year 2020 and until levy year 2024,
3282	3282	21 the city council shall levy a tax annually at a rate on the
3283	3283	22 dollar of the assessed valuation of all taxable property that
3284	3284	23 will produce when extended an annual amount that is equal to no
3285	3285	24 less than (1) the normal cost to the Fund, plus (2) an annual
3286	3286	25 amount sufficient to bring the total assets of the Fund up to
3287	3287	26 90% of the total actuarial liabilities of the Fund by the end
3288	3288
3289	3289
3290	3290
3291	3291
3292	3292
3293	3293	HB4065 - 91 - LRB103 31966 RPS 60743 b
3294	3294
3295	3295
3296	3296	HB4065- 92 -LRB103 31966 RPS 60743 b HB4065 - 92 - LRB103 31966 RPS 60743 b
3297	3297	HB4065 - 92 - LRB103 31966 RPS 60743 b
3298	3298	1 of fiscal year 2055, as annually updated and determined by an
3299	3299	2 enrolled actuary employed by the Illinois Department of
3300	3300	3 Insurance or by an enrolled actuary retained by the Fund.
3301	3301	4 Beginning in tax levy year 2024, the city council shall levy a
3302	3302	5 tax annually at a rate on the dollar of the assessed valuation
3303	3303	6 of all taxable property that will produce when extended an
3304	3304	7 annual amount that is equal to no less than (1) the normal cost
3305	3305	8 to the Fund, plus (2) an annual amount sufficient to bring the
3306	3306	9 total assets of the Fund up to 90% of the total actuarial
3307	3307	10 liabilities of the Fund by the end of fiscal year 2055, as
3308	3308	11 annually updated and determined by an enrolled actuary
3309	3309	12 employed by the Department of Insurance or by an enrolled
3310	3310	13 actuary retained by the Fund, minus (3) the amount of the
3311	3311	14 anticipated State contribution from the Local Government
3312	3312	15 Retirement Fund for the payment year. In making these
3313	3313	16 determinations, the required minimum employer contribution
3314	3314	17 shall be calculated each year as a level percentage of payroll
3315	3315	18 over the years remaining up to and including fiscal year 2055
3316	3316	19 and shall be determined under the entry age normal actuarial
3317	3317	20 cost method.
3318	3318	21 Beginning in payment year 2056, the city's total required
3319	3319	22 contribution in that year and each year thereafter shall be an
3320	3320	23 annual amount that is equal to no less than (1) the normal cost
3321	3321	24 of the Fund, plus (2) the annual amount determined by an
3322	3322	25 enrolled actuary employed by the Illinois Department of
3323	3323	26 Insurance or by an enrolled actuary retained by the Fund to be
3324	3324
3325	3325
3326	3326
3327	3327
3328	3328
3329	3329	HB4065 - 92 - LRB103 31966 RPS 60743 b
3330	3330
3331	3331
3332	3332	HB4065- 93 -LRB103 31966 RPS 60743 b HB4065 - 93 - LRB103 31966 RPS 60743 b
3333	3333	HB4065 - 93 - LRB103 31966 RPS 60743 b
3334	3334	1 equal to the amount, if any, needed to bring the total
3335	3335	2 actuarial assets of the Fund up to 90% of the total actuarial
3336	3336	3 liabilities of the Fund as of the end of the year, utilizing
3337	3337	4 the entry age normal cost method as provided above.
3338	3338	5 For the purposes of this subsection (a), contributions by
3339	3339	6 the policeman to the Fund shall not include payments made by a
3340	3340	7 policeman to establish credit under Section 5-214.2 of this
3341	3341	8 Code.
3342	3342	9 (a-1) Beginning in State fiscal year 2024, the city
3343	3343	10 council shall annually certify to the Governor the amount of
3344	3344	11 (1) the normal cost to the Fund, plus (2) an annual amount
3345	3345	12 sufficient to bring the total assets of the Fund up to 90% of
3346	3346	13 the total actuarial liabilities of the Fund by the end of
3347	3347	14 fiscal year 2055, as annually updated and determined by an
3348	3348	15 enrolled actuary employed by the Department of Insurance or by
3349	3349	16 an enrolled actuary retained by the Fund.
3350	3350	17 (a-5) For purposes of determining the required employer
3351	3351	18 contribution to the Fund, the value of the Fund's assets shall
3352	3352	19 be equal to the actuarial value of the Fund's assets, which
3353	3353	20 shall be calculated as follows:
3354	3354	21 (1) On March 30, 2011, the actuarial value of the
3355	3355	22 Fund's assets shall be equal to the market value of the
3356	3356	23 assets as of that date.
3357	3357	24 (2) In determining the actuarial value of the Fund's
3358	3358	25 assets for fiscal years after March 30, 2011, any
3359	3359	26 actuarial gains or losses from investment return incurred
3360	3360
3361	3361
3362	3362
3363	3363
3364	3364
3365	3365	HB4065 - 93 - LRB103 31966 RPS 60743 b
3366	3366
3367	3367
3368	3368	HB4065- 94 -LRB103 31966 RPS 60743 b HB4065 - 94 - LRB103 31966 RPS 60743 b
3369	3369	HB4065 - 94 - LRB103 31966 RPS 60743 b
3370	3370	1 in a fiscal year shall be recognized in equal annual
3371	3371	2 amounts over the 5-year period following that fiscal year.
3372	3372	3 (a-7) If the city fails to transmit to the Fund
3373	3373	4 contributions required of it under this Article for more than
3374	3374	5 90 days after the payment of those contributions is due, the
3375	3375	6 Fund shall, after giving notice to the city, certify to the
3376	3376	7 State Comptroller the amounts of the delinquent payments, and
3377	3377	8 the Comptroller must, beginning in fiscal year 2016, deduct
3378	3378	9 and deposit into the Fund the certified amounts or a portion of
3379	3379	10 those amounts from the following proportions of grants of
3380	3380	11 State funds to the city:
3381	3381	12 (1) in fiscal year 2016, one-third of the total amount
3382	3382	13 of any grants of State funds to the city;
3383	3383	14 (2) in fiscal year 2017, two-thirds of the total
3384	3384	15 amount of any grants of State funds to the city; and
3385	3385	16 (3) in fiscal year 2018 and each fiscal year
3386	3386	17 thereafter, the total amount of any grants of State funds
3387	3387	18 to the city.
3388	3388	19 The State Comptroller may not deduct from any grants of
3389	3389	20 State funds to the city more than the amount of delinquent
3390	3390	21 payments certified to the State Comptroller by the Fund.
3391	3391	22 (b) The tax shall be levied and collected in like manner
3392	3392	23 with the general taxes of the city, and is in addition to all
3393	3393	24 other taxes which the city is now or may hereafter be
3394	3394	25 authorized to levy upon all taxable property therein, and is
3395	3395	26 exclusive of and in addition to the amount of tax the city is
3396	3396
3397	3397
3398	3398
3399	3399
3400	3400
3401	3401	HB4065 - 94 - LRB103 31966 RPS 60743 b
3402	3402
3403	3403
3404	3404	HB4065- 95 -LRB103 31966 RPS 60743 b HB4065 - 95 - LRB103 31966 RPS 60743 b
3405	3405	HB4065 - 95 - LRB103 31966 RPS 60743 b
3406	3406	1 now or may hereafter be authorized to levy for general
3407	3407	2 purposes under any law which may limit the amount of tax which
3408	3408	3 the city may levy for general purposes. The county clerk of the
3409	3409	4 county in which the city is located, in reducing tax levies
3410	3410	5 under Section 8-3-1 of the Illinois Municipal Code, shall not
3411	3411	6 consider the tax herein authorized as a part of the general tax
3412	3412	7 levy for city purposes, and shall not include the tax in any
3413	3413	8 limitation of the percent of the assessed valuation upon which
3414	3414	9 taxes are required to be extended for the city.
3415	3415	10 (c) On or before January 10 of each year, the board shall
3416	3416	11 notify the city council of the requirement that the tax herein
3417	3417	12 authorized be levied by the city council for that current
3418	3418	13 year. The board shall compute the amounts necessary for the
3419	3419	14 purposes of this fund to be credited to the reserves
3420	3420	15 established and maintained within the fund; shall make an
3421	3421	16 annual determination of the amount of the required city
3422	3422	17 contributions; and shall certify the results thereof to the
3423	3423	18 city council.
3424	3424	19 As soon as any revenue derived from the tax is collected it
3425	3425	20 shall be paid to the city treasurer of the city and shall be
3426	3426	21 held by him for the benefit of the fund in accordance with this
3427	3427	22 Article.
3428	3428	23 (d) If the funds available are insufficient during any
3429	3429	24 year to meet the requirements of this Article, the city may
3430	3430	25 issue tax anticipation warrants against the tax levy for the
3431	3431	26 current fiscal year.
3432	3432
3433	3433
3434	3434
3435	3435
3436	3436
3437	3437	HB4065 - 95 - LRB103 31966 RPS 60743 b
3438	3438
3439	3439
3440	3440	HB4065- 96 -LRB103 31966 RPS 60743 b HB4065 - 96 - LRB103 31966 RPS 60743 b
3441	3441	HB4065 - 96 - LRB103 31966 RPS 60743 b
3442	3442	1 (e) The various sums, including interest, to be
3443	3443	2 contributed by the city, shall be taken from the revenue
3444	3444	3 derived from such tax or otherwise as expressly provided in
3445	3445	4 this Section. Any moneys of the city derived from any source
3446	3446	5 other than the tax herein authorized shall not be used for any
3447	3447	6 purpose of the fund nor the cost of administration thereof,
3448	3448	7 unless applied to make the deposit expressly authorized in
3449	3449	8 this Section or the additional city contributions required
3450	3450	9 under subsection (h).
3451	3451	10 (f) If it is not possible or practicable for the city to
3452	3452	11 make its contributions at the time that salary deductions are
3453	3453	12 made, the city shall make such contributions as soon as
3454	3454	13 possible thereafter, with interest thereon to the time it is
3455	3455	14 made.
3456	3456	15 (g) In lieu of levying all or a portion of the tax required
3457	3457	16 under this Section in any year, the city may deposit with the
3458	3458	17 city treasurer no later than March 1 of that year for the
3459	3459	18 benefit of the fund, to be held in accordance with this
3460	3460	19 Article, an amount that, together with the taxes levied under
3461	3461	20 this Section for that year, is not less than the amount of the
3462	3462	21 city contributions for that year as certified by the board to
3463	3463	22 the city council. The deposit may be derived from any source
3464	3464	23 legally available for that purpose, including, but not limited
3465	3465	24 to, the proceeds of city borrowings and State contributions.
3466	3466	25 The making of a deposit shall satisfy fully the requirements
3467	3467	26 of this Section for that year to the extent of the amounts so
3468	3468
3469	3469
3470	3470
3471	3471
3472	3472
3473	3473	HB4065 - 96 - LRB103 31966 RPS 60743 b
3474	3474
3475	3475
3476	3476	HB4065- 97 -LRB103 31966 RPS 60743 b HB4065 - 97 - LRB103 31966 RPS 60743 b
3477	3477	HB4065 - 97 - LRB103 31966 RPS 60743 b
3478	3478	1 deposited. Amounts deposited under this subsection may be used
3479	3479	2 by the fund for any of the purposes for which the proceeds of
3480	3480	3 the tax levied under this Section may be used, including the
3481	3481	4 payment of any amount that is otherwise required by this
3482	3482	5 Article to be paid from the proceeds of that tax.
3483	3483	6 (h) In addition to the contributions required under the
3484	3484	7 other provisions of this Article, by November 1 of the
3485	3485	8 following specified years, the city shall deposit with the
3486	3486	9 city treasurer for the benefit of the fund, to be held and used
3487	3487	10 in accordance with this Article, the following specified
3488	3488	11 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in
3489	3489	12 2001; $5,040,000 in 2002; and $4,620,000 in 2003.
3490	3490	13 The additional city contributions required under this
3491	3491	14 subsection are intended to decrease the unfunded liability of
3492	3492	15 the fund and shall not decrease the amount of the city
3493	3493	16 contributions required under the other provisions of this
3494	3494	17 Article. The additional city contributions made under this
3495	3495	18 subsection may be used by the fund for any of its lawful
3496	3496	19 purposes.
3497	3497	20 (i) Any proceeds received by the city in relation to the
3498	3498	21 operation of a casino or casinos within the city shall be
3499	3499	22 expended by the city for payment to the Policemen's Annuity
3500	3500	23 and Benefit Fund of Chicago to satisfy the city contribution
3501	3501	24 obligation in any year.
3502	3502	25 (Source: P.A. 99-506, eff. 5-30-16.)
3503	3503
3504	3504
3505	3505
3506	3506
3507	3507
3508	3508	HB4065 - 97 - LRB103 31966 RPS 60743 b
3509	3509
3510	3510
3511	3511	HB4065- 98 -LRB103 31966 RPS 60743 b HB4065 - 98 - LRB103 31966 RPS 60743 b
3512	3512	HB4065 - 98 - LRB103 31966 RPS 60743 b
3513	3513	1 (40 ILCS 5/5-169) (from Ch. 108 1/2, par. 5-169)
3514	3514	2 Sec. 5-169. Contributions for age and service annuities or
3515	3515	3 Tier 2 monthly retirement annuities for present employees and
3516	3516	4 future entrants.
3517	3517	5 (a) Beginning on the effective date and before January 1,
3518	3518	6 1954, 3 1/2% per annum (except that beginning July 1, 1939 and
3519	3519	7 before January 1, 1954 for a future entrant, 4%) and beginning
3520	3520	8 January 1, 1954 and before August 1, 1957, 6%, and beginning
3521	3521	9 August 1, 1957, 7% of each payment of the salary of each
3522	3522	10 present employee and future entrant shall be deducted and
3523	3523	11 contributed to the fund for age and service annuity or Tier 2
3524	3524	12 monthly retirement annuity. The deductions shall be made from
3525	3525	13 each payment of salary and shall continue while the employee
3526	3526	14 is in service.
3527	3527	15 Any policeman whose employment has been transferred to the
3528	3528	16 police service of the city as a result of the Chicago Park and
3529	3529	17 City Exchange of Functions Act "An Act in relation to or
3530	3530	18 exchange of certain functions, property and personnel among
3531	3531	19 cities, and park districts having co-extensive geographic
3532	3532	20 areas and populations in excess of 500,000", approved July 5,
3533	3533	21 1957, as now and hereafter amended, shall also contribute a
3534	3534	22 sum equal to 2% of the total salary received by him in his
3535	3535	23 employment between August 1, 1957 to July 17, 1959, with the
3536	3536	24 park district from which he has been transferred together with
3537	3537	25 interest on the unpaid contributions of 4% per annum from July
3538	3538	26 17, 1959 to the date such payments are made. Such additional
3539	3539
3540	3540
3541	3541
3542	3542
3543	3543
3544	3544	HB4065 - 98 - LRB103 31966 RPS 60743 b
3545	3545
3546	3546
3547	3547	HB4065- 99 -LRB103 31966 RPS 60743 b HB4065 - 99 - LRB103 31966 RPS 60743 b
3548	3548	HB4065 - 99 - LRB103 31966 RPS 60743 b
3549	3549	1 sum may be paid at any time before the time such policeman
3550	3550	2 enters into age and service annuity.
3551	3551	3 Concurrently with each such deduction, beginning on the
3552	3552	4 effective date and prior to January 1, 1954, 8 1/2% (except for
3553	3553	5 a future entrant beginning on July 1, 1939, 9 5/7%) and
3554	3554	6 beginning January 1, 1954, 9 5/7% of each payment of salary
3555	3555	7 shall be contributed by the city, but in the case of a future
3556	3556	8 entrant who attains age 63 prior to January 1, 1988 while still
3557	3557	9 in service, no contributions shall be made for the period
3558	3558	10 between the date the employee attains age 63 and January 1,
3559	3559	11 1988.
3560	3560	12 (b) Each deduction from salary made prior to the date the
3561	3561	13 age and service annuity for the employee is fixed, and each
3562	3562	14 contribution by the city, shall be credited to the employee
3563	3563	15 and be improved by interest for a present employee during the
3564	3564	16 time he is in service until age and service annuity is fixed,
3565	3565	17 and, for a future entrant, during the time he is in service.
3566	3566	18 The sum accumulated shall be used to provide age and service
3567	3567	19 annuity for the employee.
3568	3568	20 Beginning September 1, 1967, the deductions from salary
3569	3569	21 provided in Section 5-167.1 shall also be made.
3570	3570	22 (Source: P.A. 99-905, eff. 11-29-16.)
3571	3571	23 (40 ILCS 5/5-239 new)
3572	3572	24 Sec. 5-239. Application of this amendatory Act of the
3573	3573	25 103rd General Assembly. It is the intent of this amendatory
3574	3574
3575	3575
3576	3576
3577	3577
3578	3578
3579	3579	HB4065 - 99 - LRB103 31966 RPS 60743 b
3580	3580
3581	3581
3582	3582	HB4065- 100 -LRB103 31966 RPS 60743 b HB4065 - 100 - LRB103 31966 RPS 60743 b
3583	3583	HB4065 - 100 - LRB103 31966 RPS 60743 b
3584	3584	1 Act of the 103rd General Assembly to provide to policemen who
3585	3585	2 first became policemen on or after January 1, 2011 the same
3586	3586	3 level of benefits and eligibility criteria for benefits as
3587	3587	4 those who first became policemen before January 1, 2011. The
3588	3588	5 changes made to this Article by this amendatory Act of the
3589	3589	6 103rd General Assembly that provide benefit increases for
3590	3590	7 policemen apply without regard to whether the policeman was in
3591	3591	8 service on or after the effective date of this amendatory Act
3592	3592	9 of the 103rd General Assembly, notwithstanding the provisions
3593	3593	10 of Section 1-103.1. The benefit increases are intended to
3594	3594	11 apply prospectively and do not entitle a policeman to
3595	3595	12 retroactive benefit payments or increases. The changes made to
3596	3596	13 this Article by this amendatory Act of the 103rd General
3597	3597	14 Assembly shall not cause or otherwise result in any
3598	3598	15 retroactive adjustment of any employee contributions.
3599	3599	16 (40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
3600	3600	17 Sec. 6-165. Financing; tax.
3601	3601	18 (a) Except as expressly provided in this Section, each
3602	3602	19 city shall levy a tax annually upon all taxable property
3603	3603	20 therein for the purpose of providing revenue for the fund. For
3604	3604	21 the years prior to the year 1960, the tax rate shall be as
3605	3605	22 provided for in the "Firemen's Annuity and Benefit Fund of the
3606	3606	23 Illinois Municipal Code". The tax, from and after January 1,
3607	3607	24 1968 to and including the year 1971, shall not exceed .0863% of
3608	3608	25 the value, as equalized or assessed by the Department of
3609	3609
3610	3610
3611	3611
3612	3612
3613	3613
3614	3614	HB4065 - 100 - LRB103 31966 RPS 60743 b
3615	3615
3616	3616
3617	3617	HB4065- 101 -LRB103 31966 RPS 60743 b HB4065 - 101 - LRB103 31966 RPS 60743 b
3618	3618	HB4065 - 101 - LRB103 31966 RPS 60743 b
3619	3619	1 Revenue, of all taxable property in the city. Beginning with
3620	3620	2 the year 1972 and through 2014, the city shall levy a tax
3621	3621	3 annually at a rate on the dollar of the value, as equalized or
3622	3622	4 assessed by the Department of Revenue of all taxable property
3623	3623	5 within such city that will produce, when extended, not to
3624	3624	6 exceed an amount equal to the total amount of contributions by
3625	3625	7 the employees to the fund made in the calendar year 2 years
3626	3626	8 prior to the year for which the annual applicable tax is
3627	3627	9 levied, multiplied by 2.23 through the calendar year 1981, and
3628	3628	10 by 2.26 for the year 1982 and for each tax levy year through
3629	3629	11 2014. Beginning in tax levy year 2015, the city council shall
3630	3630	12 levy a tax annually at a rate on the dollar of the assessed
3631	3631	13 valuation of all taxable property that will produce when
3632	3632	14 extended an annual amount that is equal to no less than the
3633	3633	15 amount of the city's contribution in each of the following
3634	3634	16 payment years: for 2016, $199,000,000; for 2017, $208,000,000;
3635	3635	17 for 2018, $227,000,000; for 2019, $235,000,000; for 2020,
3636	3636	18 $245,000,000.
3637	3637	19 Beginning in tax levy year 2020 and until tax levy year
3638	3638	20 2024, the city council shall levy a tax annually at a rate on
3639	3639	21 the dollar of the assessed valuation of all taxable property
3640	3640	22 that will produce when extended an annual amount that is equal
3641	3641	23 to no less than (1) the normal cost to the Fund, plus (2) an
3642	3642	24 annual amount sufficient to bring the total assets of the Fund
3643	3643	25 up to 90% of the total actuarial liabilities of the Fund by the
3644	3644	26 end of fiscal year 2055, as annually updated and determined by
3645	3645
3646	3646
3647	3647
3648	3648
3649	3649
3650	3650	HB4065 - 101 - LRB103 31966 RPS 60743 b
3651	3651
3652	3652
3653	3653	HB4065- 102 -LRB103 31966 RPS 60743 b HB4065 - 102 - LRB103 31966 RPS 60743 b
3654	3654	HB4065 - 102 - LRB103 31966 RPS 60743 b
3655	3655	1 an enrolled actuary employed by the Illinois Department of
3656	3656	2 Insurance or by an enrolled actuary retained by the Fund or the
3657	3657	3 city. Beginning in tax levy year 2024, the city council shall
3658	3658	4 levy a tax annually at a rate on the dollar of the assessed
3659	3659	5 valuation of all taxable property that will produce when
3660	3660	6 extended an annual amount that is equal to no less than (1) the
3661	3661	7 normal cost to the Fund, plus (2) an annual amount sufficient
3662	3662	8 to bring the total assets of the Fund up to 90% of the total
3663	3663	9 actuarial liabilities of the Fund by the end of fiscal year
3664	3664	10 2055, as annually updated and determined by an enrolled
3665	3665	11 actuary employed by the Department of Insurance or by an
3666	3666	12 enrolled actuary retained by the Fund or the city, minus (3)
3667	3667	13 the amount of the anticipated State contribution from the
3668	3668	14 Local Government Retirement Fund for the payment year. In
3669	3669	15 making these determinations, the required minimum employer
3670	3670	16 contribution shall be calculated each year as a level
3671	3671	17 percentage of payroll over the years remaining up to and
3672	3672	18 including fiscal year 2055 and shall be determined under the
3673	3673	19 entry age normal actuarial cost method. Beginning in payment
3674	3674	20 year 2056, the city's required contribution in that year and
3675	3675	21 for each year thereafter shall be an annual amount that is
3676	3676	22 equal to no less than (1) the normal cost to the Fund, plus (2)
3677	3677	23 the annual amount determined by an enrolled actuary employed
3678	3678	24 by the Illinois Department of Insurance or by an enrolled
3679	3679	25 actuary retained by the Fund to be equal to the amount, if any,
3680	3680	26 needed to bring the total actuarial assets of the Fund up to
3681	3681
3682	3682
3683	3683
3684	3684
3685	3685
3686	3686	HB4065 - 102 - LRB103 31966 RPS 60743 b
3687	3687
3688	3688
3689	3689	HB4065- 103 -LRB103 31966 RPS 60743 b HB4065 - 103 - LRB103 31966 RPS 60743 b
3690	3690	HB4065 - 103 - LRB103 31966 RPS 60743 b
3691	3691	1 90% of the total actuarial liabilities of the Fund as of the
3692	3692	2 end of the year, utilizing the entry age normal actuarial cost
3693	3693	3 method as provided above.
3694	3694	4 To provide revenue for the ordinary death benefit
3695	3695	5 established by Section 6-150 of this Article, in addition to
3696	3696	6 the contributions by the firemen for this purpose, the city
3697	3697	7 council shall for the year 1962 and each year thereafter
3698	3698	8 annually levy a tax, which shall be in addition to and
3699	3699	9 exclusive of the taxes authorized to be levied under the
3700	3700	10 foregoing provisions of this Section, upon all taxable
3701	3701	11 property in the city, as equalized or assessed by the
3702	3702	12 Department of Revenue, at such rate per cent of the value of
3703	3703	13 such property as shall be sufficient to produce for each year
3704	3704	14 the sum of $142,000.
3705	3705	15 The amounts produced by the taxes levied annually,
3706	3706	16 together with the deposit expressly authorized in this Section
3707	3707	17 and any State contributions, shall be sufficient, when added
3708	3708	18 to the amounts deducted from the salaries of firemen and
3709	3709	19 applied to the fund, to provide for the purposes of the fund.
3710	3710	20 (a-1) Beginning in State fiscal year 2024, the city
3711	3711	21 council shall annually certify to the Governor the amount of
3712	3712	22 (1) the normal cost to the Fund, plus (2) an annual amount
3713	3713	23 sufficient to bring the total assets of the Fund up to 90% of
3714	3714	24 the total actuarial liabilities of the Fund by the end of
3715	3715	25 fiscal year 2055, as annually updated and determined by an
3716	3716	26 enrolled actuary employed by the Department of Insurance or by
3717	3717
3718	3718
3719	3719
3720	3720
3721	3721
3722	3722	HB4065 - 103 - LRB103 31966 RPS 60743 b
3723	3723
3724	3724
3725	3725	HB4065- 104 -LRB103 31966 RPS 60743 b HB4065 - 104 - LRB103 31966 RPS 60743 b
3726	3726	HB4065 - 104 - LRB103 31966 RPS 60743 b
3727	3727	1 an enrolled actuary retained by the Fund.
3728	3728	2 (a-5) For purposes of determining the required employer
3729	3729	3 contribution to the Fund, the value of the Fund's assets shall
3730	3730	4 be equal to the actuarial value of the Fund's assets, which
3731	3731	5 shall be calculated as follows:
3732	3732	6 (1) On March 30, 2011, the actuarial value of the
3733	3733	7 Fund's assets shall be equal to the market value of the
3734	3734	8 assets as of that date.
3735	3735	9 (2) In determining the actuarial value of the Fund's
3736	3736	10 assets for fiscal years after March 30, 2011, any
3737	3737	11 actuarial gains or losses from investment return incurred
3738	3738	12 in a fiscal year shall be recognized in equal annual
3739	3739	13 amounts over the 5-year period following that fiscal year.
3740	3740	14 (a-7) If the city fails to transmit to the Fund
3741	3741	15 contributions required of it under this Article for more than
3742	3742	16 90 days after the payment of those contributions is due, the
3743	3743	17 Fund shall, after giving notice to the city, certify to the
3744	3744	18 State Comptroller the amounts of the delinquent payments, and
3745	3745	19 the Comptroller must, beginning in fiscal year 2016, deduct
3746	3746	20 and deposit into the Fund the certified amounts or a portion of
3747	3747	21 those amounts from the following proportions of grants of
3748	3748	22 State funds to the city:
3749	3749	23 (1) in fiscal year 2016, one-third of the total amount
3750	3750	24 of any grants of State funds to the city;
3751	3751	25 (2) in fiscal year 2017, two-thirds of the total
3752	3752	26 amount of any grants of State funds to the city; and
3753	3753
3754	3754
3755	3755
3756	3756
3757	3757
3758	3758	HB4065 - 104 - LRB103 31966 RPS 60743 b
3759	3759
3760	3760
3761	3761	HB4065- 105 -LRB103 31966 RPS 60743 b HB4065 - 105 - LRB103 31966 RPS 60743 b
3762	3762	HB4065 - 105 - LRB103 31966 RPS 60743 b
3763	3763	1 (3) in fiscal year 2018 and each fiscal year
3764	3764	2 thereafter, the total amount of any grants of State funds
3765	3765	3 to the city.
3766	3766	4 The State Comptroller may not deduct from any grants of
3767	3767	5 State funds to the city more than the amount of delinquent
3768	3768	6 payments certified to the State Comptroller by the Fund.
3769	3769	7 (b) The taxes shall be levied and collected in like manner
3770	3770	8 with the general taxes of the city, and shall be in addition to
3771	3771	9 all other taxes which the city may levy upon all taxable
3772	3772	10 property therein and shall be exclusive of and in addition to
3773	3773	11 the amount of tax the city may levy for general purposes under
3774	3774	12 Section 8-3-1 of the Illinois Municipal Code, approved May 29,
3775	3775	13 1961, as amended, or under any other law or laws which may
3776	3776	14 limit the amount of tax which the city may levy for general
3777	3777	15 purposes.
3778	3778	16 (c) The amounts of the taxes to be levied in each year
3779	3779	17 shall be certified to the city council by the board.
3780	3780	18 (d) As soon as any revenue derived from such taxes is
3781	3781	19 collected, it shall be paid to the city treasurer and held for
3782	3782	20 the benefit of the fund, and all such revenue shall be paid
3783	3783	21 into the fund in accordance with the provisions of this
3784	3784	22 Article.
3785	3785	23 (e) If the funds available are insufficient during any
3786	3786	24 year to meet the requirements of this Article, the city may
3787	3787	25 issue tax anticipation warrants, against the tax levies herein
3788	3788	26 authorized for the current fiscal year.
3789	3789
3790	3790
3791	3791
3792	3792
3793	3793
3794	3794	HB4065 - 105 - LRB103 31966 RPS 60743 b
3795	3795
3796	3796
3797	3797	HB4065- 106 -LRB103 31966 RPS 60743 b HB4065 - 106 - LRB103 31966 RPS 60743 b
3798	3798	HB4065 - 106 - LRB103 31966 RPS 60743 b
3799	3799	1 (f) The various sums, hereinafter stated, including
3800	3800	2 interest, to be contributed by the city, shall be taken from
3801	3801	3 the revenue derived from the taxes or otherwise as expressly
3802	3802	4 provided in this Section. Except for defraying the cost of
3803	3803	5 administration of the fund during the calendar year in which a
3804	3804	6 city first attains a population of 500,000 and comes under the
3805	3805	7 provisions of this Article and the first calendar year
3806	3806	8 thereafter, any money of the city derived from any source
3807	3807	9 other than these taxes or the sale of tax anticipation
3808	3808	10 warrants shall not be used to provide revenue for the fund, nor
3809	3809	11 to pay any part of the cost of administration thereof, unless
3810	3810	12 applied to make the deposit expressly authorized in this
3811	3811	13 Section or the additional city contributions required under
3812	3812	14 subsection (h).
3813	3813	15 (g) In lieu of levying all or a portion of the tax required
3814	3814	16 under this Section in any year, the city may deposit with the
3815	3815	17 city treasurer no later than March 1 of that year for the
3816	3816	18 benefit of the fund, to be held in accordance with this
3817	3817	19 Article, an amount that, together with the taxes levied under
3818	3818	20 this Section for that year, is not less than the amount of the
3819	3819	21 city contributions for that year as certified by the board to
3820	3820	22 the city council. The deposit may be derived from any source
3821	3821	23 legally available for that purpose, including, but not limited
3822	3822	24 to, the proceeds of city borrowings and State contributions.
3823	3823	25 The making of a deposit shall satisfy fully the requirements
3824	3824	26 of this Section for that year to the extent of the amounts so
3825	3825
3826	3826
3827	3827
3828	3828
3829	3829
3830	3830	HB4065 - 106 - LRB103 31966 RPS 60743 b
3831	3831
3832	3832
3833	3833	HB4065- 107 -LRB103 31966 RPS 60743 b HB4065 - 107 - LRB103 31966 RPS 60743 b
3834	3834	HB4065 - 107 - LRB103 31966 RPS 60743 b
3835	3835	1 deposited. Amounts deposited under this subsection may be used
3836	3836	2 by the fund for any of the purposes for which the proceeds of
3837	3837	3 the taxes levied under this Section may be used, including the
3838	3838	4 payment of any amount that is otherwise required by this
3839	3839	5 Article to be paid from the proceeds of those taxes.
3840	3840	6 (h) In addition to the contributions required under the
3841	3841	7 other provisions of this Article, by November 1 of the
3842	3842	8 following specified years, the city shall deposit with the
3843	3843	9 city treasurer for the benefit of the fund, to be held and used
3844	3844	10 in accordance with this Article, the following specified
3845	3845	11 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in
3846	3846	12 2001; $5,040,000 in 2002; and $4,620,000 in 2003.
3847	3847	13 The additional city contributions required under this
3848	3848	14 subsection are intended to decrease the unfunded liability of
3849	3849	15 the fund and shall not decrease the amount of the city
3850	3850	16 contributions required under the other provisions of this
3851	3851	17 Article. The additional city contributions made under this
3852	3852	18 subsection may be used by the fund for any of its lawful
3853	3853	19 purposes.
3854	3854	20 (i) Any proceeds received by the city in relation to the
3855	3855	21 operation of a casino or casinos within the city shall be
3856	3856	22 expended by the city for payment to the Firemen's Annuity and
3857	3857	23 Benefit Fund of Chicago to satisfy the city contribution
3858	3858	24 obligation in any year.
3859	3859	25 (Source: P.A. 99-506, eff. 5-30-16.)
3860	3860
3861	3861
3862	3862
3863	3863
3864	3864
3865	3865	HB4065 - 107 - LRB103 31966 RPS 60743 b
3866	3866
3867	3867
3868	3868	HB4065- 108 -LRB103 31966 RPS 60743 b HB4065 - 108 - LRB103 31966 RPS 60743 b
3869	3869	HB4065 - 108 - LRB103 31966 RPS 60743 b
3870	3870	1 (40 ILCS 5/6-210) (from Ch. 108 1/2, par. 6-210)
3871	3871	2 Sec. 6-210. Credit allowed for service in police
3872	3872	3 department. Service rendered by a fireman, as a regularly
3873	3873	4 appointed and sworn policeman of the city shall be included,
3874	3874	5 for the purposes of this Article, as if such service were
3875	3875	6 rendered as a fireman of the city. Salary received by a fireman
3876	3876	7 for any such service as a policeman shall be considered, for
3877	3877	8 the purposes of this Article, as salary received as a fireman.
3878	3878	9 Any annuity payable to a fireman under this Article shall be
3879	3879	10 reduced by any pension or annuity payable to him from any
3880	3880	11 policemen's annuity and benefit fund in operation in the city,
3881	3881	12 and any member entering service after January 1, 2011 shall
3882	3882	13 not be given service credit in this fund for any period of time
3883	3883	14 in which the member is in receipt of retirement benefits from
3884	3884	15 any annuity and benefit fund in operation in the city.
3885	3885	16 Any policeman who becomes a fireman, subsequent to July 1,
3886	3886	17 1935, may contribute to the fund an amount equal to the sum
3887	3887	18 which would have accumulated to his credit from deductions
3888	3888	19 from salary for annuity purposes if he had been contributing
3889	3889	20 to the fund such sums as he contributed for annuity purposes to
3890	3890	21 the policemen's annuity and benefit fund, and no credit for
3891	3891	22 periods of service rendered by him in the police department
3892	3892	23 shall be allowed, under this Article, except as to such
3893	3893	24 periods for which he made contributions to the policemen's
3894	3894	25 annuity and benefit fund, provided he has made the payments
3895	3895	26 required by this Article.
3896	3896
3897	3897
3898	3898
3899	3899
3900	3900
3901	3901	HB4065 - 108 - LRB103 31966 RPS 60743 b
3902	3902
3903	3903
3904	3904	HB4065- 109 -LRB103 31966 RPS 60743 b HB4065 - 109 - LRB103 31966 RPS 60743 b
3905	3905	HB4065 - 109 - LRB103 31966 RPS 60743 b
3906	3906	1 (Source: P.A. 96-1466, eff. 8-20-10.)
3907	3907	2 (40 ILCS 5/6-231 new)
3908	3908	3 Sec. 6-231. Application of this amendatory Act of the
3909	3909	4 103rd General Assembly. It is the intent of this amendatory
3910	3910	5 Act of the 103rd General Assembly to provide to firemen who
3911	3911	6 first became firemen on or after January 1, 2011 the same level
3912	3912	7 of benefits and eligibility criteria for benefits as those who
3913	3913	8 first became firemen before January 1, 2011. The changes made
3914	3914	9 to this Article by this amendatory Act of the 103rd General
3915	3915	10 Assembly that provide benefit increases for firemen apply
3916	3916	11 without regard to whether the fireman was in service on or
3917	3917	12 after the effective date of this amendatory Act of the 103rd
3918	3918	13 General Assembly, notwithstanding the provisions of Section
3919	3919	14 1-103.1. The benefit increases are intended to apply
3920	3920	15 prospectively and do not entitle a fireman to retroactive
3921	3921	16 benefit payments or increases. The changes made to this
3922	3922	17 Article by this amendatory Act of the 103rd General Assembly
3923	3923	18 shall not cause or otherwise result in any retroactive
3924	3924	19 adjustment of any employee contributions.
3925	3925	20 (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
3926	3926	21 Sec. 7-142.1. Sheriff's law enforcement employees.
3927	3927	22 (a) In lieu of the retirement annuity provided by
3928	3928	23 subparagraph 1 of paragraph (a) of Section 7-142:
3929	3929	24 Any sheriff's law enforcement employee who has 20 or more
3930	3930
3931	3931
3932	3932
3933	3933
3934	3934
3935	3935	HB4065 - 109 - LRB103 31966 RPS 60743 b
3936	3936
3937	3937
3938	3938	HB4065- 110 -LRB103 31966 RPS 60743 b HB4065 - 110 - LRB103 31966 RPS 60743 b
3939	3939	HB4065 - 110 - LRB103 31966 RPS 60743 b
3940	3940	1 years of service in that capacity and who terminates service
3941	3941	2 prior to January 1, 1988 shall be entitled at his option to
3942	3942	3 receive a monthly retirement annuity for his service as a
3943	3943	4 sheriff's law enforcement employee computed by multiplying 2%
3944	3944	5 for each year of such service up to 10 years, 2 1/4% for each
3945	3945	6 year of such service above 10 years and up to 20 years, and 2
3946	3946	7 1/2% for each year of such service above 20 years, by his
3947	3947	8 annual final rate of earnings and dividing by 12.
3948	3948	9 Any sheriff's law enforcement employee who has 20 or more
3949	3949	10 years of service in that capacity and who terminates service
3950	3950	11 on or after January 1, 1988 and before July 1, 2004 shall be
3951	3951	12 entitled at his option to receive a monthly retirement annuity
3952	3952	13 for his service as a sheriff's law enforcement employee
3953	3953	14 computed by multiplying 2.5% for each year of such service up
3954	3954	15 to 20 years, 2% for each year of such service above 20 years
3955	3955	16 and up to 30 years, and 1% for each year of such service above
3956	3956	17 30 years, by his annual final rate of earnings and dividing by
3957	3957	18 12.
3958	3958	19 Any sheriff's law enforcement employee who has 20 or more
3959	3959	20 years of service in that capacity and who terminates service
3960	3960	21 on or after July 1, 2004 shall be entitled at his or her option
3961	3961	22 to receive a monthly retirement annuity for service as a
3962	3962	23 sheriff's law enforcement employee computed by multiplying
3963	3963	24 2.5% for each year of such service by his annual final rate of
3964	3964	25 earnings and dividing by 12.
3965	3965	26 If a sheriff's law enforcement employee has service in any
3966	3966
3967	3967
3968	3968
3969	3969
3970	3970
3971	3971	HB4065 - 110 - LRB103 31966 RPS 60743 b
3972	3972
3973	3973
3974	3974	HB4065- 111 -LRB103 31966 RPS 60743 b HB4065 - 111 - LRB103 31966 RPS 60743 b
3975	3975	HB4065 - 111 - LRB103 31966 RPS 60743 b
3976	3976	1 other capacity, his retirement annuity for service as a
3977	3977	2 sheriff's law enforcement employee may be computed under this
3978	3978	3 Section and the retirement annuity for his other service under
3979	3979	4 Section 7-142.
3980	3980	5 In no case shall the total monthly retirement annuity for
3981	3981	6 persons who retire before July 1, 2004 exceed 75% of the
3982	3982	7 monthly final rate of earnings. In no case shall the total
3983	3983	8 monthly retirement annuity for persons who retire on or after
3984	3984	9 July 1, 2004 exceed 80% of the monthly final rate of earnings.
3985	3985	10 (b) Whenever continued group insurance coverage is elected
3986	3986	11 in accordance with the provisions of Section 367h of the
3987	3987	12 Illinois Insurance Code, as now or hereafter amended, the
3988	3988	13 total monthly premium for such continued group insurance
3989	3989	14 coverage or such portion thereof as is not paid by the
3990	3990	15 municipality shall, upon request of the person electing such
3991	3991	16 continued group insurance coverage, be deducted from any
3992	3992	17 monthly pension benefit otherwise payable to such person
3993	3993	18 pursuant to this Section, to be remitted by the Fund to the
3994	3994	19 insurance company or other entity providing the group
3995	3995	20 insurance coverage.
3996	3996	21 (c) A sheriff's law enforcement employee who began service
3997	3997	22 in that capacity prior to the effective date of this
3998	3998	23 amendatory Act of the 97th General Assembly and who has
3999	3999	24 service in any other capacity may convert up to 10 years of
4000	4000	25 that service into service as a sheriff's law enforcement
4001	4001	26 employee by paying to the Fund an amount equal to (1) the
4002	4002
4003	4003
4004	4004
4005	4005
4006	4006
4007	4007	HB4065 - 111 - LRB103 31966 RPS 60743 b
4008	4008
4009	4009
4010	4010	HB4065- 112 -LRB103 31966 RPS 60743 b HB4065 - 112 - LRB103 31966 RPS 60743 b
4011	4011	HB4065 - 112 - LRB103 31966 RPS 60743 b
4012	4012	1 additional employee contribution required under Section
4013	4013	2 7-173.1, plus (2) the additional employer contribution
4014	4014	3 required under Section 7-172, plus (3) interest on items (1)
4015	4015	4 and (2) at the prescribed rate from the date of the service to
4016	4016	5 the date of payment. Application must be received by the Board
4017	4017	6 while the employee is an active participant in the Fund.
4018	4018	7 Payment must be received while the member is an active
4019	4019	8 participant, except that one payment will be permitted after
4020	4020	9 termination of participation.
4021	4021	10 (d) The changes to subsections (a) and (b) of this Section
4022	4022	11 made by this amendatory Act of the 94th General Assembly apply
4023	4023	12 only to persons in service on or after July 1, 2004. In the
4024	4024	13 case of such a person who begins to receive a retirement
4025	4025	14 annuity before the effective date of this amendatory Act of
4026	4026	15 the 94th General Assembly, the annuity shall be recalculated
4027	4027	16 prospectively to reflect those changes, with the resulting
4028	4028	17 increase beginning to accrue on the first annuity payment date
4029	4029	18 following the effective date of this amendatory Act.
4030	4030	19 (e) Any elected county officer who was entitled to receive
4031	4031	20 a stipend from the State on or after July 1, 2009 and on or
4032	4032	21 before June 30, 2010 may establish earnings credit for the
4033	4033	22 amount of stipend not received, if the elected county official
4034	4034	23 applies in writing to the fund within 6 months after the
4035	4035	24 effective date of this amendatory Act of the 96th General
4036	4036	25 Assembly and pays to the fund an amount equal to (i) employee
4037	4037	26 contributions on the amount of stipend not received, (ii)
4038	4038
4039	4039
4040	4040
4041	4041
4042	4042
4043	4043	HB4065 - 112 - LRB103 31966 RPS 60743 b
4044	4044
4045	4045
4046	4046	HB4065- 113 -LRB103 31966 RPS 60743 b HB4065 - 113 - LRB103 31966 RPS 60743 b
4047	4047	HB4065 - 113 - LRB103 31966 RPS 60743 b
4048	4048	1 employer contributions determined by the Board equal to the
4049	4049	2 employer's normal cost of the benefit on the amount of stipend
4050	4050	3 not received, plus (iii) interest on items (i) and (ii) at the
4051	4051	4 actuarially assumed rate.
4052	4052	5 (f) It is the intent of this amendatory Act of the 103rd
4053	4053	6 General Assembly to provide to sheriff's law enforcement
4054	4054	7 employees who first became sheriff's law enforcement employees
4055	4055	8 on or after January 1, 2011 the same level of benefits and
4056	4056	9 eligibility criteria for benefits as those who first became
4057	4057	10 sheriff's law enforcement employees before January 1, 2011.
4058	4058	11 The changes made to this Article by this amendatory Act of the
4059	4059	12 103rd General Assembly that provide benefit increases for
4060	4060	13 sheriff's law enforcement employees apply without regard to
4061	4061	14 whether the sheriff's law enforcement employee was in service
4062	4062	15 on or after the effective date of this amendatory Act of the
4063	4063	16 103rd General Assembly, notwithstanding the provisions of
4064	4064	17 Section 1-103.1. The benefit increases are intended to apply
4065	4065	18 prospectively and do not entitle a sheriff's law enforcement
4066	4066	19 employee to retroactive benefit payments or increases. The
4067	4067	20 changes made to this Article by this amendatory Act of the
4068	4068	21 103rd General Assembly shall not cause or otherwise result in
4069	4069	22 any retroactive adjustment of any employee contributions.
4070	4070	23 (f) Notwithstanding any other provision of this Article,
4071	4071	24 the provisions of this subsection (f) apply to a person who
4072	4072	25 first becomes a sheriff's law enforcement employee under this
4073	4073	26 Article on or after January 1, 2011.
4074	4074
4075	4075
4076	4076
4077	4077
4078	4078
4079	4079	HB4065 - 113 - LRB103 31966 RPS 60743 b
4080	4080
4081	4081
4082	4082	HB4065- 114 -LRB103 31966 RPS 60743 b HB4065 - 114 - LRB103 31966 RPS 60743 b
4083	4083	HB4065 - 114 - LRB103 31966 RPS 60743 b
4084	4084	1 A sheriff's law enforcement employee age 55 or more who
4085	4085	2 has 10 or more years of service in that capacity shall be
4086	4086	3 entitled at his option to receive a monthly retirement annuity
4087	4087	4 for his or her service as a sheriff's law enforcement employee
4088	4088	5 computed by multiplying 2.5% for each year of such service by
4089	4089	6 his or her final rate of earnings.
4090	4090	7 The retirement annuity of a sheriff's law enforcement
4091	4091	8 employee who is retiring after attaining age 50 with 10 or more
4092	4092	9 years of creditable service shall be reduced by one-half of 1%
4093	4093	10 for each month that the sheriff's law enforcement employee's
4094	4094	11 age is under age 55.
4095	4095	12 The maximum retirement annuity under this subsection (f)
4096	4096	13 shall be 75% of final rate of earnings.
4097	4097	14 For the purposes of this subsection (f), "final rate of
4098	4098	15 earnings" means the average monthly earnings obtained by
4099	4099	16 dividing the total salary of the sheriff's law enforcement
4100	4100	17 employee during the 96 consecutive months of service within
4101	4101	18 the last 120 months of service in which the total earnings was
4102	4102	19 the highest by the number of months of service in that period.
4103	4103	20 Notwithstanding any other provision of this Article,
4104	4104	21 beginning on January 1, 2011, for all purposes under this Code
4105	4105	22 (including without limitation the calculation of benefits and
4106	4106	23 employee contributions), the annual earnings of a sheriff's
4107	4107	24 law enforcement employee to whom this Section applies shall
4108	4108	25 not include overtime and shall not exceed $106,800; however,
4109	4109	26 that amount shall annually thereafter be increased by the
4110	4110
4111	4111
4112	4112
4113	4113
4114	4114
4115	4115	HB4065 - 114 - LRB103 31966 RPS 60743 b
4116	4116
4117	4117
4118	4118	HB4065- 115 -LRB103 31966 RPS 60743 b HB4065 - 115 - LRB103 31966 RPS 60743 b
4119	4119	HB4065 - 115 - LRB103 31966 RPS 60743 b
4120	4120	1 lesser of (i) 3% of that amount, including all previous
4121	4121	2 adjustments, or (ii) one-half the annual unadjusted percentage
4122	4122	3 increase (but not less than zero) in the consumer price
4123	4123	4 index-u for the 12 months ending with the September preceding
4124	4124	5 each November 1, including all previous adjustments.
4125	4125	6 (g) Notwithstanding any other provision of this Article,
4126	4126	7 the monthly annuity of a person who first becomes a sheriff's
4127	4127	8 law enforcement employee under this Article on or after
4128	4128	9 January 1, 2011 shall be increased on the January 1 occurring
4129	4129	10 either on or after the attainment of age 60 or the first
4130	4130	11 anniversary of the annuity start date, whichever is later.
4131	4131	12 Each annual increase shall be calculated at 3% or one-half the
4132	4132	13 annual unadjusted percentage increase (but not less than zero)
4133	4133	14 in the consumer price index-u for the 12 months ending with the
4134	4134	15 September preceding each November 1, whichever is less, of the
4135	4135	16 originally granted retirement annuity. If the annual
4136	4136	17 unadjusted percentage change in the consumer price index-u for
4137	4137	18 a 12-month period ending in September is zero or, when
4138	4138	19 compared with the preceding period, decreases, then the
4139	4139	20 annuity shall not be increased.
4140	4140	21 (h) Notwithstanding any other provision of this Article,
4141	4141	22 for a person who first becomes a sheriff's law enforcement
4142	4142	23 employee under this Article on or after January 1, 2011, the
4143	4143	24 annuity to which the surviving spouse, children, or parents
4144	4144	25 are entitled under this subsection (h) shall be in the amount
4145	4145	26 of 66 2/3% of the sheriff's law enforcement employee's earned
4146	4146
4147	4147
4148	4148
4149	4149
4150	4150
4151	4151	HB4065 - 115 - LRB103 31966 RPS 60743 b
4152	4152
4153	4153
4154	4154	HB4065- 116 -LRB103 31966 RPS 60743 b HB4065 - 116 - LRB103 31966 RPS 60743 b
4155	4155	HB4065 - 116 - LRB103 31966 RPS 60743 b
4156	4156	1 annuity at the date of death.
4157	4157	2 (i) Notwithstanding any other provision of this Article,
4158	4158	3 the monthly annuity of a survivor of a person who first becomes
4159	4159	4 a sheriff's law enforcement employee under this Article on or
4160	4160	5 after January 1, 2011 shall be increased on the January 1 after
4161	4161	6 attainment of age 60 by the recipient of the survivor's
4162	4162	7 annuity and each January 1 thereafter by 3% or one-half the
4163	4163	8 annual unadjusted percentage increase in the consumer price
4164	4164	9 index-u for the 12 months ending with the September preceding
4165	4165	10 each November 1, whichever is less, of the originally granted
4166	4166	11 pension. If the annual unadjusted percentage change in the
4167	4167	12 consumer price index-u for a 12-month period ending in
4168	4168	13 September is zero or, when compared with the preceding period,
4169	4169	14 decreases, then the annuity shall not be increased.
4170	4170	15 (j) For the purposes of this Section, "consumer price
4171	4171	16 index-u" means the index published by the Bureau of Labor
4172	4172	17 Statistics of the United States Department of Labor that
4173	4173	18 measures the average change in prices of goods and services
4174	4174	19 purchased by all urban consumers, United States city average,
4175	4175	20 all items, 1982-84 = 100. The new amount resulting from each
4176	4176	21 annual adjustment shall be determined by the Public Pension
4177	4177	22 Division of the Department of Insurance and made available to
4178	4178	23 the boards of the pension funds.
4179	4179	24 (Source: P.A. 100-148, eff. 8-18-17.)
4180	4180	25 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
4181	4181
4182	4182
4183	4183
4184	4184
4185	4185
4186	4186	HB4065 - 116 - LRB103 31966 RPS 60743 b
4187	4187
4188	4188
4189	4189	HB4065- 117 -LRB103 31966 RPS 60743 b HB4065 - 117 - LRB103 31966 RPS 60743 b
4190	4190	HB4065 - 117 - LRB103 31966 RPS 60743 b
4191	4191	1 Sec. 7-171. Finance; taxes.
4192	4192	2 (a) Each municipality other than a school district shall
4193	4193	3 appropriate an amount sufficient to provide for the current
4194	4194	4 municipality contributions required by Section 7-172 of this
4195	4195	5 Article, for the fiscal year for which the appropriation is
4196	4196	6 made and all amounts due for municipal contributions for
4197	4197	7 previous years. Those municipalities which have been assessed
4198	4198	8 an annual amount to amortize its unfunded obligation, as
4199	4199	9 provided in subparagraph 4 of paragraph (a) of Section 7-172
4200	4200	10 of this Article, shall include in the appropriation an amount
4201	4201	11 sufficient to pay the amount assessed. The appropriation shall
4202	4202	12 be based upon an estimate of assets available for municipality
4203	4203	13 contributions and liabilities therefor for the fiscal year for
4204	4204	14 which appropriations are to be made, including funds available
4205	4205	15 from levies for this purpose in prior years.
4206	4206	16 (b) For the purpose of providing monies for municipality
4207	4207	17 contributions, beginning for the year in which a municipality
4208	4208	18 is included in this fund:
4209	4209	19 (1) A municipality other than a school district may
4210	4210	20 levy a tax which shall not exceed the amount appropriated
4211	4211	21 for municipality contributions minus the amount of the
4212	4212	22 anticipated State contribution from the Local Government
4213	4213	23 Retirement Fund to the municipality for that year.
4214	4214	24 (2) A school district may levy a tax in an amount
4215	4215	25 reasonably calculated at the time of the levy to provide
4216	4216	26 for the municipality contributions required under Section
4217	4217
4218	4218
4219	4219
4220	4220
4221	4221
4222	4222	HB4065 - 117 - LRB103 31966 RPS 60743 b
4223	4223
4224	4224
4225	4225	HB4065- 118 -LRB103 31966 RPS 60743 b HB4065 - 118 - LRB103 31966 RPS 60743 b
4226	4226	HB4065 - 118 - LRB103 31966 RPS 60743 b
4227	4227	1 7-172 of this Article for the fiscal years for which
4228	4228	2 revenues from the levy will be received and all amounts
4229	4229	3 due for municipal contributions for previous years. Any
4230	4230	4 levy adopted before the effective date of this amendatory
4231	4231	5 Act of 1995 by a school district shall be considered valid
4232	4232	6 and authorized to the extent that the amount was
4233	4233	7 reasonably calculated at the time of the levy to provide
4234	4234	8 for the municipality contributions required under Section
4235	4235	9 7-172 for the fiscal years for which revenues from the
4236	4236	10 levy will be received and all amounts due for municipal
4237	4237	11 contributions for previous years. In no event shall a
4238	4238	12 budget adopted by a school district limit a levy of that
4239	4239	13 school district adopted under this Section.
4240	4240	14 (c) Any county which is served by a regional office of
4241	4241	15 education that serves 2 or more counties may include in its
4242	4242	16 appropriation an amount sufficient to provide its
4243	4243	17 proportionate share of the municipality contributions for that
4244	4244	18 regional office of education. The tax levy authorized by this
4245	4245	19 Section may include an amount necessary to provide monies for
4246	4246	20 this contribution.
4247	4247	21 (d) Any county that is a part of a multiple-county health
4248	4248	22 department or consolidated health department which is formed
4249	4249	23 under "An Act in relation to the establishment and maintenance
4250	4250	24 of county and multiple-county public health departments",
4251	4251	25 approved July 9, 1943, as amended, and which is a
4252	4252	26 participating instrumentality may include in the county's
4253	4253
4254	4254
4255	4255
4256	4256
4257	4257
4258	4258	HB4065 - 118 - LRB103 31966 RPS 60743 b
4259	4259
4260	4260
4261	4261	HB4065- 119 -LRB103 31966 RPS 60743 b HB4065 - 119 - LRB103 31966 RPS 60743 b
4262	4262	HB4065 - 119 - LRB103 31966 RPS 60743 b
4263	4263	1 appropriation an amount sufficient to provide its
4264	4264	2 proportionate share of municipality contributions of the
4265	4265	3 department. The tax levy authorized by this Section may
4266	4266	4 include the amount necessary to provide monies for this
4267	4267	5 contribution.
4268	4268	6 (d-5) A school district participating in a special
4269	4269	7 education joint agreement created under Section 10-22.31 of
4270	4270	8 the School Code that is a participating instrumentality may
4271	4271	9 include in the school district's tax levy under this Section
4272	4272	10 an amount sufficient to provide its proportionate share of the
4273	4273	11 municipality contributions for current and prior service by
4274	4274	12 employees of the participating instrumentality created under
4275	4275	13 the joint agreement.
4276	4276	14 (e) Such tax shall be levied and collected in like manner,
4277	4277	15 with the general taxes of the municipality and shall be in
4278	4278	16 addition to all other taxes which the municipality is now or
4279	4279	17 may hereafter be authorized to levy upon all taxable property
4280	4280	18 therein, and shall be exclusive of and in addition to the
4281	4281	19 amount of tax levied for general purposes under Section 8-3-1
4282	4282	20 of the "Illinois Municipal Code", approved May 29, 1961, as
4283	4283	21 amended, or under any other law or laws which may limit the
4284	4284	22 amount of tax which the municipality may levy for general
4285	4285	23 purposes. The tax may be levied by the governing body of the
4286	4286	24 municipality without being authorized as being additional to
4287	4287	25 all other taxes by a vote of the people of the municipality.
4288	4288	26 (f) The county clerk of the county in which any such
4289	4289
4290	4290
4291	4291
4292	4292
4293	4293
4294	4294	HB4065 - 119 - LRB103 31966 RPS 60743 b
4295	4295
4296	4296
4297	4297	HB4065- 120 -LRB103 31966 RPS 60743 b HB4065 - 120 - LRB103 31966 RPS 60743 b
4298	4298	HB4065 - 120 - LRB103 31966 RPS 60743 b
4299	4299	1 municipality is located, in reducing tax levies shall not
4300	4300	2 consider any such tax as a part of the general tax levy for
4301	4301	3 municipality purposes, and shall not include the same in the
4302	4302	4 limitation of any other tax rate which may be extended.
4303	4303	5 (g) The amount of the tax to be levied in any year shall,
4304	4304	6 within the limits herein prescribed, be determined by the
4305	4305	7 governing body of the respective municipality.
4306	4306	8 (h) The revenue derived from any such tax levy shall be
4307	4307	9 used only for the contributions required under Section 7-172
4308	4308	10 and, as collected, shall be paid to the treasurer of the
4309	4309	11 municipality levying the tax. Monies received by a county
4310	4310	12 treasurer for use in making contributions to a regional office
4311	4311	13 of education for its municipality contributions shall be held
4312	4312	14 by him for that purpose and paid to the regional office of
4313	4313	15 education in the same manner as other monies appropriated for
4314	4314	16 the expense of the regional office.
4315	4315	17 (Source: P.A. 96-1084, eff. 7-16-10; 97-933, eff. 8-10-12.)
4316	4316	18 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
4317	4317	19 Sec. 7-172. Contributions by participating municipalities
4318	4318	20 and participating instrumentalities.
4319	4319	21 (a) Each participating municipality and each participating
4320	4320	22 instrumentality shall make payment to the fund as follows:
4321	4321	23 1. municipality contributions in an amount determined
4322	4322	24 by applying the municipality contribution rate to each
4323	4323	25 payment of earnings paid to each of its participating
4324	4324
4325	4325
4326	4326
4327	4327
4328	4328
4329	4329	HB4065 - 120 - LRB103 31966 RPS 60743 b
4330	4330
4331	4331
4332	4332	HB4065- 121 -LRB103 31966 RPS 60743 b HB4065 - 121 - LRB103 31966 RPS 60743 b
4333	4333	HB4065 - 121 - LRB103 31966 RPS 60743 b
4334	4334	1 employees;
4335	4335	2 2. an amount equal to the employee contributions
4336	4336	3 provided by paragraph (a) of Section 7-173, whether or not
4337	4337	4 the employee contributions are withheld as permitted by
4338	4338	5 that Section;
4339	4339	6 3. all accounts receivable, together with interest
4340	4340	7 charged thereon, as provided in Section 7-209, and any
4341	4341	8 amounts due under subsection (a-5) of Section 7-144;
4342	4342	9 4. if it has no participating employees with current
4343	4343	10 earnings, an amount payable which, over a closed period of
4344	4344	11 20 years for participating municipalities and 10 years for
4345	4345	12 participating instrumentalities, will amortize, at the
4346	4346	13 effective rate for that year, any unfunded obligation. The
4347	4347	14 unfunded obligation shall be computed as provided in
4348	4348	15 paragraph 2 of subsection (b);
4349	4349	16 5. if it has fewer than 7 participating employees or a
4350	4350	17 negative balance in its municipality reserve, the greater
4351	4351	18 of (A) an amount payable that, over a period of 20 years,
4352	4352	19 will amortize at the effective rate for that year any
4353	4353	20 unfunded obligation, computed as provided in paragraph 2
4354	4354	21 of subsection (b) or (B) the amount required by paragraph
4355	4355	22 1 of this subsection (a).
4356	4356	23 (b) A separate municipality contribution rate shall be
4357	4357	24 determined for each calendar year for all participating
4358	4358	25 municipalities together with all instrumentalities thereof.
4359	4359	26 The municipality contribution rate shall be determined for
4360	4360
4361	4361
4362	4362
4363	4363
4364	4364
4365	4365	HB4065 - 121 - LRB103 31966 RPS 60743 b
4366	4366
4367	4367
4368	4368	HB4065- 122 -LRB103 31966 RPS 60743 b HB4065 - 122 - LRB103 31966 RPS 60743 b
4369	4369	HB4065 - 122 - LRB103 31966 RPS 60743 b
4370	4370	1 participating instrumentalities as if they were participating
4371	4371	2 municipalities. The municipality contribution rate shall be
4372	4372	3 the sum of the following percentages:
4373	4373	4 1. The percentage of earnings of all the participating
4374	4374	5 employees of all participating municipalities and
4375	4375	6 participating instrumentalities which, if paid over the
4376	4376	7 entire period of their service, will be sufficient when
4377	4377	8 combined with all employee contributions available for the
4378	4378	9 payment of benefits, to provide all annuities for
4379	4379	10 participating employees, and the $3,000 death benefit
4380	4380	11 payable under Sections 7-158 and 7-164, such percentage to
4381	4381	12 be known as the normal cost rate.
4382	4382	13 2. The percentage of earnings of the participating
4383	4383	14 employees of each participating municipality and
4384	4384	15 participating instrumentalities necessary to adjust for
4385	4385	16 the difference between the present value of all benefits,
4386	4386	17 excluding temporary and total and permanent disability and
4387	4387	18 death benefits, to be provided for its participating
4388	4388	19 employees and the sum of its accumulated municipality
4389	4389	20 contributions and the accumulated employee contributions
4390	4390	21 and the present value of expected future employee and
4391	4391	22 municipality contributions pursuant to subparagraph 1 of
4392	4392	23 this paragraph (b). This adjustment shall be spread over a
4393	4393	24 period determined by the Board, not to exceed 30 years for
4394	4394	25 participating municipalities or 10 years for participating
4395	4395	26 instrumentalities.
4396	4396
4397	4397
4398	4398
4399	4399
4400	4400
4401	4401	HB4065 - 122 - LRB103 31966 RPS 60743 b
4402	4402
4403	4403
4404	4404	HB4065- 123 -LRB103 31966 RPS 60743 b HB4065 - 123 - LRB103 31966 RPS 60743 b
4405	4405	HB4065 - 123 - LRB103 31966 RPS 60743 b
4406	4406	1 3. The percentage of earnings of the participating
4407	4407	2 employees of all municipalities and participating
4408	4408	3 instrumentalities necessary to provide the present value
4409	4409	4 of all temporary and total and permanent disability
4410	4410	5 benefits granted during the most recent year for which
4411	4411	6 information is available.
4412	4412	7 4. The percentage of earnings of the participating
4413	4413	8 employees of all participating municipalities and
4414	4414	9 participating instrumentalities necessary to provide the
4415	4415	10 present value of the net single sum death benefits
4416	4416	11 expected to become payable from the reserve established
4417	4417	12 under Section 7-206 during the year for which this rate is
4418	4418	13 fixed.
4419	4419	14 5. The percentage of earnings necessary to meet any
4420	4420	15 deficiency arising in the Terminated Municipality Reserve.
4421	4421	16 (c) A separate municipality contribution rate shall be
4422	4422	17 computed for each participating municipality or participating
4423	4423	18 instrumentality for its sheriff's law enforcement employees.
4424	4424	19 A separate municipality contribution rate shall be
4425	4425	20 computed for the sheriff's law enforcement employees of each
4426	4426	21 forest preserve district that elects to have such employees.
4427	4427	22 For the period from January 1, 1986 to December 31, 1986, such
4428	4428	23 rate shall be the forest preserve district's regular rate plus
4429	4429	24 2%.
4430	4430	25 Beginning in fiscal year 2024, the Board shall annually
4431	4431	26 certify to the Governor the amount of each participant
4432	4432
4433	4433
4434	4434
4435	4435
4436	4436
4437	4437	HB4065 - 123 - LRB103 31966 RPS 60743 b
4438	4438
4439	4439
4440	4440	HB4065- 124 -LRB103 31966 RPS 60743 b HB4065 - 124 - LRB103 31966 RPS 60743 b
4441	4441	HB4065 - 124 - LRB103 31966 RPS 60743 b
4442	4442	1 municipality's and participating instrumentality's
4443	4443	2 contribution for its sheriff's law enforcement employees.
4444	4444	3 In the event that the Board determines that there is an
4445	4445	4 actuarial deficiency in the account of any municipality with
4446	4446	5 respect to a person who has elected to participate in the Fund
4447	4447	6 under Section 3-109.1 of this Code, the Board may adjust the
4448	4448	7 municipality's contribution rate so as to make up that
4449	4449	8 deficiency over such reasonable period of time as the Board
4450	4450	9 may determine.
4451	4451	10 (d) The Board may establish a separate municipality
4452	4452	11 contribution rate for all employees who are program
4453	4453	12 participants employed under the federal Comprehensive
4454	4454	13 Employment Training Act by all of the participating
4455	4455	14 municipalities and instrumentalities. The Board may also
4456	4456	15 provide that, in lieu of a separate municipality rate for
4457	4457	16 these employees, a portion of the municipality contributions
4458	4458	17 for such program participants shall be refunded or an extra
4459	4459	18 charge assessed so that the amount of municipality
4460	4460	19 contributions retained or received by the fund for all CETA
4461	4461	20 program participants shall be an amount equal to that which
4462	4462	21 would be provided by the separate municipality contribution
4463	4463	22 rate for all such program participants. Refunds shall be made
4464	4464	23 to prime sponsors of programs upon submission of a claim
4465	4465	24 therefor and extra charges shall be assessed to participating
4466	4466	25 municipalities and instrumentalities. In establishing the
4467	4467	26 municipality contribution rate as provided in paragraph (b) of
4468	4468
4469	4469
4470	4470
4471	4471
4472	4472
4473	4473	HB4065 - 124 - LRB103 31966 RPS 60743 b
4474	4474
4475	4475
4476	4476	HB4065- 125 -LRB103 31966 RPS 60743 b HB4065 - 125 - LRB103 31966 RPS 60743 b
4477	4477	HB4065 - 125 - LRB103 31966 RPS 60743 b
4478	4478	1 this Section, the use of a separate municipality contribution
4479	4479	2 rate for program participants or the refund of a portion of the
4480	4480	3 municipality contributions, as the case may be, may be
4481	4481	4 considered.
4482	4482	5 (e) Computations of municipality contribution rates for
4483	4483	6 the following calendar year shall be made prior to the
4484	4484	7 beginning of each year, from the information available at the
4485	4485	8 time the computations are made, and on the assumption that the
4486	4486	9 employees in each participating municipality or participating
4487	4487	10 instrumentality at such time will continue in service until
4488	4488	11 the end of such calendar year at their respective rates of
4489	4489	12 earnings at such time.
4490	4490	13 (f) Any municipality which is the recipient of State
4491	4491	14 allocations representing that municipality's contributions for
4492	4492	15 retirement annuity purposes on behalf of its employees as
4493	4493	16 provided in Section 12-21.16 of the Illinois Public Aid Code
4494	4494	17 shall pay the allocations so received to the Board for such
4495	4495	18 purpose. Estimates of State allocations to be received during
4496	4496	19 any taxable year shall be considered in the determination of
4497	4497	20 the municipality's tax rate for that year under Section 7-171.
4498	4498	21 If a special tax is levied under Section 7-171, none of the
4499	4499	22 proceeds may be used to reimburse the municipality for the
4500	4500	23 amount of State allocations received and paid to the Board.
4501	4501	24 Any multiple-county or consolidated health department which
4502	4502	25 receives contributions from a county under Section 11.2 of "An
4503	4503	26 Act in relation to establishment and maintenance of county and
4504	4504
4505	4505
4506	4506
4507	4507
4508	4508
4509	4509	HB4065 - 125 - LRB103 31966 RPS 60743 b
4510	4510
4511	4511
4512	4512	HB4065- 126 -LRB103 31966 RPS 60743 b HB4065 - 126 - LRB103 31966 RPS 60743 b
4513	4513	HB4065 - 126 - LRB103 31966 RPS 60743 b
4514	4514	1 multiple-county health departments", approved July 9, 1943, as
4515	4515	2 amended, or distributions under Section 3 of the Department of
4516	4516	3 Public Health Act, shall use these only for municipality
4517	4517	4 contributions by the health department.
4518	4518	5 (g) Municipality contributions for the several purposes
4519	4519	6 specified shall, for township treasurers and employees in the
4520	4520	7 offices of the township treasurers who meet the qualifying
4521	4521	8 conditions for coverage hereunder, be allocated among the
4522	4522	9 several school districts and parts of school districts
4523	4523	10 serviced by such treasurers and employees in the proportion
4524	4524	11 which the amount of school funds of each district or part of a
4525	4525	12 district handled by the treasurer bears to the total amount of
4526	4526	13 all school funds handled by the treasurer.
4527	4527	14 From the funds subject to allocation among districts and
4528	4528	15 parts of districts pursuant to the School Code, the trustees
4529	4529	16 shall withhold the proportionate share of the liability for
4530	4530	17 municipality contributions imposed upon such districts by this
4531	4531	18 Section, in respect to such township treasurers and employees
4532	4532	19 and remit the same to the Board.
4533	4533	20 The municipality contribution rate for an educational
4534	4534	21 service center shall initially be the same rate for each year
4535	4535	22 as the regional office of education or school district which
4536	4536	23 serves as its administrative agent. When actuarial data become
4537	4537	24 available, a separate rate shall be established as provided in
4538	4538	25 subparagraph (i) of this Section.
4539	4539	26 The municipality contribution rate for a public agency,
4540	4540
4541	4541
4542	4542
4543	4543
4544	4544
4545	4545	HB4065 - 126 - LRB103 31966 RPS 60743 b
4546	4546
4547	4547
4548	4548	HB4065- 127 -LRB103 31966 RPS 60743 b HB4065 - 127 - LRB103 31966 RPS 60743 b
4549	4549	HB4065 - 127 - LRB103 31966 RPS 60743 b
4550	4550	1 other than a vocational education cooperative, formed under
4551	4551	2 the Intergovernmental Cooperation Act shall initially be the
4552	4552	3 average rate for the municipalities which are parties to the
4553	4553	4 intergovernmental agreement. When actuarial data become
4554	4554	5 available, a separate rate shall be established as provided in
4555	4555	6 subparagraph (i) of this Section.
4556	4556	7 (h) Each participating municipality and participating
4557	4557	8 instrumentality shall make the contributions in the amounts
4558	4558	9 provided in this Section in the manner prescribed from time to
4559	4559	10 time by the Board and all such contributions shall be
4560	4560	11 obligations of the respective participating municipalities and
4561	4561	12 participating instrumentalities to this fund. The failure to
4562	4562	13 deduct any employee contributions shall not relieve the
4563	4563	14 participating municipality or participating instrumentality of
4564	4564	15 its obligation to this fund. Delinquent payments of
4565	4565	16 contributions due under this Section may, with interest, be
4566	4566	17 recovered by civil action against the participating
4567	4567	18 municipalities or participating instrumentalities.
4568	4568	19 Municipality contributions, other than the amount necessary
4569	4569	20 for employee contributions, for periods of service by
4570	4570	21 employees from whose earnings no deductions were made for
4571	4571	22 employee contributions to the fund, may be charged to the
4572	4572	23 municipality reserve for the municipality or participating
4573	4573	24 instrumentality.
4574	4574	25 (i) Contributions by participating instrumentalities shall
4575	4575	26 be determined as provided herein except that the percentage
4576	4576
4577	4577
4578	4578
4579	4579
4580	4580
4581	4581	HB4065 - 127 - LRB103 31966 RPS 60743 b
4582	4582
4583	4583
4584	4584	HB4065- 128 -LRB103 31966 RPS 60743 b HB4065 - 128 - LRB103 31966 RPS 60743 b
4585	4585	HB4065 - 128 - LRB103 31966 RPS 60743 b
4586	4586	1 derived under subparagraph 2 of paragraph (b) of this Section,
4587	4587	2 and the amount payable under subparagraph 4 of paragraph (a)
4588	4588	3 of this Section, shall be based on an amortization period of 10
4589	4589	4 years.
4590	4590	5 (j) Notwithstanding the other provisions of this Section,
4591	4591	6 the additional unfunded liability accruing as a result of
4592	4592	7 Public Act 94-712 shall be amortized over a period of 30 years
4593	4593	8 beginning on January 1 of the second calendar year following
4594	4594	9 the calendar year in which Public Act 94-712 takes effect,
4595	4595	10 except that the employer may provide for a longer amortization
4596	4596	11 period by adopting a resolution or ordinance specifying a
4597	4597	12 35-year or 40-year period and submitting a certified copy of
4598	4598	13 the ordinance or resolution to the fund no later than June 1 of
4599	4599	14 the calendar year following the calendar year in which Public
4600	4600	15 Act 94-712 takes effect.
4601	4601	16 (k) If the amount of a participating employee's reported
4602	4602	17 earnings for any of the 12-month periods used to determine the
4603	4603	18 final rate of earnings exceeds the employee's 12-month
4604	4604	19 reported earnings with the same employer for the previous year
4605	4605	20 by the greater of 6% or 1.5 times the annual increase in the
4606	4606	21 Consumer Price Index-U, as established by the United States
4607	4607	22 Department of Labor for the preceding September, the
4608	4608	23 participating municipality or participating instrumentality
4609	4609	24 that paid those earnings shall pay to the Fund, in addition to
4610	4610	25 any other contributions required under this Article, the
4611	4611	26 present value of the increase in the pension resulting from
4612	4612
4613	4613
4614	4614
4615	4615
4616	4616
4617	4617	HB4065 - 128 - LRB103 31966 RPS 60743 b
4618	4618
4619	4619
4620	4620	HB4065- 129 -LRB103 31966 RPS 60743 b HB4065 - 129 - LRB103 31966 RPS 60743 b
4621	4621	HB4065 - 129 - LRB103 31966 RPS 60743 b
4622	4622	1 the portion of the increase in reported earnings that is in
4623	4623	2 excess of the greater of 6% or 1.5 times the annual increase in
4624	4624	3 the Consumer Price Index-U, as determined by the Fund. This
4625	4625	4 present value shall be computed on the basis of the actuarial
4626	4626	5 assumptions and tables used in the most recent actuarial
4627	4627	6 valuation of the Fund that is available at the time of the
4628	4628	7 computation.
4629	4629	8 Whenever it determines that a payment is or may be
4630	4630	9 required under this subsection (k), the fund shall calculate
4631	4631	10 the amount of the payment and bill the participating
4632	4632	11 municipality or participating instrumentality for that amount.
4633	4633	12 The bill shall specify the calculations used to determine the
4634	4634	13 amount due. If the participating municipality or participating
4635	4635	14 instrumentality disputes the amount of the bill, it may,
4636	4636	15 within 30 days after receipt of the bill, apply to the fund in
4637	4637	16 writing for a recalculation. The application must specify in
4638	4638	17 detail the grounds of the dispute. Upon receiving a timely
4639	4639	18 application for recalculation, the fund shall review the
4640	4640	19 application and, if appropriate, recalculate the amount due.
4641	4641	20 The participating municipality and participating
4642	4642	21 instrumentality contributions required under this subsection
4643	4643	22 (k) may be paid in the form of a lump sum within 90 days after
4644	4644	23 receipt of the bill. If the participating municipality and
4645	4645	24 participating instrumentality contributions are not paid
4646	4646	25 within 90 days after receipt of the bill, then interest will be
4647	4647	26 charged at a rate equal to the fund's annual actuarially
4648	4648
4649	4649
4650	4650
4651	4651
4652	4652
4653	4653	HB4065 - 129 - LRB103 31966 RPS 60743 b
4654	4654
4655	4655
4656	4656	HB4065- 130 -LRB103 31966 RPS 60743 b HB4065 - 130 - LRB103 31966 RPS 60743 b
4657	4657	HB4065 - 130 - LRB103 31966 RPS 60743 b
4658	4658	1 assumed rate of return on investment compounded annually from
4659	4659	2 the 91st day after receipt of the bill. Payments must be
4660	4660	3 concluded within 3 years after receipt of the bill by the
4661	4661	4 participating municipality or participating instrumentality.
4662	4662	5 When assessing payment for any amount due under this
4663	4663	6 subsection (k), the fund shall exclude earnings increases
4664	4664	7 resulting from overload or overtime earnings.
4665	4665	8 When assessing payment for any amount due under this
4666	4666	9 subsection (k), the fund shall exclude earnings increases
4667	4667	10 resulting from payments for unused vacation time, but only for
4668	4668	11 payments for unused vacation time made in the final 3 months of
4669	4669	12 the final rate of earnings period.
4670	4670	13 When assessing payment for any amount due under this
4671	4671	14 subsection (k), the fund shall also exclude earnings increases
4672	4672	15 attributable to standard employment promotions resulting in
4673	4673	16 increased responsibility and workload.
4674	4674	17 When assessing payment for any amount due under this
4675	4675	18 subsection (k), the fund shall exclude reportable earnings
4676	4676	19 increases resulting from periods where the member was paid
4677	4677	20 through workers' compensation.
4678	4678	21 This subsection (k) does not apply to earnings increases
4679	4679	22 paid to individuals under contracts or collective bargaining
4680	4680	23 agreements entered into, amended, or renewed before January 1,
4681	4681	24 2012 (the effective date of Public Act 97-609), earnings
4682	4682	25 increases paid to members who are 10 years or more from
4683	4683	26 retirement eligibility, or earnings increases resulting from
4684	4684
4685	4685
4686	4686
4687	4687
4688	4688
4689	4689	HB4065 - 130 - LRB103 31966 RPS 60743 b
4690	4690
4691	4691
4692	4692	HB4065- 131 -LRB103 31966 RPS 60743 b HB4065 - 131 - LRB103 31966 RPS 60743 b
4693	4693	HB4065 - 131 - LRB103 31966 RPS 60743 b
4694	4694	1 an increase in the number of hours required to be worked.
4695	4695	2 When assessing payment for any amount due under this
4696	4696	3 subsection (k), the fund shall also exclude earnings
4697	4697	4 attributable to personnel policies adopted before January 1,
4698	4698	5 2012 (the effective date of Public Act 97-609) as long as those
4699	4699	6 policies are not applicable to employees who begin service on
4700	4700	7 or after January 1, 2012 (the effective date of Public Act
4701	4701	8 97-609).
4702	4702	9 The change made to this Section by Public Act 100-139 is a
4703	4703	10 clarification of existing law and is intended to be
4704	4704	11 retroactive to January 1, 2012 (the effective date of Public
4705	4705	12 Act 97-609).
4706	4706	13 (Source: P.A. 102-849, eff. 5-13-22.)
4707	4707	14 (40 ILCS 5/14-152.1)
4708	4708	15 Sec. 14-152.1. Application and expiration of new benefit
4709	4709	16 increases.
4710	4710	17 (a) As used in this Section, "new benefit increase" means
4711	4711	18 an increase in the amount of any benefit provided under this
4712	4712	19 Article, or an expansion of the conditions of eligibility for
4713	4713	20 any benefit under this Article, that results from an amendment
4714	4714	21 to this Code that takes effect after June 1, 2005 (the
4715	4715	22 effective date of Public Act 94-4). "New benefit increase",
4716	4716	23 however, does not include any benefit increase resulting from
4717	4717	24 the changes made to Article 1 or this Article by Public Act
4718	4718	25 96-37, Public Act 100-23, Public Act 100-587, Public Act
4719	4719
4720	4720
4721	4721
4722	4722
4723	4723
4724	4724	HB4065 - 131 - LRB103 31966 RPS 60743 b
4725	4725
4726	4726
4727	4727	HB4065- 132 -LRB103 31966 RPS 60743 b HB4065 - 132 - LRB103 31966 RPS 60743 b
4728	4728	HB4065 - 132 - LRB103 31966 RPS 60743 b
4729	4729	1 100-611, Public Act 101-10, Public Act 101-610, Public Act
4730	4730	2 102-210, Public Act 102-856, Public Act 102-956, or this
4731	4731	3 amendatory Act of the 103rd General Assembly this amendatory
4732	4732	4 Act of the 102nd General Assembly.
4733	4733	5 (b) Notwithstanding any other provision of this Code or
4734	4734	6 any subsequent amendment to this Code, every new benefit
4735	4735	7 increase is subject to this Section and shall be deemed to be
4736	4736	8 granted only in conformance with and contingent upon
4737	4737	9 compliance with the provisions of this Section.
4738	4738	10 (c) The Public Act enacting a new benefit increase must
4739	4739	11 identify and provide for payment to the System of additional
4740	4740	12 funding at least sufficient to fund the resulting annual
4741	4741	13 increase in cost to the System as it accrues.
4742	4742	14 Every new benefit increase is contingent upon the General
4743	4743	15 Assembly providing the additional funding required under this
4744	4744	16 subsection. The Commission on Government Forecasting and
4745	4745	17 Accountability shall analyze whether adequate additional
4746	4746	18 funding has been provided for the new benefit increase and
4747	4747	19 shall report its analysis to the Public Pension Division of
4748	4748	20 the Department of Insurance. A new benefit increase created by
4749	4749	21 a Public Act that does not include the additional funding
4750	4750	22 required under this subsection is null and void. If the Public
4751	4751	23 Pension Division determines that the additional funding
4752	4752	24 provided for a new benefit increase under this subsection is
4753	4753	25 or has become inadequate, it may so certify to the Governor and
4754	4754	26 the State Comptroller and, in the absence of corrective action
4755	4755
4756	4756
4757	4757
4758	4758
4759	4759
4760	4760	HB4065 - 132 - LRB103 31966 RPS 60743 b
4761	4761
4762	4762
4763	4763	HB4065- 133 -LRB103 31966 RPS 60743 b HB4065 - 133 - LRB103 31966 RPS 60743 b
4764	4764	HB4065 - 133 - LRB103 31966 RPS 60743 b
4765	4765	1 by the General Assembly, the new benefit increase shall expire
4766	4766	2 at the end of the fiscal year in which the certification is
4767	4767	3 made.
4768	4768	4 (d) Every new benefit increase shall expire 5 years after
4769	4769	5 its effective date or on such earlier date as may be specified
4770	4770	6 in the language enacting the new benefit increase or provided
4771	4771	7 under subsection (c). This does not prevent the General
4772	4772	8 Assembly from extending or re-creating a new benefit increase
4773	4773	9 by law.
4774	4774	10 (e) Except as otherwise provided in the language creating
4775	4775	11 the new benefit increase, a new benefit increase that expires
4776	4776	12 under this Section continues to apply to persons who applied
4777	4777	13 and qualified for the affected benefit while the new benefit
4778	4778	14 increase was in effect and to the affected beneficiaries and
4779	4779	15 alternate payees of such persons, but does not apply to any
4780	4780	16 other person, including, without limitation, a person who
4781	4781	17 continues in service after the expiration date and did not
4782	4782	18 apply and qualify for the affected benefit while the new
4783	4783	19 benefit increase was in effect.
4784	4784	20 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
4785	4785	21 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
4786	4786	22 1-1-23; 102-956, eff. 5-27-22.)
4787	4787	23 (40 ILCS 5/15-108.1)
4788	4788	24 Sec. 15-108.1. Tier 1 member. "Tier 1 member": A
4789	4789	25 participant or an annuitant of a retirement annuity under this
4790	4790
4791	4791
4792	4792
4793	4793
4794	4794
4795	4795	HB4065 - 133 - LRB103 31966 RPS 60743 b
4796	4796
4797	4797
4798	4798	HB4065- 134 -LRB103 31966 RPS 60743 b HB4065 - 134 - LRB103 31966 RPS 60743 b
4799	4799	HB4065 - 134 - LRB103 31966 RPS 60743 b
4800	4800	1 Article, other than a participant in the self-managed plan
4801	4801	2 under Section 15-158.2, who first became a participant or
4802	4802	3 member before January 1, 2011 under any reciprocal retirement
4803	4803	4 system or pension fund established under this Code, other than
4804	4804	5 a retirement system or pension fund established under Articles
4805	4805	6 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a
4806	4806	7 participant or an annuitant who is a police officer or
4807	4807	8 firefighter regardless of when the participant or annuitant
4808	4808	9 first became a participant or member of a reciprocal
4809	4809	10 retirement system or pension fund established under this Code,
4810	4810	11 other than a retirement system or pension fund established
4811	4811	12 under Articles 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1
4812	4812	13 member" includes a person who first became a participant under
4813	4813	14 this System before January 1, 2011 and who accepts a refund and
4814	4814	15 is subsequently reemployed by an employer on or after January
4815	4815	16 1, 2011.
4816	4816	17 (Source: P.A. 98-92, eff. 7-16-13.)
4817	4817	18 (40 ILCS 5/15-108.2)
4818	4818	19 Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person
4819	4819	20 who first becomes a participant under this Article on or after
4820	4820	21 January 1, 2011 and before the implementation date, as defined
4821	4821	22 under subsection (a) of Section 1-161, determined by the
4822	4822	23 Board, other than a person in the self-managed plan
4823	4823	24 established under Section 15-158.2 or a person who makes the
4824	4824	25 election under subsection (c) of Section 1-161, unless the
4825	4825
4826	4826
4827	4827
4828	4828
4829	4829
4830	4830	HB4065 - 134 - LRB103 31966 RPS 60743 b
4831	4831
4832	4832
4833	4833	HB4065- 135 -LRB103 31966 RPS 60743 b HB4065 - 135 - LRB103 31966 RPS 60743 b
4834	4834	HB4065 - 135 - LRB103 31966 RPS 60743 b
4835	4835	1 person is otherwise a Tier 1 member. The changes made to this
4836	4836	2 Section by this amendatory Act of the 98th General Assembly
4837	4837	3 are a correction of existing law and are intended to be
4838	4838	4 retroactive to the effective date of Public Act 96-889,
4839	4839	5 notwithstanding the provisions of Section 1-103.1 of this
4840	4840	6 Code. "Tier 2 member" does not include a participant or an
4841	4841	7 annuitant who is a police officer or firefighter regardless of
4842	4842	8 when the participant or annuitant first became a participant
4843	4843	9 or member of a reciprocal retirement system or pension fund
4844	4844	10 established under this Code.
4845	4845	11 (Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)
4846	4846	12 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
4847	4847	13 Sec. 15-135. Retirement annuities; conditions.
4848	4848	14 (a) This subsection (a) applies only to a Tier 1 member. A
4849	4849	15 participant who retires in one of the following specified
4850	4850	16 years with the specified amount of service is entitled to a
4851	4851	17 retirement annuity at any age under the retirement program
4852	4852	18 applicable to the participant:
4853	4853	19 35 years if retirement is in 1997 or before;
4854	4854	20 34 years if retirement is in 1998;
4855	4855	21 33 years if retirement is in 1999;
4856	4856	22 32 years if retirement is in 2000;
4857	4857	23 31 years if retirement is in 2001;
4858	4858	24 30 years if retirement is in 2002 or later.
4859	4859	25 A participant with 8 or more years of service after
4860	4860
4861	4861
4862	4862
4863	4863
4864	4864
4865	4865	HB4065 - 135 - LRB103 31966 RPS 60743 b
4866	4866
4867	4867
4868	4868	HB4065- 136 -LRB103 31966 RPS 60743 b HB4065 - 136 - LRB103 31966 RPS 60743 b
4869	4869	HB4065 - 136 - LRB103 31966 RPS 60743 b
4870	4870	1 September 1, 1941, is entitled to a retirement annuity on or
4871	4871	2 after attainment of age 55.
4872	4872	3 A participant with at least 5 but less than 8 years of
4873	4873	4 service after September 1, 1941, is entitled to a retirement
4874	4874	5 annuity on or after attainment of age 62.
4875	4875	6 A participant who has at least 25 years of service in this
4876	4876	7 system as a police officer or firefighter is entitled to a
4877	4877	8 retirement annuity on or after the attainment of age 50, if
4878	4878	9 Rule 4 of Section 15-136 is applicable to the participant.
4879	4879	10 (a-5) A Tier 2 member is entitled to a retirement annuity
4880	4880	11 upon written application if he or she has attained age 67 and
4881	4881	12 has at least 10 years of service credit and is otherwise
4882	4882	13 eligible under the requirements of this Article. A Tier 2
4883	4883	14 member who has attained age 62 and has at least 10 years of
4884	4884	15 service credit and is otherwise eligible under the
4885	4885	16 requirements of this Article may elect to receive the lower
4886	4886	17 retirement annuity provided in subsection (b-5) of Section
4887	4887	18 15-136 of this Article.
4888	4888	19 (a-10) (Blank). A Tier 2 member who has at least 20 years
4889	4889	20 of service in this system as a police officer or firefighter is
4890	4890	21 entitled to a retirement annuity upon written application on
4891	4891	22 or after the attainment of age 60 if Rule 4 of Section 15-136
4892	4892	23 is applicable to the participant. The changes made to this
4893	4893	24 subsection by this amendatory Act of the 101st General
4894	4894	25 Assembly apply retroactively to January 1, 2011.
4895	4895	26 (b) The annuity payment period shall begin on the date
4896	4896
4897	4897
4898	4898
4899	4899
4900	4900
4901	4901	HB4065 - 136 - LRB103 31966 RPS 60743 b
4902	4902
4903	4903
4904	4904	HB4065- 137 -LRB103 31966 RPS 60743 b HB4065 - 137 - LRB103 31966 RPS 60743 b
4905	4905	HB4065 - 137 - LRB103 31966 RPS 60743 b
4906	4906	1 specified by the participant or the recipient of a disability
4907	4907	2 retirement annuity submitting a written application. For a
4908	4908	3 participant, the date on which the annuity payment period
4909	4909	4 begins shall not be prior to termination of employment or more
4910	4910	5 than one year before the application is received by the board;
4911	4911	6 however, if the participant is not an employee of an employer
4912	4912	7 participating in this System or in a participating system as
4913	4913	8 defined in Article 20 of this Code on April 1 of the calendar
4914	4914	9 year next following the calendar year in which the participant
4915	4915	10 attains the age specified under Section 401(a)(9) of the
4916	4916	11 Internal Revenue Code of 1986, as amended, the annuity payment
4917	4917	12 period shall begin on that date regardless of whether an
4918	4918	13 application has been filed. For a recipient of a disability
4919	4919	14 retirement annuity, the date on which the annuity payment
4920	4920	15 period begins shall not be prior to the discontinuation of the
4921	4921	16 disability retirement annuity under Section 15-153.2.
4922	4922	17 (c) An annuity is not payable if the amount provided under
4923	4923	18 Section 15-136 is less than $10 per month.
4924	4924	19 (Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
4925	4925	20 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
4926	4926	21 Sec. 15-136. Retirement annuities; amount - Amount. The
4927	4927	22 provisions of this Section 15-136 apply only to those
4928	4928	23 participants who are participating in the traditional benefit
4929	4929	24 package or the portable benefit package and do not apply to
4930	4930	25 participants who are participating in the self-managed plan.
4931	4931
4932	4932
4933	4933
4934	4934
4935	4935
4936	4936	HB4065 - 137 - LRB103 31966 RPS 60743 b
4937	4937
4938	4938
4939	4939	HB4065- 138 -LRB103 31966 RPS 60743 b HB4065 - 138 - LRB103 31966 RPS 60743 b
4940	4940	HB4065 - 138 - LRB103 31966 RPS 60743 b
4941	4941	1 (a) The amount of a participant's retirement annuity,
4942	4942	2 expressed in the form of a single-life annuity, shall be
4943	4943	3 determined by whichever of the following rules is applicable
4944	4944	4 and provides the largest annuity:
4945	4945	5 Rule 1: The retirement annuity shall be 1.67% of final
4946	4946	6 rate of earnings for each of the first 10 years of service,
4947	4947	7 1.90% for each of the next 10 years of service, 2.10% for each
4948	4948	8 year of service in excess of 20 but not exceeding 30, and 2.30%
4949	4949	9 for each year in excess of 30; or for persons who retire on or
4950	4950	10 after January 1, 1998, 2.2% of the final rate of earnings for
4951	4951	11 each year of service.
4952	4952	12 Rule 2: The retirement annuity shall be the sum of the
4953	4953	13 following, determined from amounts credited to the participant
4954	4954	14 in accordance with the actuarial tables and the effective rate
4955	4955	15 of interest in effect at the time the retirement annuity
4956	4956	16 begins:
4957	4957	17 (i) the normal annuity which can be provided on an
4958	4958	18 actuarially equivalent basis, by the accumulated normal
4959	4959	19 contributions as of the date the annuity begins;
4960	4960	20 (ii) an annuity from employer contributions of an
4961	4961	21 amount equal to that which can be provided on an
4962	4962	22 actuarially equivalent basis from the accumulated normal
4963	4963	23 contributions made by the participant under Section
4964	4964	24 15-113.6 and Section 15-113.7 plus 1.4 times all other
4965	4965	25 accumulated normal contributions made by the participant;
4966	4966	26 and
4967	4967
4968	4968
4969	4969
4970	4970
4971	4971
4972	4972	HB4065 - 138 - LRB103 31966 RPS 60743 b
4973	4973
4974	4974
4975	4975	HB4065- 139 -LRB103 31966 RPS 60743 b HB4065 - 139 - LRB103 31966 RPS 60743 b
4976	4976	HB4065 - 139 - LRB103 31966 RPS 60743 b
4977	4977	1 (iii) the annuity that can be provided on an
4978	4978	2 actuarially equivalent basis from the entire contribution
4979	4979	3 made by the participant under Section 15-113.3.
4980	4980	4 With respect to a police officer or firefighter who
4981	4981	5 retires on or after August 14, 1998, the accumulated normal
4982	4982	6 contributions taken into account under clauses (i) and (ii) of
4983	4983	7 this Rule 2 shall include the additional normal contributions
4984	4984	8 made by the police officer or firefighter under Section
4985	4985	9 15-157(a).
4986	4986	10 The amount of a retirement annuity calculated under this
4987	4987	11 Rule 2 shall be computed solely on the basis of the
4988	4988	12 participant's accumulated normal contributions, as specified
4989	4989	13 in this Rule and defined in Section 15-116. Neither an
4990	4990	14 employee or employer contribution for early retirement under
4991	4991	15 Section 15-136.2 nor any other employer contribution shall be
4992	4992	16 used in the calculation of the amount of a retirement annuity
4993	4993	17 under this Rule 2.
4994	4994	18 This amendatory Act of the 91st General Assembly is a
4995	4995	19 clarification of existing law and applies to every participant
4996	4996	20 and annuitant without regard to whether status as an employee
4997	4997	21 terminates before the effective date of this amendatory Act.
4998	4998	22 This Rule 2 does not apply to a person who first becomes an
4999	4999	23 employee under this Article on or after July 1, 2005.
5000	5000	24 Rule 3: The retirement annuity of a participant who is
5001	5001	25 employed at least one-half time during the period on which his
5002	5002	26 or her final rate of earnings is based, shall be equal to the
5003	5003
5004	5004
5005	5005
5006	5006
5007	5007
5008	5008	HB4065 - 139 - LRB103 31966 RPS 60743 b
5009	5009
5010	5010
5011	5011	HB4065- 140 -LRB103 31966 RPS 60743 b HB4065 - 140 - LRB103 31966 RPS 60743 b
5012	5012	HB4065 - 140 - LRB103 31966 RPS 60743 b
5013	5013	1 participant's years of service not to exceed 30, multiplied by
5014	5014	2 (1) $96 if the participant's final rate of earnings is less
5015	5015	3 than $3,500, (2) $108 if the final rate of earnings is at least
5016	5016	4 $3,500 but less than $4,500, (3) $120 if the final rate of
5017	5017	5 earnings is at least $4,500 but less than $5,500, (4) $132 if
5018	5018	6 the final rate of earnings is at least $5,500 but less than
5019	5019	7 $6,500, (5) $144 if the final rate of earnings is at least
5020	5020	8 $6,500 but less than $7,500, (6) $156 if the final rate of
5021	5021	9 earnings is at least $7,500 but less than $8,500, (7) $168 if
5022	5022	10 the final rate of earnings is at least $8,500 but less than
5023	5023	11 $9,500, and (8) $180 if the final rate of earnings is $9,500 or
5024	5024	12 more, except that the annuity for those persons having made an
5025	5025	13 election under Section 15-154(a-1) shall be calculated and
5026	5026	14 payable under the portable retirement benefit program pursuant
5027	5027	15 to the provisions of Section 15-136.4.
5028	5028	16 Rule 4: A participant who is at least age 50 and has 25 or
5029	5029	17 more years of service as a police officer or firefighter, and a
5030	5030	18 participant who is age 55 or over and has at least 20 but less
5031	5031	19 than 25 years of service as a police officer or firefighter,
5032	5032	20 shall be entitled to a retirement annuity of 2 1/4% of the
5033	5033	21 final rate of earnings for each of the first 10 years of
5034	5034	22 service as a police officer or firefighter, 2 1/2% for each of
5035	5035	23 the next 10 years of service as a police officer or
5036	5036	24 firefighter, and 2 3/4% for each year of service as a police
5037	5037	25 officer or firefighter in excess of 20. The retirement annuity
5038	5038	26 for all other service shall be computed under Rule 1. A Tier 2
5039	5039
5040	5040
5041	5041
5042	5042
5043	5043
5044	5044	HB4065 - 140 - LRB103 31966 RPS 60743 b
5045	5045
5046	5046
5047	5047	HB4065- 141 -LRB103 31966 RPS 60743 b HB4065 - 141 - LRB103 31966 RPS 60743 b
5048	5048	HB4065 - 141 - LRB103 31966 RPS 60743 b
5049	5049	1 member is eligible for a retirement annuity calculated under
5050	5050	2 Rule 4 only if that Tier 2 member meets the service
5051	5051	3 requirements for that benefit calculation as prescribed under
5052	5052	4 this Rule 4 in addition to the applicable age requirement
5053	5053	5 under subsection (a-10) of Section 15-135.
5054	5054	6 For purposes of this Rule 4, a participant's service as a
5055	5055	7 firefighter shall also include the following:
5056	5056	8 (i) service that is performed while the person is an
5057	5057	9 employee under subsection (h) of Section 15-107; and
5058	5058	10 (ii) in the case of an individual who was a
5059	5059	11 participating employee employed in the fire department of
5060	5060	12 the University of Illinois's Champaign-Urbana campus
5061	5061	13 immediately prior to the elimination of that fire
5062	5062	14 department and who immediately after the elimination of
5063	5063	15 that fire department transferred to another job with the
5064	5064	16 University of Illinois, service performed as an employee
5065	5065	17 of the University of Illinois in a position other than
5066	5066	18 police officer or firefighter, from the date of that
5067	5067	19 transfer until the employee's next termination of service
5068	5068	20 with the University of Illinois.
5069	5069	21 (b) For a Tier 1 member, the retirement annuity provided
5070	5070	22 under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
5071	5071	23 each month the participant is under age 60 at the time of
5072	5072	24 retirement. However, this reduction shall not apply in the
5073	5073	25 following cases:
5074	5074	26 (1) For a disabled participant whose disability
5075	5075
5076	5076
5077	5077
5078	5078
5079	5079
5080	5080	HB4065 - 141 - LRB103 31966 RPS 60743 b
5081	5081
5082	5082
5083	5083	HB4065- 142 -LRB103 31966 RPS 60743 b HB4065 - 142 - LRB103 31966 RPS 60743 b
5084	5084	HB4065 - 142 - LRB103 31966 RPS 60743 b
5085	5085	1 benefits have been discontinued because he or she has
5086	5086	2 exhausted eligibility for disability benefits under clause
5087	5087	3 (6) of Section 15-152;
5088	5088	4 (2) For a participant who has at least the number of
5089	5089	5 years of service required to retire at any age under
5090	5090	6 subsection (a) of Section 15-135; or
5091	5091	7 (3) For that portion of a retirement annuity which has
5092	5092	8 been provided on account of service of the participant
5093	5093	9 during periods when he or she performed the duties of a
5094	5094	10 police officer or firefighter, if these duties were
5095	5095	11 performed for at least 5 years immediately preceding the
5096	5096	12 date the retirement annuity is to begin.
5097	5097	13 (b-5) The retirement annuity of a Tier 2 member who is
5098	5098	14 retiring under Rule 1 or 3 after attaining age 62 with at least
5099	5099	15 10 years of service credit shall be reduced by 1/2 of 1% for
5100	5100	16 each full month that the member's age is under age 67.
5101	5101	17 (c) The maximum retirement annuity provided under Rules 1,
5102	5102	18 2, 4, and 5 shall be the lesser of (1) the annual limit of
5103	5103	19 benefits as specified in Section 415 of the Internal Revenue
5104	5104	20 Code of 1986, as such Section may be amended from time to time
5105	5105	21 and as such benefit limits shall be adjusted by the
5106	5106	22 Commissioner of Internal Revenue, and (2) 80% of final rate of
5107	5107	23 earnings.
5108	5108	24 (d) A Tier 1 member whose status as an employee terminates
5109	5109	25 after August 14, 1969 shall receive automatic increases in his
5110	5110	26 or her retirement annuity as follows:
5111	5111
5112	5112
5113	5113
5114	5114
5115	5115
5116	5116	HB4065 - 142 - LRB103 31966 RPS 60743 b
5117	5117
5118	5118
5119	5119	HB4065- 143 -LRB103 31966 RPS 60743 b HB4065 - 143 - LRB103 31966 RPS 60743 b
5120	5120	HB4065 - 143 - LRB103 31966 RPS 60743 b
5121	5121	1 Effective January 1 immediately following the date the
5122	5122	2 retirement annuity begins, the annuitant shall receive an
5123	5123	3 increase in his or her monthly retirement annuity of 0.125% of
5124	5124	4 the monthly retirement annuity provided under Rule 1, Rule 2,
5125	5125	5 Rule 3, or Rule 4 contained in this Section, multiplied by the
5126	5126	6 number of full months which elapsed from the date the
5127	5127	7 retirement annuity payments began to January 1, 1972, plus
5128	5128	8 0.1667% of such annuity, multiplied by the number of full
5129	5129	9 months which elapsed from January 1, 1972, or the date the
5130	5130	10 retirement annuity payments began, whichever is later, to
5131	5131	11 January 1, 1978, plus 0.25% of such annuity multiplied by the
5132	5132	12 number of full months which elapsed from January 1, 1978, or
5133	5133	13 the date the retirement annuity payments began, whichever is
5134	5134	14 later, to the effective date of the increase.
5135	5135	15 The annuitant shall receive an increase in his or her
5136	5136	16 monthly retirement annuity on each January 1 thereafter during
5137	5137	17 the annuitant's life of 3% of the monthly annuity provided
5138	5138	18 under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
5139	5139	19 Section. The change made under this subsection by P.A. 81-970
5140	5140	20 is effective January 1, 1980 and applies to each annuitant
5141	5141	21 whose status as an employee terminates before or after that
5142	5142	22 date.
5143	5143	23 Beginning January 1, 1990, all automatic annual increases
5144	5144	24 payable under this Section shall be calculated as a percentage
5145	5145	25 of the total annuity payable at the time of the increase,
5146	5146	26 including all increases previously granted under this Article.
5147	5147
5148	5148
5149	5149
5150	5150
5151	5151
5152	5152	HB4065 - 143 - LRB103 31966 RPS 60743 b
5153	5153
5154	5154
5155	5155	HB4065- 144 -LRB103 31966 RPS 60743 b HB4065 - 144 - LRB103 31966 RPS 60743 b
5156	5156	HB4065 - 144 - LRB103 31966 RPS 60743 b
5157	5157	1 The change made in this subsection by P.A. 85-1008 is
5158	5158	2 effective January 26, 1988, and is applicable without regard
5159	5159	3 to whether status as an employee terminated before that date.
5160	5160	4 (d-5) A retirement annuity of a Tier 2 member shall
5161	5161	5 receive annual increases on the January 1 occurring either on
5162	5162	6 or after the attainment of age 67 or the first anniversary of
5163	5163	7 the annuity start date, whichever is later. Each annual
5164	5164	8 increase shall be calculated at 3% or one half the annual
5165	5165	9 unadjusted percentage increase (but not less than zero) in the
5166	5166	10 consumer price index-u for the 12 months ending with the
5167	5167	11 September preceding each November 1, whichever is less, of the
5168	5168	12 originally granted retirement annuity. If the annual
5169	5169	13 unadjusted percentage change in the consumer price index-u for
5170	5170	14 the 12 months ending with the September preceding each
5171	5171	15 November 1 is zero or there is a decrease, then the annuity
5172	5172	16 shall not be increased.
5173	5173	17 (e) If, on January 1, 1987, or the date the retirement
5174	5174	18 annuity payment period begins, whichever is later, the sum of
5175	5175	19 the retirement annuity provided under Rule 1 or Rule 2 of this
5176	5176	20 Section and the automatic annual increases provided under the
5177	5177	21 preceding subsection or Section 15-136.1, amounts to less than
5178	5178	22 the retirement annuity which would be provided by Rule 3, the
5179	5179	23 retirement annuity shall be increased as of January 1, 1987,
5180	5180	24 or the date the retirement annuity payment period begins,
5181	5181	25 whichever is later, to the amount which would be provided by
5182	5182	26 Rule 3 of this Section. Such increased amount shall be
5183	5183
5184	5184
5185	5185
5186	5186
5187	5187
5188	5188	HB4065 - 144 - LRB103 31966 RPS 60743 b
5189	5189
5190	5190
5191	5191	HB4065- 145 -LRB103 31966 RPS 60743 b HB4065 - 145 - LRB103 31966 RPS 60743 b
5192	5192	HB4065 - 145 - LRB103 31966 RPS 60743 b
5193	5193	1 considered as the retirement annuity in determining benefits
5194	5194	2 provided under other Sections of this Article. This paragraph
5195	5195	3 applies without regard to whether status as an employee
5196	5196	4 terminated before the effective date of this amendatory Act of
5197	5197	5 1987, provided that the annuitant was employed at least
5198	5198	6 one-half time during the period on which the final rate of
5199	5199	7 earnings was based.
5200	5200	8 (f) A participant is entitled to such additional annuity
5201	5201	9 as may be provided on an actuarially equivalent basis, by any
5202	5202	10 accumulated additional contributions to his or her credit.
5203	5203	11 However, the additional contributions made by the participant
5204	5204	12 toward the automatic increases in annuity provided under this
5205	5205	13 Section shall not be taken into account in determining the
5206	5206	14 amount of such additional annuity.
5207	5207	15 (g) If, (1) by law, a function of a governmental unit, as
5208	5208	16 defined by Section 20-107 of this Code, is transferred in
5209	5209	17 whole or in part to an employer, and (2) a participant
5210	5210	18 transfers employment from such governmental unit to such
5211	5211	19 employer within 6 months after the transfer of the function,
5212	5212	20 and (3) the sum of (A) the annuity payable to the participant
5213	5213	21 under Rule 1, 2, or 3 of this Section (B) all proportional
5214	5214	22 annuities payable to the participant by all other retirement
5215	5215	23 systems covered by Article 20, and (C) the initial primary
5216	5216	24 insurance amount to which the participant is entitled under
5217	5217	25 the Social Security Act, is less than the retirement annuity
5218	5218	26 which would have been payable if all of the participant's
5219	5219
5220	5220
5221	5221
5222	5222
5223	5223
5224	5224	HB4065 - 145 - LRB103 31966 RPS 60743 b
5225	5225
5226	5226
5227	5227	HB4065- 146 -LRB103 31966 RPS 60743 b HB4065 - 146 - LRB103 31966 RPS 60743 b
5228	5228	HB4065 - 146 - LRB103 31966 RPS 60743 b
5229	5229	1 pension credits validated under Section 20-109 had been
5230	5230	2 validated under this system, a supplemental annuity equal to
5231	5231	3 the difference in such amounts shall be payable to the
5232	5232	4 participant.
5233	5233	5 (h) On January 1, 1981, an annuitant who was receiving a
5234	5234	6 retirement annuity on or before January 1, 1971 shall have his
5235	5235	7 or her retirement annuity then being paid increased $1 per
5236	5236	8 month for each year of creditable service. On January 1, 1982,
5237	5237	9 an annuitant whose retirement annuity began on or before
5238	5238	10 January 1, 1977, shall have his or her retirement annuity then
5239	5239	11 being paid increased $1 per month for each year of creditable
5240	5240	12 service.
5241	5241	13 (i) On January 1, 1987, any annuitant whose retirement
5242	5242	14 annuity began on or before January 1, 1977, shall have the
5243	5243	15 monthly retirement annuity increased by an amount equal to 8
5244	5244	16 per year of creditable service times the number of years that
5245	5245	17 have elapsed since the annuity began.
5246	5246	18 (j) The changes made to this Section by this amendatory
5247	5247	19 Act of the 101st General Assembly apply retroactively to
5248	5248	20 January 1, 2011.
5249	5249	21 (Source: P.A. 101-610, eff. 1-1-20.)
5250	5250	22 (40 ILCS 5/15-198)
5251	5251	23 Sec. 15-198. Application and expiration of new benefit
5252	5252	24 increases.
5253	5253	25 (a) As used in this Section, "new benefit increase" means
5254	5254
5255	5255
5256	5256
5257	5257
5258	5258
5259	5259	HB4065 - 146 - LRB103 31966 RPS 60743 b
5260	5260
5261	5261
5262	5262	HB4065- 147 -LRB103 31966 RPS 60743 b HB4065 - 147 - LRB103 31966 RPS 60743 b
5263	5263	HB4065 - 147 - LRB103 31966 RPS 60743 b
5264	5264	1 an increase in the amount of any benefit provided under this
5265	5265	2 Article, or an expansion of the conditions of eligibility for
5266	5266	3 any benefit under this Article, that results from an amendment
5267	5267	4 to this Code that takes effect after June 1, 2005 (the
5268	5268	5 effective date of Public Act 94-4). "New benefit increase",
5269	5269	6 however, does not include any benefit increase resulting from
5270	5270	7 the changes made to Article 1 or this Article by Public Act
5271	5271	8 100-23, Public Act 100-587, Public Act 100-769, Public Act
5272	5272	9 101-10, Public Act 101-610, Public Act 102-16, or this
5273	5273	10 amendatory Act of the 103rd General Assembly this amendatory
5274	5274	11 Act of the 102nd General Assembly.
5275	5275	12 (b) Notwithstanding any other provision of this Code or
5276	5276	13 any subsequent amendment to this Code, every new benefit
5277	5277	14 increase is subject to this Section and shall be deemed to be
5278	5278	15 granted only in conformance with and contingent upon
5279	5279	16 compliance with the provisions of this Section.
5280	5280	17 (c) The Public Act enacting a new benefit increase must
5281	5281	18 identify and provide for payment to the System of additional
5282	5282	19 funding at least sufficient to fund the resulting annual
5283	5283	20 increase in cost to the System as it accrues.
5284	5284	21 Every new benefit increase is contingent upon the General
5285	5285	22 Assembly providing the additional funding required under this
5286	5286	23 subsection. The Commission on Government Forecasting and
5287	5287	24 Accountability shall analyze whether adequate additional
5288	5288	25 funding has been provided for the new benefit increase and
5289	5289	26 shall report its analysis to the Public Pension Division of
5290	5290
5291	5291
5292	5292
5293	5293
5294	5294
5295	5295	HB4065 - 147 - LRB103 31966 RPS 60743 b
5296	5296
5297	5297
5298	5298	HB4065- 148 -LRB103 31966 RPS 60743 b HB4065 - 148 - LRB103 31966 RPS 60743 b
5299	5299	HB4065 - 148 - LRB103 31966 RPS 60743 b
5300	5300	1 the Department of Insurance. A new benefit increase created by
5301	5301	2 a Public Act that does not include the additional funding
5302	5302	3 required under this subsection is null and void. If the Public
5303	5303	4 Pension Division determines that the additional funding
5304	5304	5 provided for a new benefit increase under this subsection is
5305	5305	6 or has become inadequate, it may so certify to the Governor and
5306	5306	7 the State Comptroller and, in the absence of corrective action
5307	5307	8 by the General Assembly, the new benefit increase shall expire
5308	5308	9 at the end of the fiscal year in which the certification is
5309	5309	10 made.
5310	5310	11 (d) Every new benefit increase shall expire 5 years after
5311	5311	12 its effective date or on such earlier date as may be specified
5312	5312	13 in the language enacting the new benefit increase or provided
5313	5313	14 under subsection (c). This does not prevent the General
5314	5314	15 Assembly from extending or re-creating a new benefit increase
5315	5315	16 by law.
5316	5316	17 (e) Except as otherwise provided in the language creating
5317	5317	18 the new benefit increase, a new benefit increase that expires
5318	5318	19 under this Section continues to apply to persons who applied
5319	5319	20 and qualified for the affected benefit while the new benefit
5320	5320	21 increase was in effect and to the affected beneficiaries and
5321	5321	22 alternate payees of such persons, but does not apply to any
5322	5322	23 other person, including, without limitation, a person who
5323	5323	24 continues in service after the expiration date and did not
5324	5324	25 apply and qualify for the affected benefit while the new
5325	5325	26 benefit increase was in effect.
5326	5326
5327	5327
5328	5328
5329	5329
5330	5330
5331	5331	HB4065 - 148 - LRB103 31966 RPS 60743 b
5332	5332
5333	5333
5334	5334	HB4065- 149 -LRB103 31966 RPS 60743 b HB4065 - 149 - LRB103 31966 RPS 60743 b
5335	5335	HB4065 - 149 - LRB103 31966 RPS 60743 b
5336	5336	1 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
5337	5337	2 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
5338	5338	3 (40 ILCS 5/15-203 new)
5339	5339	4 Sec. 15-203. Application of this amendatory Act of the
5340	5340	5 103rd General Assembly. It is the intent of this amendatory
5341	5341	6 Act of the 103rd General Assembly to provide to police
5342	5342	7 officers and firefighters who first became participants on or
5343	5343	8 after January 1, 2011 the same level of benefits and
5344	5344	9 eligibility criteria for benefits as those who first became
5345	5345	10 participants before January 1, 2011. The changes made to this
5346	5346	11 Article by this amendatory Act of the 103rd General Assembly
5347	5347	12 that provide benefit increases for police officers and
5348	5348	13 firefighters apply without regard to whether the participant
5349	5349	14 was in service on or after the effective date of this
5350	5350	15 amendatory Act of the 103rd General Assembly, notwithstanding
5351	5351	16 the provisions of Section 1-103.1. The benefit increases are
5352	5352	17 intended to apply prospectively and do not entitle a
5353	5353	18 participant to retroactive benefit payments or increases. The
5354	5354	19 changes made to this Article by this amendatory Act of the
5355	5355	20 103rd General Assembly shall not cause or otherwise result in
5356	5356	21 any retroactive adjustment of any employee contributions.
5357	5357	22 (40 ILCS 5/5-238 rep.)
5358	5358	23 (40 ILCS 5/6-229 rep.)
5359	5359	24 Section 15. The Illinois Pension Code is amended by
5360	5360
5361	5361
5362	5362
5363	5363
5364	5364
5365	5365	HB4065 - 149 - LRB103 31966 RPS 60743 b
5366	5366
5367	5367
5368	5368	HB4065- 150 -LRB103 31966 RPS 60743 b HB4065 - 150 - LRB103 31966 RPS 60743 b
5369	5369	HB4065 - 150 - LRB103 31966 RPS 60743 b
5370	5370	1 repealing Sections 5-238 and 6-229.
5371	5371	2 Section 20. The Public Safety Employee Benefits Act is
5372	5372	3 amended by adding Section 11 as follows:
5373	5373	4 (820 ILCS 320/11 new)
5374	5374	5 Sec. 11. Retired police officers and firefighters. A unit
5375	5375	6 of local government that provides health insurance to police
5376	5376	7 officers and firefighters shall maintain the health insurance
5377	5377	8 plans of these employees after retirement and shall contribute
5378	5378	9 toward the cost of the annuitant's coverage under the unit of
5379	5379	10 local government's health insurance plan an amount equal to 4%
5380	5380	11 of that cost for each full year of creditable service upon
5381	5381	12 which the annuitant's retirement annuity is based, up to a
5382	5382	13 maximum of 100% for an annuitant with 25 or more years of
5383	5383	14 creditable service.
5384	5384	15 On or before November 15, 2023 and on or before November 15
5385	5385	16 of each year thereafter, the unit of local government shall
5386	5386	17 calculate and certify to the State Comptroller the health
5387	5387	18 insurance costs of the unit of local government's active and
5388	5388	19 retired police officers and firefighters for the next fiscal
5389	5389	20 year for the purposes of disbursement under Section 6z-139 of
5390	5390	21 the State Finance Act.
5391	5391	22 Section 90. The State Mandates Act is amended by adding
5392	5392	23 Section 8.47 as follows:
5393	5393
5394	5394
5395	5395
5396	5396
5397	5397
5398	5398	HB4065 - 150 - LRB103 31966 RPS 60743 b
5399	5399
5400	5400
5401	5401	HB4065- 151 -LRB103 31966 RPS 60743 b HB4065 - 151 - LRB103 31966 RPS 60743 b
5402	5402	HB4065 - 151 - LRB103 31966 RPS 60743 b
5403	5403	1 (30 ILCS 805/8.47 new)
5404	5404	2 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
5405	5405	3 8 of this Act, no reimbursement by the State is required for
5406	5406	4 the implementation of any mandate created by this amendatory
5407	5407	5 Act of the 103rd General Assembly.
5408	5408	6 Section 95. No acceleration or delay. Where this Act makes
5409	5409	7 changes in a statute that is represented in this Act by text
5410	5410	8 that is not yet or no longer in effect (for example, a Section
5411	5411	9 represented by multiple versions), the use of that text does
5412	5412	10 not accelerate or delay the taking effect of (i) the changes
5413	5413	11 made by this Act or (ii) provisions derived from any other
5414	5414	12 Public Act.
5415	5415	13 Section 99. Effective date. This Act takes effect upon
5416	5416	14 becoming law.
5417	5417	HB4065- 152 -LRB103 31966 RPS 60743 b 1 INDEX 2 Statutes amended in order of appearance 3 30 ILCS 105/5.990 new4 30 ILCS 105/6z-139 new5 40 ILCS 5/1-160 6 40 ILCS 5/3-111from Ch. 108 1/2, par. 3-111 7 40 ILCS 5/3-111.1from Ch. 108 1/2, par. 3-111.1 8 40 ILCS 5/3-112from Ch. 108 1/2, par. 3-112 9 40 ILCS 5/3-125from Ch. 108 1/2, par. 3-125 10 40 ILCS 5/3-148.5 new 11 40 ILCS 5/4-109from Ch. 108 1/2, par. 4-109 12 40 ILCS 5/4-109.1from Ch. 108 1/2, par. 4-109.113 40 ILCS 5/4-114from Ch. 108 1/2, par. 4-114 14 40 ILCS 5/4-118from Ch. 108 1/2, par. 4-118 15 40 ILCS 5/4-138.15 new 16 40 ILCS 5/5-155from Ch. 108 1/2, par. 5-155 17 40 ILCS 5/5-167.1from Ch. 108 1/2, par. 5-167.1 18 40 ILCS 5/5-168 from Ch. 108 1/2, par. 5-168 19 40 ILCS 5/5-169from Ch. 108 1/2, par. 5-169 20 40 ILCS 5/5-239 new 21 40 ILCS 5/6-165 from Ch. 108 1/2, par. 6-165 22 40 ILCS 5/6-210from Ch. 108 1/2, par. 6-21023 40 ILCS 5/6-231 new24 40 ILCS 5/7-142.1from Ch. 108 1/2, par. 7-142.1 25 40 ILCS 5/7-171from Ch. 108 1/2, par. 7-171 HB4065- 153 -LRB103 31966 RPS 60743 b HB4065- 152 -LRB103 31966 RPS 60743 b HB4065 - 152 - LRB103 31966 RPS 60743 b 1 INDEX 2 Statutes amended in order of appearance 3 30 ILCS 105/5.990 new 4 30 ILCS 105/6z-139 new 5 40 ILCS 5/1-160 6 40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111 7 40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1 8 40 ILCS 5/3-112 from Ch. 108 1/2, par. 3-112 9 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125 10 40 ILCS 5/3-148.5 new 11 40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109 12 40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1 13 40 ILCS 5/4-114 from Ch. 108 1/2, par. 4-114 14 40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118 15 40 ILCS 5/4-138.15 new 16 40 ILCS 5/5-155 from Ch. 108 1/2, par. 5-155 17 40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1 18 40 ILCS 5/5-168 from Ch. 108 1/2, par. 5-168 19 40 ILCS 5/5-169 from Ch. 108 1/2, par. 5-169 20 40 ILCS 5/5-239 new 21 40 ILCS 5/6-165 from Ch. 108 1/2, par. 6-165 22 40 ILCS 5/6-210 from Ch. 108 1/2, par. 6-210 23 40 ILCS 5/6-231 new 24 40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1 25 40 ILCS 5/7-171 from Ch. 108 1/2, par. 7-171 HB4065- 153 -LRB103 31966 RPS 60743 b HB4065 - 153 - LRB103 31966 RPS 60743 b
5418	5418	HB4065- 152 -LRB103 31966 RPS 60743 b HB4065 - 152 - LRB103 31966 RPS 60743 b
5419	5419	HB4065 - 152 - LRB103 31966 RPS 60743 b
5420	5420	1 INDEX
5421	5421	2 Statutes amended in order of appearance
5422	5422	3 30 ILCS 105/5.990 new
5423	5423	4 30 ILCS 105/6z-139 new
5424	5424	5 40 ILCS 5/1-160
5425	5425	6 40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
5426	5426	7 40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
5427	5427	8 40 ILCS 5/3-112 from Ch. 108 1/2, par. 3-112
5428	5428	9 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125
5429	5429	10 40 ILCS 5/3-148.5 new
5430	5430	11 40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
5431	5431	12 40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
5432	5432	13 40 ILCS 5/4-114 from Ch. 108 1/2, par. 4-114
5433	5433	14 40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
5434	5434	15 40 ILCS 5/4-138.15 new
5435	5435	16 40 ILCS 5/5-155 from Ch. 108 1/2, par. 5-155
5436	5436	17 40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
5437	5437	18 40 ILCS 5/5-168 from Ch. 108 1/2, par. 5-168
5438	5438	19 40 ILCS 5/5-169 from Ch. 108 1/2, par. 5-169
5439	5439	20 40 ILCS 5/5-239 new
5440	5440	21 40 ILCS 5/6-165 from Ch. 108 1/2, par. 6-165
5441	5441	22 40 ILCS 5/6-210 from Ch. 108 1/2, par. 6-210
5442	5442	23 40 ILCS 5/6-231 new
5443	5443	24 40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1
5444	5444	25 40 ILCS 5/7-171 from Ch. 108 1/2, par. 7-171
5445	5445	HB4065- 153 -LRB103 31966 RPS 60743 b HB4065 - 153 - LRB103 31966 RPS 60743 b
5446	5446	HB4065 - 153 - LRB103 31966 RPS 60743 b
5447	5447
5448	5448
5449	5449
5450	5450
5451	5451
5452	5452	HB4065 - 151 - LRB103 31966 RPS 60743 b
5453	5453
5454	5454
5455	5455
5456	5456	HB4065- 152 -LRB103 31966 RPS 60743 b HB4065 - 152 - LRB103 31966 RPS 60743 b
5457	5457	HB4065 - 152 - LRB103 31966 RPS 60743 b
5458	5458	1 INDEX
5459	5459	2 Statutes amended in order of appearance
5460	5460	3 30 ILCS 105/5.990 new
5461	5461	4 30 ILCS 105/6z-139 new
5462	5462	5 40 ILCS 5/1-160
5463	5463	6 40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
5464	5464	7 40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
5465	5465	8 40 ILCS 5/3-112 from Ch. 108 1/2, par. 3-112
5466	5466	9 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125
5467	5467	10 40 ILCS 5/3-148.5 new
5468	5468	11 40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
5469	5469	12 40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
5470	5470	13 40 ILCS 5/4-114 from Ch. 108 1/2, par. 4-114
5471	5471	14 40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
5472	5472	15 40 ILCS 5/4-138.15 new
5473	5473	16 40 ILCS 5/5-155 from Ch. 108 1/2, par. 5-155
5474	5474	17 40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
5475	5475	18 40 ILCS 5/5-168 from Ch. 108 1/2, par. 5-168
5476	5476	19 40 ILCS 5/5-169 from Ch. 108 1/2, par. 5-169
5477	5477	20 40 ILCS 5/5-239 new
5478	5478	21 40 ILCS 5/6-165 from Ch. 108 1/2, par. 6-165
5479	5479	22 40 ILCS 5/6-210 from Ch. 108 1/2, par. 6-210
5480	5480	23 40 ILCS 5/6-231 new
5481	5481	24 40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1
5482	5482	25 40 ILCS 5/7-171 from Ch. 108 1/2, par. 7-171
5483	5483
5484	5484
5485	5485
5486	5486
5487	5487
5488	5488	HB4065 - 152 - LRB103 31966 RPS 60743 b
5489	5489
5490	5490
5491	5491	HB4065- 153 -LRB103 31966 RPS 60743 b HB4065 - 153 - LRB103 31966 RPS 60743 b
5492	5492	HB4065 - 153 - LRB103 31966 RPS 60743 b
5493	5493
5494	5494
5495	5495
5496	5496
5497	5497
5498	5498	HB4065 - 153 - LRB103 31966 RPS 60743 b